Policymakers have spent four months calling for the G20 to support a new allocation or a reallocation of special drawing rights (SDRs) at the IMF. An SDR allocation would help bolster the reserves of the world’s countries. Nevertheless, the G20’s latest July communique, much like the last one in mid-April 2020, barely mentioned the SDR. The only reference to an SDR allocation or reallocation in the communique was an admission that the G20 had indeed discussed it, but could not find a consensus on the issue. The U.S. blocked an allocation and is also blocking efforts to allow rich countries to donate their SDRs to those in need. Continue reading “The G20’s impasse on Special Drawing Rights (SDRs)”

Euro area bank bailout policies after the global financial crisis sowed seeds of the next crisis (Viral Acharya, Lea Borchert, Maximilian Jager, Sascha Steffen; VoxEu) Federal Reserve Board announces individual large bank capital requirements, which will be effective on October 1 (Federal Reserve Board of Governors) Reforming bank stress testing in the EU: reflections in light of the EBA’s discussion paper on the issue (Javier Suarez, Willem Buiter; European Systemic Risk Board) Fiscal Policy Measures In Response to the Health Crisis in the Main Euro Area Economies, the United States and the United Kingdom (Lucía Cuadro-Sáez, Fernando S. López-Vicente, Susana Párraga Rodríguez, Francesca Viani; Banco de España) Turkish Lira Hits Record Low, Spurring Expectations of Rate Rise (Caitlin Ostroff; Wall Street Journal Continue reading “News in Systemic Risk: Monday, August 10, 2020 (10 a.m. ET)”

Daven Hines ’21 is an intern at YouTube this summer. He discusses what it's like to work as a product marketing intern at YouTube, his love of the SOM series Voices, and what he is watching and reading this summer. Continue reading “Internship Spotlight Podcast: Daven Hines ’21, YouTube”

Basel Committee releases consultative documents on principles for operational risk and operational resilience (Bank for International Settlements) Note on Financial Stability and Supervision (Bank of Italy) Introduction of Automated Sweep-In and Sweep-Out (ASISO) Facility for end of the day LAF Operations (Reserve Bank of India) Covid-19 challenges IMF debt-restructuring framework (Central Banking) Crapo floats expanded emergency lending, relaxed bank capital rules (Zachary Warmbrodt; PoliticoPro) Interest rates, market power, and financial stability (David Martinez-Miera, Rafael Repullo; VoxEu) Continue reading “News in Systemic Risk: Thursday, August 6 (10 a.m. ET)”