News/Financial Stability
FSoC to take ‘flexible approach’ to identifying systemically important financial market infrastructures
US Financial Stability Oversight Council outlines criteria for what qualifies as systemically important financial market infrastructure
EBA stress tests: adverse scenario toughened up
Stress tests underway for European banks use harsher adverse scenario and tighter capital rules than tests carried out last year
UK FSA’s Turner puts forth case for more discretion
Chairman of the Financial Services Authority Adair Turner argues discretion vital if regulators are to temper the excesses of credit cycles
ECB opines on how euro crisis facility should work
European Central Bank proposes IMF involvement in order to ensure facility does not promote moral hazard
Ireland unveils stress test scenarios
Central Bank of Ireland outlines macroeconomic scenarios for stress test exercise on four banks; results set to be published at end of month
S&P unconvinced by resolution regimes
Rating agency says sovereigns will continue to bail out banks
Zimbabwe told to look to commercial banks for US coin supplies
Contrary to local media reports, Federal Reserve has not made formal arrangement with Harare
Japan injects ¥7 trillion; expands asset purchase programme by ¥5 trillion
Bank of Japan makes largest-ever same-day funds operation in bid to subdue market panic following Tohoku earthquake
EU agrees to more generous terms for Greece
Heads of state agree to lower rate of interest and extend maturity on Greek loan; no word on Ireland
Bank’s King calls for grand bargain to tackle global imbalances
Bank of England governor Mervyn King says G-20 countries must reach agreement on path to rebalance global economy; says G-20 could metamorphose into IMF governing body
BIS economists identify indicators of systemic risk
Bank for International Settlements research points to size as most reliable indicator of systemic importance, ahead of interbank lending and borrowing
BoJ leaps to action to soothe quake fears
Bank of Japan moves to assure investors that financial infrastructures are still working; central bank will work to maintain smooth liquidity, settlement conditions
AIG makes $15.7 billion offer for Maiden Lane II
New York Fed receives formal offer for bailout vehicle containing AIG’s residential mortgage-backed securities portfolio; insurer in bid to reduce debt to Washington
Canada to launch first polymer note this year
Bank of Canada set to issue new C$100 polymer banknote in November 2011; says entire series will be unveiled in the spring
Markets wobble as Spanish downgrade, eurozone fears bite
Moody’s one notch Spanish downgrade exacerbates investor jitters a day before European Council meets to discuss EFSF, ESM, bailout renegotiations
Clarity, access to information key to financial market infrastructure oversight, say regulators
Consultation report from CPSS and Iosco says central banks, market regulators need clear, specific information to determine which financial market infrastructures need regulation
Libya’s Bengdara pleads for softer sanctions on central bank: report
Central Bank of Libya governor Farhat Bengdara tells Wall Street Journal he is lobbying for some leniency on central bank sanctions; says cannot return to Tripoli
CPSS-Iosco proposes risk standards for CCPs
Central counterparties should be ready for failure of one or two largest customers, regulators suggest
European parliament embraces Tobin tax
Lawmakers throw their weight behind Tobin tax on financial transactions; say global difference of opinion should not stop Europe implementing levy
NY Fed’s Krieger: liquidity backstop for shadow banks vital
New York Federal Reserve executive vice-president Sandra Krieger stresses importance of backstop measures to reduce systemic risk arising from shadow banking activities
EBA’s stress test scenarios revealed: reports
Leaked documents set out scenarios for new round of European bank stress tests
RBI launches investigation into shadow banks
Reserve Bank of India says non-banks have now become systemically important
ECB’s González-Páramo calls on central banks to reinvent risk strategies
European Central Bank executive board member José Manuel González-Páramo says central banks must re-think their risk management framework; moots new toolkit
EBA to launch new stress tests
European Banking Authority unveils timeline for second round of EU-wide stress tests with launch set for Friday; first executive director and internal committee named