Global Regulator & Central Bank News Roundup
Edition 382026Week of September 21
Global developments
The Network for Greening the Financial System has updated its 2020 supervisory guide, retaining its five high-level recommendations while substantially expanding the treatment of nature-related financial risks, the climate-nature nexus and forward-looking supervisory practices. The 2026 Guide gives greater prominence to transition planning, adaptation, scenario analysis and stress testing, litigation risk and climate-related disclosures, while setting out how these risks can be assessed through existing prudential frameworks, particularly Pillar 2. It also clarifies that implementation should be progressive and proportionate but remain risk-based, with data constraints or smaller institution size not preventing supervisory assessment where risks may be material.
The Network for Greening the Financial System (NGFS) has updated its 2020 supervisory guide for climate and nature-related financial risks to reflect how climate and nature-related financial risk supervision has evolved from an emerging practice into a more established part of prudential supervision. The 2026 Guide retains the core framework and five high-level recommendations, while updating and expanding the guidance around them. Most notably, it gives substantially greater weight to nature-related financial risks and the climate-nature nexus, while adding more developed guidance on transition planning, adaptation, scenario analysis and stress testing, litigation risk and the supervisory use of climate-related disclosures. The Guide remains focused on banks and insurers and is designed to be applied progressively and proportionately across jurisdictions with different mandates, resources and levels of supervisory maturity. On nature-related risks, the Guide moves beyond the predominantly climate-focused approach of the 2020 edition by treating climate risk as part of a broader set of nature-related financial risks and placing greater emphasis on how climate change, biodiversity loss and ecosystem degradation can interact and amplify financial impacts. It sets out emerging supervisory approaches for identifying nature-related exposures, including ecosystem dependency and impact analysis, geospatial assessments and risk-driver indicators, while noting that methodologies remain less mature than for climate risk. The Guide also sets out three complementary dimensions of supervisory assessment covering institutions’ gross exposures, the quality of their governance and risk controls, and the residual risk remaining after mitigation, adaptation, insurance and other management actions. Within this framework, it gives greater weight to forward-looking tools for assessing how risks may evolve and how effectively institutions are managing them. Supervisory attention extends beyond the transition plan itself to the governance, strategy and risk management processes that underpin it, while adaptation and mitigation measures can inform the assessment of residual risk. Scenario analysis and stress testing can support assessments of exposures, risk management and remaining vulnerabilities, alongside climate and nature-related litigation risk and climate-related disclosures as additional supervisory inputs. The Guide also makes the implementation path more explicit. Supervisors may start with qualitative tools, proxies and available data and progress toward more granular, quantitative approaches as capabilities improve, but data or capacity constraints should not prevent initial action. Proportionality is intended to remain risk-based, meaning that smaller institutions should not automatically be assumed to face immaterial climate or nature-related risks.
The Basel Committee on Banking Supervision’s latest Basel III monitoring exercise found that risk-based capital and leverage ratios were stable for large internationally active banks at end-December 2025, while liquidity indicators showed limited movements and all banks reported Liquidity Coverage Ratios and Net Stable Funding Ratios above 100%. Full phase-in of the final Basel III standards would increase Tier 1 minimum required capital by 2.2% for large internationally active banks with more than EUR 3 billion of Tier 1 capital and by 0.7% for all other banks, with an aggregate capital shortfall of EUR 1.4 billion across the sample.
The Basel Committee on Banking Supervision’s latest Basel III monitoring exercise found that capital and liquidity positions remained broadly stable at the end of 2025, while full implementation of the final Basel III standards would result in only a modest increase in capital requirements for the banks surveyed. The exercise covered 149 banks, including 106 large internationally active banks with more than EUR 3 billion of Tier 1 capital, of which 29 were global systemically important banks, and 43 other banks. For the large internationally active banks, the average Common Equity Tier 1 capital ratio under the current Basel III framework remained at 13.9% between June and December 2025, while the average leverage ratio edged down from 6.1% to 6.0%. Liquidity remained comfortably above regulatory minimums: the average Liquidity Coverage Ratio rose from 134.8% to 136.6%, while the Net Stable Funding Ratio decreased slightly from 123.9% to 123.3%. All banks in the exercise reported both liquidity ratios above the 100% minimum. Assuming the final Basel III standards were fully implemented, minimum required Tier 1 capital would increase by 2.2% for the large internationally active banks and by 1.8% for the global systemically important banks within that group. The increase would be 0.7% for the other, generally smaller banks in the sample. For the large internationally active banks, the higher requirement mainly reflects the output floor and revised market risk requirements, partly offset by lower leverage ratio requirements. The resulting aggregate capital shortfall would be EUR 1.4 billion across non-systemically important large banks and the other banks in the sample, with no shortfall among global systemically important banks. These estimates assume full implementation using end-2025 balance sheets and do not incorporate subsequent changes in bank behaviour, profitability or additional Pillar 2 capital requirements.
The Taskforce on Nature-related Financial Disclosures (TNFD) 2026 Status Report found that more than 1,000 organisations across 56 countries or areas now publish some level of TNFD-aligned disclosure, double the number identified in 2025. More than 70% of surveyed market participants support mandatory nature-related reporting requirements, while 76% have conducted or are undertaking a LEAP assessment, the TNFD approach for assessing nature-related dependencies, impacts, risks and opportunities. TNFD is now shifting from technical guidance development toward embedding its framework in global standards.
The Taskforce on Nature-related Financial Disclosures (TNFD) released its 2026 Status Report showing that more than 1,000 organisations across 56 countries or areas now publish some level of TNFD-aligned disclosure, double the number identified in 2025. A total of 802 organisations are TNFD Adopters, including financial institutions representing USD 26.6 trillion in assets under management. Average disclosure per reporting organisation fell slightly to 8.1 of the 14 recommended disclosures from 8.7 in 2025, reflecting the large increase in first-time reporters, while the amount of disclosure increased with each successive reporting cycle. Survey evidence points to growing demand for more consistent nature-related reporting requirements. More than 70% of respondents support mandatory requirements, while investors and report preparers prioritise global consistency, alignment with existing climate reporting approaches and a combination of cross-sector and sector-specific metrics. Some 76% of respondents had conducted or were undertaking a LEAP assessment, the TNFD's approach for assessing nature-related dependencies, impacts, risks and opportunities, with investors using the approach primarily for stewardship and risk management rather than capital allocation and portfolio construction. More than half of investors are exploring or deploying capital into nature-related opportunities, and 74% expect financing of such opportunities to increase twofold to fivefold over the next five years. TNFD said its technical guidance development work for corporate assessment and reporting is complete and its focus is shifting toward embedding its framework in the standards and regulatory architecture. Priorities include supporting the International Sustainability Standards Board's nature-related standard-setting work and advancing an International Organization for Standardization standard based on the LEAP approach, with development expected to begin in the fourth quarter of 2026 and conclude in 2028.
The Bank for International Settlements has published a new bulletin introducing an ageing-automation overlap index for 135 economies to assess whether older workers are concentrated in industries where AI and robots can help relieve labour shortages. The index shows that ageing often occurs in industries with relatively low automation potential, while more automatable industries tend to have younger workforces, and this mismatch has worsened in more than half of the economies studied. Where the overlap is low, policy may need to rely more on higher labour force participation, labour mobility or immigration.
The Bank for International Settlements has published a new bulletin assessing whether artificial intelligence and robots can help offset the economic effects of workforce ageing. The analysis finds that their potential depends heavily on where older workers are concentrated: automation is most useful where ageing occurs in industries that are relatively easy to automate, but in many economies older workers are concentrated in sectors where automation potential is limited. To assess this alignment, the bulletin introduces an ageing-automation overlap index covering 135 economies. The index combines, for each economy, the share of workers aged 55 and over in different industries with those industries’ exposure to AI and robots, while taking account of their importance in total employment. A higher index value indicates that older workers are more concentrated in industries where AI or robots could help relieve labour shortages, while a lower value indicates that ageing is concentrated in industries that are harder to automate. The index highlights a broad mismatch between where workforces are ageing and where automation potential is greatest. Agriculture and health and social work have older workforces but relatively low exposure to AI and robots, while manufacturing has high automation exposure but generally younger workers. This limits the extent to which automation can directly offset ageing-related labour shortages. Higher-income economies generally have more favourable overlaps, but several rapidly ageing advanced economies, including in Asia, are among the least favourably placed. The overlap has also declined in more than half of the economies studied compared with the 2010–2013 average. The policy implications differ according to this alignment. Where ageing is concentrated in industries with limited automation potential, economies may need to rely more on higher labour force participation, labour mobility or immigration. Where the overlap is more favourable, priorities could include removing barriers to technology adoption. AI and robots can still raise productivity and output even where their ability to offset workforce ageing is limited.
Active global consultations
The Committee on Payments and Market Infrastructures and the Board of the International Organization of Securities Commissions are seeking feedback on a discussion paper examining the risk management challenges arising from financial market infrastructures’ increasing reliance on third-party service providers, including for critical services. The paper reflects FMIs’ systemically important and highly interconnected role and focuses on how external and intra-group service arrangements can increase operational risk and create channels through which disruptions may be transmitted across the financial system. It does not propose additional guidance but seeks views on whether the identified challenges are comprehensive and whether further engagement or policy support would be beneficial. The paper identifies six principal challenges: increasing complexity and interconnectedness of FMI ecosystems, including cyber-related risk; concentration of third-party service providers and resulting single points of failure, vendor lock-in and systemic dependencies; complex and opaque supply chains and limited visibility of nth-party providers; difficulties designing practicable exit strategies and substituting providers, especially in stressed conditions; imbalances in bargaining power that can limit audit, information-sharing, testing and service-level rights; and variation in regulatory, supervisory and oversight expectations across jurisdictions.
The Committee on Payments and Market Infrastructures and the Board of the International Organization of Securities Commissions are seeking feedback on a discussion paper examining the risk management challenges arising from financial market infrastructures’ increasing reliance on third-party service providers, including for critical services. The paper reflects FMIs’ systemically important and highly interconnected role and focuses on how external and intra-group service arrangements can increase operational risk and create channels through which disruptions may be transmitted across the financial system. It does not propose additional guidance but seeks views on whether the identified challenges are comprehensive and whether further engagement or policy support would be beneficial. The paper identifies six principal challenges: increasing complexity and interconnectedness of FMI ecosystems, including cyber-related risk; concentration of third-party service providers and resulting single points of failure, vendor lock-in and systemic dependencies; complex and opaque supply chains and limited visibility of nth-party providers; difficulties designing practicable exit strategies and substituting providers, especially in stressed conditions; imbalances in bargaining power that can limit audit, information-sharing, testing and service-level rights; and variation in regulatory, supervisory and oversight expectations across jurisdictions.
The Committee on Payments and Market Infrastructures (CPMI) and the Board of IOSCO are consulting on a voluntary, non-binding cyber resilience toolkit intended to provide financial market infrastructures with practical, technology-neutral support for strengthening their cyber resilience frameworks and implementing operational resilience-related components of the Principles for financial market infrastructures, as informed by the 2016 CPMI-IOSCO Guidance on cyber resilience for financial market infrastructures. The toolkit is organized around four areas: (1) governance of cyber risk and resilience, including board and senior management capabilities, ecosystem risk management, maturity models and resilience metrics; (2) identification and design of extreme but plausible cyber scenarios, including scenario scope, threat intelligence, emerging risks and ecosystem dependencies; (3) response, resumption and recovery planning, covering critical operations and information assets, infrastructure and data resilience, third-party dependencies, contingency arrangements, safe resumption and the disconnection and reconnection of ecosystem entities; and (4) cyber resilience testing and exercising.
The Committee on Payments and Market Infrastructures (CPMI) and the Board of IOSCO are consulting on a voluntary, non-binding cyber resilience toolkit intended to provide financial market infrastructures with practical, technology-neutral support for strengthening their cyber resilience frameworks and implementing operational resilience-related components of the Principles for financial market infrastructures, as informed by the 2016 CPMI-IOSCO Guidance on cyber resilience for financial market infrastructures. The toolkit is organized around four areas: (1) governance of cyber risk and resilience, including board and senior management capabilities, ecosystem risk management, maturity models and resilience metrics; (2) identification and design of extreme but plausible cyber scenarios, including scenario scope, threat intelligence, emerging risks and ecosystem dependencies; (3) response, resumption and recovery planning, covering critical operations and information assets, infrastructure and data resilience, third-party dependencies, contingency arrangements, safe resumption and the disconnection and reconnection of ecosystem entities; and (4) cyber resilience testing and exercising.
Regional developments
Hong Kong’s Securities and Futures Commission has set out an action plan for capital market development. It follows the release of the government’s first Five-Year Plan for 2026–2030, a broader economic and social programme whose financial priorities include offshore renminbi business, deeper capital markets and digital finance. The SFC’s measures advance these priorities through renminbi counters under southbound Stock Connect, settlement one business day after trading, new digital asset licensing regimes and greater use of technology in supervision.
Hong Kong’s Securities and Futures Commission (SFC) has set out a strategic action plan to expand offshore renminbi (RMB) business and reform capital markets. The action plan follows the release of the government’s first Five-Year Plan for 2026–2030, which establishes a framework for economic and social development aligned with national development strategies. The government’s plan combines measures to strengthen Hong Kong’s financial, maritime and trade roles with priorities for innovation and technology, regional integration, and reforms to housing, healthcare and public governance. Its financial priorities include expanding the offshore RMB ecosystem, deepening equity and bond markets, and developing digital finance alongside stronger risk controls. The SFC’s action plan takes forward these financial priorities and the 2026 Policy Address. To expand RMB investment and market access, short-term measures include RMB counters under southbound Stock Connect and work with relevant authorities to introduce a real estate investment trust (REIT) Connect scheme. Reforms to improve market efficiency include settlement one business day after trading (T+1), a fixed income and currency trading platform, and cross-margining with broader eligible non-cash collateral. A new Swap Connect reference rate and a consultation on streamlining prospectus disclosure requirements are planned for 2027. Over the medium to long term, the SFC plans to broaden RMB investment and hedging products and expand mutual recognition of funds. The SFC’s digital finance and commodities measures support the government’s plans to expand tokenisation and develop a gold trading ecosystem. New digital asset licensing regimes are short-term priorities, while regulatory frameworks for tokenised investment products, including gold and other real-world assets where appropriate, form part of the medium- to long-term work. The SFC will also support the government’s gold clearing and settlement system and the development of RMB-denominated gold and commodity products. Consistent with the wider plan’s emphasis on financial risk prevention, safeguards include digital asset custody and CrypTech market surveillance, stronger anti-money laundering capabilities and greater use of artificial intelligence in risk monitoring, supervision and enforcement.
The Australian Securities and Investments Commission’s review of 40 sustainability reports found improved climate-related disclosures but continuing weaknesses in forward-looking information, financial effects, risk assessments and comparability of some metrics. Eight practical actions address these findings by calling for clearer links to financial reports, stronger explanations of judgements and uncertainty, more complete risk and target disclosures, and better presentation of material information.
The Australian Securities and Investments Commission (ASIC) has identified improvements in climate-related financial information under statutory sustainability reporting, while highlighting gaps in disclosures that depend on forecasts, assumptions and judgements. Its review of 40 reports from listed and unlisted entities for the financial year ended 31 December 2025 found that disclosures had improved in quality, quantity and consistency compared with previous voluntary reporting. Governance and risk management disclosures were generally clearer than aspects of strategy, metrics and targets. The findings underpin eight practical actions that build on ASIC’s early observations published in May 2026. The detailed findings show that weaknesses were concentrated in more judgemental and forward-looking areas. While 95% of entities identified at least one climate-related risk or opportunity that could affect their prospects, some did not adequately explain the judgements underpinning their risk assessments or consider relevant past events and exposures across the value chain. Financial effects were another area of weakness: 37.5% of entities provided only qualitative information about current and anticipated effects, with measurement uncertainty the most common reason for not quantifying them. Some reports did not explain why quantitative information was not provided, identify the financial statement line items affected or likely to be affected when qualitative information was used, or clearly explain how sustainability disclosures connected with related information in the financial report. ASIC also found significant differences in how some cross-industry metrics were calculated and disclosed, limiting comparability, while entities took differing approaches to legally required climate targets and some did not clearly explain materiality judgements. ASIC’s eight practical actions respond to these findings. They call on entities to explain connections between sustainability and financial reporting, consider whether financial effects can be quantified and explain why qualitative information is used where they cannot, and base risk assessments on past events, current and forecast conditions and exposures across the value chain. Entities should also clearly disclose relevant judgements, assumptions and measurement uncertainty, recognise that legally required obligations such as the Safeguard Mechanism can constitute climate-related targets, avoid obscuring material information, comply with cross-referencing requirements and avoid disclaimers that conflict with the statutory framework.
The Australian Securities and Investments Commission has strengthened Market Integrity Rules for securities and futures participants, including governance, testing, monitoring and surveillance requirements for trading systems and algorithms using AI and other technologies, with the amendments commencing on 18 March 2028. ASIC is also consulting on consolidated market integrity guidance covering electronic trading, AI and machine learning, including expectations for model oversight, validation and material system changes, while simplifying and substantially reducing the volume of guidance for securities participants.
The Australian Securities and Investments Commission (ASIC) has amended its Market Integrity Rules for securities and futures markets to strengthen controls over trading systems and algorithms, including those using AI and machine learning, and to align requirements across the two markets. Trading participants must maintain appropriate governance, testing, approval and monitoring arrangements for trading algorithms, alongside stronger controls and surveillance for trading systems. The amendments commence on 18 March 2028, following ASIC’s decision to extend the transition period to 18 months. Trading algorithms provided or used by participants must be tested before first use and before material changes, with records retained for seven years. Trading systems are also subject to initial certification and periodic reviews. ASIC does not mandate independent third-party testing and revised its proposed monitoring requirements to focus on participants’ ability to immediately identify trading messages that threaten market integrity or platform functioning, supported by post-trade surveillance. The rules on false or misleading appearances have also been broadened to capture trading activity that produces such an effect, including through AI-driven activity, even where that outcome was not directly intended by a person. ASIC is separately consulting on consolidated market integrity guidance for securities and futures participants that would absorb its existing electronic trading guidance and introduce more explicit expectations for AI and machine learning. The draft guidance covers qualified oversight, controls on model behaviour, validation and ongoing monitoring, and treats the introduction or substantive modification of AI or machine learning used in trading, execution, routing, surveillance or pre-trade risk management as a potential material system change. ASIC expects the consolidation to reduce the volume of relevant guidance for securities participants by almost 60%.
New Zealand’s Treasury has published an independent review finding that the Reserve Bank of New Zealand’s initially appropriate pandemic stimulus became excessive and was withdrawn too slowly. It recommends more systematic policy decisions, greater attention to real interest rates and broader scenario analysis. Further recommendations include testing policy tools for operational readiness and reassessing financial constraints on implementing monetary policy.
New Zealand’s Treasury has published an independent review finding that the Reserve Bank of New Zealand maintained excessive monetary stimulus during the pandemic recovery and withdrew it too slowly. Covering January 2020 to December 2022, the assessment credits the initial response with supporting the economy and stabilizing bond markets. Later policy discounted stronger economic data and rising inflation risks, contributing to overheating, inflation peaking at 7.3% and a costly slowdown to restore price stability. Weaknesses in policy strategy, rather than data limitations, were the main source of errors. To reduce reliance on discretion, the review recommends that the Monetary Policy Committee (MPC) adopt a more systematic strategy emphasizing inflation in the near term and real interest rates. The Monetary Policy Statement should publish real Official Cash Rate paths implied by nominal rates and inflation projections. Prescriptions from one or two simple, robust policy rules should also be published for the current and next quarter as a check on policy decisions. The MPC should agree the policy rule embedded in its forecasting model and use scenarios that test key assumptions and cover upside and downside risks. Forecasts and scenarios should also account for likely fiscal responses to significant economic developments. Regular reviews and operational testing of alternative monetary policy tools are recommended, addressing shortcomings that included inadequate preparation for negative interest rates. Existing changes encouraging voting and public discussion of individual MPC views are supported, alongside adequate research and analytical resources to support diverse perspectives. The review also calls for reassessing sections 121 and 208 of the Reserve Bank of New Zealand Act 2021, which could allow financial considerations to constrain future monetary policy. The Reserve Bank’s Board should not have authority to refuse to implement MPC policy.
The Eurosystem has launched Pontes to settle wholesale tokenised asset transactions in central bank money, with services to expand gradually through full implementation expected by 2028. The European Central Bank has begun preparing to invest a small portion of its own funds in tokenised securities, initially focusing on euro area public sector and European supranational securities denominated in EUR. Purchases will settle through Pontes, with operational details and timing to be determined after preparatory work is complete.
The Eurosystem has launched Pontes to enable wholesale transactions in tokenised assets to settle in central bank money. The solution links market distributed ledger technology (DLT) platforms with TARGET Services. An initial group of market participants and DLT operators has completed onboarding and is ready to use it, with additional participants committed to connecting in the coming months. Alongside the launch, the European Central Bank (ECB) has begun preparations to invest a small portion of its own funds in tokenised securities, with purchases to settle through Pontes. Pontes initially offers a core set of services. Its design provides for settlement using cash tokens on the Eurosystem DLT platform or through T2, the Eurosystem’s real-time gross settlement system. In both cases, final settlement of the cash leg is achieved when the corresponding transaction is completed in T2. The design uses the Hash-Link protocol to enable delivery versus payment and other transactions requiring all-or-none settlement across platforms. Enhanced features and longer operating hours will be introduced gradually, with full implementation expected by 2028. The ECB’s planned investments will use its non-monetary policy own funds portfolio to build practical experience across the investment lifecycle. Initial purchases will focus on securities denominated in EUR issued by euro area central and regional governments, agencies and European supranational institutions. The ECB’s Executive Board will determine operational details and timing after preparatory work is complete, taking account of developments in tokenised issuance and the wider ecosystem. Separately, work continues under Appia toward a blueprint for an integrated DLT financial ecosystem by 2028.
In responses to the European Commission’s targeted review of the Markets in Crypto-Assets Regulation, the European System of Central Banks and European Banking Authority call for stronger safeguards around stablecoins and tighter oversight of crypto activities. Their priorities include addressing risks from global multi-issuer stablecoin arrangements, revising reserve requirements, clarifying the regulatory treatment of tokenised assets and bringing crypto lending within the regulatory perimeter. They also seek more risk-sensitive capital rules, stronger group-level supervision and more comprehensive reporting.
The European System of Central Banks (ESCB) and European Banking Authority (EBA) have called for stronger stablecoin safeguards and broader crypto oversight in separate responses to the European Commission’s targeted consultation on the Markets in Crypto-Assets Regulation (MiCA). The consultation examines the framework’s scope, requirements for stablecoin issuers and crypto-asset service providers, and supervisory arrangements in light of initial implementation experience and evolving markets. It also considers activities beyond MiCA’s current scope, including decentralised finance, lending and staking. The EBA considers existing stablecoin issuer requirements broadly appropriate, but identifies schemes involving EU and non-EU issuers as a priority for stronger safeguards. Both responses favour reassessing reserve requirements, clarifying asset classifications and regulating crypto lending. They also seek supervision that captures risks across firms’ activities and group structures, supported by more comprehensive reporting. For global multi-issuer stablecoin schemes, the concern is that redemption demands can concentrate on EU issuers while corresponding reserves remain abroad. The ESCB considers a legislative amendment necessary to permit these arrangements, while the EBA warns that existing supervisory tools may become insufficient as the schemes expand. Should they be permitted, both favour an equivalence regime for participating jurisdictions, enforceable reserve and redemption safeguards, and closer supervisory cooperation. Their reserve proposals similarly address the risk of redemptions transmitting stress to banks and financial markets, although their approaches differ. The ESCB would replace minimum bank deposit holdings of 30%, rising to 60% for significant tokens, with minimum shares of reserves maturing within one and five working days. The EBA recommends assessing a reduction in deposit floors, provided alternative reserves remain sufficiently liquid to meet redemptions. Both seek adoption of the EBA’s draft liquidity standards without weakening reserve safeguards. The EBA also seeks a maximum redemption timeframe, aligned across issuers in global schemes to reduce incentives to direct withdrawals toward one entity. Beyond stablecoins, clearer regulatory boundaries would preserve the treatment of tokenised financial instruments and deposits under existing sectoral legislation, while harmonised definitions would reduce uncertainty over which rules apply. Both favour regulating crypto lending and borrowing, including services facilitating access to decentralised lending protocols, with the ESCB additionally calling for regulation of staking. The EBA identifies suitability tests, leverage limits and risk disclosures as possible safeguards. To support this broader coverage, capital requirements would reflect risks across firms’ business models rather than relying principally on issuance size or operating expenses. Stronger group oversight would capture exposures and operational dependencies that supervision of individual entities can miss. The ESCB also reiterates support for transferring crypto-asset service provider supervision to the European Securities and Markets Authority, with a narrower remit for services provided by banks. Comprehensive reporting requirements for issuers and service providers would give supervisors a consistent basis for assessing compliance and identifying emerging risks.
The European Supervisory Authorities’ Autumn 2026 risk update highlights geopolitical disruption, advancing artificial intelligence capabilities and expanding private credit links as drivers of financial vulnerability. Renewed bond market pressure and potentially faster cyberattacks heighten concerns over foreign exposures and concentrated service dependencies. Private credit’s growing role in financing artificial intelligence and its links to banks reinforce calls for closer exposure monitoring, robust valuations and stronger crisis preparedness.
The European Supervisory Authorities have published their Autumn 2026 risk update, identifying external dependencies, emerging technologies and private credit as key vulnerabilities in the European Union (EU) financial system. Geopolitical disruption, rapidly advancing artificial intelligence (AI) capabilities and expanding private credit links underpin calls for stronger crisis preparedness and closer monitoring of how shocks could spread across institutions. The collapse of the ceasefire between the United States and Iran, together with growing debt sustainability concerns, pushed bond yields to decade highs in late summer. Energy disruptions have also weakened the growth outlook. Although banks’ direct exposures to conflict regions remain limited, indirect effects could deteriorate asset quality and subdue credit demand. Operational vulnerabilities are also becoming more challenging to manage: rapid advances in AI could enable attackers to identify and exploit previously unknown software weaknesses at unprecedented speed, amplifying the risks associated with concentrated reliance on foreign technology providers. Recommended safeguards include monitoring technology and payment dependencies through joint oversight under the Digital Operational Resilience Act and adopting AI tools for security testing. Private credit’s growing role in AI financing remains a focus, alongside EU banks’ expanding but still limited direct exposures to the sector. Some market segments are showing signs of stress, with shared borrowers and financing commitments providing channels through which difficulties could reach banks. Limited transparency, uncertainty over leverage and infrequent or potentially inaccurate loan valuations complicate assessment of these growing connections. Banks should aggregate exposures across business lines and monitor concentrations, supported by robust valuation methods and risk models. Supervisors and market participants should pay particular attention to exposures outside the European Economic Area, including links to the larger U.S. private credit market.
The European Securities and Markets Authority will launch a digital innovation supervisory priority from 2027, initially focusing on supervised entities' use of AI and tokenisation. Authorities will build supervisory capacity and common approaches while examining firms' governance, data quality and client outcomes, including through initial checks on a subset of the most affected firms.
The European Securities and Markets Authority will launch a new Union Strategic Supervisory Priority on digital innovation from 2027, initially focusing on how supervised entities use artificial intelligence and tokenisation. The priority is intended to strengthen supervisory expertise and capacity while supporting innovation and maintaining investor safeguards, with scope to adapt as new technologies and market practices emerge. Supervisory work will focus on three areas: supporting beneficial uses of new technologies, developing common supervisory capacity and approaches, and ensuring firms have robust governance, data quality controls and client-aligned outcomes when deploying technology. In 2027, authorities plan to map firms' existing and planned use of AI and tokenisation in client-facing processes and products, identify where technologies are emerging in practice, assess capacity needs and begin developing supervisory approaches and best practices. Initial checks will also be carried out on a subset of firms most affected. The new priority will run alongside the existing cyber and operational resilience priority, which began in 2025. ESMA is also closing its ESG disclosures supervisory priority in 2026.
The European Central Bank has approved a feasibility assessment of linking the Eurosystem’s TARGET Instant Payment Settlement platform with Brazil’s Pix. It will examine technical, operational, legal and business considerations with the Central Bank of Brazil. A link could make instant payments between the euro area and Brazil faster and cheaper.
The Governing Council of the European Central Bank (ECB) has approved a feasibility assessment of linking the Eurosystem’s TARGET Instant Payment Settlement (TIPS) platform with Brazil’s Pix instant payment system. The ECB will work with the Central Bank of Brazil to examine technical, operational, legal and business considerations. A link could make instant payments between the euro area and Brazil faster and cheaper. Pix, owned and operated by the Central Bank of Brazil, handles approximately 250 million instant payments daily, with transactions settled directly in central bank money. The assessment forms part of the Eurosystem’s broader exploration of connections between TIPS and other instant payment systems. Other initiatives under exploration include joining the Nexus multilateral network and establishing bilateral links with India’s Unified Payments Interface and Switzerland’s Swiss Interbank Clearing Instant Payments system.
The EBA is consulting on revised standards for supervisory college joint decisions on institution-specific prudential requirements. The proposal would extend the framework to Pillar 2 Guidance and measures related to the leverage ratio, align it with the revised SREP, incorporate qualitative supervisory measures and replace separate capital and liquidity reports with a single integrated risk assessment report. It would also strengthen consideration of interactions with Pillar 1 and macroprudential measures to reduce overlap and double counting.
The European Banking Authority (EBA) has launched a consultation on revised Implementing Technical Standards governing supervisory college joint decisions on institution-specific prudential requirements under Article 113 of the Capital Requirements Directive. The proposal would update the framework to cover Pillar 2 Guidance and requirements and guidance related to the leverage ratio, align the process with the revised Supervisory Review and Evaluation Process (SREP), and bring qualitative supervisory measures more clearly into joint decisions. The revisions would make the process more proportionate and focused on key supervisory concerns, replacing separate capital and liquidity risk assessment templates with a single integrated risk assessment report. Supervisors would be encouraged, where possible, to reach capital requirements, capital guidance and liquidity decisions on the same date and combine them in one joint decision document, while retaining flexibility to separate the decisions where needed. The revised templates would also require a clearer assessment of how proposed Pillar 2 capital and liquidity measures interact with Pillar 1 and applicable macroprudential measures, with the aim of identifying residual risks and avoiding overlap or double counting. Qualitative supervisory measures addressing material deficiencies in areas such as governance, risk management and controls would be explicitly incorporated into the risk assessment and joint decision process, linking these measures to the key supervisory concerns identified for the group or individual entities.
The Danish Financial Supervisory Authority has set a technology agenda through 2030 covering AI, quantum technology, tokenisation and innovation, aimed at improving regulatory clarity. Priorities include assessing sector use of AI and related cyber risks, preparing for quantum threats to cryptography, examining tokenisation, stablecoins and DeFi, and considering a broader role for the FT Lab regulatory sandbox. The work also supports the authority’s wider objective of simpler regulation and lower administrative burdens.
The Danish Financial Supervisory Authority has set out its approach to new technologies through 2030, focusing on artificial intelligence, quantum technology, tokenisation and the interaction between innovation, regulation and supervision. The plan is intended to improve understanding of emerging opportunities and risks, provide greater regulatory clarity and support timely risk management rather than introduce additional rules. It also aligns the technology agenda with the authority’s broader objective of simplifying financial regulation and reducing administrative burdens. For artificial intelligence, the authority will assess how the sector uses AI, including agentic AI, the associated responsibilities and challenges, and the effects of AI and cloud solutions on IT and cyber security risks and firms’ security measures. It will also follow up on its work on data ethics. On quantum technology, it will assess the sector’s preparedness for threats to existing cryptographic protections, support a timely transition to quantum-safe cryptography and examine potential applications in areas such as complex calculations, optimisation and large-scale data analysis. Its tokenisation work will cover assets including stablecoins and examine how greater programmability and decentralisation could affect financial infrastructure, including the risks, legal barriers and potential benefits associated with decentralised finance. The authority will also assess whether FT Lab can accommodate a wider range of projects, including relevant third-party providers, with an initial focus on data-sharing partnerships under the Anti-Money Laundering Regulation, while an evaluation of the Fintech Forum will inform its wider fintech initiatives.
Germany's Federal Financial Supervisory Authority and partner authorities reported the shutdown of 9,304 German telephone numbers linked to suspected fraud, particularly online investment fraud, over three months under Operation Herakles. Cumulative shutdowns reached 13,888 German and Austrian numbers. Germany's Federal Network Agency required telecommunications companies to adjust registration processes and strengthen compliance controls and scrutiny of distribution partners and dealers.
Germany's Federal Financial Supervisory Authority (BaFin) and partner authorities reported in a joint update on Operation Herakles that 9,304 German telephone numbers linked to suspected fraud had been identified and shut down over three months. The numbers were associated particularly with online investment fraud. The latest measures brought cumulative shutdowns under the operation to 13,888 numbers, comprising 13,397 German and 491 Austrian numbers. The Cybercrime Center at the Karlsruhe Public Prosecutor General's Office led the measures in cooperation with law enforcement bodies. BaFin's investigations into unauthorized online trading activities helped identify numerous suspect numbers. Germany's Federal Network Agency required the telecommunications companies concerned to shut down numbers and adjust registration processes to prevent abusive registration and use. Companies were also required to strengthen compliance controls and scrutiny of their distribution partners and dealers. The authorities established procedures to systematically identify and arrange the shutdown of large volumes of telephone numbers used for criminal activity.
France's Financial Markets Authority found that 31 major DORA incidents were confirmed at portfolio management companies in 2025, with 87% originating from service providers and 71% caused by cyberattacks. Reporting quality improved during the year, but 23% of firms still lacked a DORA compliant major incident reporting framework in November 2025. Third party information and communication technology risk will remain a key area of supervisory and internal control attention.
France's Financial Markets Authority published its assessment of major information and communication technology incidents reported under the Digital Operational Resilience Act in 2025. Portfolio management companies submitted 47 initial major incident notifications, of which 31 were ultimately confirmed as major. Of those incidents, 87% originated from service providers and 71% resulted from cyberattacks, including 48% involving internal data exfiltration and 23% involving misuse of the management company's tools. The incidents disrupted critical or important functions including portfolio monitoring, order management, access to internal data and know your customer processes. Crypto asset service providers and market operators reported two major incidents, while crowdfunding service providers reported none. The report also identifies weaknesses in DORA implementation during its first year. Initial reporting problems included late, incomplete and inconsistent submissions and difficulties classifying incidents, although reporting quality improved in the second half of 2025. A November 2025 self assessment found that 23% of portfolio management companies had still not established a major incident reporting framework compliant with DORA. Third party information and communication technology risk is a central supervisory concern. Portfolio management companies also reported difficulties obtaining DORA compliant contractual terms from providers, including resistance to classification as information and communication technology third parties, standardized contracts that did not fully meet DORA requirements, additional charges for regulatory obligations and lengthy remediation involving subcontracting chains. The authority expects third party risk management to receive particular attention in supervision and firms' internal control arrangements, with operational resilience included among its 2026 supervisory priorities.
Portuguese authorities have established a trilateral framework for cooperation and confidential information sharing during corrective intervention, temporary administration and resolution. They also updated their bilateral arrangements to reflect broader mandates, digitalization, changing business models and information system security threats.
Portugal’s Insurance and Pension Funds Supervisory Authority, the Bank of Portugal and the Portuguese Securities Market Commission have signed a trilateral protocol establishing mechanisms for cooperation and information sharing in financial crisis management. The framework covers corrective and early intervention, temporary administration and resolution, including procedures for handling confidential information, and reflects recommendations from the International Monetary Fund’s recent Financial Sector Assessment Program for Portugal. The authorities will coordinate where they share supervisory or crisis management responsibilities and where problems at one supervised entity create an imminent contagion risk for entities overseen by another authority. Coordination must account for both national and European arrangements, including the Single Supervisory Mechanism and Single Resolution Mechanism. Three new bilateral protocols also update cooperation, consultation and information sharing to reflect expanded regulatory mandates, digitalization, changing business models and structures, and new information system security threats
Argentina's National Securities Commission has finalized new primary placement rules strengthening allocation transparency, controls on proprietary participation, investor identification and supervisory access. Compared with the consultation proposal, the final regime shortens the proprietary auction bid cutoff to 30 minutes before closing and allows investor fees subject to advance disclosure and net-return information. The rules also clarify how domestic and international placements must use market systems.
Argentina's National Securities Commission (CNV) has finalized a revised regime for primary securities placements, tightening requirements around allocation practices, conflicts of interest, investor identification and supervisory reporting. General Resolution No. 1169 follows the July consultation and applies to primary placements of bonds and shares and, where relevant, closed-end mutual fund units and financial trust securities. The final rules preserve the consultation's core supervisory framework but modify some proposed requirements, including the treatment of proprietary bids and investor fees. The regime requires offering documents to explain how auction pricing variables will be determined and, for book building, to set out objective and sufficiently detailed allocation criteria. To constrain conflicts of interest, placement agents generally may submit or amend proprietary auction bids only until 30 minutes before the originally announced close, rather than the 45 minutes proposed in consultation, while proprietary allocations in book building must not displace other eligible investors, subject to specified exceptions. The CNV also dropped the proposed prohibition on investor commissions. Placement agents may instead charge fees if they disclose and quantify them in advance and provide investors with the resulting internal rate of return after fees. Orders must identify the end investor, and markets must provide standardized placement information and, for issuances under CNV supervision, direct and permanent real-time access to the full order and allocation cycle. Placement results must also be published on the closing day with expanded information on pricing and allocation outcomes. The rules focus on domestic placements and the local component of international offerings, while international placement agents that do not operate in Argentina remain outside their scope. The treatment of trading systems depends on the placement method: international book building may be conducted outside market trading systems, including for the local segment, while the local segment of an international auction or public tender must use an authorized system. Markets have until Dec. 31, 2026, to complete the required system changes.
Kenya’s National Treasury and the Central Bank of Kenya are consulting on a new payments policy and replacement legislation. The proposals would require interoperable systems, set capital requirements by licence category and protect customer funds in trust accounts. The policy also proposes a national instant payment switch to connect payment platforms.
Kenya’s National Treasury and the Central Bank of Kenya (CBK) are consulting on a draft National Payment System Policy and National Payment System Bill, 2026, to modernize payments regulation and address persistent fragmentation across payment platforms. The bill would replace the National Payment System Act, 2011, with a framework centered on differentiated licensing, mandatory interoperability and customer safeguards. The proposals build on earlier infrastructure reforms, including longer operating hours for Kenya’s national real time gross settlement system from July 1, 2025. The bill would establish separate licensing categories for payment service providers and payment system operators, with minimum capital requirements ranging from KES 5 million for payment initiation and account information services to KES 250 million for electronic money issuers. Banks and specified other institutions would require CBK authorization while remaining subject to the legislation. To improve integration across payment platforms, providers and operators would need interoperable systems capable of securely sharing customer data, with customer consent required for open finance access. The policy proposes a national instant payment switch and mandatory open application programming interface standards to support this integration. Customer protection requirements would oblige electronic money issuers and wallet providers to fully back customer balances in segregated trust accounts protected from creditors and provider insolvency. Providers would also need transparent fees and accessible complaints handling. To strengthen operational resilience, the policy proposes mandatory cybersecurity testing and resilience stress tests for critical payment infrastructure. Existing providers of payment services would have one year from the new law’s commencement to comply.
The Central Bank of Oman has launched a national fintech strategy and the Oman FinTech Gate to support market entry. The strategy prioritizes proportionate regulation, digital infrastructure and startup support. The platform will guide applicants on requirements and initial applications, while regulatory decisions remain subject to the responsible authorities’ independent mandates.
The Central Bank of Oman (CBO) has launched the National FinTech Strategy and Oman FinTech Gate, combining a coordinated framework for fintech development with a platform to support companies and entrepreneurs entering the Omani market. The CBO will oversee implementation of the strategy and coordinate participating authorities. The strategy calls for proportionate regulation and reduced entry barriers while maintaining consumer protection, financial stability and safeguards against financial crime. It prioritizes funding and mentorship for startups, alongside education and training for the fintech workforce. Infrastructure priorities include modernizing payment systems and data networks and strengthening cybersecurity, with wider access to digital financial services also a core objective. The Oman FinTech Gate, integrated with the Invest Oman platform, will help applicants assess their readiness, understand applicable requirements and navigate initial applications. It will connect applicants with ecosystem partners and support progression toward regulatory engagement and potential market entry. Regulatory assessments and decisions remain subject to applicable legal frameworks and the independent mandates of CBO and the Financial Services Authority.
Saudi Arabia's Capital Market Authority is consulting on a daily cap of 20 algorithmic trading orders per executed trade in each Main Market security, excluding the “Very High Liquidity” category. The draft also sets testing, monitoring and recordkeeping requirements for Capital Market Institutions, with final provisions scheduled to take effect on Nov. 1, 2026. Separately, the CMA is also consulting on changes to IPO practices that would tighten requirements around book-building orders, underwriting commitments and verification of investors' financial capacity, and require issuers to disclose at least one year of forward-looking information.
Saudi Arabia's Capital Market Authority (CMA) has launched a consultation on draft provisions that would cap the ratio of algorithmic trading orders to executed trades at 20 orders per trade in each security per trading day. The limit would apply to Main Market securities, excluding those classified as “Very High Liquidity.” It would be calculated separately for each trader registered with the Saudi Exchange who is responsible for a market member's and its clients' trading activities. Capital Market Institutions would have to maintain systems and supervisory procedures to prevent market disruption, test systems and algorithms before implementation and conduct ongoing testing for reliability and accuracy. Controls would need to support order monitoring, alerts and the ability to stop a trading system or algorithm when necessary. Institutions would also have to retain relevant trading records and documentation for 10 years after algorithms are discontinued or modified, and provide information to the CMA and the Saudi Exchange on request. The final provisions are scheduled to take effect on Nov. 1, 2026. Separately, the CMA has launched a consultation on draft provisions to enhance IPO practices by strengthening the link between book-building orders and participating entities' actual liquidity and ability to pay. The proposals would require underwriting agreements to be executed and effective before book-building begins, with the underwriter's obligation to purchase all offered shares becoming effective from the start of book-building. Financial advisers and other Capital Market Institutions receiving participation orders would have to verify that orders reflect investors' available liquidity, with financial capacity verified using cash or cash equivalents, and ensure that orders become binding for payment by the subscription payment deadline. Issuers would also have to disclose forward-looking statements and forecasts, including forward-looking financial performance indicators covering at least one year, while financial advisers would be required to conduct professional due diligence on such information. The proposed provisions, if approved, would take effect on Nov. 2, 2026.
The Central Bank of the United Arab Emirates has barred all UAE branches of Bank Melli Iran from financial transactions to and from Iran, including trade finance and fund transfers. The ban follows regulatory breaches, including noncompliance with requirements to combat money laundering, terrorist financing and proliferation financing.
The Central Bank of the United Arab Emirates has prohibited all UAE branches of Bank Melli Iran from conducting financial transactions to and from Iran, including trade finance and fund transfers. The restriction follows supervisory examinations and violations of UAE laws, regulations and supervisory decisions, including requirements to combat money laundering, terrorist financing and proliferation financing. The restriction comes amid separate U.S. Treasury enforcement under Operation Economic Outcast targeting banks and digital asset platforms for their roles in Iranian sanctions evasion. The UAE measures are grounded in domestic regulatory breaches and were imposed under Article 168(1)(C) of Federal Decree-Law No. 6 of 2025 regarding the Central Bank, Regulation of Financial Institutions and Activities, and Insurance Business.
The Federal Reserve Board has proposed two GENIUS Act frameworks covering the regulation and approval of Board-supervised payment stablecoin issuers. The first would establish full reserve backing, capital, redemption, risk management and supervisory requirements, including remediation or liquidation consequences for key breaches, while the second would create a tailored application process for insured state member banks with a 120-day decision period for substantially complete applications and deemed approval if the Board does not act.
The Federal Reserve Board has requested comment on two proposals to implement its responsibilities under the GENIUS Act. The first would establish a regulatory framework for Board-supervised permitted payment stablecoin issuers (PPSIs), including requirements for reserve backing, capital, redemptions, permissible activities, risk management and supervision, alongside rules for stablecoin-related custody and certain requirements applying more broadly to banking organizations and PPSIs. The second would establish a tailored application process for insured state member banks seeking Board approval for a subsidiary to issue payment stablecoins, including the information applicants must provide and procedures for appeals, hearings and final determinations. Under the first proposal, Board-supervised PPSIs would have to maintain segregated permissible reserve assets with a fair value at least equal to the par value of outstanding payment stablecoins at all times and generally redeem stablecoins within two business days. A breach of the one-to-one reserve requirement would require notification to the Federal Reserve and could result in liquidation of reserve assets and redemption of outstanding stablecoins unless full backing is restored or the Board directs the issuer to proceed with a remediation plan. The framework would impose capital requirements for credit and operational risks, including a 2% charge on uninsured deposit claims and undercollateralized reverse repurchase agreements and a graduated operational risk charge of 1% to 2% of outstanding payment stablecoins, supplemented by a charge based on non-reserve asset revenue. It would also restrict issuers to specified stablecoin and supporting activities, prohibit the payment of interest or yield solely for holding, using or retaining payment stablecoins, and impose operational, information technology, security, Bank Secrecy Act, anti-money laundering and sanctions requirements. The second proposal would require insured state member banks seeking approval for a subsidiary to issue payment stablecoins to submit an application covering the proposed business plan, financial information, relevant policies and procedures, capital structure, biographical reports and required certifications. The Board would determine within 30 days whether an application is substantially complete and would have 120 days from the submission date to decide a substantially complete application, with the application deemed approved if it does not act within that period. A substantially complete application could be denied only if the activities of the applicant and its proposed PPSI subsidiary would be unsafe or unsound based on the statutory factors, while the Board could impose conditions on an approval. The framework would also govern appeals, hearings and final determinations and use information already available to the Board where possible to avoid duplicative submissions.
The Commodity Futures Trading Commission has issued a staff advisory on “mention market” contracts tied to individuals’ words, attendance or interactions. Staff may presume these contracts are readily susceptible to manipulation and expect designated contract markets to justify listings with detailed evidence of effective design and safeguards. The advisory creates no new obligations.
The Commodity Futures Trading Commission’s Division of Market Oversight has issued a staff advisory warning that “mention market” contracts may be presumed readily susceptible to manipulation. These contracts settle on an individual’s words, attendance or interactions, leaving a small number of people able to control or influence the outcome. Designated contract markets (DCMs) seeking to list them are expected to provide stronger evidence that their design and safeguards can overcome that presumption. The advisory clarifies existing expectations under Core Principle 3 and creates no new obligations. Listing may be justified in limited circumstances through appropriate contract design and effective safeguards. DCMs should assess whether independent obligations constrain the person controlling the outcome and whether others could influence that person through pressure or inducements. Outcomes should also be independently verifiable and subject to substantial public scrutiny. A prominent public setting alone may be insufficient if the words or actions determining settlement have little significance within the event. Part 40 filings should explain these assessments and the controls used to address manipulation and misuse of material nonpublic information. DCMs are encouraged to identify potential controllers and known insiders, then tailor measures such as trading restrictions, position limits and surveillance to the risks they pose. Those individuals’ legal or professional obligations do not replace the DCM’s own safeguards.
New York will direct large frontier AI developers to register from November and require compliance from January 2027 with RAISE Act duties including 72-hour critical incident reporting and regular filings to the DIGIT Office. Governor Kathy Hochul also appointed Marc Gilman as Deputy Director for RAISE Act implementation and said she will explore additional AI safety measures in the coming months.
New York Governor Kathy Hochul announced the next implementation steps for the Responsible AI Safety and Education Act, directing large frontier AI developers to register with the state from November and prepare for compliance from January 2027. The move advances the framework signed into law in December 2025, under which covered developers must publish safety and transparency frameworks, report critical safety incidents within 72 hours, file quarterly assessments of catastrophic risks and make periodic disclosures to the Office of Digital Innovation, Governance, Integrity and Trust within the New York State Department of Financial Services. Hochul also appointed Marc Gilman as Deputy Director for the RAISE Act, making him the first full-time hire of the DIGIT Office and adding dedicated capacity to the state's implementation work. Additional staff are expected to join the office, while Hochul said she will explore further measures to build on the RAISE Act in the coming months.
Payments Canada research found that 26% of Gen Z Canadians aged 18-24 lost money to fraud, double the general population rate. Over the past 12 months, 47% experienced scams, compared with 30% overall. The findings highlight lower adoption of fraud prevention practices among younger Canadians and greater exposure to family or friend imposter schemes.
Payments Canada has published research showing that 26% of Gen Z Canadians aged 18-24 lost money to fraud over the past 12 months, double the general population rate of 13%. Overall, 47% of this age group experienced scams involving attempted theft or loss of money or personal information, compared with 30% of the general population. The findings highlight lower adoption of fraud prevention practices among Gen Z. In this group, 21% have shared personal banking details by email or text, while 36% use the same password across all their accounts. Strong passwords are used by 57%, compared with 71% of Canadians overall. Younger Canadians are also more likely to encounter family or friend imposter schemes using social engineering. Detection poses broader challenges, with 60% of Canadians agreeing that artificial intelligence deepfakes and synthetic identity fraud make scams harder to identify. The findings are based on a survey of about 1,500 adults conducted between February and March 2026 and weighted to represent Canada's adult population.
Monetary policy developments
Decisions during the week of September 21–27 reinforced the prospect of interest rates remaining elevated for longer in several economies, as renewed energy price pressures complicated efforts to return inflation to target. Norway raised its policy rate by 25 bp to 4.50%, judging that lower than expected underlying inflation had not materially improved the medium-term outlook. South Africa also increased rates by 25 bp to 7.25%, as renewed fuel price increases, persistent services inflation and elevated expectations warranted further restraint despite the second quarter economic contraction. Eswatini and Lesotho also each raised rates by 25 bp to 7.00%. Sweden maintained its policy rate at 1.75%, but stronger activity, a weaker krona and higher energy prices led the Riksbank to project more rate increases than in June, with tightening expected to begin later this year if the outlook holds. Switzerland also left its policy rate unchanged, at 0%, as inflation rose only modestly to 0.8% and remained within the SNB’s price stability range despite higher energy prices and a weaker franc. Among other decisions to hold, Indonesia maintained 5.75% to support the rupiah amid strong external pressures, while Hungary paused at 5.50% despite below target inflation as high energy prices and uncertain financial market conditions warranted caution. Mexico retained 6.50%, with weak domestic demand limiting inflation pressures, while improving domestic price conditions supported unchanged rates in Egypt and Ghana. Egypt lowered its inflation forecast after several months of subdued price increases, while Ghana’s core inflation and expectations continued to ease despite higher fuel and utility costs. Nigeria, in contrast, reduced its headline policy rate from 26.50% to 23.00% and adjusted its interest rate corridor, explicitly describing the decision as an operational reset to improve alignment with money-market rates and strengthen policy transmission, rather than an easing of its monetary policy stance.