Rush to phase out fossil fuels could trigger financial instability

Policy-makers are making a concerted effort to steer the financial sector away from supporting fossil fuel producers, creating opportunities for new lenders, but some worry about the impact on the global economy.

Basel’s crypto treatment disappoints banks

Bankers now have a much clearer view of how their exposures to crypto will be treated from a prudential perspective. On a positive note they gained some clarity, but they are not entirely happy with the outcome.

Is the UK gambling on a return to casino capitalism?

It is tempting to dismiss the UK government’s plans to scrap banker bonus caps, reintroduce a competitiveness mandate for regulators and to potentially dilute conduct rules to turbo charge the City of London’s growth as a return to casino capitalism. The reality is somewhat more nuanced.

ISDA’s DRR puts banks and supervisors on the same page

At long last, everyone’s a winner. A new digital initiative for reporting swaps data could produce cleaner regulatory data while capping escalating reporting costs for banks.

Banks turn to increasingly sophisticated technology to fend off hackers

The battle between hackers and banks is very unequal, with the former often able to perform their attacks anonymously at little cost. For banks, much is at stake from reputation to profitability and they are having to marshal increasingly sophisticated tools to defend their moats.

Will AI save banks from the cyber hordes?

Banks are under constant attack from cyber criminals, forcing them to turn to ever more sophisticated tools to mount an effective defence. AI is very much moving into the front line as a protection tool.

DeFi stands out as crypto’s biggest regulatory challenge

Decentralised finance is one of the most difficult areas of crypto to regulate and could pose systemic risks if it becomes deeply embedded in the traditional financial system, central bankers warned.

LDI blow-up might be a problem for banks

The blow-up of a particular type of UK pension fund investment strategy, which could have rolled into a global financial crisis, almost certainly paves the way for more regulation.

China’s banks face soaring NPLs as economic woes intensify

There are rising concerns over China’s banking system as the country’s lenders feel the effects of slowing growth combined with a deflating real estate market.

Social finance suffers EU setback

The quest to create global standards for ‘social’ investing took a blow recently when the European Commission decided to kick the EU’s social taxonomy into the long grass. A fragmentation of standards is now likely to proliferate.

Is UK regulation about to be politicised?

It was supposed to turbocharge the City of London’s fortunes, but in the end the government’s long-awaited financial services bill was a bit of a damp squib. It will, however, entrench tensions between the government and regulators with potentially dangerous consequences.

Gensler takes on US stock market interests

Certain entrenched interests in the US stock market face a bruising battle with the Securities and Exchange Commission — one that will be played out in the courts and the media.

Golden chance to globalise ESG

The recent launch of the ISSB and a series of consultations offer a golden opportunity to drive common global ESG standards.

Banks menaced by the Horsemen of the Apocalypse

Swathes of global banking business could be under threat as geopolitical instability looks set to become the norm. 

The beginning of the end of the US dollar?

The demise of the US dollar as the world’s top reserve currency has been endlessly debated, but some observers believe that the recent sanctions against Russia might be a real turning point.

How the Ukraine war could go badly for banks

Russia has effectively been ejected from the global economy by the West — a move that will stress its banks and could have frightening unintended consequences.