BIS Quarterly Review, December 2009

7 December 2009

The BIS Quarterly Review for December 2009 is divided into two parts. We begin with an overview of recent developments in financial markets, before turning in more detail to highlights from the latest BIS data on international banking and financial activity. This is followed by five special feature articles: the first discusses the use and limitations of macro stress tests; the second analyses the relationship between monetary policy and risk-taking by banks; the third provides estimates of the link between government size and macroeconomic stability; the fourth draws lessons from loan provisioning regimes set up in Asia after the crisis of the late 1990s; and the fifth looks at factors driving the appreciation of the US dollar in late 2008.

Statistical tables:

International banking and financial market developments

1. Overview: continued record low rates spur markets
2. Highlights of international banking and financial market activity

Special features

Macro stress tests and crises: what can we learn?
Monetary policy and the risk-taking channel
Government size and macroeconomic stability
Dollar appreciation in 2008: safe haven, carry trades, dollar shortage and overhedging
Issues and developments in loan loss provisioning: the case of Asia

Quarterly Review boxes

The size of the global CDS market - BIS and DTCC data
Analysing bank lending data in China
Provisioning and financial system procyclicality