Financial Stability
Coeuré calls for further progress to single capital market
ECB board member Benoît Cœuré tells International Capital Market Association that price convergence alone will not signal the end of eurozone capital market fragmentation
Banxico deputy says free trade deals will boost medium-term growth
Javier Guzman says Mexico has 'tariff-free access to a potential market of more than a billion consumers and 60% of world GDP'
Governors launch East African Payments System
East African Community presents new market infrastructure and plans to boost currency convertibility; Kenyan governor sets out monetary policy priorities for the region
Mersch: regional currencies are flawed
ECB executive board member warns that regional money can hamper trade between different parts of the country, while costing commercial partners the opportunity to grow
Thailand governor insists economy is nearing turnaround
Bank of Thailand’s Prasarn Trairatvorakul admits he can do nothing to resolve political uncertainty in the country, and focuses on how to support eventual economic rebound
Mexican deputy says financial system must be broadened and deepened
Bank of Mexico deputy governor Manuel Sánchez says the country's financial system must extend its reach geographically and across income strata
Canada deputy urges pension funds to join clearing service
For repo and derivatives transactions, central counterparties reduce common counterparty exposures and systemic risk, Lawrence Schembri argues
Ingves says responsibility for liquidity risk management lies with banks, not regulators
Basel Committee chairman says banks must develop controls to help them manage the liquidity risk that is inherent in their activities of maturity transformation
CLS says it will adhere to US sanctions on Russia
The ruble looked set to become the 18th currency to be settled through CLS, and while both the CBR and the industry utility are committed to the deadline, political uncertainties remain
RBNZ remains uncomfortable with house prices
Reserve Bank of New Zealand will maintain its ‘speed limit’ on mortgage lending with high loan-to-value ratios until the housing markets ‘comes into better balance’
Risk of dealers exiting from market-making 'much reduced', says BoE's Cunliffe
Bank of England deputy governor for financial stability says prospective UK leverage ratio framework 'could include power to vary ratio to counter macro-prudential risks'
De Larosière decries world monetary ‘anti-system’
Central bankers need to work together to identify and address macro-economic imbalances; system of co-ordinated currency boards could help absent functioning monetary system, says former IMF chief
Canadian government wields macro-prudential power, IMF paper says
Government control over high loan-to-value mortgages has successfully taken some heat out of the Canadian housing market since the economy began to recover
The international monetary ‘anti-system’
A network of systemic risk boards might improve stability in the absence of a viable international financial system, writes Jacques de Larosière.
ECB's Mario Draghi faces ongoing German ‘angst’
ECB president to face further German resistance on interest rates, banking union and OMTs – with Germany’s constitutional court ruling likely more problematic than some observers believe.
Central bank support for CCPs and TRs
The wider use of central counterparties and trade repositories may pose challenges for central banks. Carlos León, Clara Machado and Ricardo Mariño explain the tactics central banks are adopting.
FSB issues peer review on ‘uneven' progress to end credit ratings reliance
Basel-based Financial Stability Board says its members must not replace mechanistic reliance on credit rating agencies with an equally narrow substitute
Kohn compares UK and US macro-prudential experience
The former Fed vice-chair and member of the BoE's financial policy committee says any arrangement needs central bank in 'major role'
Constâncio calls for centralised deposit insurance scheme
European Central Bank’s Vítor Constâncio welcomes legislators deal on deposit guarantees but insists they are ‘only a little part’ of what is necessary
New Zealand securities settlement system could go private
Reserve Bank of New Zealand issues public consultation on future of two major settlement systems; NZClear could be separated from Esas and moved into private sector
Book notes: The Map and the Territory: Risk, Human Nature and the Future of Forecasting
The Map and the Territory is an enigmatic title for a book written by a former chairman of the Federal Reserve, Alan Greenspan.
Book notes: Fragile by Design: The Political Origins of Banking Crises and Scarce Credit
Markets for goods and labour depend vitally on the institutions that underpin them, say Charles Calomiris and Stephen Haber
Monetary and macro-prudential co-ordination works well when pulling in same direction
Monetary and macro-prudential policy co-ordination brings benefits when they are both aiming at the output gap, but not when the regulator emphasises financial stability
FX lending in China tops $1 trillion, new BIS figures show
BIS's Robert McCauley estimates FX loans to China hit $1 trillion last year, though the recent renminbi depreciation may now cause lenders to think twice