Financial Stability
Internal capital reallocation matters, BIS paper finds
Authors model response of a bank to tightening capital constraints, shedding light on how banks may respond to changes in their environment
Paper examines EM response to global liquidity shocks
Emerging markets reduce rates and increase reserves in the face of positive liquidity shocks
FCA’s Bailey: firms need Brexit clarity fast
Financial firms will have to make decisions over the coming months that will be very hard to unwind, so certainty on the Brexit transition is pressing
BoE paper scrutinises 2016 sterling flash crash
Paper makes detailed study of the “flash episode”, concluding later price drops were abnormal
Too soon to start celebrating economic improvements, says Mminele
Sarb deputy warns against complacency in latest economic roundup, saying it is too soon to start celebrating lower inflation and a more stable external environment
BIS could have done more to convey capital benefits – Caruana
Outgoing general manager says he would like to have better conveyed the “positive message” around capital, and made more progress on policy spillovers
Bank of Zambia to revamp ‘outdated’ supervisory framework
IMF praises the central bank’s efforts to inspect banking sector following overhaul of monetary policy framework in last 12 months
DLT has ‘more potential for change’ outside US – Boston Fed VP
Jim Cuhna says distributed ledger technology can transform financial services not only in payments but also in securities settlement; challenge is finding use cases
Brazil loosens prudential regulations for non-banks
Small non-banks’ regulatory processes will be made cheaper under new legislation, while capital requirements will be reduced
IMF’s Lipton says global growth is not ‘strong enough’
Deputy director says some emerging markets risk getting left behind
RBI welcomes $32 billion public bank recapitalisation
Government unveils funding package designed to free India’s large public banks from a heavy burden of non-performing loans
BoJ says Japan is overbanked
The central bank says Japanese banks may have too many employees and branches
Better structure could protect investors in P2P market - BoJ paper
Use of “specific purpose companies” could help protect investors in the event of the collapse of a P2P platform
European financial system is bigger and more concentrated, ECB says
NPLs have declined, but remain high in Cyprus, Greece, Italy and Portugal
CCPs say central bank access needed to avoid liquidity crisis
Uniform access to deposit accounts and overnight liquidity vital, say market participants
Schoolgirl takes over management of Paraguay’s central bank
Alejandra Belén attended a board meeting and gave official address during her day in office; central bank takeover forms part of wider campaign
BoE paper examines regulation spillover effects
Case study analyses effect of Spanish balance sheet regulation on Mexico’s economy, showing housing credit contracted
Banking industry has ‘consistently failed customers’ – Ireland’s Sibley
Banks should focus on whether outcomes are desirable, not just whether they are legal, says deputy governor