Bank for International Settlements
Non-banks now central to sovereign-bank risk nexus
A new Bank for International Settlements working paper documents that the traditional sovereign-bank nexus has expanded to include non-bank financial institutions.
Focus
Ample reserves dynamics risk balance sheet instability
A Philadelphia Fed working paper explores how the implementation of monetary policy can lead to unstable central bank balance sheet dynamics.
Geopolitical risk raises EM sovereign credit costs
A new Bank for International Settlements working paper finds that geopolitical risk significantly raises sovereign credit default swap (SCDS) and bond index (EMBI) spreads in emerging markets.
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Export controls target high-tech trade, shaped by geopolitics
A Federal Reserve Bank of St. Louis working paper characterizes how export controls are allocated across products and destinations.
AI investment race leads to over-commitment, financial fragility
A new Bank for International Settlements working paper finds that the AI investment boom is characterized by excessive resource commitment and financial fragility.
AI disruption threatens private credit software exposures
A Bank for International Settlements (BIS) Bulletin finds that private credit firms, particularly Business Development Companies (BDCs), have significant exposure to software firms vulnerable to generative AI disruption.
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Capacity utilization drives state-dependent labor tax effects on hours
A new BIS working paper develops a business cycle model demonstrating that the aggregate hours elasticity is higher in recessions.
Digital payments reshape markets, incumbents retain dominance
A new Bank for International Settlements (BIS) bulletin examines the rapidly evolving landscape of retail digital payments.
Mortgage lock-in reduces sellers, but lower rates tighten markets
A new working paper from the Federal Reserve Bank of Philadelphia finds that elevated mortgage rates cause homeowners to delay selling, reducing transaction volumes.
Colombian provisioning rules lift resilience without cutting credit
The Superintendence of Finance of Colombia introduced higher provisioning requirements for long-term consumer loans in January 2023.
Tech booms erode skilled wages, easy finance amplifies the loss
A new working paper from the BIS and Atlanta Fed reveals that high-skill workers joining innovative sectors during technology booms experience significant long-term earnings losses.
Project Insight traces global value chains from 2018 to 2024
The Bank for International Settlements (BIS) has launched 'Project Insight,' a proof-of-concept dashboard to enhance the monitoring of global value chains (GVCs).