Why Does the Bitcoin Soufflé Rise Again and Again?

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 […]

Addressing Climate Risks in Central Banks: Emerging Challenges for SEACEN Member Economies

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 […]

Future Proofing Central Banks through Leadership Practices

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 […]

The Basel Framework and Climate-related Financial Risks

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 […]

Loss Absorbency of Additional Tier 1 Capital Instruments under Basel III: The Credit Suisse Case

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 […]

Fast Payments and Combating the Evolving Threat of Frauds and Scams in Asia

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 […]

Silicon Valley Bank and Central Bank Digital Currencies

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 […]

Data Privacy and Financial Services: Understanding the New Normal

Due to the expanding utilisation of technology, the digital economy’s growth, and the enlarging fragmentation in the payment chain, safeguarding personal information has become a significant concern for both individuals, organisations and governments. Not only is it crucial to safeguard the privacy rights of individuals, but it also has significant implications for businesses, as data […]

Revolutionising Payment Services: The Impact of the Payment Services Directive (PSD) in the European Union and beyond

The rise of internet and mobile payments has drastically altered the way people pay for goods and services. This change is not only reflected in an increase in their share of overall payments, but also in the way our habits and preferences have evolved. Banks, payment card companies and intermediaries have responded to these changes […]

Dollar Strength and its Implications for Emerging Market Capital Flows – A Macro-Financial Perspective

Predominance of the US dollar (USD) funding market, notably post Great Financial Crisis (GFC), has reinforced the macro financial linkages between global financial conditions and capital flows to emerging markets (EM).      A stronger dollar is linked to tighter global financial conditions and higher tail risk for EM capital flow withdrawal – the financial risk […]