Financial Stability
FSB proposes future legal entity identifier system
Financial Stability Board releases report on implementing a global legal entity identifier system for the financial sector; wants system to be independently functional by March 2013
Riksbank reveals details of new currency series release
Release dates for updated banknotes and coins revealed by Riksbank; first new banknotes will enter circulation in October 2015
Estonia begins Sepa migration work
Estonian Payment Environment Forum holds meeting; attendees affirm commitment to ensuring a smooth transition to Sepa-compliant payments and settlements in Estonia
BoE’s Haldane criticises financial models
Andrew Haldane argues that use of normal distributions in many financial models seriously underestimates risk
Fed’s Tarullo calls Dodd-Frank reforms a 'formidable task'
Daniel Tarullo examines Dodd-Frank Act financial reforms; says implementation remains a “formidable task”
RBA outlines payments system development plan
Australian central bank sets out areas of priority for advancing the payments system in the country; concludes two-year review process
Danish banks 'robust' says central bank
Financial Stability Report notes solid performance from 13 largest banks; tracks trend for declining numbers of financial institutions in the country
ECB holds rates and offers no new stimulus
European Central Bank offers no substantive new policies to help tackle eurozone sovereign debt and banking crisis; puts pressure back on law-makers
Bundesbank’s Braasch calls for creation of a ‘new financial architecture’
Senior Deutsche Bundesbank official calls for more debate on key characteristics needed for new global financial architecture; hits out at current knee-jerk policy approach
BoE paper assesses contingent capital risk
Financial Stability Paper examines contingent capital’s risk to stability when used to fulfil banks’ equity requirements; warns that such capital may cause wider problems
ECB delivers blow to Hungarian central bank law
The European Central Bank says the amended draft central bank law still “fails to address” concerns over independence; continued uncertainty leaving central bank operations unstable
IMF’s Nehmat urges eurozone fiscal adjustment plan rethink
Deputy managing director of the IMF says some eurozone countries’ fiscal targets for 2013 may need to be altered given growth slowdown; also supports deeper European integration
New York Fed report models herd behaviour
Fed staff report models financial market herding behaviour using NYSE transaction data; finds herding is “fairly pervasive” on some trading days
IMF paper examines capital flow management
Working paper considers methods of managing large-scale capital flows in Czech Republic, Poland and Romania; argues capital controls should not be used
HSBC chief identifies four steps to resolve ‘emerging markets’ crisis in Europe
HSBC chief executive Stuart Gulliver believes a European ‘tarp’ plus issuance of eurobonds needed to keep eurozone intact; says Spain and Greece failed to learn lessons from Asian crisis
FSB says risk aversion back at ‘elevated levels’
The Financial Stability Board used its May meeting in Hong Kong to highlight the return of risk aversion in the global economy and set its agenda ahead of G-20 Los Cabos summit in Mexico next month
ECB denies it rejected Spanish recapitalisation plan
European Central Bank denies it has refused Spanish authorities’ plans to recapitalise a major bank in the country; European Commission discusses direct disbursement to banks from ESM
Norges Bank assesses payments system
Annual Report on Payment Systems 2011 finds speed of payment transactions to be lacking; system in general is nonetheless efficient says deputy governor
IMF appears to back Ukraine involvement in Vienna Initiative
European mission head at IMF said to offer support for National Bank of Ukraine participation in Vienna Initiative
Central banks urged to increase monitoring of retail payment innovation
Central banks may need to improve their data collection and research efforts to ensure they are monitoring the latest developments in retail payments, according to new CPSS report
Ingves says Europe not ready for common regulatory capital rules
Basel Committee chairman Stefan Ingves says Europe lacks necessary common legal powers and mechanisms to standardise regulatory capital treatment; advises Europe against introducing a Tobin tax
Ireland central bank proposes changes to regulatory reporting
Central Bank of Ireland publishes consultation paper on regulatory reporting; proposes move to a new online reporting system
IMF paper relates fiscal consolidation and growth
Paper discusses relationship between fiscal consolidation and short- and long-run growth; warns that rapid consolidation can be harmful
BoE paper investigates banks’ implicit subsidies
Paper discusses models for attempting to quantify implicit subsidy available to banks via government bailout; estimates range from £30 billion to £120 billion