BISness

This briefing dives into the evolving landscape of global economics in 2025, highlighting the need for proactive measures amidst rising uncertainties. A focus on record banking income showcases technological advancements that enhance trust. The implications of tariffs on trade and monetary policies are examined, alongside the weakening dollar's effects on financial stability. The crucial role of independent central banks in managing inflation is discussed, along with the economic repercussions of rising defense spending in the Middle East.

The discussion highlights the global economic uncertainty impacting inflation and consumer behavior. Trade disruptions and policy changes are influencing investment and central bank roles. Critical vulnerabilities, like productivity stagnation and public debt, are explored, alongside strategic fiscal measures needed for growth. The transformation of financial risks since the Great Financial Crisis is examined, focusing on non-bank intermediaries and systemic threats. Lastly, the importance of central bank independence in challenging times is emphasized to ensure effective public policy and build societal trust.

Hyun Song Shin, Head of Research at the Bank for International Settlements (BIS), and Andréa M Maechler, Deputy General Manager of BIS, delve into the future of money. They discuss the transformative effects of tokenization in banking, highlighting Project Agora's role in enhancing correspondent banking efficiency. The guests explore the impact of stablecoins versus central bank digital currencies, addressing regulatory challenges. Governance complexities are examined as they navigate the integration of new monetary systems and the ongoing evolution of digital finance.

Hyun Song Shin, Economic Advisor and Head of the Monetary and Economic Department at the BIS, discusses the future of finance through tokenization. He explores how tokenized platforms can integrate central bank reserves and commercial bank money. The conversation highlights the balance between public interest and private innovation. Challenges posed by stablecoins and their impact on monetary function are addressed. Shin also emphasizes how tokenization can revolutionize international banking and enhance monetary policy management.

The BIS marked its 95th anniversary in May 2025. Andréa M Maechler and Tobias Straumann talk about its origins and how its role has developed over the years.

Johannes Ehrentraud explains the evolving relationship between banks and tech firms in the financial sector.

Hyun Song Shin summarises the March 2025 BIS Quarterly Review and, along with Gaston Gelos and Frank Smets, answers journalists’ questions about market developments, the state of the global economy and fiscal policy.

Cecilia Skingsley reflects on the first five years of the BIS Innovation Hub and discusses how it can continue to be useful to the central banking community.

Claudio Borio and Hyun Song Shin delve into the urgent global fiscal concerns surrounding rising public debt. They explore the implications of tariffs on inflation and how these factors shape monetary policy. Key insights address the broader impact on financial markets and the overall economic landscape, revealing the intricate connections between fiscal strategies and market dynamics.

Andréa M Maechler explains why price stability matters for consumers, employers, and investors and how central banks provide trust in money on three fronts, among other topics.