Financial Stability
First Target2 data release sheds light on imbalances
Data on cross-border eurozone financial flows gives clarity as to the sharply different directions funds have been travelling, with Germany still comfortably the most popular destination
SMEs possibly worst hit by fragmentation of monetary policy transmission, ECB paper finds
Small and medium enterprises may have suffered most from fragmentation in monetary policy transmission following the financial crisis, according to research
Buy-to-let investors take houses off the market quicker and spend less
BoE working paper examines BTL in the UK between 2009 and 2014, finding properties spend five days less on the market and usually sell at a discount
Research draws on lessons from Polish prudential policy
The implementation of loan-to-value (LTV) and debt-to-income (DTI) ratios successfully manages credit risk, but the housing loan portfolio remains a concern
Market liquidity drained by regulations, says DBS chief
Volcker, Basel III and Dodd-Frank have combined to drain liquidity, CEO says – particularly in times of market stress
IMF staff call for greater delegation of macro-prudential powers in Norway
Technical note finds institutional structure has worked to good effect in many ways, but identifies issues around co-ordination across ministry, central bank and FSA
Education is key for Malawi’s financial institutions
Increasing focus placed upon financial literacy and consumer protection in Malawi’s financial institutions throughout 2014
Network theory allows systemic risk assessment of banks, paper argues
Analysing the network structure of the financial sector can help assess the systemic risk presented by individual European banks, and offers useful data for regulators, an ECB working paper says
ECB allows national central banks to disclose ELA provision
Bank of Greece becomes first central bank to make use of power to disclose ELA figures
Consistent implementation key to Basel III success, research notes
Boston Fed policy perspective highlights importance of consistent implementation of liquidity regulation across G20 jurisdictions
IMF staff identify ‘priority areas’ for SSA reform
Staff members in the IMF African department chart the progress of financial development in sub-Saharan Africa, the challenges that remain and how they might be addressed
China eases restrictions on overseas borrowing
Move allows companies to raise funds in both local and foreign currency without state permission and could help offset record capital outflows, but analysts say short-term impact is likely to be limited
BoE paper explores impact of dark trading on primary exchange
Bank of England paper argues dark trading did not lead to worse market quality on the primary exchange for members of the FTSE 100 index between September and December 2012
ECB bulletin: risks to taxpayer funds gradually diminishing
An article in the European Central Bank's latest bulletin weighs the fiscal impact of financial sector support during the crisis, highlighting the benefits of a move towards banking union
Bank of Portugal suspends Banco Novo sale
Portugal's central bank has halted the planned sale of Novo Banco, the good bank created after the collapse of Banco Espirito Santo, citing unsatisfactory bids
Sveriges Riksbank strikes $500 million swap deal with National Bank of Ukraine
Sweden’s central bank could sell up to $500 million over the next six months under the agreement, despite one deputy governor objecting to its acceptance of the responsibility
National Bank of Denmark confident it possesses ‘necessary tools’ to defend currency
The ministry of finance will resume issuing government bonds in October after measures to stabilise the krone have ‘desired effect’
German paper explores risks of sub-custodian chains
The structures to safeguard financial assets are opaque and possibly risky, and could benefit from further study as regulation is overhauled, the discussion paper argues
Regulatory regime differences may drive international capital flows, study argues
Financial regulation may need to extend the principle of automatic reciprocity between national jurisdictions, working paper argues
South African deputy looks to fill gaps in resolution setup
Francois Groepe highlights main elements of proposals for a new resolution framework in South Africa; particular emphasis on creating a deposit guarantee scheme
Difficult liquidity conditions are here to stay, say Asia conference panellists
Gapping moves in spot markets and higher prices for clients in FX derivatives are here to stay, as banks pull back from market-making in non-core currencies, panellists warn
Ukrainian governor declares victory in banking sector clean-up
Valeriia Gontareva says 54 banks were put into resolution as part of the National Bank of Ukraine’s efforts to put banks on a sounder footing
ECB sees house prices undergoing ‘sustainable’ recovery
European Central Bank says eurozone housing markets appear to have undergone necessary corrections, in article released ahead of Economic Bulletin
Access to interbank FX market could spur central bank demand for China bonds
PBoC says foreign central banks will be allowed to trade derivatives in interbank FX market; move to underpin greater interest in China's interbank bond market, says analyst