Financial Stability
IMF’s Lagarde warns on global growth
Managing director says next week’s assessment of world economy will bring bad news with regard to growth; urges increased co-operation to renew economic recovery
‘Unofficial dollarisation’ raises significant stability risks, ECB study finds
Emerging markets with large holdings of ‘hard’ currency assets and liabilities are exposed to substantial stability risks and policy failure, finds ECB study
IMF paper studies effects of macro-prudential policy
Working paper studies effectiveness of macro-prudential policy in an environment of financial innovation; identifies various factors determining policy outcomes
EBA says banks did not sell assets or cut lending due to 9% capital rule
EBA claims banks have not substantially cut risk-weighted assets or lending to meet new minimum core Tier 1 ratio; actions were part of a series of measures agreed by the European Council in October
Asian central banks press ahead with OTC derivatives reform
Reserve Bank of India launches OTC derivatives trade repository; HKMA reveals results of consultation on derivatives regulation
CFTC-SEC swap ruling starts Dodd-Frank compliance race
Publication of swap rule will mark start of 60-day countdown to compliance with registration and reporting rules. Industry will find it 'quite challenging' warns CFTC's O'Malia
RBA deputy governor warns of regulatory side-effects
Reserve Bank of Australia’s Philip Lowe reviews impact of new financial regulation; says although new rules likely to increase stability, regulators must be aware of possible negative consequences
BoE’s Jenkins examines severity of Basel regulations
Bank of England Financial Policy Committee member, Robert Jenkins, says Basel III requirements are not too tough on banks; argues higher capital levels do not harm the economy or bank shareholders
Spain’s Frob shakes up management ahead of bailouts
Fund for Orderly Bank Restructuring (Frob) selects new general manager from Spanish government among other senior appointments; first €30 billion of bailout funds to be handled by the Frob
IMF paper studies reduced financial interconnectedness
Working paper examines impact of deleveraging by financial institutions through declines in collateral use; identifies issue that may cause unintended consequences
BoE’s Tucker denies involvement in Libor scandal
Paul Tucker says no members of the last government urged him to pressurise banks to alter Libor rates; claims no prior knowledge of Libor 'low balling' ahead of official investigations
Draghi says closer union will achieve stability in Europe
Mario Draghi says quality of reforms and implementation ‘absolutely essential’; sets out vision of future union based on financial, fiscal, economic and political integration
Regional Fed presidents express fears over economic recovery
Charles Evans and Eric Rosengren warn about struggling economic recovery; focus on employment figures as key indicator of persistent problems in the US
Strict foreign exchange rules set to stay in Ukraine, says governor
Sergei Arbuzov explains why the National Bank of Ukraine keeps a tight rein on foreign exchange transactions; says temporary easing of rules for sporting tournament will not become permanent
IMF paper models sovereign and bank feedback loops
Working paper develops model of interdependence of bank and fiscal solvency; finds relationship can lead to a ‘self-fulfilling crisis’
Bank of Thailand governor warns of ‘known unknowns’
Governor of Bank of Thailand, Prasarn Trairatvorakul, weighs impact of global economic and regulatory developments on Asia; says changes represent a ‘paradigm shift’
BoJ deputy governor urges EU to accelerate reform efforts
Bank of Japan deputy governor Hirohide Yamaguchi calls on EU to speed up efforts in tackling debt problems; says Asia must prepare for further shocks
Regulators set out margining proposals for OTC derivatives
Consultative report details planned margining requirements for non-centrally cleared derivatives; presents seven principles for determining margins
Lagarde calls for US to deal with ‘fiscal cliff’ and global co-operation
IMF chief puts concerns in the US on par with those in Europe and the slowdown in Brazil, China and India during speech in Tokyo; says G-20 co-operation could boost global GDP by 7%
Brazil and South Africa agree supervisory co-operation
Central Bank of Brazil and South African Reserve Bank sign MoU to promote banking supervision; clears the way for domestic banks to build businesses in both markets
Thailand unveils royal family commemorative banknotes
Bank of Thailand reveals two new banknotes to mark Queen’s 80th birthday and the Crown Prince’s 60th birthday; special security features are included
Fijian central bank reports on financial investigations
Reserve Bank of Fiji publishes annual report of its financial intelligence unit; says the unit investigated a large number of serious financial offences in 2011
RBI governor speaks on microfinance regulation challenges
Duvvuri Subbarao warns of risks posed by unregulated microfinance; sets out efforts by central bank and government to create 'comprehensive' regulation
Bulgarian governor praises success of macro-prudential policy
Ivan Iskrov describes Bulgarian experience of macro-prudential policy; says Bulgarian National Bank was ahead of curve in regulating financial system