Central banks

Capital markets union: a deep dive - Five measures to foster a single market for capital

03/11/2025 European Central Bank Central banks

The European Union requires a single market for capital. Well-developed and integrated capital markets support economic growth and resilience across the region, offering benefits for businesses, households, and financial stability. This paper examines the importance of CMU in achieving five strategic objectives: supporting innovation and productivity, financing the twin transition, shoring up pension savings, strengthening alternatives to bank financing, and fostering convergence and inclusion.

Cyber resilience stress testing from a macroprudential perspective

03/10/2025 European Central Bank Central banks

Cyberattacks pose greater risk to financial stability than ever before as they have grown in both number and magnitude. A macroprudential perspective on cyber resilience stress testing is needed because cyber incidents can have a systemic impact as their effects spread across the financial sector via confidence, operational and financial mechanisms.

FEDS Paper: Challenging Demographic Representativeness at State Borders: Implications for Policy Research

03/07/2025 Federal Reserve Central banks

Benjamin S. Kay and Albina KhatiwodaThis study examines the demographic characteristics of U.S. state border counties, comparing them with those of nonborder counties. The demographic representativeness of border counties is essential for the interpretation of the results in state border-county difference-in-difference analyses, used in state policy evaluations. Our findings reveal that border counties generally have higher proportions of White, older, and disabled populations.

Martyn Beauchamp appointed as CEO of FSCS

03/06/2025 Bank of England Central banks

The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have appointed Martyn Beauchamp as Chief Executive Officer (CEO) of the Financial Services Compensation Scheme (FSCS).

PRA consults on raising leverage ratio threshold to £70 billion retail deposits

03/05/2025 Bank of England Central banks

The Prudential Regulation Authority (PRA) is consulting on changing the retail deposits leverage ratio threshold to £70 billion – an increase of £20 billion.

FEDS Paper: CardSim: A Bayesian Simulator for Payment Card Fraud Detection Research

02/28/2025 Federal Reserve Central banks

Jeffrey S. AllenPayment fraud has been high in recent years, and as criminals gain access to capability-enhancing generative AI tools, there is a growing need for innovative fraud detection research. However, the pace, diversity, and reproducibility of such research are inhibited by the dearth of publicly available payment transaction data. A few payment simulation methodologies have been developed to help narrow the payment transaction data gap without compromising important data privacy and security expectations.

IFDP Paper: How do Firms in Different Sectors Organize their Supply Chains? Evidence from Transaction-Level Import Data

02/27/2025 Federal Reserve Central banks

Sebastian Heise, Justin R. Pierce, Georg Schaur, and Peter K. SchottHeise et al. (2021) develop a model-based empirical measure—sellers per shipment (SPS)—to characterize how firms organize supply chains in response to a quality control problem. High SPS indicates spot-market purchasing with costly inspections, while low SPS suggests long-term relationships where buyers pay an incentive premium to prevent cheating.

Minutes of the Meeting of the Court of Directors held on 11 December 2024 and 7 January 2025

02/26/2025 Bank of England Central banks

The Bank's Court of Directors acts as a unitary board, setting the organisation's strategy and budget and taking key decisions on resourcing and appointments. Required to meet a minimum seven times per year, it has five executive members from the Bank and up to nine non-executive members.

The heterogeneous effects of household debt relief

02/26/2025 European Central Bank Central banks

Large-scale debt forbearance is a key policy tool during crises, yet targeting is challenging due to information asymmetries. Using transaction-level data from a Portuguese bank during COVID-19, we find that financially fragile households are more likely to enter forbearance, irrespective of income shocks. Mortgage payment suspension increases consumption and savings, but effects differ across households. Low liquid wealth and income are associated with a higher marginal propensity to consume.

Crypto-Asset Monitoring Expert Group (CAMEG) 2024 Conference - Book of abstracts

02/26/2025 European Central Bank Central banks

This paper provides an overview of recent analytical work conducted, under their own aegis, by experts from various European authorities and institutions in the field of crypto-asset monitoring. Currently, risks stemming from crypto-assets and the potential implications for central banking domains are limited and/or manageable, including as regards the existing regulatory and oversight frameworks. Nevertheless, the importance of monitoring developments in crypto-assets, raising awareness of the potential risks and fostering preparedness cannot be overstated.

Central banks

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