Financial Stability
Time for clock synchronisation – regulators
Global regulators assess the need for a central reference clock to aid investigations into alleged abuse of financial markets
Agustín Carstens on Fed policy, shadow banking and Mexico's economic strengths
Agustín Carstens, governor of the Bank of Mexico, speaks about the work of the IMF, tackling shadow banking and how Mexico has kept a strong economic position in the midst of the financial crisis.
Malaysian deputy targets 'distortions’ in payments market
Muhammad bin Ibrahim says ‘more needs to be done’ to correct price distortions that he believes are holding back electronic payments in the country
(Too) great expectations for macro-prudential?
Macro-prudential policies are a welcome response to the financial crisis, but not necessarily in their current incarnation. BIS economics head Claudio Borio highlights their limitations
Macro-prudential policies could ‘become part of the problem’, says BIS’ Borio
Weight of expectation on macro-prudential policies to address financial system stresses may be too great, says BIS economics head Claudio Borio; stress tests ‘woefully deficient’ in predicting crises
UK government to 'explore potential of virtual currencies'
Major study will look into whether regulation is required for businesses to set up in the UK, says chancellor George Osborne, who adds virtual currencies can ‘transform lives’
Fed blasts big banks over ‘unrealistic' living wills
Eleven firms, including Goldman Sachs and JP Morgan, must take ‘immediate action to improve their resolvability', US central bank says
Raghuram Rajan on the dangers of asset prices, policy spillovers and finance in India
Raghuram Rajan, governor of the Reserve Bank of India, speaks about the challenges facing emerging market central banks, spillovers and getting to know India’s new prime minister Narendra Modi.
RBI’s Rajan warns of possible asset price collapse; euro ‘too strong’
Financial sector imbalances could cause sudden price reversals and sharp spikes in volatility, risks many macroeconomists are still blind to, says Reserve Bank of India governor Raghuram Rajan
BoE’s Haldane sees greater role for central banks as risks shift
Central banks may have to address different episodes of financial instability as risks shift from the banking sector to other financial players, says BoE chief economist Andrew Haldane
Two future paths for central banking
Andrew Haldane identifies two future worlds for central banks along with their implications for monetary policy, macro-prudential regulation, operations and transparency.
Chan says Hong Kong has nothing to fear from further mainland liberalisation
Competition from Shanghai 'not a zero sum game' says HKMA head; rather, further internationalisation of the renminbi will create a 'bigger pie'
Banque de France's Le Lorier says good communication can ‘substitute' for rate decisions
First deputy says comms can complement decisions in non-crisis times by revealing variables that inform monetary policy; argues monetary and macro-pru mandates can be reconciled
Bank of Portugal splits failed bank BES in 'clean’ resolution
Portuguese central bank splits troubled lender Banco Espírito Santo into good and bad bank as part of a €4.9 billion rescue
ECB economists find ‘considerable heterogeneity’ in impact of crisis
Researchers say that while borrowers ‘benefited’ from low interest rates, debt burdens increased for poor households as their incomes fell
Better budgeting tools could encourage low earners to switch from cash to card
Researchers find that low earners prefer to use cash over the debit card because they find it more effective as a monitoring and budgeting tool
Opinion: Sepa opens borders for European money
ECB’s director-general of market infrastructure and payments reflects on the successful creation of the single euro payments area, its beneficial impacts and the payment cards challenge to come
BoE working group finds ‘striking' changes in investment behaviour by insurers and pension funds
Nature of investments has changed markedly over the past 15 years, says Andrew Haldane-led group, which also includes Oxford professor Ian Goldin and Jim O'Neill
Central Bank of Nigeria inks deal to set up credit fund for small businesses
Governor Godwin Emefiele signs MoU with state governments on $1.4 billion fund to lower lending rates for SMEs, but critics call for speedier remedies
Bank of Russia ready to act to cushion bank sanctions blow
US and EU sanctions are aimed at state-owned banks and could cover central bank-owned Sberbank - but sanctioning the Bank of Russia itself remains unthinkable
HKMA chief rejects use of $400bn fund for social purposes
Norman Chan says the HKMA’s exchange fund is the ‘last line of defence’ for financial stability and should be maintained as a buffer against ‘unforeseeable shocks and crises’
Bank of England unveils plans to lock up bankers' bonuses for seven years
New rule will mean financial sector bonuses can be 'clawed back' for up to seven years, but the BoE is also proposing bonuses are locked up until that period expires
Hong Kong and Thailand link settlement systems
New link will ensure the simultaneous delivery of US Dollars in Hong Kong and Thai Baht in Thailand; HKMA’s Peter Pang says it creates a ‘safer’ environment for settling forex transactions
Cross-border vulnerabilities should be taken more seriously, IMF paper says
Working paper says funding vulnerabilities ‘have real effects', although they have declined since the crisis due to lower exposures and increased capital levels