Financial Stability
Robert Pringle’s Viewpoint: Coping with capital flows
All nations face major challenges dealing with capital flows. In the absence of systemic reform to monetary and exchange rate systems, central banks will need to patch and mend where they can
Banque de France paper quantifies impact of EBA capital exercise on lending
Banque de France working paper examines lending behaviour of banks subjected to the recapitalisation exercise ran by the European Banking Authority in 2011–12
MAS to offer overnight renminbi liquidity
Monetary Authority of Singapore says it will launch an overnight liquidity facility for Chinese currency in July; latest step in growth of offshore market
Poloz warns of household vulnerabilities in Canada's financial sector
Bank of Canada governor Stephen Poloz says enhanced framework to highlight vulnerabilities shows household debt and housing lending are areas of concern
Bank of England given far-reaching macro-prudential powers over housing
UK chancellor unveils ‘big new steps' that will allow BoE to cap loan-to-value and loan-to-income ratios on mortgages; Carney ‘applauds' decision
Romania governor calls for early entry into Banking Union
Romania will be affected by Banking Union either way, argues governor Mugur Isărescu, so would be better off inside rather than outside
Philippines tailors stress tests to real estate exposures
Central Bank of the Philippines approves new prudential guidelines to incorporate in bank stress tests; insists they are preferable to ‘absolute limits’ on real estate exposures
Belgians call for ‘strong co-ordination’ to hold EU prudential regime together
Article in National Bank of Belgium's financial stability review evaluates the institutional structures that will influence macro-prudential policy in Europe
IMF researchers map out countries’ macro-financial risks
Working paper presents a framework for linking the various aspects of the IMF’s surveillance, and a tool for mapping out the various conditions in each member state
Serbia's slowing dinarisation expects boost from subsidised loan programme
A programme offering cheap dinar-denominated loans to the corporate sector should see use of the national currency bounce back, Serbia's central bank hopes
IMF launches global house price observatory to 'nudge' prudential policy-makers
Fund sets up website to help countries keep track of and compare housing sector developments and prompt them into ‘early action' on booms and busts
‘All pieces are in place' for co-ordinated regulation of European ABS, says Mersch
The various agencies in charge of regulating ABS in the EU should be able to co-ordinate their regulation of the asset class, Yves Mersch says
Bank of England initiative bolsters cyber defenses
BoE joins with commercial actors in bid to shield the UK financial sector against cyber attacks; tests based on hackers' own techniques
'Intra-firm borrowing' reduces liquidity risk at 'global' US banks, say NY Fed staff
New York Fed staff report finds 'fundamental differences' between banks with and without foreign affiliates
Emirates central bank monitoring property price growth
Central bank says financial system is 'resilient' but 'vulnerabilities exist' in annual financial stability report released this weekend
Economists worldwide find cash still used ‘extensively’
Economists from Australia, Austria, Canada, France, Germany, the Netherlands and the United States compare survey data on payments; find cash ‘has not disappeared’
Caruana defends role of interest rates in ‘leaning against' financial cycles
Interest rate rises have a role to play in discouraging excessive borrowing, BIS managing director Jaime Caruana tells National Bank of Bulgaria conference
BoE's Sharp: new shocks around the corner 'perfectly conceivable'
Richard Sharp says UK financial system's openness means unpredictable external events can have 'profound effect' on financial stability
Nouy says SSM will bring ‘positive effects’ for Nordic banks
Supervisors from Nordic countries consider how their relationship will change when the SSM becomes operational; Denmark and Sweden are unlikely to opt in
Riksbank calls for separate LCR in local currency
Swedish central bank is wary of lenders' ‘extremely low' krona buffers; proposed change could be constrained by the size of Sweden's sovereign bond market, however
Fed overhauls collateral requirements for discount window
The changes, including separate requirements for fixed-rate and floating-rate loans posted by depository institutions, could make it harder to obtain central bank liquidity
Dutch economists back OMTs
Researchers find the dispersion of lending and deposit rates in the eurozone is largely attributable to the differences in the sovereign risk of its member states
BIS figures show cross-border lending on the mend outside the eurozone
Statistics for the final quarter of 2014 show cross-border lending recovering in most of the world, especially China, but continuing to decline in the eurozone
Mersch fears policy-makers are in last-chance saloon
European voters have given policy-makers the mandate to build a better eurozone, but their patience could run out, ECB executive board member says