MacroPru😷 Profile picture
Mar 7, 2018 6 tweets 3 min read Twitter logo Read on Twitter
Chopping down loan loss reserves is another form of de-regulation. #SystemicRisk
China’s banking regulator has softened rules requiring lenders to set aside provisions against losses on bad loans, to encourage banks to provide more trustworthy assessments of their health. ft.com/content/4cc6ee…
"The new rules bring China closer to international standards. Most countries force banks to set aside provisions equal to between 50% and 100% of NPLs, according to research by Dong Ximiao, senior analyst at the Chongyang Institute for Financial Studies in Beijing. "
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More from @MacroPru

Aug 18, 2018
"#Macroprudential policies could be increased to enhance the resilience of the financial system" brookings.edu/research/finan… in "Financial conditions and GDP growth-at-risk" Adrian, Liang, et al. @BrookingsInst @IMFNews
GaR: "growth at risk" and general equilibrium models with macrofinancial linkages brookings.edu/wp-content/upl… @BrookingsInst @IMFNews @MacroFinanceSoc Liang, Adrian, et al
"A structural model would be needed to evaluate how #macroprudential policies could be used to affect GaR. In aspiration, #macroprudential policies could aim to tighten financial conditions when conditional expected growth and GaR are relatively high ... " brookings.edu/wp-content/upl…
Read 13 tweets
May 4, 2018
"Such carry trades have been a source of support for EM currencies" ft.com/content/af31b7… @ft ... carry trades bis.org/publ/work510.p… @BIS_org #EmergingMarkets "comprehensive database that combines bond issuance data with firm-level balance sheet data"
"non-financial firms that exploit favourable global financing conditions to issue US dollar bonds and build cash balances are also those whose share price is most vulnerable to local currency depreciation" papers.ssrn.com/sol3/papers.cf… #LiabilityDollarisation
Read 26 tweets

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