Financial Stability
Bank of Spain bail-out spooks investors
Spanish central bank’s rescue of savings bank CajaSur on Saturday sees Spanish bank shares falling on Monday; central bank says rescued bank accounts for very small percentage of system overall
Volcker rule fails to make approved Dodd bill
Key amendment omitted; Fed gains powers but will face audit in sweeping regulatory reform
ECB's Trichet: ESRB will deliver macroprudential oversight
European Central Bank president Jean-Claude Trichet outlines role of European Systemic Risk Board in supervisory framework
Riksbank’s Persson: don’t shoot CDS ‘messenger’
The Swedish central bank uses CDS spreads as an indicator of financial stability
Weber calls for broader scope to Basel III
Bundesbank President Axel Weber says new Basel rules should incorporate a macroprudential element to overcome systemic risks
IMF’s Lipsky: IMF should be at core of global financial safety net
IMF first deputy director John Lipsky says Fund is best placed to introduce global safety net
Norges Bank: payment prices should reflect costs
The Norges Bank annual report on payment systems calls for greater efficiency in sector
Macroprudential tools need hard, fast rules: BIS
Basel-based Committee on the Global Financial System says macroprudential policy needs as strong a mandate as monetary policy to work
Iceland seals deal to buy back Luxembourg-based króna bonds
Icelandic central bank agrees to buy nearly all outstanding bonds pledged by Landsbanki's Luxembourg subsidiary to secure funds from Luxembourg central bank
Systemic risk regulators should direct policy not just give warnings, says HSBC's Haswell
Past experience suggests the new financial stability bodies should direct regulatory policies, not just warn about instability
RBA’s Ellis: build more houses
Reserve Bank of Australia financial stability head Luci Ellis says more housing needed to offset rapid rise in house prices
Bond vote highlights flaws in ECB’s governance: Ex-FSA head Davies
Former head of UK Financial Services Authority Howard Davies says vote on bond purchases underlines flaws in European Central Bank’s one member, one vote policy
Values of Target2 transactions slide by a fifth
European Central Bank blames economic slowdown for decline in turnover; volume of transactions also dips
Bini Smaghi defends ECB policy to dump rating agencies
ECB board member Lorenzo Bini Smaghi attacks rating agencies for role in Greek debt crisis
Yilmaz confident Turkey can keep up with other emerging markets
Central Bank of Turkey governor Durmas Yilmaz says country’s lack of toxic assets has paid off during the recovery
BoJ: payments systems need liquidity revamp
Bank of Japan review on payments and settlement systems says current liquidity requirements are inadequate
Europe to place CDS markets under spotlight: Barnier
European commissioner Michel Barnier says legislation in works requiring credit default swaps to be registered and made fully transparent; follows criticism of investors from European leaders
When experts fail: a response and reply
Michael Taylor comments on the argument set out by Frank Vibert in the February edition of Central Banking journal, to which Vibert in turn replies
Follow the money
Monetary aggregates are set for a comeback in central banking, but as indicators of financial instability, not inflation. Claire Jones reports
A return to complexity: economic policy after the crisis
The crisis has challenged the fundamentals of the prevailing macroeconomic orthodoxy. Policymakers must recognise this and adopt new frameworks accordingly, Sir John Gieve argues
Ten issues for regulators to consider
René Smits devises ten key issues that European financial legislators must consider when constructing the post-crisis regulatory framework