Financial Stability
FCA’s Bailey stresses need for Libor backstop
Chief executive warns firms the end of Libor is not a “black swan” event, but a certainty, as contracts referencing the benchmark continue to grow
European Court of Justice overrules ECB on French banks’ leverage
ECB’s reasoning on treatment of French savings accounts was “manifestly incorrect”, court rules
Seychelles must act fast on money-laundering, says central bank
Failure to act could lead to major damage from loss of correspondent banking, report says
BoE paper reports ‘lab experiment’ on banker bonuses
Test subjects tended to take larger risks when their bonuses could not be taken away
FCA chair warns of big data-driven ‘algocracy’
Technology could lead to a society ruled by algorithms, if safeguards are not put in place, says Charles Randell
Australia is open to payments innovation – RBA’s Bullock
Assistant governor says regulators will step in where they see a need, but will take a “graduated” approach
Bank of Russia says cost of major bailout is rising
Central bank makes further capital injection into failed lender Otkritie
Bank of Thailand: housing market oversupply needs monitoring
Oversupply is pushing down prices, but developers continue to rack up debt
Singapore moves to curb private housing boom
Buyers have to pay higher taxes and face tougher loan-to-value limits
Failed bank depositors to gain unrestricted access to funds – Sarb
Around 97% of retail depositors will be paid in full, the central bank says, as investigation into mismanaged bank continues
Competitive housing markets fostered risk taking before crisis – IMF research
In areas with higher price volatility institutions lowered lending standards
Extra inflation forecasts will boost transparency – Mexico’s Guzmán
Mexican deputy highlights importance of transparency in uncertain economic environment
ECB expresses doubts over Irish draft law on consumer credit
Proposed law could create legal uncertainty over Irish central bank’s powers, ECB says
New Zealand’s main banks pass stress tests
Tests cover wider range of risks, including concentration and misconduct risks
Financial literacy of Italians below G20 average – Bank of Italy
Less than half of survey respondents are able to calculate a simple interest rate
Book notes: Unfinished business, by Tamim Bayoumi
Anand Sinha praises Bayoumi’s analysis of how the euro crisis and US housing crash were, in fact, intertwined
Malaysian ex-governor rejects arrested former PM’s accusations
Zeti says former prime minister Najib asked her to lie over money in his bank account
‘Low for long’ endangers stability, warns BIS committee
Some banks could face solvency issues if faced with a “snapback”, warns Philip Lowe
UK regulators review financial firms’ operational resilience
Firms must ensure processes can be maintained after disruption - regulators