What's new

18 Dec

Has the transmission of policy rates to lending rates been impaired by the Global Financial Crisis?

Central banks of major advanced economies have maintained a very accommodative monetary policy stance in the last few years. However, concerns have surfaced that the transmission of low policy rates to lending rates has been weaker than in the past. Has the transmission of policy rates to lending rates been impaired by ...

18 Dec

Financial inclusion and optimal monetary policy

Limited access to the formal financial sector is a common feature of the economic environment in many emerging market and developing economies. In this paper, we examine how the level of financial inclusion affects welfare-maximising monetary policy. Our theoretical framework is based on ...

18 Dec

SMEs, financial constraints and growth

The SME sector is often hailed as an important engine of economic growth. But recent research suggests that young rather than small firms are the main contributors to employment growth. This paper shows that young firms are also key contributors to profit growth across advanced economies. It them examines the impact of ...

18 Dec

Exchange rate risk and local currency sovereign bond yields in emerging markets

In this paper we consider the role of exchange rate risk in influencing local currency sovereign bond yields in emerging market economies (EMEs). We explicitly account for exchange rate expectations and uncertainty around them, as measured by exchange rate volatility. The analysis points to ...

18 Dec

Liquidity Risk and the Credit Crunch of 2007-2008: Evidence from Micro-Level Data on Mortgage Loan Applications

Recent empirical studies have shown that during the financial crisis of 2007-2008 banks that were more heavily exposed to liquidity risk contracted their supply of credit more sharply. I contribute to the identification of this effect by ...

09 Dec

Correlations across Asia-Pacific bond markets and the impact of capital flow measures (Working Paper)

Using a novel database on capital flow measures in Asia over 2004-2013, we investigate the impact of bond inflow measures on the cross-market correlations of weekly bond fund flows and of ...

07 Dec

BIS Quarterly Review, December 2014

The BIS Quarterly Review for December 2014: Buoyant yet fragile?

Central bankers' speeches
15 Dec
11 Dec
10 Dec
BIS Management speeches
17 Dec

by Hyun Song Shin: Financial stability risks: old and new

Our understanding of crisis propagation is heavily influenced by the experience of the 2008 crisis. Watchwords are credit growth, leverage, maturity mismatch, complexity and "too big to fail"...

16 Dec

by Jaime Caruana: How much capital is enough?

The benefits of higher bank capital - absorbing losses, resolving incentive problems and internalising externalities related to systemic risk - are widely understood...

20 Nov

by Hervé Hannoun: Central banks and the global debt overhang

In my address, I will focus on what is a central global economic policy issue: debt has reached record levels in many countries and, seven years since the start of the global financial crisis, it is still rising...

14 Nov

by Jaime Caruana: Debt trouble comes in threes

Debt as a share of GDP has risen by 20 percentage points globally since the global financial crisis, driven primarily by the expansion of public sector debt in the...