Big Picture

Funding markets remain at risk of liquidity stress, volatility in markets may return, and assets are at risk of a "sudden and sharp" repricing.

The report identifies 19 building blocks where further joint public and private sector work could enhance cross-border payments.

Privacy enhancing technologies, or PETs, may provide a "similar or, even, identical utility" compared to analysis of the raw data in some use-cases, says an FFIS paper.

Successful virtual banks are likely to branch out into wealth management services, robo-advisory and fund distribution, says a new Calastone paper.

Once the acute illiquidity phase of the crisis passes and insolvency problems emerge, the onus of crisis management will shift from central banks to fiscal authorities.

The evaluation found that the TBTF reforms have made indeed banks more resilient and resolvable, but barriers to bank resolvability still need to be addressed.

Covid-19 has highlighted unequal access to payment services for low-income and vulnerable groups. CBDCs present an opportunity to address this shortcoming.

Douglas Arner explains how Bitcoin, Libra, China's digital currency project, and Covid-19 have each played a role in catalysing what will be a fundamental reorientation of monetary and payment systems.

Uncertainties associated with the transition may make it harder for firms to identify how to treat their customers fairly, and to demonstrate that they have done so, the FMSB says.

Overregulation is an issue for some fund managers in Hong Kong, but the industry is also calling for greater regulatory clarity around GBA initiatives and ESG standards, according to a KPMG-HKIFA survey report.