BIS Latest Update October 2024: Lessons On Bank Turmoil, Carry Trade

Carry off, carry on

Markets’ hypersensitivity to macroeconomic news and the unwinding of leveraged positions resulted in sharp but short-lived volatility.

Bank failure management: the European challenges

Fernando Restoy offers reflections on improving bank crisis management and resolution frameworks in Europe.

Credit and resource allocation in EMEs: two decades of falling interest rates

Since the 2000s, declining interest rates boosted credit in emerging markets' housing sector, coinciding with lower growth.

The carry trade unwind

BIS authors discuss the drivers and implications of the unwinding of carry trades in the August 2024 market turmoil.

Shifting landscapes: life insurance and financial stability (video)

Low-for-long interest rates have squeezed life insurers' profit margins and increased their exposure to riskier assets, raising financial stability risks.

Project Agorá private sector participation

Over 40 private sector financial firms join the BIS Innovation Hub project to explore how tokenisation can enhance wholesale cross-border payments.

The transformative power of innovation in the financial system

Central bank innovation is key to ensuring new technologies such as tokenisation and AI serve the public good, says Cecilia Skingsley.

More BIS publications

Press release: Basel Committee approves annual G-SIB assessment and advances follow-up response to 2023 banking turmoil
The Basel Committee approved the annual assessment of global systemically important banks and advanced its response to the 2023 banking turmoil.

Press release: State Bank of Vietnam's Nguyen Thi Hong appointed Chair of the BIS Asian Consultative Council (ACC)
The BIS Board of Directors has appointed the Governor of the State Bank of Vietnam as Chair of the ACC for a two-year term.

FSI publication: Cross-border crisis simulation
Seven Latin American countries participated in a crisis simulation exercise to test their preparedness for managing a bank failure.

Upcoming

2 October: Andréa M Maechler gives public lecture at the London School of Economics.
22 October: Agustín Carstens gives keynote remarks (recorded) at the joint BIS-IMF G20 event on “The future of cross-border payments: faster, safer, more inclusive”, in Washington, DC. Other speakers include Hyun Song Shin, Cecilia Skingsley, Andréa M. Maechler and Tara Rice.
23 October: Agustín Carstens participates in a fireside chat with Sergio Ermotti, moderated by Tim Adams at the Institute of International Finance Annual Membership Meeting in Washington, DC.
23 October: Cecilia Skingsley gives keynote speech at the Federal Reserve Bank of Philadelphia’s Annual Fintech Conference.