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Institutional research & analysis

Source: BIS

INSTITUTIONAL

Working PaperMay 13, 2026

The Trafalgar squeeze of global liquidity

The severity of financial crises is exacerbated by the lack of international liquidity or the absence of a global lender of last resort. This was evident during the Long Depression (1873-1896), the Great Depression (1929-1936), and, as we show in this paper, during the 1805-1806 crisis that followed the Battle of Trafalgar. The latter took Atlantic trade routes away from Spain and cut off Europe's access to Latin American silver, the key high-powered money of the time. This silver shortage le...

BIS1 min read
Research PaperMay 5, 2026

The impact of stablecoins on the international monetary and financial system

Widespread use of stablecoins could have an important impact on the international monetary and financial system, particularly for emerging market and developing economies (EMDEs). Using the framework of international currency functions to analyse their effect, we argue that stablecoins are most likely to affect private sector store of value and medium of exchange roles, particularly in economies facing macroeconomic instability.

BIS1 min read
Research PaperMay 4, 2026

Acting under uncertainty - the case for supervisory risk appetite frameworks

Periodic episodes of banking sector distress invariably expose weaknesses in banks' governance and risk management and shortcomings in supervision. A recurring challenge for supervisory authorities (SAs) is the lack of an explicit framework to define, manage, and communicate their tolerance for supervisory risk: the risk that supervisory actions or inaction fail to achieve prudential objectives. This gap can lead to unclear, inconsistent or ineffective supervisory practices, undermining autho...

BIS1 min read
Research PaperApril 29, 2026

Digitalisation and innovation - opportunities and risks for financial health

Digital innovation is enhancing access to payments, credit, savings and insurance, and can help people to manage their financial obligations and have greater confidence in their financial future. But these benefits are emerging alongside new vulnerabilities: a global surge in scams and fraud, greater overindebtedness among some digital borrowers and the use of ill-suited investment products.

BIS1 min read
Research PaperApril 23, 2026

Cryptoasset service providers as financial intermediaries: risks and policy approaches

Cryptoasset service providers (CASPs) have expanded well beyond their initial roles as trading platforms and custodial service providers. The largest firms now offer a broad range of products, including yield/earn programmes, margin and secured lending, derivatives and token issuance. Some of these products closely resemble financial intermediation activities traditionally performed by banks and prime brokers. As such, many institutions can be better described as multifunction cryptoasset int...

BIS1 min read