Messages
11/19/2024
10 : 24
Using causal inference for explainability enhancement in the financial sector
Rhea Mirchandani and Steve Blaxland Supervisors are responsible for ensuring the safety and soundness of firms and avoiding their disorderly failure which has systemic consequences, while managing
11/15/2024
6 : 44
Nonbank lenders as global shock absorbers
David Elliott, Ralf Meisenzahl and José-Luis Peydró Capital flows and credit growth are strongly correlated across countries. Macroeconomic evidence suggests that this 'global financial cycle'
11/15/2024
6 : 24
With the arrival of stablecoins, is it time to pay farewell to traditional payment rails?
Aly Soliman Stablecoins have emerged as an innovative form of money in the financial landscape. While they represent a small fraction of the global financial system, stablecoins have grown by US$30
10/23/2024
8 : 4
International spillovers from climate policy
Francesca Diluiso and Aydan Dogan To achieve the emissions reduction targets outlined in The Paris Agreement, many economies have started implementing various types of climate policies. These policies,
10/20/2024
5 : 54
30+ year mortgages – are these the new norm? What does this mean for financial stability?
James Waddell and Meghna Shrestha An increasing number of households in the UK are opting for longer-term mortgages, with the share of borrowers taking out new mortgages with terms 30 years or longer
10/3/2024
8 : 4
Sharing interest rate risk: who is trading and what affects the costs?
Ioana Neamțu, Umang Khetan, Jian Li and Ishita Sen What do the 2023 Silicon Valley Bank collapse and the 2022 UK pension fund crisis have in common? Interest rate risk. Several sectors in the economy
9/26/2024
8 : 14
Payments without borders: using ISO 20022 to identify cross-border payments in CHAPS
James Duffy and James Sanders Understanding a payment's journey around the globe can be difficult. As the operator of the UK's high-value payment system (CHAPS), the Bank is all too familiar
9/25/2024
8 : 4
Shining a light on private equity backed corporates in five findings
Neha Bora, Sarah Burkinshaw, Alice Crundwell and Tuli Saha Private equity (PE) has rapidly become an important source of financing for UK businesses. Funds use pools of capital, largely from
9/10/2024
8 : 4
We are not an island: how have the UK’s external balance sheet risks changed over the past two decades?
Colm Manning and Alice Crundwell No country is an island – in terms of economics at least, if not geography. Trade and capital link all the economies of the world. Relative to GDP, the UK has more
9/5/2024
8 : 4
Global value chains and inflation: how imported inputs shape UK prices
Aydan Dogan, Melih Firat and Aditya Soenarjo How does the use of imported inputs in production affect inflation dynamics in the UK? Over the past few decades, with the rise of global value chains (GVCs
9/4/2024
8 : 4
A simple model of the effects of entity and activity constraints on alternative investment funds
Leo Fernandes, Harkeerit Kalsi, Nicholas Vause, Matthew Downer, Sarah Ek and Sebastian Maxted Hedge funds and other alternative investment funds (AIFs) often take positions in financial markets that
8/29/2024
8 : 4
Why short-term finance matters (a lot more) to exporting firms
Aydan Dogan and Ida Hjortsoe Exporting allows firms to access a larger market, but it also implies costs and risks. Some of these costs and risks are due to the time between production and sales
8/28/2024
8 : 4
A summary measure for UK households’ resilience
Vania Esady and Stephen Burgess A summary measure for UK households' resilience High levels of household debt have been shown to amplify recessions. For example, in the global financial crisis (GFC
8/22/2024
8 : 4
High hurdles: evidence on corporate investment hurdle rates in the UK
Krishan Shah, Phil Bunn and Marko Melolinna An important way in which monetary policy impacts the economy is through its effects on the capital expenditure of firms. When policy rates are raised (and
8/21/2024
8 : 4
Growth-at-Risk for macroprudential policy stance assessment: a survey
Tihana Škrinjarić How effective is macroprudential policy and how should policymakers measure its stance? My recent paper surveys the literature on the topic of Growth-at-Risk (GaR), which has been
8/20/2024
3 : 24
SONIA: steady as she goes
Joanna McLafferty, Kirstine McMillan and Joseph Smart On 7 May 2024 the SONIA rate, the UK's risk-free reference rate, printed at exactly 5.2000% and has remained there to the end of July 2024 (the
8/20/2024
3 : 4
State-dependent effects of UK monetary policy
Vania Esady Monetary policy actions transmit to inflation and real activity with 'long and variable' lags. However, it is not obvious how the effectiveness of monetary policy varies across
8/9/2024
14 : 14
Central bank balance sheet policies and the market for reserves
Michael Kumhof and Mauricio Salgado-Moreno While 'unconventional' balance-sheet policies like quantitative easing (QE) and quantitative tightening (QT) appear to have been successful, it is
8/7/2024
8 : 4
Caring for the ‘future’
David Glanville and Arif Merali Short term interest rate (STIR) futures are the bedrock of interest rate markets, used to price expectations of central bank policy rates and other UK rate derivative
8/2/2024
10 : 14
Monetary policy in a gas-TANK
Jenny Chan, Sebastian Diz and Derrick Kanngiesser In recent years, increases in global energy prices have posed significant challenges for net energy importers such as the UK or the euro area. In