Providing agility as well as stability is the leadership mandate in central banks today Imagine this: You and your team worked so hard on a very important report that you needed to deliver. This ad hoc report was, frankly, beyond your area of expertise, yet you took on the challenge and rallied your team to […]
14
May
May
Introduction There is a fair degree of consensus that in order to prevent the worst climate damages, global net emissions of carbon dioxide need to fall by about 45 per cent from 2010 levels by 2030, reaching net zero around 2050. To curb the adverse effects of global warming, the Intergovernmental Panel on Climate Change […]
24
Apr
Apr
Cracking the code on the leadership required in Central Banks: How to succeed within the paradox of providing stability and agility at the same time
17
Apr
Apr
There has never been any asset that has staged a series of four bubbles, crashed aftereach of them, and after a while regrouped to stage another bubble, the way bitcoin has.John Authors, Points of Return, 26 March 2021 Every aspiring baker knows only too well that getting a soufflé to rise can be a big […]
Macroeconomics and Monetary Policy
Addressing Climate Risks in Central Banks: Emerging Challenges for SEACEN Member Economies
22
Mar
Mar
Climate change poses a common and potentially overwhelmingmacrofinancial risk for all SEACEN member countries.Michael D. Patra, Deputy Governor, Reserve Bank of India, 15 February 2024 Introduction Many SEACEN economies are acutely vulnerable to natural disasters and the broader impact of climate change. Figure 1 illustrates the mean temperature and precipitation change within the last century […]
14
Dec
Dec
Future-ready central banks In the words of Christine Lagarde, ‘central banks must provide for stability in an age that is anything but stable’. Central bank leaders throughout the world are increasingly acknowledging that we are now living in the age of disruption and that one of our key priority areas must be ensuring our future […]
10
Nov
Nov
The Basel Committee on Banking Supervision (BCBS or the Basel Committee) has undertaken a lot of work on climate-related financial risks. This blog covers three themes from BCBS’ work on this topic: The focus on climate-related financial risks (and not the broader environment-, nature-, or ESG-related financial risks). Addressing climate-related financial risks within the […]
Financial Stability, Supervision
Loss Absorbency of Additional Tier 1 Capital Instruments under Basel III: The Credit Suisse Case
30
Oct
Oct
Background: Additional Tier 1 (AT1) Capital Instruments under Basel III During the global financial crisis (2007-2009), several banks had to be rescued through capital injections by their governments which led to supporting not only the depositors but also the investors in Additional Tier 1 (AT1) and Tier 2 regulatory capital instruments. Inadequate loss-absorption by regulatory […]
Financial Stability, Payment Systems, Supervision
Fast Payments and Combating the Evolving Threat of Frauds and Scams in Asia
30
Oct
Oct
The purpose of this blog is to share how fast payments in Asia can be used fraudulently and to illustrate some of counter measures that are being implemented to combat frauds and scams. Across Asia and all around the world, scams and cybercrimes have been on the rise, particularly since the global COVID-19 pandemic. This […]
21
Jun
Jun
The swift downfall of Silicon Valley Bank (SVB) amidst the recent banking crisis in the United States has sparked renewed curiosity regarding the potential impact of central bank digital currencies (CBDCs) on financial stability. The collapse of Silicon Valley Bank has started a stampede in the outflow of deposits from banks. Bank deposits have fallen […]