Over the past 50 years, technology has transformed finance. During the 2010s, FinTechs, typically small, agile start-ups, were the focus of much of the attention. In our view, the focus of attention across the 2020s will be something entirely different: digital finance platforms. Quietly, behind the scenes, digital financial platforms are increasingly serving as indispensable… Read More »
When the Covid-19 outbreak became a national emergency in the United States, the Federal Reserve, having learned the lessons from the last crisis, was quick and bold in reacting. In only nine days, from March 15 to March 23, the Fed cut its target for the federal funds rate, provided forward guidance, intervened in markets… Read More »
During the COVID-19 pandemic a new consensus has emerged which castigates modern finance for its tendency towards excessive leverage, and short-termism. As all this activity took place against a background of disappearing disposable incomes, it is not surprising that it also boosted inequality, especially between the asset-rich and the asset-light classes with the latter having… Read More »
The coronavirus pandemic has caused great damage to the global economy, due to the disease itself and the subsequent local and country-wide lockdowns to contain it. While recent investigations have focused on the short-term impact of COVID-19 and the lockdowns, the long-term impact, especially the ways that epidemic experience affects managerial decision making, has received… Read More »
The COVID-19 pandemic and associated global economic shutdown roiled financial markets around the world during the spring of 2020. The usually placid municipal securities market was not immune from this disruption. Initially, investors flocked to municipal securities to de-risk portfolios in response to the growing pandemic, pushing prices higher and bond yields to record lows.… Read More »
The COVID-19 pandemic has changed many aspects of the way that individuals engage with banking and payment tools, including various FinTech services. There are several reasons why the pandemic might have accelerated the adoption of FinTech and other digital platforms in payments by consumers and financial institutions. The pandemic may have led to an increase… Read More »
COVID-19 is primarily a health and human crisis which has evolved into an ever expanding economic crisis, but not yet a large scale financial crisis. So far, the financial sector has been central to directing financial resources to support economies and societies while governments battle the pandemic. As the length and depth of the economic… Read More »
Supervisory authorities have generally reacted swiftly to the COVID-19 pandemic, deploying support measures such as debt repayment postponement, stimulus packages, and credit guarantees. In some jurisdictions, supervisory authorities also provided capital, liquidity and operational relief to banks. So far, these measures have helped mitigate some of the short-term financial stability risks. However, in many countries,… Read More »
As long as other countries are receiving the benefits of Negative Rates, the USA should also accept the “GIFT.” Big numbers! –Donald Trump On June 10, 2020, the U.S. Federal Reserve (‘the Fed’) voted to keep interest rates near zero in the wake of the COVID-19 pandemic and hinted that rates will remain unchanged… Read More »
The global spread of COVID-19 has triggered large disruptions in financial markets. In response, central banks, such as the Federal Reserve, have created and continue to run a range of facilities to improve liquidity in financial markets, with the goal of promoting economic recovery. How effective are these facilities during a pandemic? In this blog… Read More »
