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News in Systemic Risk: Tuesday, September 22, 2020 (10 a.m. ET)

September 22, 2020
Coronavirus Aid, Relief, and Economic Security Act (Jerome Powell ; Federal Reserve Board of Governors) EU financial regulators assess risks to the financial sector after the outbreak of COVID-19 and call for enhanced cooperation (European Securities and Markets Authority) Measuring Financial Stress in India (Manjusha Senapati and Rajesh Kavediya; Reserve Bank of India) Fabio Panetta: Asymmetric risks, asymmetric reaction - monetary policy in the pandemic (Fabio Panetta; Bank for International Settlements) The Australian Economy and Monetary Policy (Guy Debelle ; Reserve Bank of Australia) Ukrainian governor defends key banking reform (Dan Hardie; Central Banking) Continue reading “News in Systemic Risk: Tuesday, September 22, 2020 (10 a.m. ET)”

Blockchain & Illicit Activity: Demystifying Assumptions & Lessons Learned for Financial Innovation

By: Diana Barrero Zalles September 22, 2020
Yblockchain

What a pleasure to collaborate with the Yale ICF and put together a blockchain webinar series!  Over the past few years since I graduated from the Yale School of Management and became immersed in this new industry, I’ve experienced first-hand some very fast-paced and crucial developments in...

Continue reading “Blockchain & Illicit Activity: Demystifying Assumptions & Lessons Learned for Financial Innovation”

Part III of Crisis in Lebanon: Public Protests, COVID-19 Crisis, and International Support

September 21, 2020
In this last blogpost of the Lebanon series, we explore how the COVID-19 has impacted the country while it was already undergoing a severe economic and financial crisis. With the limited fiscal space and lack of resources, the most vulnerable Lebanese people are at risk. Aside from the potential IMF support, which is still under discussion, the government could seek to unlock the pledged CEDRE aid or ask for bilateral support. In any case, the road to recovery will be long and winding.   Continue reading “Part III of Crisis in Lebanon: Public Protests, COVID-19 Crisis, and International Support”

Part II of Crisis in Lebanon: Buildup of Interrelated Challenges

September 21, 2020
What led Lebanon into this financial crisis, the biggest challenge the nation has faced since its 1975-1990 civil war? The underlying economic problems are complex and interrelated. In this blogpost of the Lebanon series , we provide an overview of the causes, focusing on five areas: 1) the large current account deficit , 2) the unsustainable fiscal deficit , 3) the fragile financial sector, 4) the Bank of Lebanon’s “financial engineering,” and 5) slow growth, political deadlock, and the impact of the Syrian crisis. Continue reading “Part II of Crisis in Lebanon: Buildup of Interrelated Challenges”

Part I of Crisis in Lebanon: Economic “Free Fall,” IMF Negotiations, and Beirut Explosion

September 21, 2020
In the first blogpost in a series, we introduce the ongoing crisis in Lebanon. On March 9, the country defaulted on its sovereign debt for the first time in its history. At the time, it had one of the highest ratios of debt to GDP in the world. While the government was in the midst of negotiations with IMF for a support program, on August 4, the country’s capital faced a catastrophic explosion caused by neglected ammonium nitrate. Continue reading “Part I of Crisis in Lebanon: Economic “Free Fall,” IMF Negotiations, and Beirut Explosion”

Introduction to Blog Post Series: Crisis in Lebanon

September 21, 2020
The Yale Program on Financial Stability presents a series of blog posts on the current crisis in Lebanon. On August 4, a massive explosion hit Beirut, devastating most of the capital city. It became apparent that the explosion was caused by 2,750 tones of ammonium nitrate. The explosive, which would be also used as a fertilizer, had been left at the port without appropriate safety precautions since authorities confiscated it in 2013.  The country had already been suffering from a severe economic, financial, and political crisis prior to the explosion, and the annihilation of the capital city has exacerbated the situation, at the worst time ever. In the series of three blog posts, we will unravel the crisis in Lebanon. Continue reading “Introduction to Blog Post Series: Crisis in Lebanon”

Despite Stated Exclusion, the Fed Is Buying Bank Debt

September 21, 2020
YPFS
The Federal Reserve has said it won’t directly buy bonds issued by banks as part of its COVID financial rescue facilities. But a close review of its holdings reveals that by buying exchange traded funds, it has indirectly bought $2 billion of bank bonds—over 15% of its total corporate bond holdings. Continue reading “Despite Stated Exclusion, the Fed Is Buying Bank Debt”

News in Systemic Risk: Monday, September 21, 2020 (10 a.m. ET)

September 21, 2020
Pablo Hernández de Cos: Challenges for the Spanish economy in the face of the impact of the pandemic (Pablo Hernández de Cos; Bank for International Settlements) Andrew Hauser: From LIBOR to SONIA - a bridge to the future (Andrew Hauser; Bank for International Settlements) Federal Reserve Board issues Advance Notice of Proposed Rulemaking on an approach to modernize regulations that implement the Community Reinvestment Act (Federal Reserve Board of Governors) EBA phases out its Guidelines on legislative and non-legislative loan repayments moratoria (European Banking Authority) Regulatory spillover: Evidence from classifying municipal bonds as high-quality liquid assets (Jacob Ott; Brookings Institution) Continue reading “News in Systemic Risk: Monday, September 21, 2020 (10 a.m. ET)”