Time to ignite all engines, BIS says in its Annual Economic Report
Monetary policy can no longer be the main engine of economic growth, and other policy drivers need to kick in to ensure the global economy achieves sustainable momentum, the Bank for International Settlements (BIS) writes in its Annual Economic Report.
In its flagship economic report, the BIS calls for a better balance between monetary policy, structural reforms, fiscal policy and macroprudential measures. This would allow the global economy to move away from the debt-fuelled growth model that risks turbulence ahead.
view the BIS Annual Economic Report 2019
Source: BIS
Deutsche Bank Considers Up to 20,000 Job Cuts
June 28, 2019--Job losses would likely take place over more than a year, with the pain and costs spread across regions and businesses.
Deutsche Bank AG is weighing whether to cut 15,000 to 20,000 jobs, or more than one in six full-time positions globally, according to a person familiar with high-level discussions about the latest attempts to turn around the struggling financial giant.
Source: Wall Street Journal
Five Facts on Fintech
June 27, 2019--June 27, 2019--From artificial intelligence to mobile applications, technology helps to increase your access to secure and efficient financial products and services.
Since fintech offers the chance to boost economic growth and expand financial inclusion in all countries, the IMF and World Bank surveyed central banks, finance ministries, and other relevant agencies in 189 countries on a range of topics and received 96 responses.
A new paper details the results of the survey alongside findings from other regional studies, and also identifies areas for international cooperation-including roles for the IMF and World Bank-and in which further work is needed by governments, international organizations, and standard-setting bodies.
view the IMF Policy Paper-Fintech : The Experience So Far
Source: IMF
Basel Committee finalises revisions to leverage ratio treatment of client cleared derivatives and disclosure requirements to address window-dressing
June 26, 2019--The Basel Committee on Banking Supervision today released a revised treatment of client cleared derivatives for purposes of the leverage ratio. The Basel Committee also issued a revision to the leverage ratio disclosure requirements with the aim of reducing excessive volatility in banks' exposures around key reference dates.
The publication Leverage ratio treatment of client cleared derivatives sets out a targeted revision of the leverage ratio measurement of client cleared derivatives to align it with the standardised approach to measuring counterparty credit risk exposures (SA-CCR). This treatment permits both cash and non-cash forms of segregated initial margin and cash and non-cash variation margin received from a client to offset the replacement cost and potential future exposure for client cleared derivatives only.
Source: BIS
Literature review on the costs and benefits of bank capital published by the Basel Committee
June 24, 2019--As part of its work programme for evaluating the impact of its post-crisis reforms, the Basel Committee on Banking Supervision today published a working paper reviewing the literature on the costs and benefits of bank capital. The Committee published an earlier assessment of the long-term economic impact (LEI) of stronger capital and liquidity requirements in 2010.
Today's paper considers this assessment in light of estimates from later studies of the macroeconomic benefits and costs of higher capital requirements.
Source: BIS
Big tech in finance: opportunities and risks
June 23, 2019--The entry of large technology firms ("big techs") such as Alibaba, Amazon, Facebook, Google and Tencent into financial services, including payments, savings and credit, could make the sector more efficient and increase access to these services, but also introduces new risks, the Bank for International Settlements (BIS) writes in its Annual Economic Report.
In a special chapter on big tech in finance, the BIS notes that these companies offer many potential benefits, including enhanced efficiency of financial services provision, facilitating financial inclusion and promoting associated gains in economic activity.
view the III. Big tech in finance: opportunities and risks
Source: BIS
Vanguard has held early-stage talks with prospective partners as it weighs whether to offer more alternative investments
June 23, 2019--Vanguard Group has had discussions with a handful of private-equity firms as the indexing giant weighs whether to push further into alternative investments.
The firm held exploratory talks with Boston firm HarbourVest Partners, London-based Pantheon and at least one other firm, said people familiar with the matter. Those talks took place in the past year. Vanguard is evaluating partnerships to make a mix of private-equity funds available to Vanguard clients, the people said.
Source: Wall Street Journal
Breaking: Bitcoin breaks above $11,000 for the first time since March 2018
June 22, 2019--The first digital currency hit $11,125 high on Saturday trading as the rally is gaining traction. At the time of writing, BTC/USD is changing hands at $11,046 amid strong bullish sentiments.
The next target awaits us on approach to $11,500. This psychological barrier is strengthened by 50% Fibo retracement for the significant downside move from the all-time high reached in December 2017
Source: forexcrunch.com
IOSCO examines liquidity in corporate bond markets under stressed conditions
June 21, 2019--The Board of the International Organization of Securities Commissions today published a report that examines the factors affecting liquidity in secondary corporate bond markets under stressed conditions
The report, prepared by IOSCO's Committee on Emerging Risks, examines how liquidity in secondary corporate bond markets tends to evolve when those markets experience stress. The report seeks to increase understanding of how stressed conditions may affect both bond and other financial markets and the financial system more broadly.
view the IOSCO Liquidity in Corporate Bond Markets Under Stressed Conditions Final Report
Source: IOSCO
Money-laundering watchdog to clamp down on cryptocurrencies
June 21, 2019--Global task force to announce measures on Friday
FATF wants countries to tighten cryptocurrency oversight
Europol warns digital coins being used for crime
Cryptocurrencies such as bitcoin are set to be subjected to rules to prevent their abuse for money laundering, a global watchdog will announce on Friday, the first worldwide regulatory attempt to constrain the rapidly growing sector.
The Paris-based Financial Action Task Force (FATF), a coalition of countries from the United States to China, will tell countries to tighten oversight of cryptocurrency exchanges to stop digital coins being used to launder cash.
Source: Reuters