Monthly BIS Update

Below is the monthly update from the Bank for International Settlements. We featured the video discussion on the policy response to the COVID-19 pandemic in an earlier article.

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August 2020

Cross-border bank lending jumps Global cross-border bank claims surged by $2.6 trillion in the first quarter of 2020, with a particularly strong rise in lending to borrowers in advanced economies.

Improving cross-border payments The Committee on Payments and Market Infrastructures sets out building blocks towards a roadmap to improving cross-border payments. Credit risk framework The Basel Committee has published a new credit valuation adjustment risk framework for derivatives and securities financing transactions.

The economic policy response to Covid-19 Agustín Carstens joins Ben Bernanke, Tharman Shanmugaratnam and Janet Yellen to discuss the economic policy response to Covid-19 at a virtual seminar organised by the Yale Program on Financial Stability.

Swap lines and dollar funding  Swap lines have met the short-term dollar funding needs of non-US banks, but corporate dollar funding needs loom large.

More BIS publications  FSI Occasional Paper: Managing bank failures The European framework for bank failure management requires amendment to adequately deal with mid-sized banks. Irving Fisher Committee Publication: Enhancing fintech statistics The Irving Fisher Committee sets out a map to enhance the statistical measurement of fintech. BIS Bulletin: Covid-19 drives inflation risks Inflation risks – downside, upside, or both – have increased almost everywhere as a result of the pandemic.