BIS – FINANCE NEWS

The Bank for International Settlements (BIS) has launched a euro-denominated, open-ended fund for green bond investments by central banks and official institutions. The launch follows the successful introduction of a first BIS green bond fund denominated in US dollars in September 2019. Together, the two BIS green bond funds will manage some $2 billion in green bonds for central banks with the expectation that the funds will continue to grow considerably. The funds have been developed with the support of an advisory committee drawn from a global group of central banks. They are part of the BIS's green bond fund initiative, which helps central banks to incorporate environmental sustainability objectives in the management of their reserves and capital, in line with a growing de...

The Financial Regulators across the World will face a dilemma once the withdrawal from Covid-19 measures begins as to how and when to exit from regulatory relief measures in balancing the benefits of economic relief with financial stability considerations. "The challenge will be how and when to exit from regulatory relief measures. In terms of timing, authorities need to steer a course between Scylla and Charybdis. Acting too early may remove much needed credit to support economic growth. Waiting too long may delay necessary resource reallocation and put additional long-run pressure on the financial sector as the solvency phase of the crisis could expose any depletion of loss-absorbing resources, potentially undermining confidence in the post-crisis regulatory regime and its abilit...

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BIS launches second green bond fund for central banks

Financial Regulators to face dilemma once the withdrawal from Covid-19 measures begins