Financial Stability
ECB's González-Páramo says crisis liquidity measures must be temporary
European Central Bank executive board member José Manuel González-Páramo says permanent enforcement of non-conventional liquidity could trigger imbalances
FSA and SEC continue strategic dialogue meetings
US and UK lead the way on cooperation and idea-sharing as regulatory reforms kick in; collaboration on key changes crucial as world struggles to rebuild after latest economic shocks
Latin American and South-east Asian central banks confer
First Seacen-Cemla conference held in Malaysia; shows increasing cooperation between central banks, particularly in emerging markets
Europe should learn from US mistakes
Former chairman of the Federal Deposit Insurance Company William Isaac warns Europe to heed the lessons from TARP and catastrophic public stress tests
Tail events resemble platypus moment, rather than black swan: RBA’s Ellis
Reserve Bank of Australia head of financial stability, Luci Ellis, says financial supervisors should be alert to rent-seeking behaviour in order to identify looming threats
Systemic capital requirements are often underestimated: BoE paper
Bank of England study examines level of potential losses on bank balance sheets in event of systemic crises
BIS paper highlights growing risk of currency crises
Bank for International Settlements paper authored by Professor Robert Aliber outlines role of cross-border money flows in a currency crisis
Risk.net poll: CCPs should have access to central bank liquidity
The majority of respondents to an online poll support central bank liquidity access for CCPs, but critics argue this would be likely to lead to the break-up of multi-currency clearers
Turkey deputy governor evaluates success of policy moves
Turalay Kenç says decision to act on credit growth in Turkey was necessary; widening the interest rate corridor was a 'successful exercise'
Barroso spells out eurozone recovery plan
European Commission president José Manuel Barroso outlines roadmap to eurozone stability in last ditch effort to end the sovereign debt crisis
RBA’s Debelle highlights risks attached to high-frequency trading
Reserve Bank of Australia assistant governor Guy Debelle says prime brokers may not be monitoring high-frequency trading risks properly
FSB warns members not to misinterpret G-20 commitments
The FSB warns that some regulations appear to be contrary to the spirit of the OTC derivatives reforms agreed by G-20 members – a statement some believe was prompted by a disagreement over the scope of European derivatives regulation
ECB paper reviews euro area credit card interchange fees
European Central Bank study calls for fresh look at credit card interchange fees in euro area
Video: Banks can arbitrage central bank liquidity provision
A conflict between new liquidity regulations under Basel III and existing central bank operations leaves a gap that banks may be able to exploit, warns financial stability expert
ESRB publishes foreign currency lending recommendations
European Systemic Risk Board releases recommendations on lending in foreign currencies; new measures addressed to member states, national supervisory authorities and European Banking Authority
Dexia bailout spells trouble for Belgium and France, say analysts
Nationalisation of banking group Dexia threatens downgrades to sovereign credit rating of Belgian and French governments
ECB’s Constâncio highlights challenges in measuring contagion risk
European Central Bank vice-president Vítor Constâncio says difficulties in identifying contagion risks requires policymakers to be more vigilant of spillover risks
Liquidity risks raised crisis funding costs: Bank of Italy paper
Bank of Italy study shows heightened liquidity risk caused interbank market spreads to widen during the financial crisis
IMF modelling work on liquidity risk points to capital hike, says Jobst
Recent analysis by the International Monetary Fund indicates that banks in the US need to raise capital to cover systemic liquidity risk threats
ECB’s Constâncio favours single prudential rulebook for euro area
European Central Bank vice-president Vítor Constâncio says maximum harmonisation of prudential requirements will support financial integration and reduce costs
Mortgage securitisation fuelled housing bubble: Bank of Spain paper
Bank of Spain study says increased mortgage securitisation in Spain had strong impact on new borrowers' access to credit during recent housing boom
Sri Lanka releases customer protection charter for banks
Central Bank of Sri Lanka issues direction on customer protection in licensed banks; covers banks' commitments to customers and ways customers must also behave to ensure safe banking practices
Riksbank narrows banknote design contest
Swedish central bank selects eight finalists out of 46 entrants to go on to final stage of krona banknote design competition; winner to be announced next April
IMF paper measures longevity of housing cycles
Fund study examines the dynamics of housing market cycles and the length of boom-and-bust periods