Financial Stability
Volcker perplexed by Fed taper criticism
Former Fed chairman tells Central Banking Awards audience that central banks are ‘promising more than they can do’ and taking away ‘the punchbowl in time’ is Janet Yellen’s ‘big test’
ECB flags pitfalls for new Estonian supervisory law
Legal opinion on draft law praises intentions but warns of a number of risks, including the potential to undermine the central bank’s independence
RBA reveals details of ‘next generation’ banknote project
Quarterly bulletin gives insights into plans for the first Australian banknote change in 20 years, including new print methods, security features, stakeholder engagement and logistics
Danish paper examines effects of household leverage
Over-leveraged households saw the biggest hit to their consumption when the 2008 financial crisis struck, but the relationship broke down as the crisis continued, working paper finds
Downturn could halve capital ratios of biggest US banks, Fed stress tests show
Bank of America, Goldman Sachs, JP Morgan, Citigroup and Morgan Stanley all perform below average in Fed stress tests
Ireland’s Murphy marshals industry in support of harmonised regulation
Director of markets supervision laments ‘insufficient trans-Atlantic dialogue’ and tells asset managers who want better global harmonisation of financial regulation to make their voices heard
Robert Pringle’s Viewpoint: Storm signals over world money
Leading financial statesmen deplore governments’ neglect of the international monetary system
Troika warns Greek capital buffers may be insufficient
Troika's warning of ‘upside risks' if Greek banks are not ‘swiftly' recapitalised contrasts with optimistic statement put out by Bank of Greece on March 6
Europe's banking union gets single resolution mechanism
Compromise deal is reached over single resolution mechanism, which will have a fully mutualised resolution fund within eight years
UK to introduce ‘world's most secure coin', claims the Royal Mint
New £1 coin first ever to feature banknote security technology; ‘could potentially change the way coins are made in the future', UK's Royal Mint claims
Ingves: Sweden needs to go beyond international regulations
Sveriges Riksbank governor Stefan Ingves says Swedish banks’ funding habits and the country’s high levels of household debt warrant stricter regulations ‘in certain respects’
Canada's Poloz says demographic shift may be shackling growth
Bank of Canada governor says country's demographic profile means contribution to potential growth by human capital will diminish as 'baby boomers' retire and more people save for retirement
Danish central bank likens Bitcoins to 'glass beads'
National Bank of Denmark issues note highlighting the differences between Bitcoins and fiat currencies; stresses that virtual currencies have no inherent value
Colombian paper finds wholesale funding can increase financial sector fragility
Monitoring credit funding sources could provide an additional tool to warn against banking disruptions, paper shows
German court rejects challenge to ESM legality
Constitutional court backs Germany’s participation in European Stability Mechanism; Basel Committee rules that banks do not have to hold capital against ESM bonds
Central banks have ‘irreducible’ role in financial stability
Reserve Bank of Australia assistant governor Malcolm Edey says central banks are entwined with financial stability whether or not they have formal prudential powers
ECB reveals plans for supervisory board minutes
Danièle Nouy says the supervisory board will submit a record of proceedings to the European Parliament on a quarterly basis
BoE praises implementation of new loss-allocation rules for clearing members
Bank's first annual report on supervision of financial market infrastructure since assuming oversight responsibilities for central counterparties last April
PBoC doubles reminbi trading band
The People's Bank of China announced this weekend it will double the renminbi's trading band to let it fluctuate 2% either side of the bank's daily reference rate
More bank capital means banks lend more, paper finds
More capital means more credit - but greater supervisory capital constraints mean bank credit grows more slowly than when banks are less constrained
World should brace for impact of rising Chinese exports, report warns
Array of ‘major problems’ afflicting the Chinese economy is likely to require renminbi devaluation, with knock-on effects for the rest of the world, research warns
Bail-in rules the 'bedrock' of European banking union, says BoE's Cunliffe
Head of the UK's Prudential Regulation Authority also cautions that despite far-reaching reform efforts, regulators would struggle to resolve 'a failing global giant'
BoE’s Haldane underscores need for ‘ambidextrous’ policy
Executive director says it is too much to expect ‘one-handed’ policy to keep control of the economy, instead recommending monetary and macro-prudential policy work in tandem
HKMA rebukes UBS over attempts to rig Hibor
Hong Kong central bank finds six traders at UBS tried to influence the bank’s Hibor submissions between 2006 and 2009; demands remedial action