11 March 2018

BIS Quarterly Review, March 2018

PDF (196 Pages)

International banking and financial market developments

Publication 11 Mar 2018
Volatility is back
Stock markets across the globe underwent a sharp correction in late January and early February. After a steady rally that had lasted several months, capped by the strongest January since the 1990s, the release of a labour market report showing higher than expected US wage growth heralded a burst of heightened activity.
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Publication 11 Mar 2018
Common lenders in emerging Asia: their changing roles in three crises
The "common lender channel" is a mechanism that facilitates the spread of financial shocks around the globe. Creditor banks withdraw from previously unaffected countries when highly exposed to the epicentre of a crisis.
By
Catherine Casanova
and
Eli M Remolona
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Special Features

Publication 11 Mar 2018
Early warning indicators of banking crises: expanding the family
Household and international debt (cross-border or in foreign currency) are a potential source of vulnerabilities that could eventually lead to banking crises. We explore this issue formally by assessing the performance of these debt categories as early warning indicators (EWIs) for systemic banking crises.
By
Iñaki Aldasoro
,
Claudio Borio
and
Mathias Drehmann
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Publication 11 Mar 2018
Tracking the international footprints of global firms
As the global economy becomes more integrated, there is a growing tension between the nature of economic activity and the measurement system that attempts to keep up with it. Many policies are still determined by measuring economic activity at the national level.
By
Stefan Avdjiev
,
Mary Everett
,
Philip R Lane
and
Hyun Song Shin
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Publication 11 Mar 2018
Payments are a-changin' but cash still rules
Retail payment systems continue to become faster and more convenient. Yet, despite increased use of electronic payments around the world, there is scant evidence of a shift away from cash.
By
Morten Linnemann Bech
,
Umar Faruqui
,
Frederik Ougaard
and
Cristina Picillo
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Publication 11 Mar 2018
The ABCs of bank PBRs: What drives bank price-to-book ratios?
Price-to-book ratios have been unusually low for many banks since the Great Financial Crisis. Ratios below one, in particular, have been seen as reflecting market concerns about banks' health and profitability as well as the need for shifts in business models. But what drives these valuations globally?
By
Bilyana Bogdanova
,
Ingo Fender
and
Előd Takáts
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Publication 11 Mar 2018
Mortgages, developers and property prices
This special feature studies the risks posed by the rapid rise in property developer debt in several Asian economies in recent years. Gradually, the firms involved are shifting away from traditional bank loans and choosing to issue debt securities, often in foreign currency.
By
Michael Chui
,
Anamaria Illes
and
Christian Upper
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Publication 11 Mar 2018
The implications of passive investing for securities markets
The popularity of passive investing through index mutual funds and exchange-traded funds (ETFs) has grown substantially over recent years, displacing higher-cost active investment styles. A shift towards passive investing could affect securities markets in two key ways.
By
Vladyslav Sushko
and
Grant Turner
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Media

00:02:18
qrmar18_drehmann.jpg
Early warning indicators of banking crises: expanding the family
Video 11 Mar 2018
Early warning indicators of banking crises: expanding the family
Drehmann discusses how early warning indicators change during a cycle and thereby signal a crisis.
By
Mathias Drehmann
00:01:53
qrmar18_picillo_faruqui.jpg
Payments are a-changin' but cash still rules
Video 11 Mar 2018
Payments are a-changin' but cash still rules
The authors discuss whether cash is ceding ground to electronic payments.
By
Cristina Picillo
and
Umar Faruqui
00:02:13
qrmar18_upper.jpg
Mortgages, developers and property prices
Video 11 Mar 2018
Mortgages, developers and property prices
Upper discusses the risks posed by the rapid rise in property developer debt in several Asian economies in recent years.
By
Christian Upper

The views expressed here do not necessarily reflect the views of the BIS member central banks.

Related information

BIS Statistical Bulletin, March 2018
BIS Quarterly Review, March 2018 - media briefing
BIS statistics: charts
Data behind the graphs

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