Europe
European Central Bank continues easing with 25bp cut
Revised forecast points to stunted growth, as Lagarde says bank is operating in “high uncertainty”
Central banks split on whether CBDC will impact seigniorage
Some respondents see seigniorage depending on CBDC design choices
Basel uniformity fades as members defy dress code
Rule-makers diverge from Basel III standards, denting aims of comparability and fuelling fears over fair competition
Central banks widely exploring RTGSs’ interoperability with CBDCs
High income institutions more likely to research the issue than their middle income counterparts
Value-at-risk models face neglect due to FRTB uncertainty
Some banks delaying material upgrades until timeline to replace VAR becomes clearer
Half of institutions have a central data collection centre
Respondents with data collection system more likely to automate regulatory filings
Losing key Chinese inputs could hurt eurozone – ECB paper
Halving of critical imports would cause drop of up to 3% in output for manufacturers, research shows
CRR III hangs in the balance as member states push for changes
Top EU lawmaker rejects calls to water down capital rules, while others see room for manoeuvre
Flexibility and business continuity seen as key benefits of cloud services
But three in four fintech teams point at privacy as concern
Eurosystem sees small rise in counterfeiting over 2024
€20 and €50 notes remain the most popular denominations to replicate
ECB looks to change staff committee rules
Staff committee says changes are “clear retaliation” for its survey of Lagarde’s performance
Central banks more likely to use software-based cloud services
Cloud widely used for cyber security and other applications
ESRB views US financial deregulation ‘with concern’
Vice-chair Olli Rehn announces new communication drive as “memory of last financial crisis fades”
AI spreads further among fintech teams
Centralised fintech teams more likely to apply AI/ML to sentiment analysis
ECB board members express regret over QE stimulus
Cipollone says unwinding balance sheet thwarts rate cuts, while Schnabel wants “less activist” bank
Half of planned CBDCs designed to be programmable
Two-thirds of wholesale CBDCs likely to be programmable
Most central banks without CBDC mandate engaged in retail projects
Only one in three banks has a legal mandate for CBDC issuance, but many are still working on digital currency
American central banks less likely to struggle with fintech recruitment
But American banks face toughest battle for talent retention
Cool heads must guide financial regulation of climate risk
Supervisors can’t simply rely on ‘magical thinking’ of market discipline, says Sergio Scandizzo
Quantum computing could help with prudential policies – study
Bank of Italy paper says technology could help central banks simulate stress scenarios for lenders
Fintechs more likely to be licensed in upper-middle income countries
Licence issue rate across central banks broadly unchanged year on year