Financial Stability
Bundesbank paper finds some banks can improve stability via income diversification
Discussion paper says move into non-interest income sources stabilises smaller and more retail-orientated banks, but destabilises investment banks
Philippines central bank braces for impact of rating upgrades
Central bank says it is ‘vigilant’ to asset bubbles resulting from country’s upgrade to investment grade status by two of the three main rating agencies
RBNZ intervenes in forex and hits bank capital
Central bank boosts mortgage lending capital requirements and sells New Zealand dollars to ‘take the tops off rallies’; economy faces low inflation but strong dollar and overheating housing market
Bank of Estonia scraps new payments system
Plans for new interbank retail payments system are dropped due to a lack of popularity among commercial banks; hunt for a set-up compliant with Sepa requirements continues
ECB’s head of financial stability says SSM is not enough
Ignazio Angeloni says banking union will be ‘decisive’ in restoring stability to the eurozone, but the single supervisory mechanism will not be sufficient on its own
Bundesbank paper examines dynamics of crisis repo funding
Discussion paper finds changing pattern of fund management during global financial crisis, as ability of parent banks to protect subsidiaries dwindled; signals importance of strong capital base
ECB paper builds eurozone financial conditions indexes
Researchers confirm financial conditions differed across the eurozone before and after the crisis; gap shrinks when monetary policy variables are included in indexes
Osborne emphasises ‘support for growth' remit for BoE financial policy committee
Letter from chancellor to governor calls on FPC to give 'due weight' to its role in supporting economic recovery; call for consistent communications leads to speculation over divergent views on MPC
FDIC’s Hoenig blasts Basel III risk weights as insufficient
Thomas Hoenig argues that Basel III can be ‘gamed' and that the capital ratios may over-represent the actual state of banks’ balance sheets
RBA's Edey lauds Australia's financial regulation framework
Australian bodies for financial regulation 'served Australia well' during the crisis, though implementation is more important than structure, says assistant governor
Carney launches ‘safer, cheaper, greener’ banknotes
New Canadian $5 and $10 polymer banknotes aim to cut counterfeiting, lower costs and reduce environmental impact; notes unveiled 350km above the earth by International Space Station commander
Czech central bank opposed to joining banking union
Vice-governor says Czech National Bank will recommend staying out of SSM; ECB's Asmussen calls on non-eurozone countries to decide by July
New Bank of Zambia powers help tackle tax avoidance
Amendment to Bank of Zambia Act bolsters central bank's ability to monitor flows of capital in and out of the country; economists suggest money could be ‘leaking out'
IMF issues warning to Asian central banks on risk of overheating
Regional Economic Outlook says some Asian central banks may need to tighten policy to avoid stability risks; examines complicated effects of Japanese monetary easing
Bundesbank research proposes improved structure for counterparty credit risk
Discussion paper finds ‘quadri-partite’ structure gives best results for managing counterparty credit risk
Sri Lankan governor defends economy against stories of ‘economic doom and mismanagement’
Ajith Cabraal says local and foreign stakeholders are being misled over the true state of the Sri Lankan economy; central bank may cut rates if inflation continues to fall
BoE paper backs CCP discretion over optimal resource allocation
Researchers conclude that central counterparties should be given some leeway to set their own provisions against loss
Winston Churchill to appear on Bank of England’s next new banknote
UK set to release new £5 banknote series in 2016 featuring portrait of former prime minister Winston Churchill; honours his parliamentary and literary work
Ireland chases €1bn saving with payments overhaul
Central bank launches new initiative to curb high cash and cheque use and boost electronic payments; proposals include possibility of scrapping one and two cent coins
African growth could be ‘derailed’ by geopolitical tensions
South African Reserve Bank fears terrorism in continent’s key growth economies and heightened risk of social unrest could harm Africa’s growth prospects; also concerned by domestic unemployment
Polish paper examines banks’ risks when state safety net grows
Study finds that banks in central Europe take higher levels of risks under a larger deposit insurance scheme; less so in times of financial crisis
ECB’s Cœuré says cashless society is neither likely nor desirable
Executive board member believes cash is too popular to phase out, but should be made more efficient; €5 note awareness campaign shows mixed results
Fed to release new $100 bill in October after three-year delay
New $100 bill with new security features is finally ready to enter circulation, after 'creasing' issues caused delays in 2011
Bank of Canada annual report highlights banknote success
New series of polymer banknotes introduced in 2012 as counterfeiting continues to fall; inflation kept shackled throughout year but falls below target in December