Financial Stability
Italian politicians uneasy over Draghi replacement delay
Opposition leaders criticise delay in announcing successor for Mario Draghi as governor of the Bank of Italy
UK’s FPC changes tack on capital requirements
Loosely-worded document does not clarify FPC’s demands on banks; new regulatory body asks for more powers in new legislation
BIS working group urges more communication with traders
Bank for International Settlements working group report says authorities must be more alert to threats posed by high-frequency trading, calls for increased dialogue with market participants
Papandreou appeals for German support
Greek prime minister George Papandreou travels to Berlin to seek solution to sovereign debt crisis; due to meet German chancellor Angela Merkel
FSA asks UK government to be very clear in new legislation
Financial Services Authority warns government it risks creating “real confusion” over duties of new Financial Conduct Authority
Fiscal cuts can stabilise macroeconomy: Philly Fed paper
Philadelphia Federal Reserve study shows fiscal retrenchment can, in some circumstances, reduce macroeconomic instability and stimulate economic activity
Weber attacks international financial safety net concept
Former Bundesbank president Axel Weber raises objections to IMF as permanent liquidity swap provider; says measures are "undesirable" and "unrealistic"
Finland’s Liikanen discusses weaknesses in Europe
Erkki Liikanen wants progress in fiscal correction, bank capitalisation and economic governance; reminds Greece of its responsibility for itself
Recessions and banking crises are strongly interdependent: BoE paper
Bank of England study co-authored by Martin Weale identifies useful indicators that can help predict banking crises
Carney to banks: stop blaming each other
Mark Carney, Bank of Canada governor tells banks to stop accusing others of bad behaviour; discusses Institute of International Finance's concerns about financial reform agenda
Risk management in central and eastern Europe: Hungarian research paper
National Bank of Hungary releases working paper that looks at risk management approaches in central and eastern Europe
Gonzalez-Paramo urges speedy action in Europe
ECB executive board member pushes for more haste from European leaders to stem the crisis; says ECB has not decided when to end bond-buying programme
Pressure on the IMF to make surveillance a priority
Representatives from several global constituents call on IMF to take a central role in surveillance of countries as international reforms take hold
G-20 commits to ‘strong and co-ordinated’ response to challenges
G-20 answers calls for united action; countries commit to implementing credible fiscal consolidation plans, and ensuring strong, sustainable and balanced growth
Bank of Korea holds economic review meeting
Governor Kim Choongsoo meets with heads of institutions and scholars; domestic financial markets ‘overreacting’ to changes in external conditions
ECB paper highlights limitations of reforms to Stability and Growth Pact
European Central Bank study co-authored by Jürgen Stark says new fiscal surveillance framework will not ensure sound fiscal policies
Financial literacy key to stability: RBI’s Chakrabarty
Reserve Bank of India deputy governor KC Chakrabarty says improving financial literacy is necessary to minimise financial stability risks
Developing country representatives lament poor banking oversight
Intergovernmental Group Of Twenty-Four On International Monetary Affairs And Development says IMF surveillance of financial institutions is scuppered by weak implementation framework and practices
IMF says time is ‘running out’ to stabilise world economy
Global Financial Stability Report makes urgent plea for action to tackle vulnerabilities that threaten the global financial system; reveals €200 billion ‘impact’ on EU banks from sovereign debt crisis
Worldwide warnings of escalating risk
International Monetary Fund and European Systemic Risk Board caution authorities over worldwide risk dangers; urge swift and decisive action
Debt tolerance levels in Central America: IMF paper
Fund study shows level of debt reduction needed to achieve investment-grade credit-rating status
Greece talks with Troika back on track
Negotiations over Greece‘s sixth tranche of bailout funds are set to resume as Troika leaders agree to return to Athens
ECB policy would shatter big CCPs, critics warn
Plans to have CCPs based in the jurisdiction of the currency they clear would pull apart multi-currency services, experts warn, after UK Treasury challenges ECB
NBD paper assesses impact of credit card surcharge on cash payments
National Bank of Denmark study shows new credit card surcharge did not cause shift towards greater cash payments