The Federal Deposit Insurance Corp’s 2019 risk review has drawn attention to areas of concern in the US economy.

US agencies have made a series of modifications that come into effect early next year to help banks clarify what does and does not constitute proprietary trading under the Volcker rule. 

Amid speculation that the Bank of Japan (BoJ) is planning to increase its monetary stimulus programme, regulators are warning that it should carefully consider the impact on regional banks before doing so. 

Banks in Europe may have to seriously reconsider their business models or contract in the face of persistently negative interest rates, a move that could threaten financial stability, a leading Danish regulator warned. 

European banks plan to increase debt issuance over the next three years, particularly via unsecured debt instruments, the European Banking Authority (EBA) said in a statement.

Eurozone banks will get another three years to accumulate cash to deal with unsecured non-performing loans, nine years if backed by real estate and seven years for loans supported by other types of collateral, the European Central Bank (ECB) said.

While there are no obvious risks to global financial stability as of yet, there are a number of vulnerabilities that are a cause for concern, such as high levels of debt in certain parts of the economy, said Agustín Carstens, general manager at the Bank for International Settlements (BIS).

There currently is no need to modify the total loss absorbing capacity (TLAC) rule, but further efforts are needed to implement the standard effectively, the Financial Stability Board (FSB) said in a statement.