Financial Stability
BIS warns of risks related to dollar-denominated corporate debt in EMs
Hyun Shin says cross-border bank lending has seen first ‘substantial increase for some time', while Claudio Borio cautions against ‘exceptionally low' volatility in financial markets
IMF paper says long-term debt creates ‘incentive to default’
Research examines relationship between maturity structure of sovereign debt portfolios and the probability of default; considers impact of uncertainty around future fundamentals
Bulgarian governor fires back over resolution of failed bank
Ivan Iskrov defends himself against accusations of hasty and contradictory statements in wake of CCB failure; highlights politicians’ failure to agree a resolution plan
Bank of Portugal's Varela calls for ‘impeccable' banking ethics
António Varela, recently appointed to the board of Bank of Portugal, argues the banking system needs a ’demanding diagnostic of the capabilities of each institution’
Negative Eonia rate causes CSA headaches
Eonia's move into the negative means parties posting variation margin must also pay interest to their counterparties, which has led to calls for clarity from dealers – especially for one-way CSAs
Key innovation behind Bitcoin could prompt ‘fundamental change' to payment systems
Article published by Bank of England says ‘distributed ledger' technology could have ‘much broader' impact beyond payment systems
World's biggest banks $60bn closer to Basel III target
Internationally active banks $20bn short of Basel III target, compared with $80bn six months earlier, according to Basel Committee review
Kohn says exit from unconventional monetary policies likely to be 'positive event' for UK
External member of Bank of England FPC says ‘most likely all will go well' but warns long period of low volatility may have led to mispricing of risk
Angolan central bankers appointed to BESA board
Angola’s president has appointed two central bankers to oversee the implementation of a rescue programme to save the local subsidiary of Portugal’s Banco Espírito Santo
LCH payments system raises concentration concerns
A large proportion of cash payments between clearing members and LCH.Clearnet are processed by just two banks, raising concentration risk concerns from banks and regulators
CPMI report reviews the ‘growing involvement’ of non-banks in retail payments
Working group chaired by Reserve Bank of India’s Padmanabhan says the presence of non-banks in payments raises 'level playing field issues' for central banks to consider
Buba's Buch calls for ‘clear-cut inclusion’ of CEE in banking union
Bundesbank vice-president highlights room for improvement in supervisory framework; concerned about integration of banking markets across Europe
New York Fed report reviews risk-return trade-off between financial conditions and financial stability
Paper focuses on vulnerabilities affecting trade-off, including pricing of risk and leverage; discusses how macro-pru policies can counteract vulnerabilities
ECB appoints supervisory heavyweights to new review board
Governing council appoints five members to board, tasked with conducting reviews into ECB’s supervisory actions, including former central bankers from France, Germany, Italy and Spain
De La Rue ‘preferred bidder' for next Bank of England printing deal
UK printer expected to sign contract with central bank next month and start producing new notes in April; BoE hired Innovia Security to supply polymer substrate in March
Tetangco targets ‘distinct brand’ for Philippines banking
Central bank governor singles out risk management, corporate governance and consumer protection as the ‘fundamental aspects’ of the Philippines’ brand of banking
Higher capital requirements lead to lower lending, study by Calomiris finds
Paper published today by the Bank of England finds ‘little evidence of interaction' between monetary policy and capital requirements; studies their impact on bank lending
Timor-Leste central bank green lights mobile money pilot
Initiative will allow users to execute payments, transfers and withdrawals through mobile phones, and follows the introduction of a ‘master plan’ for financial sector development
Kenyan governor points to financial inclusion success
Njuguna Ndung’u sees ‘bright’ future for Kenya’s financial system; points to growing financial inclusion and successful issuance of eurobond in international market
Bank of England sets out rules for foreign bank branches
Branches lacking credible resolution plans could have their licences revoked, bank warns; insurance executive joins Prudential Regulation Authority board
Dutch payments forum looking to ‘speed-up’ transfers
Frank Elderson hopes the forum’s plan will ‘spark real-time payment transfers’, noting this would require a ‘comprehensive renewal’ of market infrastructure
Final liquidity rules issued for biggest US banks
‘More stringent' liquidity coverage ratio will come into effect in January 2017; Fed adopts final rule on supplementary leverage ratio, asks for input on swap margin rules
RBI's Joshi: Direct benefit transfers a ‘game changer' but have ‘not progressed smoothly enough'
Indian financial inclusion initiative needs government streamlining and the help of commercial banks to work, says Deepali Pant Joshi
South Africa’s central bank opens investigation on African Bank business
The investigation will determine if ’any business of African Bank was conducted recklessly, negligently or with the intent to defraud depositors’, the central bank says