Financial Stability
FSB definition of shadow banking paints 'incomplete picture', warns IMF paper
US and eurozone sectors similar in size according to working paper, which says other measures fail to account for ‘non-traditional banking activities carried out by the banks themselves'
Peru adopts measures to reduce credit dollarisation
Peru’s central bank lowers the reserve requirement for local currency loans to 9% as part of a suite of measures aimed at boosting financial stability
Basel Committee revamps approach to credit risk models
Separate consultations set out improvements to standardised credit risk modelling approaches and make proposals for a capital floor; seek to reduce use of external ratings
Bahrain governor defends capital ratios
Rasheed Mohammed Al Maraj argues capital requirements ‘are not arbitrary, or excessive or punitive’ as they are necessary to prevent excessive risk-taking
FSB pushes countries to meet higher information exchange standards
Financial Stability Board publishes latest progress report on information sharing, with thirteen jurisdictions still lagging behind; updates list of ‘financially important’ economies
Canadians want more women on banknotes, poll shows
Bank of Canada’s banknotes should reflect more gender equality and a better celebration of women, according to the Canadians who participated in an online survey by the central bank
MEPs strike deal to cap card payment fees
European Parliament reaches agreement on limits to the fees banks can charge retailers for processing payments in a bid to lower prices and tackle perverse incentives
Research takes Bayesian approach to find early-warning indicators
Excessive credit growth and high returns of bank stocks are the ‘best’ early-warning indicators, researchers from Austrian and German central banks find
Caruana sees leverage ‘evolving’ at global level
BIS general manager highlights risks beyond the banking sector, including an increase in corporate leverage in the wake of the financial crisis
Robert Pringle's Viewpoint: The global finance system is in bad need of repair
Muddling through is not enough: neglect of global money can trigger political earthquakes that sweep away any chance of reasonable debate and compromise
Australian banks look to stable deposits to meet LCR, says Debelle
Interest rates on more stable deposit products are rising as banks prepare for liquidity coverage ratio’s January deadline, says Reserve Bank of Australia assistant governor
First BoE stress test uncovers capital shortfall
One UK bank failed the Bank of England's stress test scenario and two more have had to raise additional capital; Carney says future tests may be less forgiving
FCA director says breakdown in controls led to communications blunder
Clive Adamson says FCA has taken steps to improve internal procedures; tells MPs the organisation can struggle to operate in a crisis
UK payments regulator may use powers to force innovation
Payment Systems Regulator emphasises its "strong" powers over industry and says it will not hesitate to use them if firms fail to collaborate on innovation
RBNZ takes next step towards replacing settlement systems
The Reserve Bank of New Zealand is seeking registrations of interest from potential vendors to replace its current payment and settlement systems, NZClear and Esas
IMF paper: Costs of macro-pru policies still unclear
Policy-makers should ‘move carefully' in adopting macro-prudential tools as ‘knowledge is still limited', working paper argues
Poloz warns regulation could stifle credit to SMEs
Bank of Canada governor says new financial regulation likely to reduce the availability of credit to small companies by discouraging financial innovation
Basel Committee tightens securitisation standards despite bank protests
Final standards for securitisations impose tougher capital requirements despite banks’ complaints that the rules are ‘punitive’; reduces reliance on external ratings
Czech banks ‘resilient’ to adverse shocks
Latest stress tests conducted by the Czech National Bank finds the country’s banking sector is ‘sufficiently resilient’ to shocks, including a ‘sizeable decline’ in economic activity
Linde fears ‘revival’ of debt sustainability concerns
Concerns about the sustainability of European sovereign debt have not disappeared and could be reactivated if the economic conditions worsen, says Linde
IMF praises Central Bank of Kuwait’s ‘proactive’ approach
Central bank is ‘proactive’ in its liquidity management and macro-prudential supervision, IMF report says; publishing more timely information on oil sector would be ‘useful’
Central bank says macro-pru tools ‘crucial’ in Turkey
With the threat of a ‘spillover from global uncertainty to inflation’ in 2015, the Central Bank of Turkey highlights the importance of macro-prudential defences
Irish research finds macro-pru tools have ‘greater impact’ on first-time buyers
Economic letter published by Central Bank of Ireland explores impact of loan-to-value and loan-to-income ratios on different groups within residential property market
Fed proposes tougher capital surcharges on biggest banks
US central bank aims to go beyond Basel framework on loss-absorbing requirements for GSIBs; Failure to comply would lead to restrictions on dividends and bonuses