BIS Quarterly Review June 2013 – International banking and financial market developments

by Sabrina I. Pacifici on June 2, 2013

June 2013 Quarterly Review: Markets under the spell of monetary easing,  June 3, 2013

  • “Further monetary easing boosted asset prices despite negative macroeconomic news.
  • Cross-border claims of BIS reporting banks fell in the fourth quarter of 2012 as a sharp reduction in cross-border interbank lending more than offset higher cross-border credit to non-banks.
  • Paul Melaschenko and Noel Reynolds (BIS) propose a mechanism to recapitalise banks that are too big to fail.
  • Mathias Drehmann (BIS) finds that the reliability of credit gap indicators as an early warning signal for incipient systemic crises can be improved by using data on total credit to the private sector rather than bank credit data only.
  • Chen Zhou (Netherlands Bank) and Nikola Tarashev (BIS) measure banks’ systemic importance on the basis of information about rare events that they compute using tools from extreme value theory.”

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