Financial Stability
IMF models new liquidity stress test framework
International Monetary Fund study creates new template to conduct balance sheet-based liquidity stress tests
Chinese government and central bank identify targets for progress
People’s Bank of China publishes outcome of government planning meeting; document reveals aims for variety of areas including monetary policy and systemic risk management
Bank of Canada survey forecasts weaker sales growth this year
Bank of Canada Business Outlook Winter Survey shows outlook for sales growth in 2012 turns negative as demand continues to weigh on firms’ expectations
Malaysia announces new coins’ circulation date
Bank Negara Malaysia announces new coins to enter circulation this month; new banknotes will not be released until the end of 2012
Counterparty risks distort insurance protection, says ECB paper
European Central Bank study shows that although hedging aims at sharing risk, it can also lead to risk-taking distortions due to the interplay of counterparty risks
Bundesbank paper captures dampening impact of bank lending
Bundesbank study shows one-third negative loan development during fallout of the financial crisis was due to purely bank-related factors
Lagarde expresses concerns ahead of crucial meeting with Hungary
Christine Lagarde stresses importance of Hungarian authorities' compliance with the European requirements ahead of key discussions over financial aid in Washington
Belgium’s Coene believes in commitment of eurozone countries
Governor of National Bank of Belgium says even if Greece were to leave single currency, other member states would draw together to "protect the system"
RBI’s Sharma urges businesses to hedge risks
Reserve Bank of India executive director VK Sharma says businesses in India must take appropriate measures to hedge their actual risk exposures
Financial cycles lead downturns, says Bank of Finland paper
Bank of Finland study says connection between financial variables and real activity is stronger during periods of recession
Basel implementation monitoring strategy approved
Basel Committee governing body agrees plans to monitor member countries' efforts to implement new rules; also discusses liquidity coverage ratio
Fitch downgrades Hungary credit rating to junk status
Hungary long-term foreign issuer default rating lowered to BB+; outlook remains negative according to rating agency
Commemorative euro coin launched
Eurozone countries issue new €2 coin to commemorate 10 years of the currency; few central banks announce the move
Hildebrand defiant over currency trade row
Swiss governor will not resign, expresses regret at political attack on the Swiss National Bank and reveals details of how information was leaked
Hungary's borrowing costs soar
Yield on Hungarian 10-year debt exceeds 10% amid investor concern that Budapest will not receive IMF assistance
Iceland receives final Nordic cash injection
Central Bank of Iceland receives last tranche of loans from Nordic countries as part of IMF deal to build foreign exchange reserves; agrees to delay loan from Poland
RBI paper highlights vulnerabilities of India's highly interconnected financial system
Reserve Bank of India study says policies to address excessive inter-institutional exposure in India should focus on financing channels of non-banking financial institutions
Philippines quarterly review brings mixed news
Central Bank of the Philippines reports lower than expected growth, but remains positive about economy’s outlook in latest Report on Economic and Financial Developments
RBI abolishes limit on mobile banking transactions
Reserve Bank of India allows unlimited mobile banking transactions; move follows large increase in use of mobile technology
Swiss governor faces questions over wife’s currency trades
Kashya Hildebrand bought US dollars shortly before Switzerland imposed limit on franc to euro value; Swiss National Bank denies dodgy dealing by governor
Netherlands Bank warns of Sepa information gap
Dutch central bank to launch communication campaign to aid consumers with limited knowledge about the European payments project
Counter-cyclical capital buffers rely on good central bank policy: BoC paper
Bank of Canada study finds central bank policy can strongly influence success of counter-cyclical capital measures
BIS paper examines sustainability of pension schemes
Bank for International Settlements study sheds light on effects of global economic downturn on the design of occupational pension schemes
RBI paper highlights shift in credit dynamics over business cycles
Reserve Bank of India study shows the behaviour of credit relative to growth in India changes over different phases of the business cycle