Financial Stability
Top Thai regulator advises Asean neighbours to open markets slowly
Bank of Thailand regulatory policy director warns Laos and Vietnam liberalisation could cripple their banks if conducted too quickly
Malaysia deputy governor says better credit reporting crucial to Asean integration
Asean Economic Community faces challenging test of successfully integrating regional financial markets, Bank Negara's Muhammad bin Ibrahim says
Leverage ratio begins to bite for FX derivatives
The capital-intensive rule for banks, which has already affected the rates and credit world, is starting to hit FX - with clients expected to bear the brunt of higher costs
BoJ’s Sato outlines efforts to reform repo market
Board member says Bank of Japan is seeking to improve repo market functioning with reforms targeted at transparency, stability, efficiency and globalisation
European supervisors want better data to support securitisation stress tests
‘Joint Committee’ proposes numerous disclosure requirements for securitisations, including giving investors enough information to stress test purchased products
RBNZ targets Auckland with new macro-prudential plans
Central bank wants to impose stricter macro-prudential rules on lending to property investors in Auckland; will also force banks to hold more capital against those loans from October
Finma's Branson calls for Basel leverage ratio hike
The minimum Basel leverage ratio for large banks should be higher than 3%, says Finma CEO Mark Branson, noting "the world has moved on" since it was initially set
Bundesbank paper finds misbehaving banks increase volatility
Model of imperfect information shows output becomes more volatile when depositors cannot fully hold bankers to account
Alexandre Lamfalussy: 1929–2015
Those who knew him pay tribute to the former president of the European Monetary Institute and general manager of the Bank for International Settlements
Governments should work to promote ‘e-commerce’, UN report says
Research presented at the National Bank of the Republic of Macedonia outlines policies governments should pursue to harness the benefits of e-commerce
Colombian paper extends Bernanke research on asset price bubbles
Paper delivered at the BIS extends Bernanke and Gertler’s result that central banks should not lean against asset bubbles, finding the conclusion still holds in a small open economy
RBA paper builds new model of banks’ credit losses
Model draws on new dataset and focuses on interactions between portfolio-level and macro variables in attempt to explain historical bank credit losses in Australia
BoJ paper finds QQE has not ‘significantly’ damaged bond market liquidity
Researchers compile set of liquidity indicators, finding that while government bond market liquidity has not declined significantly, it has been on a downward trend since easing was ramped up
Regulators to put CCP risks under microscope
CPMI-Iosco stress-testing quiz will be precursor for broader review of risk management practices
BIS research posits test for unsustainable credit growth
Authors link long-run credit growth with leverage and debt service ratio, proposing a model they claim would have helped predict the 2008 financial crisis three years before it struck
Constâncio suggests new shadow bank powers for Esma
ECB vice-president again underlines need for supervisors to take on new tools and responsibilities for tackling shadow banks, but suggests at least some may be wielded by other bodies
Hong Kong 'coin carts' rake in cash
Hong Kong Monetary Authority trucks will collect coins from the public; so far, 87,000 people have traded in 78 million coins worth HK$77 million
IMF paper finds no link between efficiency and Basel compliance
Banks in jurisdictions that have adopted Basel ‘Core Principles’ for supervision are no more efficient than their peers elsewhere, working paper finds
‘Climate of greater optimism’ prevails in Spain
Financial stability report identifies many signs the economy has turned a corner and financial markets are beginning to recover, although credit to the private sector continues to fall
Opposition from big banks to RBA interchange fee curb
Large commercial banks and payments providers warn of damaging impact of regulating interchange fees, but smaller challenger payment systems are broadly in favour
Currency shifts could create ‘dilemma’ for Asian economies
IMF regional economic outlook warns policy-makers could face an ‘uncomfortable trade-off’ between external competitiveness and financial stability
EU risks have intensified, supervisory authorities warn
Risks have worsened since mid-2014, European supervisory authorities say; report recommends including costs arising from misconduct sanctions in future stress tests
Yellen says stability risks ‘not elevated’
Fed chair tells Christine Lagarde she does not see ‘the precursors of a financial crisis’, but singles out high stock valuations as a ‘potential danger’
Lift-off for ASX Aussie dollar swap clearing business
Volumes jump in the first three months of the year following revamp of Sydney bourse's clearing incentive scheme