EU covered bond issuance to drop due to more stimulus, fewer mortgages: S&P

September 18, 2020.
New issuances of covered bonds in Europe, where they are most common, are expected to fall in the second half of 2020, as central bank stimulus provides a competitive new source of funding for banks, S&P Global said.

Fed expands underwriting guidelines for largely untapped Main Street loans

Last modified September 18, 2020. Published September 18, 2020.
The Federal Reserve on Friday issued new guidance to banks broadening the eligibility for new business loans under its Main Street Lending Program, after the $600 billion program faced criticism over its sluggish start.

Federal Reserve releases details for round two of bank stress tests, considers extending dividend cap

Last modified September 17, 2020. Published September 17, 2020.
The U.S. Federal Reserve on Thursday laid out details for its second round of stress-testing for 34 of the country’s largest banks, as it considers extending dividend-payment caps to ensure their solvency.

Bank of Canada senior deputy governor Wilkins will not seek second term

Last modified September 17, 2020. Published September 17, 2020.
Carolyn Wilkins will not seek a second term as Bank of Canada senior deputy governor, setting an end date on her 20-year career at the bank after being passed over for the governor position in the spring.

NY Fed second-in-command Strine to step down in 2021

September 17, 2020.
The second-in-command at the Federal Reserve Bank of New York will step down from his post in February, leaving a vacancy in a powerful post at the U.S. central bank as it steers through the pandemic-related downturn.

Fintech Affirm raises $500M in funding round led by Singaporean wealth fund

September 17, 2020.
Point-of-sale loan fintech Affirm raised $500 million in a Series G funding round led by Singaporean sovereign wealth fund GIC, a longtime backer, and Durable Capital Partners, the firm said Thursday.

ECB eases banks’ leverage-ratio calculations due to COVID-19

September 17, 2020.
Citing “exceptional circumstances” brought on by the COVID-19 pandemic, the European Central Bank said on Thursday that it is temporarily easing leverage-ratio calculations for banks by letting them exclude assets such as coins, banknotes and certain reserves.

Australia’s central bank not pursuing a digital currency

September 17, 2020.
The Reserve Bank of Australia is not currently considering the issuance of a central bank digital currency, its payments policy department said Thursday, bucking the trend of most other central banks around the world.

Bank of Japan keeps rates steady as country’s economy begins to pick up

September 17, 2020.
Although the COVID-19 pandemic is still having an effect, Japan’s economy has begun to pick up as business gradually resumes, the nation’s central bank said Thursday after deciding to keep interest rates unchanged.

Bank of England warns of ‘unusually uncertain’ economy, mulls negative rates for future

September 17, 2020.
The Bank of England said Wednesday it will leave interest rates unchanged as the outlook for the economy remains hazy amid continued concerns about the coronavirus and Brexit, but left the door open to move to negative rates if things decline.

PIMCO adds ex-central bank chief Mark Carney to global advisory board

Last modified September 16, 2020. Published September 16, 2020.
PIMCO, the eighth-largest U.S. asset manager, has tapped former central bank veteran and climate finance specialist Mark Carney to join a team of high-profile advisors helping to inform the firm’s investment decisions.

Federal Reserve expects to keep interest rate near zero until 2023

September 16, 2020.
The U.S. Federal Reserve maintained its near-zero interest rate levels on Wednesday, signaling in a set of economic projections that it does not expect to raise interest rates through at least 2023.

Equity markets could see $200B outflow during Q3: JPMorgan

Last modified September 16, 2020. Published September 16, 2020.
The equity market could see $200 billion in negative rebalancing flow in the third quarter, as pension plans and sovereign wealth funds undertake a quarterly rebalancing, a team of JPMorgan Chase global markets strategists said Tuesday.

FDIC won’t raise bank assessment rates despite record surge in deposits

September 15, 2020.
The U.S. Federal Deposit Insurance Corporation will maintain its current schedule of assessments for banks, even though an historic influx in deposits made its reserve ratio fall below a legally mandated level.

Australia’s central bank promises to keep credit costs low amid COVID-19 turmoil

September 15, 2020.
Australia’s central bank said it would “maintain highly accommodative settings as long as required” in order to support the nation’s recovery from the coronavirus-related economic downturn.

Confirmation of controversial Fed nominee Judy Shelton remains up in the air

September 15, 2020.
Support for confirmation of U.S. Federal Reserve Board of Governors nominee Judy Shelton remains uncertain, with two Republican senators stating their opposition to the Trump administration pick and others undecided.

PNC Healthcare, AccessOne join to provide more patient-financing options for providers and consumers

September 15, 2020.
PNC Healthcare said Tuesday that it has begun a collaboration with AccessOne, a provider of patient-financing solutions, to increase financing capabilities for health care providers and insurers.

China continues to push reference rate reform despite concerns over bank profits

September 15, 2020.
China’s central bank on Tuesday reaffirmed a commitment to convert the Chinese banking system to its newer loan prime rate, while holding the state-controlled benchmark reference rate steady to aid the country’s economic recovery.

Citigroup braces for regulatory action over risk management problems: WSJ

September 14, 2020.
Citigroup may soon face regulatory sanctions over failures to improve risk-management technologies, and the concern may have helped drive its decision to appoint a new CEO, the Wall Street Journal reported.

Hannover Re plans ‘substantial’ P&C rate hikes for 2021

September 14, 2020.
Hannover Re warned on Monday that it expects to have “substantial” increases in property and casualty reinsurance rates for 2021, citing a confluence of reasons including the COVID-19 pandemic, low interest rates and sizable losses from the three most recent years.