Inside this episode:

Rajeev Bamra and Steve Tu speak with Carolyn Henson about why stablecoin growth has put traditional financial institutions and bank regulators on the defensive. Meanwhile, David Fanger explains why large US banks will be able to distribute more to shareholders this year, and Marina Cremonese discusses money market funds’ readiness for the transition away from LIBOR.

Related content:

• Banks – United States: Lower stress capital buffers allow many banks to increase capital distributions, a credit negative Compliance with regulatory buffer requirements and dividend caps supports US banks' capitalization.
• Money Market Funds – Cross Region: Money marketfunds are well positioned for IBOR phase-out MMFs face little disruption from the phase-out of IBOR reference rates. The sector is adopting alternatives, and will rapidly replace IBOR-linked portfolio assets.
• Technology & Innovation – Global: FAQ on the risks and opportunities of stablecoins Stablecoins, a digital currency, have many potential uses in banking and finance. They also pose risks that if left unaddressed could undermine financial stability and monetary sovereignty.
• Financial Institutions – Cross Region: G-7 call to step up dialogue on digital currencies is likely to hasten disintermediation of banks and payments providers Although digital currencies potentially will generate significant public benefits, a direct link between customers and public money risks disintermediating payment companies and banks.