ECB Supervision Blog Entry by Claudia Buch, Chair of the Supervisory Board of the ECB The Supervisory Board has decided to update its annual health check of banks, the Supervisory Review and Evaluation Process. Triggered by structural shifts, new risks and external shocks, the changes aim at making the SREP more efficient and effective. Links:[…]
Why apply? The current polycrisis is a catalyst for far-reaching structural change that lies ahead of European society. Rebuilding more resilient and sustainable social systems will require the mobilisation and (re)allocation of vast financial resources between governments, firms, and households. Whereas the financial system plays a pivotal role in this intermediation process, it is also[…]
EBA Press Release The European Banking Authority (EBA) published its Q4 2023 quarterly Risk Dashboard (RDB), which discloses aggregated statistical information for the largest EU/EEA institutions. EU/EEA’s banks capitalisation stands at record levels, liquidity has improved, while return on equity (RoE) stood at 10.3%. Yet, early signs of credit quality deterioration have become more apparent.[…]
VoxEU Columnby Mikhail Mamonov, Steven Ongena, Anna Pestova Disasters are mostly unexpected, but during recent decades the world has witnessed a rising incidence of disasters of various types, including armed conflicts, infectious diseases, and natural calamities. This rise is expected to continue in the future due to political and demographic developments, nature loss, and climate[…]
University of Chicago BFI Research Brief by Ezra Oberfield, Esteban Rossi-Hansberg, Nicholas Trachter, Derek Wenning The banking deregulation of the 1980s and 90s provides unique evidence of the way in which banks set up their branches across locations. Two forms of sorting explain observed location patterns well. Sorting on size, whereby top banks locate in[…]
VoxEU Columnby Fernando Broner, Sergio L. Schmukler & Goetz von Peter The countries of the Global South are becoming increasingly important actors in the global financial economy. This column uses a comprehensive new bilateral dataset on cross-border bank loans and deposits, portfolio investment, foreign direct investment, and international reserves, covering the period from 2001 to[…]
ESRB Press Release At its meeting on 21 March 2024, the General Board of the European Systemic Risk Board (ESRB) acknowledged the resilience of the banking system but concluded that financial stability risks in the EU remain elevated amid high geopolitical uncertainty. Links: ESRB Press Release – The General Board of the European Systemic Risk[…]
New York FED Liberty Street Economics – Blog Entry by Stephan Luck and Matthew Plosser The authors evaluate how deposits have evolved over the latter portion of the current monetary policy tightening cycle. They find that while deposit betas have continued to rise, they did not accelerate following the bank runs in March 2023. In[…]
IMF Blog entry by Allison Holland, Ceyla Pazarbasioglu How to Ease Rising External Debt-Service Pressures in Low-Income Countries – Debt servicing costs are increasing rapidly while annual refinancing needs have tripled to about $60 billion. Links: IMF Blog: How to Ease Rising External Debt-Service Pressures in Low-Income Countries
FSI Insights on policy implementation – No 56by Johannes Ehrentraud, Ségolène Mure, Elisabeth Noble and Raihan Zamil Non-bank financial intermediaries (NBFIs) encompass numerous firms with distinct business models that provide various financial services. This includes NBFI retail lenders, such as finance companies, mortgage companies, fintechs and big techs that lend to households and small and medium-sized enterprises (SMEs). In this[…]