Latest news with #financialrisks
Bloomberg
4 days ago
- Business
- Bloomberg
ECB Intensifies Scrutiny of Banks' Exposure to Private Markets
The European Central Bank is escalating its scrutiny of lenders' exposures to private markets amid concerns that the fast ascent of related asset classes raises substantial new risks. The watchdog has signaled that it's sending letters to executives at certain banks cautioning them on their practices in financing private funds, according to people familiar with the matter.
News.com.au
22-05-2025
- Business
- News.com.au
Mounting risks: what's threatening U.S. markets in 2025?
U.S. stocks and bonds are under pressure as shifting market dynamics take hold. Morgan Stanley Asset Management's Jitania Kandhari analyzes the emerging financial risks and evolving macroeconomic conditions reshaping the investment landscape.
South China Morning Post
15-05-2025
- Business
- South China Morning Post
Party journal says China can establish effective market stabilisation fund
China has the financial strength to set up a market stabilisation fund thanks to its strong economy and large foreign exchange reserves, a Communist Party journal said in an article highlighting the need to stabilise the market in uncertain economic times caused by Trump-induced trade turmoil. 'In a time of global economic instability with growing uncertainties, the establishment of a stabilisation fund can help maintain the stability of the capital market, protect the interests of small and medium-sized investors, and guard against systemic financial risks,' Study Times, the official publication of the Central Party School, the Party's top ideological training centre, said. In the article, published on Wednesday, it added that China's increased regulatory capacity made it possible to ensure the effective performance of a stabilisation fund. It said that establishing a stabilisation fund would help 'reduce irrationally high market volatility', adding that similar mechanisms had been widely tested by major economies in times of stock market panic, including the Hong Kong government's successful interventions to maintain market stability during the 1997 Asian financial crisis. The aggressive trade tactics employed by America following US President Donald Trump's return to the White House in January – especially his 'Liberation Day' announcement of so-called reciprocal tariffs on America's trading partners on April 2 – have triggered tit-for-tat escalations, rattling global markets and threatening the viability of global supply chains. Following face-to-face trade talks between Chinese and US officials in Switzerland over the weekend – the first such talks involving the new Trump administration – Beijing and Washington suspended most of the tariff increases introduced this year for 90 days from Wednesday. Negotiators are expected to conduct follow-up trade talks in the next few months.
Reuters
12-05-2025
- Business
- Reuters
Global banking regulators agree to prioritise climate risk work
LONDON, May 12 (Reuters) - Global banking regulators on Monday agreed to intensify efforts to better understand the financial risks posed by climate change amid pushback from the United States. The oversight body of the world's forum for banking regulators met on Monday to take stock of the committee's work on climate-related financial risks and agreed to prioritise efforts to understand financial risk implications of extreme weather events, the Bank for International Settlements said in a statement. The agreement comes as policy makers and banking regulators on both sides of the Atlantic are debating the extent to which climate change should be embedded into central bank policy, a tussle analysts say is likely to shape central bank decision making around the world. In Europe, rulemakers have doubled down on efforts to address climate-related risks, with the European Central Bank making management of climate risks a key priority; in the United States, efforts have been scaled back or shelved. The group of central bank governors and heads of supervision, which make up the oversight body of the Basel Committee on Banking Supervision, also said it will publish a voluntary disclosure framework on climate-related financial risks for jurisdictions to consider. While the Basel Committee has no international authority or enforcement powers, its work on climate sets international standards which have a strong influence on national rulemaking. Analysts say its thinking is more closely aligned to European and British regulators which are taking steps to integrate climate risks into supervisory expectations for banks than to those in the United States. In recent years, the U.S. Federal Reserve has taken some steps to integrate climate change into its work through preliminary analysis and reports, but Chair Jerome Powell has repeatedly insisted the Fed has a limited role to play. More recently, U.S. President Donald Trump and other climate-sceptic Republicans have led a backlash against policies linked to environmental, social and governance issues across government, from coal mining to electric vehicles and DEI. In January, the Fed withdrew from, opens new tab the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), a global body of central banks and regulators devoted to exploring ways to police climate risk in the financial system. The U.S. Treasury Department's Office of the Comptroller of the Currency in March withdrew from a jointly agreed set of climate principles for large U.S. banks, calling the framework "overly burdensome and duplicative". Law firm Mayer Brown said in April it expects the Federal Deposit Insurance Corporation ("FDIC") and Fed to withdraw from the joint climate principles in the near future.
