Financial Stability
US banks get stay on Volcker rule
The Federal Reserve has given banks until July 2017 to shed investments in collateralised loan obligations, potentially saving them millions of dollars
Weidmann would consider 'outsourcing’ SSM from ECB
Jens Weidmann tells Klaas Knot the ECB should consider ‘outsourcing’ the single supervisory mechanism once it is established
St Louis Fed research chief calls Bitcoin ‘stroke of genius'
St Louis Fed vice president and head of research has raised some central bankers' eyebrows by encouraging them to ‘welcome the competition' from the virtual currency
Danish governor repeats call to join banking union
National Bank of Denmark governor Lars Rohde insists it would be in the ‘best interests’ of the country to join the banking union; predicts ‘substantial impact’ one way or the other
BoE's Haldane says asset managers the 'next frontier' for macro-pru policy
Bank of England's head of financial stability says macro-prudential action may be justified 'even when leverage is not present and banks are not at the scene of the crime'
ECB paper tackles liquidity ‘free-rider’ problem
Working paper highlights ‘excessive liquidation’ caused by financial intermediaries free-riding on other firms’ liquidity holdings, but says macro-prudential policy can create ‘constrained efficiency’
Kenya's M-Pesa mobile money app launches in Romania
East European country is the first territory in Europe to get the mobile cash transfer technology, which also launched in India last year
Fed switches MBS purchases to proprietary platform
The New York Fed, which implements FOMC policies, will start using its FedTrade platform to buy mortgage-backed securities later this month
Carney-led FSB aims at international regulatory convergence
As systemically important banks internalise tougher regulatory environments, cross-border divergence in regimes may diminish, says FSB chair Mark Carney
Bank of Namibia replaces ‘ageing’ banknotes one year after issuance
Central bank reissued the lowest denomination banknotes in its 2012 banknote series after they were found to be ‘ageing faster than expected’
New Zealand’s loan restrictions finding their mark
Banks are reigning in their high loan-to-value ratio loans in response to central bank’s macro-prudential measures; IMF backs ‘tight limits’
Richmond Fed study shows 'dramatic crossover' in payment methods of US citizens
Study evaluates Fed data tracking 2,500 participants making close to 13,000 payments during three days in October 2012, shows many seniors sticking to mail as main payment method
Germany pips UK to renminbi clearing deal
Deutsche Bundesbank signs MoU with People’s Bank of China three days before the Bank of England; agreements pave way for first two clearing banks outside Asia
Too big to fail subsidy was worth up to $300bn in eurozone in 2012, IMF says
A report in this year's Global Financial Stability Review says that while excluding the possibility of government support may not be possible, ways should be found of making banks pay for it
Retail fund exposures make EMs more sensitive to shocks, IMF says
IMF report examines make-up of emerging market bond and equity investors to find what lies behind increased susceptibility to global volatility
International policy co-ordination is a 'fair weather' phenomenon, says Carstens
Bank of Mexico's Augustin Carstens says 'massive inflows' were driven by carry trade; argues macro-prudential measures 'no substitute' for strong fundamentals
ECB’s Cœuré warns CCPs could become ‘too big to fail’
Benoît Cœuré says the systemic effects of central clearing are ‘undoubtedly positive’ on aggregate, but raises concerns over the concentration of risk in a few large global CCPs
Philippines central bank backs 'vital’ reforms
Central Bank of the Philippines welcomes plans for $3.3 billion recapitalisation and new mandate; looks set to receive new supervisory powers and monetary policy instruments
US regulation of foreign banks follows 'pattern set by the EU', says Fed's Tarullo
Basel rules are ‘floors, not ceilings', the Federal Reserve's Daniel Tarullo said yesterday, following accusations that the US is treating foreign banks unfairly
ECB paper finds US resolution authority has not solved too-big-to-fail problem
Research uses creation of US Orderly Liquidation Authority as ‘quasi-natural experiment’, finding many banks are disciplined but the largest still do not believe the threat to be credible
BoE's Financial Policy Committee notes 40% rise in mortgage approvals
Mortgage approvals rose by 40% in the year to January; FPC makes no new recommendations
Fed rejects Citi's dividend plans
The Federal Reserve has rejected the capital plans of five systemically important banks following annual stress tests; Bank of America and Goldman Sachs squeeze through
RBI director criticises ‘poor’ cooperative governance
Deepali Pant Joshi attributes cooperative banks' deteriorating health to poor governance and operational inefficiencies
New Zealand champions coordination of monetary and macro-prudential policy
Reserve Bank of New Zealand deputy governor says there is an ‘appropriate role’ for coordination if both policy arms retain ‘clear primary objectives’