Financial Stability
IIF’s Dallara criticises Basel Committee for shortcomings on governance reform
Institute of International Finance managing director Charles Dallara “deeply troubled” by the Basel Committee’s lack of focus on improving banks’ risk culture
Wellink wants European Financial Stability Facility funds doubled
ECB governing council member wants fund boosted to €1.5 trillion
King defends his additional powers
UK government publishes draft legislation handing significant powers to the governor of the Bank of England; King reassures critics of the shift
IMF paper on GCC equity market spillovers
Fund study says Gulf Cooperation Council equity markets were exposed to US and regional losses during crisis
UK chancellor backs ring-fencing of banks
Chancellor of the exchequer endorses plans to separate retail from investment arms; says FPC’s stability remit to be reviewed annually
Bernanke warns Congress on fiscal deficit
Fed chairman warns limiting debt ceiling self defeating, says US must choose between “careful and deliberative process” of financial policy change or “much more painful” crisis response
ECB highlights funding vulnerabilities in euro area banks
European Central Bank June 2011 Financial Stability Review shows funding vulnerabilities remain "Achilles heel" for euro area banks
Risk & Return Brasil: Supervisors need to be more curious, says Donizeti
Authorities should put less faith in numbers and what they are told by banks, says top Brazilian supervisor
Sweden’s Ekholm not in favour of current account targets
Riksbank deputy governor Karolina Ekholm says central banks should not set targets for how large their deficits and surpluses can grow
Toxicity Index levels rising: RBI report
Reserve Bank of India June 2011 Financial Stability Report finds evidence that exposure to inter-bank distress is creeping upward
South African Reserve Bank – Annual Report (2010–11)
South African Reserve Bank 2010–11 Annual Report says there is no obvious threat to domestic financial stability
China blames loose global monetary policies for inflationary pressures
People’s Bank of China brings price control to the forefront; says loose global monetary conditions have pushed up inflation expectations
BoE paper on development of central banks' lender-of-last-resort function
Bank of England study looks into evolution of clearing and settlements systems and central banks' progression as providers of liquidity
Trichet highlights advanced economy failures
European Central Bank president Jean-Claude Trichet says crisis highlighted weaknesses in strategies of advanced economies; stands firm on Greece action shortly before S&P downgrades sovereign
Interview: John Mendzela
John Mendzela is a specialist in central bank governance and strategic management. Here he discusses the gaps in central bank governance highlighted by the crisis and presents some potential fixes
EMEs more sensitive to risk premiums: IMF paper
IMF study shows a lower risk premium can reduce inflation in emerging economies
Qualitative indicators could have spotted crisis: Buba paper
Bundesbank study highlights importance of qualitative risk assessment in banking supervision
Better euro area financial stability governance ‘necessary’: ECB’s Constâncio
European Central Bank vice-president, Vítor Constâncio calls for policymakers to alter their conception of the governance of financial stability in the euro area; wants to see region-wide oversight
Bulgaria attempts to speed up and streamline payments
Addition of third settlement cycle designed to 'speed up and streamline' payments
BIS’s Hannoun spots conundrum in 'no bailout' line
Bank for International Settlements deputy general manager Hervé Hannoun says aversion to taxpayer-funded bailouts not fully priced in sovereign spreads
Albania’s Fullani urges deepening of capital markets
Bank of Albania governor Ardian Fullani calls for further development of capital markets in Southeast Europe
IMF study assesses Asean 5 bond market performance
Fund paper says Asean 5 bond markets compare well with other emerging markets
IMF assessment highlights China’s frailties in financial system
IMF’s first Financial Sector Assessment Programme in China says country must move towards more liberal financial system
Singapore’s Tai on deepening Islamic capital markets
Monetary Authority of Singapore executive director Tai Boon Leong says wider range of products will help deepen Islamic capital markets