Financial Stability
Riksbank paper finds ‘significant’ gains from faster trading
Faster trading systems have eliminated arbitrage opportunities, authors say
NPLs ‘must’ rise during downturns – MAS’s Menon
If NPLs do not rise, that is a sign banks are not doing their jobs right, MAS chief says
MAS concludes 1MDB review with fresh fines
Credit Suisse and UOB fined $1.6 million collectively, with further individuals receiving lifetime bans
Bulgarian financial system still faces risks – IMF report
Financial safety net presents “important challenges”, despite reform efforts, IMF staff say
Israeli survey highlights benefits from ‘digital revolution’
“Tremendous changes” in banking system are likely to benefit households and small businesses, central bank says
Pure DLT systems not yet suitable for wholesale payments – Bank of Canada
The current state of distributed ledger technology makes it too inefficient to run as a pure system, researchers say
Household debt is ‘serious threat’ to Swedish economy - Riksbank
Banking system is also vulnerable, central bank says
Bank Negara governor defends efforts to curb NDF market
Malaysian central bank will continue its actions to improve market mechanism
BIS’s Coen warns of danger in delays as output floors remain stuck
Long phase-in periods increase risk of “dilution or backtracking”, BCBS secretary-general says
DLT expert: central banks should consider wider uses than just payments
Instead of payments, central banks should look to implement DLT for identity document transfer, says Michael Mainelli
Eurozone’s non-bank sector taking more risks – ECB
Insurers and investment funds moving to higher-risk assets
No Asean pan-regional regulator in near future – panellists
Various factors are hampering further integration, speakers say
Poorly designed macro-pru leads to ‘leakages’, says Turkish working paper
Macro-pru should be designed so firms cannot “bypass” the rules
Greek bailout talks end without agreement
IMF fails to agree that commission concessions would make debt sustainable
Belgian paper examines use of illiquid loans as collateral
Liquidity and funding purposes both inform banks’ decisions, researchers say
Tackling the ‘human agency’ problem
Central banks are readying themselves to face down assault by populists
RBI begins to wield new banking clean-up powers
Central bank puts pressure on banking sector to carry through plans to address non-performing assets
Risk weightings should reflect borrowing constraints, paper argues
Finnish paper criticises principle behind regulations on capital requirements
Kohn worried about weight of expectations on Federal Reserve
US not as well placed as UK to tackle another crisis, says former Fed vice-chair
ECB calls for insolvency and banking taxation reform
Europe would benefit from greater M&A activity in banking, European Central Bank says