Financial Stability
IMF issues reality check on European banking union
Researchers say it could take five years to fully implement banking union in Europe, and warn a piecemeal approach could actually make the situation worse
Bank of Lithuania swoops on troubled Ukio Bankas
Central bank suspends commercial bank’s operations after continual governance shortcomings
Richmond Fed's Lacker urges policy-makers to take away the safety net
Richmond Fed president says Federal Reserve may have been too generous with support during the financial crisis; ‘living wills’ could put fear of failure back into banks
Finnish deputy stresses support for SSM within ECB
Pentti Hakkarainen says lack of co-ordination between central banks and supervisors is the biggest lesson of the financial crisis
Constâncio sets out ECB's priority tasks in European banking union
European Central Bank vice-president aware of reputational risks from single supervisory mechanism; says ECB must work with EBA to develop a manual of supervisory practices
National supervisory risk guidance lags industry best practice, says FSB
Financial Stability Board report finds risk governance at some systemically important financial institutions exceeds supervisory guidance; demands more effort from developing economies
RBA offloads stake in scandal-hit Securency
Reserve Bank of Australia sells its shares in company embroiled in bribery scandal; central bank oversight of firm found to be appropriate
ECB working paper finds fiscal consolidation improves bank balance sheets
Improvement in capital adequacy ratios results from a portfolio re-balancing from private to public debt securities, reducing the risk-weighted value of assets
Co-operation needed to avoid reduction in cross-border activity, says Canadian deputy
Timothy Lane says a reduction in cross-border activity only internalises the contagion risk; greater global co-operation needed to improve financial stability
RBI deputy wants to make banking a 'fundamental right'
Kamalesh Chandra Chakrabarty champions universal access to basic banking services; says banks’ cost structures are incompatible with the ideal
G-20 urged to address financial system flaws
Group of Thirty wants G-20 to act on conflicting financial services regulation, taxation and reporting rules; calls on Asian central banks to inject up to $4 trillion into diversified SWFs
Irish governor hopes SSM can avoid a 'nationalistic backlash'
Patrick Honohan sets out hopes and fears for a centralised regulator, warning incomplete implementation of banking union could result in 'divisive clashes'
Visco calls for powers to dismiss bank directors
Bank of Italy governor says the supervisory authority should have the power to remove senior management in banks from their posts
Eurosystem backs Barnier over Euribor submission
The Eurosystem supports Michel Barnier's desire for legal right to compel banks to participate in Euribor rate-setting; stresses need for private sector to lead rate overhaul
Bangladeshi governor hails central bank's "unorthodox developmental role"
Governor Rahman points to role of central bank in helping Bangladesh to meet millennium development goals
Dombret wary of conflicts between regulatory measures
Bundesbank executive board member Dombret urges the consistent and timely implementation of international regulation on a national level
Banks could be forced into Euribor submission
European Commissioner Michel Barnier says banks could be compelled to take part in rate-setting process under new legislation
ECB 'conflict of interest' puts effective supervisory mechanism at risk
The European Parliament's rapporteur on the SSM fears a conflict of interest inherent in the ECB stands in the way of creating an SSM that is up to the task
NY Fed paper highlights money market fund ‘stampede’ risk
Staff report finds intermediation by money market funds can turn unexpected withdrawals into runs, meaning a small shock can bring down the whole banking system
Ireland passes emergency liquidity restructuring bill
Irish parliament passes bill to transform promissory notes into long-term sovereign bond, and wind up 'bad bank'
HKMA shores up Hibor-setting mechanisms
Package of measures aims to improve the transparency and robustness of the benchmark rate; UK bank fined $612 million by US and UK regulators over Libor rigging
FDIC director backs Haldane on leverage ratio
Jeremiah Norton follows Bank of England’s Andrew Haldane in criticising Basel III’s risk-weighted assets, and says a higher leverage ratio would be a simple, effective solution
Ex JPMorgan chief backs UK banking regulations
Bill Winters says banks won't ‘up sticks' and leave London in light of tougher regulation, but rejects the addition of a ‘Volcker rule' to the ring-fence
Ireland aims to cut cheque use by two thirds in three years
Central Bank seeks to reduce cheque usage in line with European average, with the potential for significant reductions in the cost of payments