As emphasised in opening remarks by Deputy Governor Jessica Chew at the Central Bank Payments Conference on 11 June 2024 in Kuala Lumpur, “The payment system lies at the heart of economic activity. If money is the lifeblood of the economy, then payment systems represent the veins that allow money to flow to where it […]
Financial Stability, Macroeconomics and Monetary Policy
How can Emerging and Frontier Markets in Asia attract Global Cross-Border Capital Flows for their Climate Transition?
03
Jul
Jul
“To reach net-zero greenhouse gas (GHG) emissions by 2050, entities operating in most sectors must undergo a major transformation. The key tool that will enable this transformation is the development of a transition plan that is science based, coherent, comprehensive, transparent and covers all material scopes of emissions and business activities.” CBI Report on Scaling […]
12
Jun
Jun
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 […]