Financial Stability
Bank of Canada warns over lingering economic vulnerabilities
The global economy looks more robust than it did when the Bank of Canada published its last Financial System Review six months ago, but risks remain
RBI's Joshi on the bank's wide-ranging strategies to raise financial awareness
RBI executive director says strategy is to raise financial literacy through initiatives like outreach visits and financial literacy centres, but also through 'comic books, plays and skits'
RBA paves way for new entrants in card systems
Reserve Bank of Australia wants to facilitate new entrants into Australia’s credit and debit card systems; plans to let MasterCard and Visa set the eligibility criteria
UK can escape ‘liquidity trap', Carney says
Mark Carney tells New York audience the Bank of England's joint responsibility for monetary and financial policy allows it to stimulate the economy while avoiding unbalanced growth
Risky loans reach pre-crisis levels as banks are increasingly bypassed, warns BIS
Basel-based organisation also frets over impact on corporate bond markets from interest rate normalisation; cross-border lending falls in Q2 as non-banks play increasingly important role
Malaysian deputy laments ‘price distortion’ between cheques and electronic payments
Muhammad bin Ibrahim says the $240 million spent on processing cheques by the Bank Negara Malaysia each year is a ‘huge and sheer wastage’ and could be avoided by more accurate pricing
National Bank of Belgium weighs reduction in one and two cent coins
Belgian central bank considers merits of allowing traders to round cash and electronic payments to the nearest five cents in a bid to render one and two cent coins ‘unnecessary’
MAS launches two-year technical assistance programme for neighbouring central banks
The Monetary Authority of Singapore will provide training activities and forums for 190 central bank officials from Cambodia, Laos, Myanmar and Vietnam between now and 2015
Philippine governor touts country's microfinance expansion
Amando Tetangco outlines ways in which the central bank has facilitated developments; says recent catastrophe underscores the need for 'microinsurance'
SSM offers best chance of successful regulation, says Cyril Roux
Irish regulator-in-chief says supervisory authorities suffer from in-built weaknesses that the SSM may go some way to overcoming
RBI consults on treatment of domestic systemically important banks
Reserve Bank of India releases proposals for identifying domestic systemically important banks and increasing their capital requirements; state-owned banks may need capital injections
Norges Bank issues ‘secret' advice on prudential regulation
Norwegian finance ministry will publish central bank recommendations on countercyclical buffers only once it has decided whether or not to follow the advice; bank holds interest rates at 1.5%
Basel capital ratios lost credibility during crisis - Atlanta Fed paper investigates
Working paper says reliance of the Basel standards on overstated asset values in reported equity capital caused capital adequacy ratios to lose credibility with financial markets
Knot backs simple regulatory rules
Dutch central bank president says regulatory simplicity would make it easier for supervisors to detect risks and central banks to ‘promote’ financial stability
UK's financial regulator backs end to mortgage lending programme
BoE's Financial Policy Committee wary of the impact of higher interest rates on banks' and households' balance sheets; recommends mortgage lenders be required to heed stress test guidelines
Financial literacy in France is correlated with political engagement, study finds
Working paper finds middle-aged men are the most financially literate demographic; little difference between different political orientations, but the disengaged score worse on the test
Constâncio predicts ‘gradual decline’ in size of eurozone banking sector
European Central Bank vice-president says companies will increasingly turn to capital markets instead of banks for their financing needs
Uncertainty constrains credit supply, IMF paper finds
Working paper tests the theory that uncertainty would reduce the supply of loans in an economy, and finds it holds true - especially for smaller credit institutions
Design of Norwegian banknotes charts new waters
Norges Bank reveals upcoming banknote series will share a maritime theme, reflecting the country's 83,000km coastline; notes will not feature human portraiture
Sveriges Riksbank calls for higher risk weights on mortgages
Central bank's latest financial stability report supports regulatory proposal to raise minimum amount of capital banks must back up housing loans with from 15 to 25%
CLS raises £160 million capital from shareholders
Hefty capital raise completed last week to enable CLS to meet demanding new capital requirements and support future growth
Eurozone household debt varies based on institutions, paper finds
Repossession periods are the strongest single determinant of the distribution of secured debt in different member states of the eurozone, with fewer borrowers where repossession periods are longer
Taiwan allows Chinese issuers in offshore RMB bond market
So-called Bao Dao bonds are expected to find a ready market eager for yield; offshore RMB bond market in Taiwan has seen just six issuances so far this year