Financial Stability
Identifying Sifis: Central Bank of Colombia paper
Central Bank of Colombia releases a working paper outlining a method to establish the systemic importance of financial institutions; offers an alternative method to the BIS
Fed’s Duke explains link between personal finance and national economy
Elizabeth Duke discusses how improving individual financial stability would ultimately build a stronger economy in the US
India faces ‘significant’ inflation challenge
Macroeconomic and Monetary Developments review outlines action taken in recent months and describes challenge of bringing down inflation to an acceptable level on a sustainable basis as “significant”
Developing country scoops currency award
Ugandan shilling wins 2011 Best Series Award from International Association of Currency Affairs
Norges Bank proposes amendments to collateral framework
Norges Bank announces plans to increase haircuts on collateral held at central bank from 4% to 9% to reduce exposure to counterparty risk
BIS’s Cecchetti highlights merits of G-sibs surcharge
Bank for International Settlements economic adviser Stephen Cecchetti says reducing probability of G-sibs failing is cornerstone of regulatory response to too-big-to-fail
IMF paper identifies risk-sharing, contagion trade-off in Asia
Fund study shows risk sharing in Asia is found to be low between countries in the region compared with contagion effects
FSB sets out framework for monitoring implementation of financial reforms
Financial Stability Board announces co-ordination framework for implementation monitoring of G20/FSB financial reforms; priority areas set for extra scrutiny
RBA’s Edey assesses future global CCP model
Reserve Bank of Australia assistant governor Malcolm Edey warns abstract model of central clearing pictured by G-20 leaders may not be realised in practice
Bundesbank’s Dombret backs temporary higher capital buffers for European banks
Bundesbank’s executive board member Andreas Dombret says 9% core tier 1 capital for systemically important banks is feasible
China banking regulator talks of reform ‘determination’
Liu Mingkang says rating agencies and analysts “underestimate” China’s determined reforms to the banking sector; warns of shadow banking clamp down
Lords take Vickers to task over robustness of plans
Vickers faces fierce questioning on Independent Commission on Banking’s final report and recommendations; incentive for banks to cheat the system discussed
Bernanke muses on future of inflation targeting
Fed chairman sees place for inflation targeting in monetary policy frameworks of the future; hints at further transparency in decision-making
Japan and South Korea reinforce yen-won swap agreement
Bank of Japan and Bank of Korea increase size of bilateral yen-won swap arrangement tenfold; Japanese government also expands swap agreement with South Korea
RBA’s Debelle expresses concern over bank funding pressures
Reserve Bank of Australia assistant governor Guy Debelle outlines differences in bank funding pressures in Europe and Australia
G-4 liquidity caused surge in captal inflows: IMF paper
IMF study attributes recent increase in capital inflows towards emerging markets to highly accommodative monetary policies in G-4 countries
Belarus given guidance to restore 'stability and prosperity'
International Monetary Fund tells Belarus to reduce inflation and raise interest rates; central bank sells off surplus office items
G-20 endorses final G-Sifi rules
Finance ministers and central bankers offer support to G-Sifi rules; want to see framework expanded to all banks deemed too big to fail regardless of global reach
Luxembourg launches new central securities depository
Central Bank of Luxembourg prepares for adoption of Target2-Securities with launch of new central securities depository LuxCSD
Lithuanian central bank assists in counterfeit banknote investigation
Bank of Lithuania says it will help police in investigation to uncover source of recent rise in counterfeit banknotes
BIS’s Caruana urges eurozone to attack root of sovereign debt problem
Bank for International Settlements general manager Jaime Caruana says bolstering banks’ capital buffers not sufficient to regain risk-free status
Euro area must stand ready to bail out banks, says Liikanen
Bank of Finland governor Erkki Liikanen says euro area governments must be prepared to inject capital into banks if they are unable to raise their funds in market
IMF paper assesses supervisory burden of regulatory overhaul
Fund study says US Volcker rule and UK retail ring-fencing proposals must be complemented with supervision of bank activities
Treasury official accuses Iran of ‘increasingly deceptive tactics’
US says Iran is using deception to circumnavigate economic sanctions put in place to compel it to meet nuclear programme obligations; warns central bank of further isolation