Several big British retailers have been in the news recently – but not for buoyant sales or new product launches. Firms like Marks & Spencer and Co-op have been hacked, affecting online sales and the range of products available in-store, and forcing them to apologise to customers and other stakeholders. Luxury retailer Harrods also suffered a near-miss.
Judging by the recent success of UK productions like Adolescence and Baby Reindeer, you might assume that the UK film and television industry is flourishing.
Jin-Wook B. Chang and Grace ChuanThe isolated effects of collateral reuse on financial stability are ambiguous and understudied. While greater collateral reuse can guarantee more payments with fewer assets, it can also increase the exposure to potential drops in collateral price. To analyze these tradeoffs, we develop a financial network model with endogenous asset pricing, multiple equilibria, and equilibrium selection.
Diversity training is more effective when it’s personalized, according to my new research in the peer-reviewed journal Applied Psychology.
If the basket falls, at least there are some other eggs on hand that might not break. Iryna Veklich/Moment via Getty ImagesYou’ve probably heard the adage about not putting all your eggs in one basket.
Monetary policy can have contrasting effects on economic inequality via distinct channels. We examine the effect working via the credit channel, whereby monetary policy induces heterogeneous access to credit for business owners based on their wealth. Using unique data on business loan applications from small firms, we find that monetary expansions increase the bank’s likelihood to approve loan applications, particularly so for low-wealth entrepreneurs, translating to higher future income and wealth.
The PRA has today clarified its expectations around business conducted within branches of international banks operating in the UK, as well as its booking model expectations and liquidity reporting for such branches.
We examine the differential impact of monetary policy and macroprudential policy on bank lending rates in the euro area, using granular corporate loan-level data for the period 2019-2023. We find three results: First, consistent with the predictions of a stylized theoretical model of bank lending rates, monetary policy exerts an order of magnitude larger impact on lending rates than macroprudential policy. Second, the effectiveness of monetary policy transmission weakens when interest rates are close to or below zero.
Trade tensions can be a threat to financial stability, with both the implementation of trade restrictions and trade policy uncertainty resulting in adverse consequences. In this special feature, we show that trade policy uncertainty can adversely affect the real economy as well as banks’ funding, asset quality, profitability and lending. Policy authorities need to identify risks stemming from trade tensions, monitor their transmission and evaluate their potential impact on financial stability.
The UK and EU have announced a range of historic and wide-ranging new agreements touching on trade, defence and borders.
Since the 2016 Brexit vote, COVID and conflict have changed the global economic landscape dramatically – with consumers feeling the effects every day. So the time could be ripe for a “reset” of relations between the UK and its largest trading partner.
