Combating COVID-19: How Should Banking Supervisors Respond?

2020-06-16T16:15:05-04:00June 15, 2020|

By Tobias Adrian  and Ceyla Pazarbasioglu

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The massive macro-financial shock caused by the pandemic continues to ravage the global economy and has put both banks and borrowers under severe strain. Supervisors find themselves confronted with unprecedented challenges which call for decisive action to ensure that banking systems support the real economy while preserving financial stability. This blog introduces nine joint IMF-World Bank recommendations to help supervisors navigate these uncharted waters and calls for vigilance regarding policy measures taken that are not consistent with international […]

Chart of the Week: Financial Reform Report Card

2019-03-13T12:23:50-04:00October 29, 2018|

By Tobias Adrian, Dirk Jan Grolleman, and Anastasiia Morozova

October 29, 2018

Countries have improved banking sector regulation considerably in the past decade, but areas of weakness remain (Steve Gottlieb/Newscom)

The many 10th anniversary retrospectives of the global financial crisis mostly agree: the financial system is safer today than it was when US investment bank Lehman Brothers collapsed in 2008. […]

How To Deal With Failed Banks

2019-03-14T09:56:10-04:00July 3, 2018|

By Deniz Igan

July 3, 2018

Versions in EspañolPortuguês

Reforms since the global financial crisis have made bail-ins a credible option and bail-outs less likely (photo: iStock by Getty Images)

During the global financial crisis, policymakers faced a steep trade-off in handling bank failures. Using public funds to rescue failing banks (bail-outs) could weaken market discipline and lead to excessive risk taking—the moral hazard effect. […]

An Imbalance in Global Banks’ Dollar Funding

2019-03-14T10:32:01-04:00June 12, 2018|

By John Caparusso, Yingyuan Chen, Hideo Hashimoto, David Jones, Will Kerry and Aki Yokoyama

June 12, 2018

Versions in Español, DeutscheFrançais, 日本語Português

The US Treasury is issuing more T-bills, potentially putting upward pressure on the interest rates non-US banks must pay for short-term dollar funding (photo: Jennifer Hack/KRT/Newscom)

For companies and investors outside the […]

Volatility Strikes Back

2019-03-14T11:58:02-04:00May 3, 2018|

By Sergei Antoshin, Fabio Cortes, Will Kerry and Thomas Piontek

May 3, 2018 

Investors who bet on continued low volatility suffered steep losses (photo: Richard B. Levine/Newscom).

The bouts of volatility in early February and late March that spooked investors were confined to equity markets. Nevertheless, they illustrate the potential for sudden market moves to expose fragilities in the financial system more broadly.

With central banks in […]

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