Financial Stability
EBA announces key ratios for European bank stress tests
European Banking Authority wants to see CET1 ratios of 8%, with 5.5% the threshold for an ‘adverse scenario'; stress tests to begin in the spring with results due out in October
Riksbank worries over fallout from ‘sharp corrections' in house prices
Swedish households' interest-rate expectations guided by current levels rather than projections, recently published document finds; Lars Svensson calls findings potentially ‘biased and misleading'
RBI’s Joshi calls for ‘revamped’ bank structures
Deepali Pant Joshi tells Indian banks to enhance their financial inclusion efforts by hiring a ‘separate cadre of staff’ to provide banking services to far-flung rural areas
Barnier publishes bank split proposals
Europe’s 30 largest banks would be banned from engaging in proprietary trading and forced to separate other risk activities from their retail business under proposed reforms
Philippines central bank joins financial stability council
Central Bank of the Philippines will join department of finance and three domestic regulators on a joint body designed to ‘identify, manage and mitigate’ build-up of systemic risks
Risk discrimination 'essential', argues Bank of Spain deputy
Fernando Restoy rebuffs 'excessively simplistic approaches that prevent capital requirements being adapted to each bank's business model'
Russia says Bitcoin users will be suspected of money laundering
Central Bank of Russia joins roster of monetary authorities warning citizens off virtual currencies - but goes one step further in saying its use is against the law
Simple indicators better for regulators, BoE economist argues
The experience of the 2008 crisis shows leverage ratios are better warning signs than more complex measures like capital ratios
PBoC commits to more market reform
The People’s Bank of China reiterates the importance of handing markets a ‘decisive role’ in resource allocation in the quest for sustainable economic growth; looks forward to 2014
ECB demands ‘fast adoption’ of Sepa legislation
European Commission proposal to extend the deadline for Sepa migration by six months has caused ‘confusion’ in the markets, according to the ECB
IMF research maps US shadow banks
Research uses IMF-developed global flow of funds (GFF) conceptual framework to analyse the shadow banking system in the US
Swiss National Bank tightens controls on mortgage lending
Switzerland’s Federal Council approves central bank proposal to double the size of the counter-cyclical capital buffer and cool the housing market
Cœuré wants to fast-track resolution fund
Benoît Cœuré calls for single resolution fund to be established within five years; Axel Weber predicts that some of the eurozone banks will fail the ECB’s asset-quality review
Dombret questions benefit of breaking up banks
Doubts that separation between investment and commercial banking would ensure that lenders can fail 'without disrupting the system'; says 'pure commercial banks' were at centre of crisis
Sri Lanka overhauls banking sector
Central Bank of Sri Lanka reveals plans to concentrate financial assets in the hands of five banks, and reduce the number of non-bank financial institutions by almost two-thirds
IMF warns recapitalisation of Slovenian banks is a 'stop-gap solution'
Report urges deeper reforms of under-capitalised corporate and banking sectors; says ECB comprehensive risk assessment expected later this year could expose additional capital shortfalls
Paul Tucker laments 'faltering vigour' of international reform
Former BoE deputy governor argues there is 'less coherence, faltering vigour and conflicting views about how different national regimes should apply to inherently international markets'
Bank of England launches new liquidity provision framework
First ‘indexed long-term repo operations' under framework unveiled in October scheduled for early February; will provide ‘more liquidity at cheaper rates, longer maturities against wider range of collateral'
Shanghai Clearing House becomes fifth in Asia to start OTC clearing
First onshore renminbi interest rate swaps cleared in China; two international banks sign up to new clearing service
BoE's Carney downplays UK housing risks
The governor, who is also head of the country's principal macro-prudential regulator, says higher prices and ‘mortgage availability' is due to housing market bouncing back from ‘low base'
Dutch paper finds Germans ‘substantially more cash oriented’ than other nationalities
Researchers consider why cash is still ‘heavily used’ for low-value payments in Europe; attributes German consumers' continued use of cash to ‘precautionary’ reasons
Fed consults over financial stability implications of commodities investment
Financial firms' involvement in commodity markets could pose a risk to financial stability, particularly in the event of a natural or environmental disaster
Christian Noyer overruled by finance minister on savings rate
Banque de France governor Christian Noyer proposes cutting the interest rate paid on the country’s most popular savings account; Pierre Moscovici rejects the move to ‘protect spending power’
Four more countries have ‘systemically important' financial sectors, says IMF
New methodology qualifying countries for IMF's financial sector assessment programme means Denmark, Norway, Poland and Finland will now undergo regular check-ups