Financial Stability
Lars Rhode ‘firmly convinced’ by merits of banking union
The National Bank of Denmark wants to join the banking union, while the government is still assessing the consequences; Danske Bank chief economist supports wait-and-see approach
RBA’s Ellis urges policy-makers to look beyond economics
Head of financial stability says there is ‘a lot’ to learn from other research fields, even if some techniques ‘end up being dead ends for our purposes’
BIS paper tackles redistributive effects of regulation
Working paper studies how regulation tips welfare in favour of the real economy or financial sector, and suggests how regulators might deliver a Pareto improvement
Thailand’s central bank governor warns on risks of US rates normalisation
Prasarn Trairatvorakul warns that US interest rate normalisation could lead to ‘capital flow volatility’, considering it a ‘notable risk’
Portuguese governor calls for powers to act ‘just in time’
Carlos Costa argues that legislative changes are necessary to give national supervisors greater agility when it comes to intervening in failing banks
Buba official warns against tapping ESM for investment
Andreas Dombret says using portion of ESM funds to finance investment in infrastructure would ‘greatly reduce effectiveness’ of rescue fund
Netherlands Bank flags risk from ECB asset purchases
Markets are positive about the ECB's efforts to ease monetary policy, but unconventional measures carry the risk of pumping up asset bubbles, Dutch financial stability review warns
BoJ paper details approach to macro stress testing
Tests feature model of feedback loop between economic and financial sectors, in attempt to gauge the ways in which shocks may reverberate through the economy
Banks should offer ‘equal service’ when facing a run, research finds
Working paper published by the Bank of Portugal analyses models of bank runs, and finds equal service leads to a faster recovery
Bank of Russia sells $1.4 billion to prop up ruble
Central bank intervenes in foreign exchange market to support currency as it continues to slide against the US dollar; commentators split over prospect of rate hike
Basel Committee finds banks’ op risk frameworks lacking
Review finds systemically important banks have made ‘insufficient progress’ in implementing op risk principles; Committee outlines recalibrated versions of its op risk capital models
Polish paper explores market perception of sovereign credit risk
Working paper finds macroeconomic and institutional developments were 'weakly correlated’ with market perception of sovereign credit risk in eurozone during crisis
Central Bank of Ireland proposes lending restrictions
Irish central bank proposes three ‘speed limits’ on banks’ mortgage lending, as it looks to create a ‘stable and well-functioning’ market
IMF's Blanchard warns macro-prudential tools ‘may not be up to the task'
Chief economist outlines benefits of debt-financed infrastructure projects in the eurozone at opening of IMF and World Bank annual meeting
BoE unveils draft rules for ring-fencing UK banks
Prudential regulator issues consultation on rules relating to legal structure, governance and maintaining core operations; Andrew Tyrie welcomes structural recommendations
Polish paper examines impact of foreign currency loans
Foreign currency loans restrict the transmission of monetary policy to the real economy but do not have a 'significant' impact on efficacy of macro-prudential measures, paper finds
Swift resists ‘political pressure' to disconnect Russian and Israeli banks
Brussels-based cooperative says calls for exclusion undermines ‘systemic global character' of its services; previously condemned EU parliament resolution in September
RBA’s Stevens lauds ‘substantial’ progress towards real-time payments
Reserve Bank governor says Australia is now closer to delivering ‘real-time, data-rich payments’; first meeting of the Australian Payments Council expected this month
Bank of Portugal intensifies central bank cooperation programme
The Bank of Portugal completed 105 projects by September this year; the majority of which were conducted with central banks from other Portuguese-speaking countries
Fixing Libor needs more work, says NY Fed’s Dudley
NY Fed president says gaps in the Libor framework still need to be plugged; Fed and FSB working on solutions
Ingves: Equal implementation of Basel III a ‘major challenge'
Basel Committee chairman says Swedish banks' interconnectedness and reliance on wholesale funding justify higher capital requirements than Basel III minimum
Central Bank of Nigeria implements ‘sanctions screening' service to combat financial crime
Swift service helping banks meet global best practices on financial crime will be functional in January; step towards realising 2020 ‘payment system vision'
Warren turns up heat on NY Fed following allegations of supervisory mismanagement
US Senator says leaked recordings suggest ‘basic lack of truthful reporting’ at institution; New York Fed has already defended the 'integrity' of its supervision
Bank of England asks for new tools to curb mortgage lending
Financial Policy Committee recommends it be equipped with controls on loan-to-value and debt-to-income ratios; Mark Carney says Help to Buy scheme does not pose ‘material risks’