Bank for International Settlements – BIS

Mounting public debt and the growing footprint of non-banks in sovereign debt markets have brought new financial stability challenges, requiring careful action from policymakers. In a keynote speech at The London School of Economics and Political Science (LSE), Pablo Hernández de Cos said public debt levels had reached record post-WWII highs in many economies. The outlook was particularly concerning given the extra fiscal pressures on pension and medical costs from population ageing, among other drivers, and the chance that interest rates would not return to pre-pandemic lows. Meanwhile, non-bank financial institutions (NBFIs), for example hedge funds, have rapidly expanded since the Great Financial Crisis. Non-banks now hold more than twice as much advanced economy sovereign debt as banks. Many holdings are cross-border, making currency hedging a key theme. Mr Hernández de Cos said these developments had given rise to a new set of channels for potentially amplifying financial stress, related to NBFIs’ heavy reliance on leverage and short-term dollar funding. The short-term funding allowing NBFIs to build up leverage is primarily provided by banks, highlighting the critical importance of banking regulation for the stability of NBFIs. A coordinated policy response is needed. “Policymakers should address these challenges by employing a carefully selected mix of tools that spans fiscal, monetary and prudential policy,” he said. Read more about the new channels and the policy options at https://bit.ly/4p6JCgB Watch the keynote speech: https://lnkd.in/ezj2EbNP

The Basel Committee on Banking Supervision today published further information related to the 2025 assessment of global systemically important banks (G-SIBs) . The publication accompanies the Financial Stability Board’s release of the updated list of G-SIBs and includes: • The denominators of the high-level indicators used to calculate banks’ scores. • The high-level indicators for each bank in the sample used to calculate these denominators. • The cut-off score used to identify the G-SIBs in the updated list and the thresholds used to allocate G-SIBs to buckets for the purpose of calculating the higher loss absorbency requirements. Further details here: https://bit.ly/4roZRXR #GSIB #BaselCommittee

How are job markets faring post-pandemic? Find out in our data story below, and discover more in our recent research: https://bit.ly/4pCqHL4 #BISDataStories #BISStatistics #DataStories

In the second quarter of 2025, real house prices in advanced economies rose by 0.6% year on year. In contrast, emerging market economies experienced a 1.9% decline. Despite diverging trends, the gap between the two regions narrowed, resulting in a global decrease of 0.8%. Explore the trends in the latest residential property prices statistical release on the BIS Data Portal. https://bit.ly/48zdBI2 #BISStatistics #HousePrices

This week, the International Organization of Securities Commissions - IOSCO and the BIS’s Financial Stability Institute (FSI) marked the 20th anniversary of the FSI-IOSCO Annual Conference in Basel, Switzerland. Over the past two decades, this conference has become an important relevant platform for banking and securities regulators worldwide. This year, around 200 delegates from over 60 jurisdictions convened to discuss critical topics, including the risk of regulatory fragmentation, non-bank financial intermediation, private credit, cryptoassets and stablecoins, artificial intelligence and digital fraud. In a time of rapid technological change and risks of fragmentation, the discussions underscored the value of global collaboration and knowledge-sharing. We thank all participants and speakers for their valuable contributions and look forward to continuing our close cooperation with IOSCO in the years ahead. #SecuritiesRegulation #BankingSupervision #FinancialStability #NBFI #ArtificiaIintelligence #FinancialStabilityInstitute

Tokenised money market funds (TMMFs) are a rapidly growing segment of decentralised finance (DeFi). They represent shares in funds that invest in money market instruments. Like stablecoins, TMMFs circulate as tokens on public permissionless blockchains, but unlike stablecoins, they offer returns at money market rates and regulatory protections as securities. In the latest #BISBulletin, Matteo Aquilina, Ulf Lewrick, Federico Ravenna and Lorenzo Schönleber explore the operational model of TMMFs, illustrate use cases and document key market developments. TMMFs are strengthening the links between DeFi and traditional finance, but currently cater mainly to DeFi protocols, with holdings concentrated among a handful of investors and limited trading activity. Current TMMFs often operate as complements rather than substitutes to stablecoins, and their cross-exposures could introduce potential channels of contagion. The authors highlight risks related to liquidity mismatches, interconnectedness and operational challenges, and outline policy considerations for authorities as tokenisation continues to reshape financial markets. Read more here: https://lnkd.in/e6Z5jAdq

We are delighted to announce that Tommaso Mancini-Griffoli has been appointed Head of the BIS Innovation Hub to lead it in its mission to foster international collaboration among central banks on innovative financial technology. He is currently Assistant Director in the Monetary and Capital Markets Department of the IMF, responsible for payments, currencies and financial market infrastructures. He will join the BIS on 1 March 2026 for a five-year term. The BIS Innovation Hub has a global footprint across seven centres around the world – in Frankfurt/Paris (for the Eurosystem), Hong Kong SAR, London, Singapore, Stockholm (for the Nordic countries), Switzerland and Toronto. The BIS Innovation Hub also has a strategic partnership with the Federal Reserve System. Mr Mancini-Griffoli joined the IMF in 2011 and has held a number of leadership roles covering monetary policy and central banking operations as well as payments and financial market infrastructures. He is currently the Chair of the IMF coordination group on digital money and represents the IMF in international forums. He succeeds Cecilia Skingsley, who was appointed County Governor of the County Administrative Board of Stockholm, Sweden in June. The Deputy General Manager of the BIS, Andréa M Maechler, is the Acting Head of the Innovation Hub until Mr Mancini-Griffoli joins the BIS in March 2026. Read more here: https://bit.ly/4ilcK13

We’re pleased to have co-hosted the fourth edition of the AMRO Forum alongside the ASEAN+3 Macroeconomic Research Office (AMRO) and the Hong Kong Monetary Authority (HKMA). Focused on Fragmentation to Resilience: Macro-financial Stability and Regional Integration in ASEAN+3, the event called for deeper regional cooperation to address rising fragmentation and uncertainty. In his opening remarks, Chief Representative for Asia and the Pacific Tao Zhang said collaboration among regional authorities including central banks, international organisations and between the public as well as private sectors was vital to manage cross-border spillovers and ensure the safe development of innovation. Hyun Song Shin, Economic Adviser and Head of the Monetary and Economic Department, joined virtually to deliver a keynote speech on the changing structure of the global financial system and financial stability risks. Delving deeper into shifts in the financial system, Head of Central Bank Cooperation, Monetary and Economic Department, Daniel Rees, led an insightful exchange with central bankers and private sector experts. Read more: https://bit.ly/4ozKhpT

Regulatory reforms after the Great Financial Crisis have directly contributed to a more resilient financial system and supported sustainable growth. However, the complexity of the current capital framework and limitations in the loss-absorbing capacity of some of its components could mean it is not fully achieving key microprudential, macroprudential and resolution objectives. In the latest FSI Brief, Claudio Borio, Rodrigo Coelho, Fernando Restoy Lozano and Nikola Tarashev discuss conceptually the capital stack – the layers of banks’ regulatory requirements and their distinct roles. The authors suggest, at a technical level, how to simplify the current capital framework while enhancing its capacity to generate loss-absorbing resources and maintaining its stringency. Ultimately, their aim is to provide an analytical reference for the ongoing debate on how to improve the effectiveness of the regulatory capital stack in supporting financial stability. #FinancialStabilityInstitute https://bit.ly/3K1o6uq

The Basel Committee on Banking Supervision met on 18 and 19 November 2025 in Mexico City, where it discussed a range of initiatives. At the conclusion of the meetings, the Committee: • reiterated its priority to implement the Basel III framework in full and consistently • approved final principles for the sound management of third-party risk • agreed to expedite a review of targeted elements of the prudential standard for banks’ cryptoasset exposures. Read more here: https://bit.ly/4o3Kcdu