Financial Stability
Book notes: The Fed and Lehman Brothers, by Laurence Ball
Ball claims the Fed could have lent to Lehmans, lawfully and prudently, had it chosen to do so, writes Reddell. But agreeing the Fed could have provided liquidity support does not automatically imply it should have
Fed proposes further regulatory loosening for small firms
Governor Lael Brainard voted against the last proposed reductions in regulation
ECB nominates Enria as next head of banking supervisor
Italian candidate likely to be accepted as next head of SSM
Lagarde calls for an end to trade tensions
IMF chief says countries should ‘fix’ global trade system, not ‘destroy’ it
Barbados has done ‘reasonably well’ meeting IMF targets, says governor Haynes
Central bank records reserves uptick in latest quarterly review, as government commits to IMF financing targets
Standard-setters can only partially support inclusion – BIS’s da Silva
Standard-setters can balance risks and opportunities, but cannot tackle deeper structural issues
NY Fed economist explores election night volatility
Treasuries suffered dramatic moves as Donald Trump was elected in 2016
Rwanda concerned by high NPL levels despite improvement
Central bank records 6.5% decrease in NPL levels but ratio remains above the 5% benchmark
Chinese banks fail tests as PBoC warns of ‘grey rhino’ risks
Half of banks failed the most severe stress tests; central bank says transition to new economy might unleash unexpected risks
US banks’ strategic similarities pose risks – NY Fed official
“Supervisors should be dynamic and continue to evolve as the supervised firms do,” Kevin Stiroh says
UK banks struggle in EU-wide stress tests
Italian banks also suffer heavy losses in EBA’s most severe test conducted to date; BoE says UK faced tougher test than others
Review into New Zealand bank conduct reveals failings
New Zealand’s central bank urges government to provide regulators with sufficient powers to address conduct, as significant weaknesses appear in the sector
The EU tries to rethink its faltering AML regime
The European Union plans to centralise its anti-money laundering efforts following a series of scandals this year. Dan Hardie looks at the options available and the multitude of challenges that remain
Kganyago highlights the dangers of ‘state capture’
Sarb governor says country still suffering from twin deficits
BIS committee finds inadequacies in derivatives data
Challenges remain, despite significant progress, Irving Fisher Committee reports
Nouy says time is right for Europe-wide deposit insurance
Governments should “consider some solidarity”, ECB’s chief supervisor says
Cyprus ex-governor says government errors helped bring bank down
Demetriades rejects attacks claims made by CBC predecessor Orphanides
Sarb moves to liquidate ‘hopelessly insolvent’ bank
Prudential Authority seeks court’s permission to wind up troubled VBS Bank
Private debt and housing prices are main financial challenges in Norway
Rising commercial property prices also a potential threat to financial stability, central bank says
Sino-Japanese political optics right for $30bn swap and Tokyo RMB clearing
BoJ and PBoC agree local currency swap line after long delay; Bank of China set to be RMB clearer in Tokyo