by Stephen Kho In response to swift policy rate hikes by the ECB, commercial bank deposit rates have increased but also diverged across the euro area. In this SUERF policy brief, I discuss the transmission of monetary policy to deposit rates in the euro area, with a focus on the role of concentration in the[…]
by the Contact Group on Macroprudential Stance of the ESRB’s Instruments Working Group (IWG) Links: Report: Improvements to the ESRB macroprudential stance framework
Podcast with Luigi Zingales, Bethany McLean It’s been nearly 16 years since the federal government bailed out Wall Street to the tune of $700 billion in response to the financial crisis that precipitated the Great Recession. The idea that the public must guarantee critical financial institutions that are “too big to fail” was controversial then,[…]
by the European Banking Authority The European Banking Authority (EBA) published its Report on liquidity measures, which monitors and evaluates the liquidity coverage requirements currently in place in the EU. Between June 2022 and June 2023, the EU banks’ liquidity coverage ratio (LCR) declined but remained comfortably above the minimum requirement. However, within this review[…]
by Nina Biljanovska, Chenxu Fu and Deniz Igan The rapid increase in house prices in the past few years, including during the COVID-19 pandemic, raises concerns about housing affordability. The price-to-income ratio is a widely-used indicator of affordability, but does not take into account important factors such as the cost of financing. The aim of[…]
by the Financial Stability Board The Financial Stability Board (FSB) published the 2023 list of global systemically important banks (G-SIBs) using end-2022 data and applying the assessment methodology designed by the Basel Committee on Banking Supervision (BCBS). One bank (Bank of Communications (BoCom)) has been added to the list of G-SIBs that were identified in 2022,[…]
by Francesca Diluiso, Barbara Annicchiarico and Marco Carli While climate change is often seen as a long-term concern, climate mitigation policies can have different short-term effects, since they affect the transmission mechanism of conventional macroeconomic shocks.In a new working paper, the authors show that cap-and-trade schemes lead to lower volatility in GDP and financial variables, and[…]
by Raphael Auer, Giulio Cornelli and Christian Zimmermann We present a ranking of journals geared toward measuring the policy relevance of research. We compute simple impact factors that count only citations made in central bank publications, such as their working paper series. Whereas this ranking confirms the policy relevance of the major general interest journals in the field of[…]
by the Financial Stability Board The FSB developed key performance indicators (KPIs) to operationalize the monitoring of the targets set by the G20 in order to address challenges in cross-border payments. These KPIs measure either directly or indirectly the extent to which the targets are being met, where progress is being made and where challenges[…]
by Whitney Zhang Referring to the NBER Working Paper Bank Branch Density and Bank Runs by Efraim Benmelech, Jun Yang, and Michal Zator this article points out that stock prices of banks with low branch density experienced larger declines around recent bank failures. The authors attribute these declines to a greater risk of large deposit outflows. Link: The Digest No.[…]