Financial Stability
IMF chief economist warns against ‘complacency’
Recent economic upturn should not be viewed as “new normal”, Obstfeld says, arguing policymakers should be looking to shore up defences
Quarles signals plans for US regulatory revamp
Fed vice-chair outlines some initial plans for a readjustment to post-crisis regulations
Financial regulations have been procyclical historically – research
Regulations tend to weaken during economic booms and strengthen with crisis
Short-selling bans increased instability – ESRB paper
Banks’ volatility, leverage and default probability increased by bans on short-selling – researchers
Central banks lack ‘firepower’ to combat financial crises, says report
Without interest rate cuts available, the next financial crisis could be much “longer and deeper”, Global Risk Report says
Eurozone bondholders should stay ‘on the hook’ – Dombret
Bonds issued by bailed-out governments should have maturity extended, argues Andreas Dombret
RBI’s Acharya tells banks to deal with interest rate risk
Indian banks are vulnerable to changes in yields and have relied on regulatory forbearance for too long, deputy says
Auditors find ‘flaws’ in ECB’s crisis management framework
ECB must improve co-ordination with SRB and national supervisors – report
Ukrainian bank owners carried out ‘co-ordinated fraud’, forensic audit says
Crimes by former owners of PrivatBank cost at least $5.5 billion, says Kroll report
Core-periphery model of bank networks called into question
Researchers find multiple cores in the interbank market, posing different systemic risks
BoE’s Woods warns of ‘point of tension’ in Brexit negotiations
PRA chief fears EU supervisors may adopt a local mindset when dealing with cross-border firms
Russia raises capital ratios, launches fintech consultations
Systemically important banks must increase capital ratios; smaller banks can choose “basic” or “universal” licences
Banking ‘deserts’ do not explain financial exclusion – NY Fed economists
Data shows absence of nearby banks fails to explain “unbanked” share of the population
Home truths on Europe’s NPLs
Europe needs to overcome fears of a hypothetical crisis, and impose more intrusive supervision and greater provisioning on its banks
Minneapolis Fed launches too-big-to-fail plan
The four-step plan proposes stricter capitalisation rules for big banks and looser regulation for smaller institutions
HKMA launches consultation on open API framework
Open API enables personalised services for bank users but requires access to customer data
NBIM eyes private equity investment in potential shake-up
Letter to finance ministry says the fund’s structure and goals make unlisted equities a wise investment, but acknowledges a 4% cap would be sensible
IMF’s Obstfeld: effects of accommodative policy remain unclear
The IMF chief economist weighs up the productivity puzzle and whether monetary policy helped or hindered growth following the financial crisis
Angola drops dollar for euro in new exchange rate regime
Kwanza depreciates 11.5% against the dollar following regime change