News Centre

FSB Middle East And North Africa Group Discusses Financial Stability Outlook And Risks From Crypto-Assets

Date 14/06/2022

The Financial Stability Board (FSB) Regional Consultative Group (RCG) for the Middle East and North Africa (MENA) met today in virtual format.

BIS - DeFi Lending: Intermediation Without Information?

Date 14/06/2022

Key takeaways

• Lending platforms are a key part of the decentralised finance (DeFi) ecosystem, but their institutional features mostly facilitate speculation in cryptoassets rather than real economy lending.
• Due to the anonymity of borrowers, overcollateralisation is pervasive in DeFi lending, which generates procyclicality. Reliance on collateral also limits access to credit to borrowers who are already asset-rich, negating financial inclusion benefits.
• For DeFi lending to make inroads into the real economy, it needs to tokenise real assets and rely less on collateral by developing its ability to gather information about borrowers; as such, the system is likely to gravitate towards greater centralisation.

BIS - Monetary Policy Announcements And Expectations: The Case Of Mexico

Date 14/06/2022

Summary

Focus

Under inflation targeting regime, the effectiveness of monetary policy depends on public understanding of central banks' decisions, since expectations are a key channel of the transmission mechanism from policy actions to the economy. Here, private sector analysts play an important role and they shape their expectations in response to central bank announcements and data releases. Thus, it is important to study how private analysts' expectations react to new data and monetary policy decisions.

BIS: Communication, Monetary Policy, And Financial Markets In Mexico

Date 14/06/2022

Summary

Focus

All modern central banks have moved to a strategy that includes better communication tools, more transparency and accountability. Associated with this trend, in the last few decades the literature has substantially increased. The recent development of intensive computational tools that can transform text into data, provides additional ways to analyse and corroborate the benefits of greater communication and central banks' sentiment. Textual analysis has become itself a source of information and feedback for central banks.

BIS - Forward Guidance And Expectation Formation: A Narrative Approach

Date 14/06/2022

Summary

Focus

Forward guidance is a central bank statement that provides direct information about the probable state of monetary policy in the future. Its purpose is to influence interest rate expectations. But how exactly does it do so? This is not yet fully understood.

EBA Publishes Guidelines On Role And Responsibilities Of The AML/CFT Compliance Officer

Date 14/06/2022

The European Banking Authority (EBA) today published its Guidelines specifying the role and responsibilities of the anti-money laundering and countering the financing of terrorism (AML/CFT) compliance officer and of the management body of credit or financial institutions. These Guidelines aim to ensure a common interpretation and adequate implementation of AML/CFT internal governance arrangements across the EU in line with the requirements of the EU Directive on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (ML/FT). 

SEC Charges Weiss Asset Management With Short Selling Violations

Date 14/06/2022

The Securities and Exchange Commission today announced that investment advisory firm Weiss Asset Management LP has agreed to pay approximately $6.9 million to settle charges that it violated the federal securities laws when it unlawfully purchased stock in seven public offerings after selling short those same stocks.

BIS: Monetary Policy Press Releases: An International Comparison

Date 14/06/2022

Summary

Focus

Central banks around the world distribute press releases detailing their monetary policy decisions. Central banks also include in those publications rationalizations for the policy choices and information about the central bank's economic projections. These documents may help guide the evolution of the policy rates by examining the discussions about future economic conditions.

Wilshire Announces New Chief Technology Officer

Date 14/06/2022

Wilshire, is pleased to announce the arrival of Lawrence Miller as Chief Technology Officer and a member of the Executive Committee.  As Chief Technology Officer, he will have oversight responsibility for all development and engineering efforts throughout Wilshire.

BIS: Effects Of Banco de la Republica's Communication On The Yield Curve

Date 14/06/2022

Summary

Focus

Communication is nowadays an essential instrument in the conduct of monetary policy. Consequently, central banks are interested in assessing their communications strategies in order to determine whether or not information is disseminated with clarity and in such a way that they contribute to the effectiveness of monetary policy.