Recommended articles: risk management and macroeconomics

Risk management: Notepad: Risk in Review – January/February and 2018 Cyberrisk Landscape.

Risk culture: banks fall short in eyes of staff. Many risk managers believe their banks have work to do on understanding, measurement and management of risk culture.

The revaluation of international banks following the crisis. Banks that internationalise can enjoy additional profit opportunities and diversification benefits as national business cycles are not perfectly synchronised. This column uses an international sample of banks in 113 countries during 2000-2015 to show that the relative valuation of international banks from high-income countries rose following the Global Crisis as they experienced lower increases in loan losses, adjusted their international asset allocations, and received generous ‘too-big-to-fail’ subsidies. International banks headquartered in developing countries experienced no such revaluation following the crisis.

Monetary policy with negative nominal interest rates. Economists disagree on the macroeconomic role of negative interest rates. This column describes how, due to an apparent zero lower bound on deposit rates, negative policy rates have so far had very limited impact on the deposit rates faced by households and firms, and this lower bound on the deposit rate seems to be causing a decline in pass-through to lending rates as well. Negative interest rates thus appear ineffective in stimulating aggregate demand.

Finally, Inside Mexican Capital Markets with Jaime Lazaro, CFA.