Capital
EBA: European bank capital improving but concerns remain over profits and assets
European banks are improving their capital and leverage ratios but are suffering from low levels of profitability and problems with non-performing loans, transparency exercise finds
Basel Committee proposes lighter capital for ‘STC’ securitisations
Simple, transparent and comparable securitisations might not need as much regulatory capital as they do under the current framework, proposals suggest
Information content of capital flows affects exchange rate impact, SNB paper finds
Private information conveyed by different kinds of capital flows affects the impact on the exchange rate, a working paper published by the Swiss National Bank finds
Bullard offers alternatives to cutting reserve bank dividend
St Louis Fed president takes issue with congressional proposal to cut dividend paid to largest banks; suggests tying amount paid to benchmark rate instead or eliminating it completely
BoE unveils final plans for ring-fencing banks
Consultation sets out how bank holding companies should structure themselves to comply with legislation on ring-fencing, but a decision on extra capital buffers is yet to come
Blanchard and others look to reconcile theory of capital flows with practice
Revamp of Mundell-Fleming model helps explain apparently contradictory results, with important implications for policy-makers looking to respond to capital flows
UK banks won't face FRTB capital hike – BoE official
Policy expert says most trading risks already captured under Pillar 2 framework
ECB paper traces roots of falling financial integration
Policy interventions beyond traditional capital controls may have ‘unintended’ impact on financial integration, including some macro-prudential measures based around currency
JP Morgan exec challenges CCPs over skin in the game
'Why wouldn't you put up... all of your capital?' asks Olsen, at panel on CCP recovery and resolution at New York conference
Market liquidity drained by regulations, says DBS chief
Volcker, Basel III and Dodd-Frank have combined to drain liquidity, CEO says – particularly in times of market stress
SGX 'ahead of the curve' on CCP capital, argues director
Singapore Exchange puts up 25% of the capital in its default waterfall, while European and US CCPs contribute 2.6% on average
RBI official defends going beyond Basel III
Vishwanathan singles out aspects of Indian financial system that make higher capital requirements appropriate, including short ratings history and population of unrated borrowers
IMF paper explores capital inflows and credit growth
Working paper finds an increase in capital inflows can fuel credit growth, but it depends on their composition; no ‘significant’ connection with foreign direct investment
BIS researchers dissect emerging market fire sales
Working paper picks apart the channels through which asset management impacts on emerging bond markets, finding evidence of procyclical behaviour
IMF paper: capital inflows work differently on credit for households and firms
The composition of capital inflows affects whether and how they cause credit growth, IMF working paper says
Bank of Canada paper flags risk of spillovers from emerging to developed economies
Researchers show how a search for safe assets could transmit instability to developed economies as capital flows out of emerging markets
Lobbying softens regulatory treatment of distressed banks in US, paper finds
Under-capitalised US banks are less likely to be rigorously supervised if they have exercised political or regulatory influence, a working paper published by the ECB finds
ECB researchers examine flight to safety during sovereign debt crisis
Working paper tracks geographical distribution of capital flight, finding different movements by intra-eurozone and external investors; movements ceased when OMTs were unveiled
Capital volatility fears spur talk of wider G-Sii charges
Concerns about yo-yoing capital are behind proposals to extend the higher loss absorbency requirement beyond non-traditional business
Competing theories explain drop in China’s reserves
Holdings fall $110 billion in Q1 as domestic investors look abroad and the PBoC defends the exchange rate; some analysts say ECB quantitative easing is probably the real villain
Non-financials may be caught by shadow bank rules
Banks warn of 'massive' impact from European Banking Authority proposals, which would limit credit lines
ESRB open to revising macro-prudential intermediate objectives
European Systemic Risk Board sees scope for ‘sharpening’ some of the existing five objectives, while potentially adding others, in review of EU policy
IMF paper finds foreign investor base crucial for EM sensitivity to shocks
Working paper finds emerging markets that rely more on international funds and global banks are more sensitive to ‘global push factors’ such as US monetary policy