Financial institutions

The recession-mortality nexus and Covid-19

12/15/2020 BIS International

Countries with a stronger predicted GDP decline in 2020 have also seen a larger number of deaths in excess of official Covid-19 fatalities. Historical data show that recessions are systematically associated with higher mortality, especially in developing economies. Following a recession, death rates remain elevated for several years. The eventual death toll of Covid-19 may be understated if the impact of the pandemic-induced recession is neglected. Limiting the economic fallout of the pandemic could also reduce excess mortality.

Dealing with bank distress: Insights from a comprehensive database

12/14/2020 BIS International

We study the effectiveness of policy tools that deal with bank distress (i.e. central bank lending, asset purchases, bank liability guarantees, impaired asset segregation schemes). We present and draw on a novel database that tracks the use of such tools in 29 countries between 1980 and 2016.

Central bank swap lines and cross-border bank flows

12/14/2020 BIS International

This Bulletin traces the use of the swap lines and their impact on global banking positions. In doing so, it highlights the critical role that banks play in international payments, and capital flows more generally.

Contagion Accounting

12/11/2020 BIS International

We provide a simple and tractable accounting-based stress-testing framework to assess loss dynamics in the banking sector, in a context of leverage targeting. Contagion can occur through direct interbank exposures, and indirect exposures due to overlapping portfolios with the associated price dynamics via fire sales.

Basel III Monitoring Report

12/10/2020 BIS International

Highlights of the Basel III monitoring exercise as of 31 December 2019

Low price-to-book ratios and bank dividend payout policies

12/09/2020 BIS International

Banks with a low price-to-book ratio have a greater propensity to pay out dividends. This propensity is especially marked for banks with a price-to-book ratio below a threshold of 0.7. As a sector, banks also tend to have higher dividend payout ratios than non-financial firms. We demonstrate these features using data for 271 advanced economy banks in 30 jurisdictions.

Enabling open finance through APIs

12/08/2020 BIS International

Report by the Consultative Group on Innovation and the Digital Economy (CGIDE) established at the BIS Representative Office for the Americas, 8 December 2020

BIS Quarterly Review, December 2020

12/07/2020 BIS International

BIS Quarterly Review for December 2020: This Quarterly Review shows markets rebounded in November, but concerns about the daylight between valuations and the economic outlook persisted. Government bond yields stayed unusually low, supported by monetary accommodation, sustaining the search for yield. The relative performance of EME currencies partly reflected structural features of domestic economies.

Supplemental note to External audits of banks - audit of expected credit loss

12/07/2020 BIS International

The Committee is issuing a supplemental note to its 2014 guidance External audits of banks following the implementation of expected credit loss (ECL) accounting frameworks in various jurisdictions that have brought about significant changes for banks and their external auditors.

Project Helvetia: Settling tokenised assets in central bank money

12/03/2020 BIS International

Project Helvetia: Settling tokenised assets in central bank money

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