Financial Stability
Accommodative policies risk triggering interest rate traps: Norges Bank paper
Norges Bank study says low interest rate environments provide banks with incentive to rely on public provisions for liquidity
Hungary seeks assistance from IMF
Hungarian government requests financial assistance from the International Monetary Fund in what has been dubbed a "new type of co-operation"
FSB Asia Regional Consultative Group holds first meeting
Asian regional consultative group gathers in Korea to exchange views on key financial stability issues
Liikanen predicts emerging market over-take in 2013
Bank of Finland governor sees emerging economies overtaking developed as soon as 2013; Bank of Finland renews terms of two key central bank figures
Singapore warns rise in capital outflows may destabilise Asia region
Monetary Authority of Singapore November Financial Stability Review says Asia is vulnerable to a sudden and large reversal of capital flows
Draghi exasperated with eurozone leaders over EFSF
European Central Bank president Mario Draghi expresses frustration at delays from member states to issue new powers to eurozone rescue fund
Industry praises expansion of South Korea’s currency swap arrangements
Senior executives of large enterprises praise Bank of Korea for expanding currency swaplines with Japan and China; industry concerned about slowdown caused by eurozone crisis
Greek reversion to drachma easier than euro conversion, say analysts
If Greece were to leave the eurozone it would have to establish a new currency in record time; analysts explain how the process would be simpler today due to technological advances
Bank of Canada paper urges reform to international monetary system
Bank of Canada study says reforms to international monetary system should focus on flexible exchange rate regimes and coherent macroeconomic policy
US senator renews call for ‘crippling’ sanctions on Central Bank of Iran
Senator Mark Kirk wants foreign financial institutions conducting transactions through the Central Bank of Iran to see access to US financial system cut off, and their US-based assets blocked
Chicago Fed paper explores determinants of asset-price bubbles
Chicago Federal Reserve study says theoretical models that observe relative price deviations from fundamentals are effective in predicting boom-bust cycles
IMF paper models systemic risk in banking sector
Fund study creates model to measure correlation between solvency and liquidity risks in banking system
Insurers and pension funds may retreat from long-term investments, says Praet
European Central Bank executive board member Peter Praet says new regulatory initiatives and low-yield environment is limiting scope for long-term investments
Bank of Canada launches first polymer banknote
Bank of Canada issues first new polymer C$100 banknote into circulation; governor Mark Carney says new bills are at the frontier of banknote technology
IMF calls on China to overhaul its financial system
Fund review says China’s real estate sector faces a steady build-up in vulnerabilities; believes reforms to the country’s financial system are crucial to stability in the region
Strong bank relationships eases lending squeeze: BIS paper
Bank for International Settlements finds that building a close relationship with a bank can help reduce lending volatility during crisis
RBI’s Chakrabarty suggests more active role for deposit insurers
Reserve Bank of India deputy governor KC Chakrabarty says more active role for deposit insurance systems will better protect stakeholders
Fed’s Yellen warns authorities of new financial risks
Federal Reserve vice-chair Janet Yellen says authorities must be attentive to risks created by new financial products
Lender of last resort not an option for ECB, say analysts
A financial backstop is needed to address the eurozone crisis, analysts say, but full lender of last resort status for the European Central Bank remains politically unpalatable
BoJ's Shirakawa urges greater caution over financial innovation
Bank of Japan governor Masaaki Shirakawa says a better understanding of banks' incentive structures can minimise risks associated with financial innovation
Chile’s De Gregorio discusses how to tackle asset-price bubbles
Central Bank of Chile governor José De Gregorio says distortions in asset markets are often best addressed using foreign exchange interventions
Subbarao emphasises need for broader resolution regimes
Reserve Bank of India governor Duvvuri Subbarao calls for resolution regimes to include non-bank financial institutions
Sovereign debt strains felt in New Zealand: RBNZ report
Reserve Bank of New Zealand November Financial Stability Report says eurozone crisis continues to act as constraint on demand in New Zealand
Monetary policy and financial stability intrinsically linked: ECB’s Praet
European Central Bank executive board member Peter Praet, says central banks must lean against, rather than clean-up, imbalances under new financial stability paradigm