December 24, 2024
United States:
Fed Seeks to Smooth Capital Changes in Bank Stress Tests
The US Federal Reserve will overhaul its stress tests of big US banks to smooth out changes in required capital levels from year to year under a proposal outlined by the central bank on Monday.
Results from the annual health check-up, which seek to gauge how lenders would fare during a hypothetical recession, would be averaged over two years, and the central bank would solicit public comment on the hypothetical scenarios each year before they’re finalized, the Fed said in its release.
Europe:
ECB Very Close to Meeting 2% Inflation Target, Lagarde Tells FT
The European Central Bank is nearing its consumer-price target but must remain alert to lingering dangers in some sectors, according to President Christine Lagarde.
“We’re getting very close to that stage when we can declare that we have sustainably brought inflation to our medium-term 2%,” Lagarde said in an FT podcast released Monday. “I’m saying that with a little reservation because I still believe that we should be very vigilant about services.”
Asia:
China Mulls Record $411 Billion Special Bonds, Reuters Says
China’s policymakers plan to sell a record 3 trillion yuan ($411 billion) of special treasury bonds in 2025, Reuters reported on Tuesday, a move aimed at bolstering the slowing economy.
The plan would be a sharp increase from this year’s 1 trillion yuan and be used to support consumption and investments as well as recapitalizing large state banks, according to Reuters, citing two unnamed sources.
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