News in Systemic Risk: Tuesday, August 29, 2017 (10 a.m. ET)

Higher Capital is Not a Substitute for Stress Tests (Brookings)

Funders-of-Last-Resort: Legal Issues Involved in Using Central Bank Balance Sheets to Bolster Economic Growth (SSRN)

Luxembourg: Financial Sector Assessment Program: Technical Note – Managing Problem Banks and Systemic Banking Crises (IMF)

Financial Stability is a Growing Concern of Central Banks (Economist)

ECB Needs Fresh Powers to Intervene in Bank Failures, Supervisor Says (Reuters)

A Brexit Logjam is Looming at the Bank of England (Bloomberg)

Banks Use Secured Lending to Sidestep Retail Losses (FT)

Ultra-Low Rates Put Squeeze on Germany’s Small Banks (FT)

China’s Central Bank Is Working Hard to Stand Still (Bloomberg)

Huarong Chief Warns of Bubble in China’s Distressed Debt Market (FT)

Day Trading in Wall Street’s Complex ‘Fear Gauge’ Proliferates (New York Times)