banking regulators

Swiss National Bank governing board member Martin Schudin has voiced concern that the growing use of stablecoins could weaken the role of central banks, amid mounting official scrutiny of dollar-pegged digital tokens and their impact on monetary policy and banking systems.

The Bank Policy Institute argues that banks should be able to count on the Federal Reserve's discount window as a reliable liquidity backstop, but says regulators' practices may be holding them back. The group contends that stigma, supervisory attitudes and operational hurdles discourage banks from setting up access, weakening a key safety tool. The debate follows renewed scrutiny of bank liquidity after recent banking-sector stress.

A foreign investor has been hit with a penalty of about $508,000 for breaching Australia's rules on land banking, with the Australian Taxation Office involved in enforcing foreign investment rules on residential land. The case highlights renewed scrutiny of overseas buyers holding vacant land without developing it.

The Central Bank of Cyprus has fined Banque SBA €750,000 for breaches of anti-money laundering rules. The penalty, reported by AML Intelligence, adds to a string of enforcement actions by European regulators against banks failing to meet AML standards. Details on the specific breaches have not been disclosed.

The Federal Reserve has finalized changes to its bank stress-testing framework, the annual exercise that measures whether large lenders can withstand severe economic shocks. The move follows earlier proposals to reduce volatility in test results and give banks more time to adjust to capital requirements. Banking industry groups have welcomed efforts to smooth requirements, while some critics caution that softer tests could leave the financial system less prepared for a downturn.

Bank of England governor Andrew Bailey has called for regulators to have a 'right to intervene' in artificial intelligence, warning of a growing threat from the technology. Bailey argued that authorities need powers to step in as AI systems become more powerful and embedded in the financial system and wider economy. His comments add a senior regulatory voice to the global debate over how quickly AI should be policed.

The Swiss National Bank says the growing use of stablecoins could interfere with how monetary policy is transmitted to the economy, warning that widespread adoption of privately issued digital dollars may blunt the effect of central bank interest rate decisions. The comments add a central bank voice to the ongoing debate over regulating dollar-pegged tokens.

The European Central Bank is holding its 9th Macroprudential Policy Group Workshop, bringing together policymakers and researchers to discuss tools for safeguarding financial stability. The workshops typically cover topics such as systemic risk, bank capital requirements and borrower-based measures. The event underscores the ECB's continued focus on monitoring and mitigating risks building up in the banking system.

Commentators are debating whether mortgage lending will be the first sector where artificial intelligence runs into a serious regulatory challenge. Banking is heavily regulated, with strict anti-discrimination laws governing lending decisions, and AI-driven credit assessments could conflict with those rules. A recent Urban Institute piece on AI governance has fuelled the discussion about how regulators will handle automated decision-making in home loans.

A senior European Central Bank official has said banking supervisors 'cannot operate with a zero-risk mindset', arguing that regulation must accept some level of risk to keep credit flowing to the economy. The remarks, reported by The Banker, touch on ongoing debate over how far supervisors should push banks to de-risk, with lenders warning that overly cautious rules can restrict lending.

HSBC and HANetf have jointly launched Bitcoin ETCs with currency hedging in pounds and euros for European investors. In Europe, ETCs backed by physical or synthetic assets are the main route to crypto exposure, unlike the US, where ETFs dominate. The move broadens institutional access to Bitcoin across the continent.

Commentary from Green Central Banking argues Europe has reached a decisive point on climate resilience, with adaptation and financial preparation for climate risks moving to the centre of policy debate. The piece suggests institutions and regulators across Europe are now treating climate preparedness as an immediate priority rather than a distant concern.

The Governor of the Bank of England has called for regulators to be given a 'right to intervene' in artificial intelligence, warning of a growing threat to financial stability and society. He argued that authorities need powers to step in quickly as AI adoption accelerates across the banking sector and the wider economy.

AI-generated deepfake fraud is creating new legal liability questions for banks and companies, according to Bloomberg Law. As scammers use convincing fake voices and video to impersonate executives and clients, institutions face growing uncertainty over who bears the losses when payments are authorized by fakes. The report suggests courts and regulators will play a key role in defining responsibility for deepfake-enabled financial crime.

A French government minister has suggested that fines imposed on American technology companies could be used as a source of funding for European Union spending, describing the penalties as a kind of piggy bank for Brussels. The remarks highlight growing friction between the EU and US tech giants over regulation, taxation and who benefits from multi-billion-euro penalties.

Citigroup chief executive Jane Fraser is being discussed in connection with control of AI agents in finance. The reported focus is on how banks should oversee autonomous AI systems as they take on a bigger role in financial services. The discussion touches on governance and oversight questions facing major banks adopting agentic AI.

The Federal Reserve has finalized reforms to its annual bank stress tests and opened a public comment period on the hypothetical scenarios used to assess whether the largest US lenders can withstand economic shocks. The changes come after industry criticism that the tests were opaque and produced overly volatile capital requirements. Banks and regulators will now weigh in on how future scenarios are designed.

The Central Bank of Cyprus has imposed a €750,000 fine on Banque SBA Cyprus, according to the Cyprus Mail. The penalty makes the French-linked lender one of the more recent banks to face regulatory sanctions on the island. Details on the specific breach behind the fine have not been widely reported, and neither the bank nor the regulator has given a detailed public explanation so far.

The Bank of England has cautioned that soaring valuations of artificial intelligence-related companies could face a sharper correction than other financial markets if expectations of future profitability are not met. The warning adds to a growing chorus of concern among regulators and investors that AI-driven market optimism may be inflating an asset bubble.

Reuters Breakingviews has published a commentary examining how and why UBS, Switzerland's largest bank, could relocate out of the country. The piece weighs the circumstances under which the banking giant might move its domicile, a question drawing attention as regulators and politicians in Switzerland debate stricter capital rules for the systemically important lender.

The Bank of Canada is calling on banks to make use of its liquidity facility without worrying about stigma, stressing that borrowing from the central bank should be seen as normal prudential practice rather than a sign of weakness. The message aims to encourage institutions to tap standby funding when needed, reflecting broader concern among regulators that fear of reputational damage can deter healthy banks from accessing liquidity in times of stress.