report August 4, 2021 Quantifying the high-frequency trading “arms race” We use stock exchange message data to quantify the negative aspect of high-frequency trading, known as "latency arbitrage". The key difference between message data and widely familiar limit order book data is that message data contain attempts to trade... Bank of International Settlements
report August 3, 2021 Humans keeping AI in check – emerging regulatory expectations in the financial sector FSI Insights No 35, August 2021. Artificial intelligence (AI) has the potential to significantly improve the delivery of financial services. Several financial authorities have recently began developing frameworks, outlining their expectations on AI governance and use by financial institutions.... Bank of International Settlements
report August 2, 2021 Regulating big techs in finance BIS Bulletin No 45 - Regulating big techs in finance - Big tech firms entering financial services can scale up rapidly with user data from their existing business lines in e-commerce and social media, and by harnessing the inherent... Bank of International Settlements
report July 29, 2021 AML and CFT in banking – Executive Summary AML and CFT in banking – Executive Summary... Bank of International Settlements
report July 22, 2021 Fiscal and monetary policy interactions in a low interest rate world We analyse fiscal and monetary policy interactions when interest rate policy is hampered by the zero lower bound (ZLB) in an environment where expectations are formed with perpetual learning.... Bank of International Settlements
report July 22, 2021 Covid-19 and bank resilience: where do we stand? A forward-looking view on bank resilience can be obtained through a combination of regulatory capital ratios, market valuations and insights from stress tests. Banks appear to have avoided the losses that once seemed likely given the severity of the... Bank of International Settlements
report July 15, 2021 Global reflation ? Inflation has risen in many countries. In conjunction with a rebound in GDP growth and evidence of significant bottlenecks in some sectors, this has prompted concerns that the low inflation era of recent decades could be nearing its end.... Bank of International Settlements
report July 14, 2021 Stress-testing banks for climate change – a comparison of practices FSI Insights No 34, July 2021. This paper discusses the challenges that emerge when trying to adapt traditional stress tests to banks' climate-related risks. These challenges relate to: (i) data availability and reliability; (ii) the adoption of very long... Bank of International Settlements
report July 13, 2021 Fintech and the digital transformation of financial services: implications for market structure and public policy Economic frictions such as information asymmetries and economic forces such as economies of scale and scope give rise to financial intermediaries. These frictions and forces also shape market structure. While technological advances are not new to finance, digital innovation... Bank of International Settlements
report July 9, 2021 Central bank digital currencies for cross-border payments Joint report to the G20 by the Committee on Payments and Market Infrastructures, the BIS Innovation Hub, the International Monetary Fund (IMF) and the World Bank. The report analyses how CBDCs could facilitate enhanced cross-border payments, and how practical... Bank of International Settlements
report July 6, 2021 Limits of stress-test based bank regulation This paper studies exchange-traded funds' (ETFs) price impact in the most ETF dominated asset classes: volatility (VIX) and commodities. I propose a model-independent approach to replicate the VIX futures contract. This allows me to isolate a non-fundamental component in... Bank of International Settlements
report July 5, 2021 Fintech and payments: regulating digital payment services and e-money FSI Insights No 33, July 2021. This paper explores how non-bank payment service providers (NBPSPs) are regulated and provides a cross-country overview of the regulatory requirements for digital payment and e-money services offered by NBPSPs. It benefited from responses... Bank of International Settlements
report July 2, 2021 Passive funds affect prices: evidence from the most ETF dominated asset classes This paper studies exchange-traded funds' (ETFs) price impact in the most ETF dominated asset classes: volatility (VIX) and commodities. I propose a model-independent approach to replicate the VIX futures contract. This allows me to isolate a non-fundamental component in... Bank of International Settlements
report July 1, 2021 Distrust or speculation? the socioeconomic drivers of U.S. cryptocurrency investments Employing representative data from the U.S. Survey of Consumer Payment Choice, we disprove the hypothesis that cryptocurrency investors are motivatedby distrust in fiat currencies or regulated finance. Compared with the general population, investors show no differences in their level... Bank of International Settlements
report June 29, 2021 Annual Economic Report 2021 The BIS describes how the strong policy response to Covid-19 delivered a faster than expected economic rebound, but notes that the uneven recovery creates daunting challenges for policymakers. The report also addresses rising income and wealth inequality, and lays... Bank of International Settlements
report June 29, 2021 Annual Report 2020/21 The BIS Annual Report explains what we do and who we are as an institution. You can find a description of our activities, governance and organisation, together with our annual financial statements for 2020/21.... Bank of International Settlements
report June 24, 2021 Financial benchmarks – Executive Summary Financial benchmarks - FSI Executive Summary... Bank of International Settlements
report June 23, 2021 Annual Economic Report 2021 The BIS is pre-releasing a chapter on CBDCs today; the remaining chapters of the Annual Economic Report 2021 and the Annual Report 2020/21 will be released on 29 June.... Bank of International Settlements
report June 11, 2021 CBDCs beyond borders: results from a survey of central banks Central bank digital currencies (CBDCs) could ease current frictions in cross-border payments – and particularly so if central banks factor an international dimension into CBDC design from the outset. Based on a survey of 50 central banks in the... Bank of International Settlements
report June 10, 2021 Fiscal regimes and the exchange rate In this paper, we argue that the effect of monetary and fiscal policies on the exchange rate depends on the fiscal regime. A contractionary monetary (expansionary fiscal) shock can lead to a depreciation, rather than an appreciation, of the... Bank of International Settlements
