Financial Stability
Central banks test ‘dry ice' banknote cleaning technology
Banks to test whether ‘supercritical' CO2 can rid notes of filth without damaging security features; central banks spend $10 billion to replace 150 billion banknotes each year
Financial stability reports to become ‘a lot more important’
New research highlights ‘sizeable effects’ of financial stability reports on stock markets; speeches have become more influential since the crisis but this is unlikely to last
Irish central bank will ‘change structurally’ before SSM
Cyril Roux says the Central Bank of Ireland will make organisational changes in the coming months as it looks to accommodate the Single Supervisory Mechanism
Macro-prudential research builds ‘analytical foundation’ for EU policy
A European System of Central Bank’s research network reports on four years of work; Vitor Constâncio says policy-makers will still need ‘trial-and-error approaches’
Basel committee revisits 2002 guidance on 'weak banks'
Update to BCBS guidelines is the first since long before the financial crisis; Ingves says ‘early identification and intervention by supervisors is critical'
Finland paper: Loans-to-deposits among best indicators of banking crises
Paper examines banking crises in 11 EU countries between 1980-2013; growth rates and trend deviations of loan stock variables also yield 'useful' signals of impending crises
Czech banks could ride out recession plus deflation, central bank says
The Czech financial sector is exposed to bond volatility but banks have sufficient buffers to survive a ‘strong recession accompanied by deflation', financial stability report says
Rajan: RBI ‘could give up’ some powers
Reserve Bank of India should retain its regulatory powers, Rajan says, but it could cede part of its debt management role to the government ‘without any loss in welfare’
Robert Pringle’s Viewpoint: Coping with capital flows
All nations face major challenges dealing with capital flows. In the absence of systemic reform to monetary and exchange rate systems, central banks will need to patch and mend where they can
Banque de France paper quantifies impact of EBA capital exercise on lending
Banque de France working paper examines lending behaviour of banks subjected to the recapitalisation exercise ran by the European Banking Authority in 2011–12
MAS to offer overnight renminbi liquidity
Monetary Authority of Singapore says it will launch an overnight liquidity facility for Chinese currency in July; latest step in growth of offshore market
Poloz warns of household vulnerabilities in Canada's financial sector
Bank of Canada governor Stephen Poloz says enhanced framework to highlight vulnerabilities shows household debt and housing lending are areas of concern
Bank of England given far-reaching macro-prudential powers over housing
UK chancellor unveils ‘big new steps' that will allow BoE to cap loan-to-value and loan-to-income ratios on mortgages; Carney ‘applauds' decision
Romania governor calls for early entry into Banking Union
Romania will be affected by Banking Union either way, argues governor Mugur Isărescu, so would be better off inside rather than outside
Philippines tailors stress tests to real estate exposures
Central Bank of the Philippines approves new prudential guidelines to incorporate in bank stress tests; insists they are preferable to ‘absolute limits’ on real estate exposures
Belgians call for ‘strong co-ordination’ to hold EU prudential regime together
Article in National Bank of Belgium's financial stability review evaluates the institutional structures that will influence macro-prudential policy in Europe
IMF researchers map out countries’ macro-financial risks
Working paper presents a framework for linking the various aspects of the IMF’s surveillance, and a tool for mapping out the various conditions in each member state
Serbia's slowing dinarisation expects boost from subsidised loan programme
A programme offering cheap dinar-denominated loans to the corporate sector should see use of the national currency bounce back, Serbia's central bank hopes
IMF launches global house price observatory to 'nudge' prudential policy-makers
Fund sets up website to help countries keep track of and compare housing sector developments and prompt them into ‘early action' on booms and busts
‘All pieces are in place' for co-ordinated regulation of European ABS, says Mersch
The various agencies in charge of regulating ABS in the EU should be able to co-ordinate their regulation of the asset class, Yves Mersch says
Bank of England initiative bolsters cyber defenses
BoE joins with commercial actors in bid to shield the UK financial sector against cyber attacks; tests based on hackers' own techniques
'Intra-firm borrowing' reduces liquidity risk at 'global' US banks, say NY Fed staff
New York Fed staff report finds 'fundamental differences' between banks with and without foreign affiliates
Emirates central bank monitoring property price growth
Central bank says financial system is 'resilient' but 'vulnerabilities exist' in annual financial stability report released this weekend
Economists worldwide find cash still used ‘extensively’
Economists from Australia, Austria, Canada, France, Germany, the Netherlands and the United States compare survey data on payments; find cash ‘has not disappeared’