Financial Stability
IMF report says ‘time has never been more right' to reform securitisation markets
Staff report emphasises need to make securitisation practices more robust while spurring demand; calls for standardised classifications of underlying risk characteristics
Average debt ratio for Swedes with mortgages rose to 315% in 2014
New data from the Riksbank shows Swedish households, especially wealthier ones, increased their debt burden between July 2013 and July 2014
ECB warns banks over dividends and bonuses
Danièle Nouy tells banks to take a ‘conservative’ approach to paying out dividends, while ECB announces probe into variable remuneration
Basel Committee issues enhanced disclosure standards
Revised standards aim to improve the comparability of banks’ risk-weighted assets, shedding light on internal model-based approaches
HKMA to introduce 'maximum' countercyclical capital buffer next year
Hong Kong will introduce Basel III tool at 0.625% of CET1 capital in January to guard against property market fallout; could raise it further in coming years if risks do not subside
Central Bank of São Tomé and Principe assumes management of failing bank
São Tomé and Principe’s central bank appoints an intervention team to manage a local bank, following a ‘progressive deterioration of its level of liquidity’ and with insolvency ‘imminent’
Treasury Committee attacks FCA’s use of media as ‘tool of regulation’
UK conduct regulator defends use of press to disseminate its policies, but MPs call the process ‘bizarre’ and a ‘colossal risk’
Asean central banks to improve settlement transparency
Members of the Asean Central Banks’ Working Committee on Payment and Settlement Systems adopt principles to improve transparency for cross-border trade settlements
Chilean banks must plan for liquidity shortages
Chilean banks will adopt new liquidity management policies later this year while reporting their LCR and NSFR; Central Bank of Chile may impose further rules next year
Fed challenges payments industry to get quicker and safer
New document sets out strategies for improving US payment system; Federal Reserve will only consider expanding role as service provider if private sector falls short
Research finds IMF lending helps limit future crises
Working paper published by IMF examines impact of lending programmes on developing countries between 1970 and 2010, finding they reduce likelihood of future banking crises
Croatian central bank calls for solution to Swiss franc mortgage quandary
Bank argues local households with liabilities denominated in the rising currency must receive help but suggests it is not the right to institution to tackle the issue
Ingves: Europe facing peer pressure on Basel III
The chair of the Basel Committee is counting on peer pressure to bring Europe into line with Basel III, but regulatory experts are not convinced it will work
Obstfeld warns emerging markets face dual trilemmas
BIS working paper dissects emerging markets’ ability to resist monetary policy spill-overs, finding the demands of monetary and financial trilemmas make self-defence difficult or impossible
BoE’s Gracie expects cyber attacks to breach defences
Building an ‘impermeable perimeter’ is unrealistic; institutions would be wise to focus instead on quick identification and response to threats, says executive director for resolution
Basel Committee signals shift towards Basel III implementation
With Basel III standards largely finalised, the Basel Committee’s 2015-16 work programme indicates focus on implementation and efforts to shore up confidence in capital ratios
Swiss gain greater access to renminbi markets in new deal
SNB and PBoC ink deal on RQFII quota for Switzerland and establish renminbi clearing in the country; latest in a string of agreements aimed at renminbi internationalisation
EBA chairman says supervisors should break up unresolvable banks
Supervisory entities ‘should have the guts’ to break up an unresolvable bank, European Banking Authority chairman Andrea Enria tells Davos audience
NY Fed's Baxter targets stronger ethical culture in banks
Thomas Baxter says progress is more important than ‘perfection' in promoting better behaviour among financial industry workers
Offshore renminbi clearing banks could face competition from 'superhighway'
As host countries play up significance of new clearing banks, questions emerge over whether they will become obsolete once Chinese ‘payments superhighway' comes into being
Fed’s Powell offers support for ‘ambitious’ BoE review
Jerome Powell points to the importance of reflecting on structural changes in the fixed-income, currency and commodities markets
BoE’s Cunliffe wants better allocation of capital in Europe
Better functioning capital markets would encourage savings to be put to better use, allow greater risk sharing and provide alternative sources of finance, deputy governor says
Honohan: EU-IMF programme a qualified success
Following conclusion of programme Central Bank of Ireland governor says it did 'what it said on the tin' by restoring market confidence and stabilising the economy
RBI director cautions against foreign ‘investment tourists’
Financial stability implications of investors leaving India 'at a whiff of trouble' must be kept in mind as the country progresses down path of liberalisation, Padmanabhan says