Most central banks are exploring central bank digital currencies (CBDCs), and their work continues apace amid the Covid-19 pandemic. This BIS paper updates earlier surveys that asked central banks how their plans in this area are developing.
The Basel Committee is publishing the consultative document "Minimum haircut floors for securities financing transactions", January 2021.
We study optimal bank leverage and recapitalization in general equilibrium when the supply of specialized investment capital is imperfectly elastic.
Regulatory reforms following the financial crisis of 2007–08 created incentives for large global banks to lower their systemic importance. We establish that differences in profitability shape banks' response to these reforms.
We propose a method to extract the risk-neutral distribution of fi rm-specifi c stock returns using both options and credit default swaps (CDS).
This paper examines how China's local governments make investment via financing vehicles (LGFVs) and provides new insights on often-criticised LGFVs from a different perspective.
The financial sector has been hit by hackers relatively more often than other sectors during the Covid-19 pandemic. While this has not yet led to significant disruptions or a systemic impact, there are substantial risks from cyber attacks for financial institutions, their staff and their customers going forward. Financial authorities are working to mitigate cyber risks, including through international cooperation.
We explore the structural drivers of bank and nonbank credit cycles using a medium-scale DSGE model with two types of financial intermediation. We posit economy-wide and sectoral disturbances in both macro and financial sectors.
We study the dynamic properties of sovereign bonds in emerging market economies and their associated risk premiums. We focus on the properties of credit spreads, exchange rates, and their interaction.
Trade tensions between China and US have played an important role in swinging global stock markets but effects are difficult to quantify. We develop a novel trade sentiment index (TSI) based on textual analysis and machine learning applied on a big data pool that assesses the positive or negative tone of the Chinese media coverage, and evaluates its capacity to explain the behaviour of 60 global equity markets.
