Financial Stability
FSB issues guidance on resolution of ‘too big to fail' lenders
Recommendations include the availability of sufficient loss-absorbing capacity and enforcement of ‘bail-in' rules
IMF paper highlights importance of macro-pru and monetary policy co-ordination
Researchers find that policymakers tend to use macro-prudential instruments more quickly ‘if the ability to conduct monetary policy is somehow constrained'
IMF says China needs new tools to get a grip on credit growth
Staff report on China highlights need for a new growth model centred on private consumption; calls for the PBoC to adopt interest rates as its key policy instrument
Card fraudsters abandoning ‘safer' Europe for more vulnerable markets, says ECB
Payment fraud is declining steadily in Europe thanks to technology advances; numbers are 'small compared to other kinds of fraudulent activities', expert says
Bank of England deputy tackles macro-prudential effects on banking
Paul Tucker tells Helsinki conference that banks' ‘core comparative advantage' would survive the removal of the ‘too-big-to-fail' subsidy
Thailand and Hong Kong launch cross-border settlement scheme
Bank of Thailand and Hong Kong Monetary Authority look to eliminate cross-border settlement risk through establishment of Asia's third PvP link between different currencies
Bank of Lithuania refashions calculation for interbank lending rate
The central bank is replacing interest rates with credit ratings as basis for bank quotes
Fed’s Tarullo hints at global interest in 6% leverage ratio
Daniel Tarullo says the US leverage ratio must be increased to ensure it effectively supports risk-based capital measures; proposal has generated interest from regulators abroad
China unveils raft of reforms to liberalise the renminbi
Series of reforms will facilitate cross-border renminbi settlement; RQFII programme has also been extended to Singapore and London
ECB's Constâncio welcomes SRM authority with no national veto
European Central Bank vice-president tells Singapore audience that banking union and European financial stability have important implications for the world economy
Polish banks set up joint standard for mobile payments
Participants expect the joint venture to provide a boost to non-cash trading and, by extension, business effectiveness
BIS paper finds more evidence backing ‘leaning against the wind'
Working paper by BIS and Bank of Italy researchers find such policies are desirable in the case of supply-side shocks - especially for economies with high private-sector indebtedness
Swiss working paper takes a new look at currency excess returns
Swiss National Bank working paper finds that downside risk models do not fully address the issue of foreign currency excess returns being largely unrelated to standard risk factors
ECB's Cœuré welcomes commission proposal on Single Resolution Mechanism
Speaking in Paris, Cœuré says ‘strong central authority' needed as fundamental complement to the SSM
European Commission releases 'radical' proposal to appoint itself resolution arbiter
Single Resolution Mechanism proposal would see the European Commission retain control over whether banks are resolved; argues this would be legal under current treaties, though doubts persist
Fed and FDIC agree 6% leverage ratio for US Sifis
Banking agencies announce rules to increase organisations' leverage ratios; measures remain controversial with the banking lobby and regulators, notably FDIC's Hoenig
Early-warning indicators needed to address failings in Solvency II - PRA chief
Effective and prudent solution needed on Solvency II matching adjustment, says Bank of England deputy governor Andrew Bailey
Governments must not ‘scapegoat' financial markets, says Noyer
The power the financial markets have over states is due to weak regulation and governments' over-reliance on them to finance sovereign deficits
Banknote counterfeit threat carries significant social costs, paper finds
Bank of Canada working paper shows central banks are right to ‘actively respond' to the threat of counterfeiting despite the small incidence of fraud, due to the social costs of the perceived threat
Challenges remain despite 'calmed' markets, says National Bank of Austria
Financial stability report published on Monday shows Austrian growth stalled in the second quarter of 2012 following a concurrent decline in demand for bank loans and a tightening of credit standards
No ‘credit crunch' in the Middle East after Basel I, IMF paper finds
Despite higher capital adequacy ratios, banks expanded credit and asset growth, according to new research
Bank Russia to become ‘mega-regulator' with mandate for growth
New law set to be enacted in September will hand the central bank responsibility for almost all of Russia's financial system, and give monetary policy a broader mandate to support ‘sustainable growth'
Basel Committee finds ‘considerable variation' in bank risk-weights
Variation in bank risk-weights 'driven by diversity in bank and supervisory practices', says Basel Committee as it also moves to strengthen oversight of investments in equity funds
RBA deputy says public sector must stand ready to save banks in a time of crisis
Philip Lowe said it would be a mistake to reject the idea of using public balance sheet during a period of financial stress or crisis