Financial Stability
BoE and PBoC to ink deal on London RMB clearing bank
Central banks will sign memorandum of understanding next week that will pave way for London to establish the first offshore renminbi clearing bank outside Asia
Fed finds 75% of US citizens reluctant to pay by phone
While mobile banking continues to grow, many consumers are growing more sceptical of services and the security of the technology, according to a Fed survey
NY Fed releases new research on large and complex banks
Special edition of the Economic Policy Review aims to further study and debate, and help inform policy-makers on issues around too-big-to-fail
New York Fed study finds TBTF banks take on more risk
Study uses a rating agency measure of government support and finds it correlated with the size of banks' impaired loan ratios
Stress test revisions ‘an embarrassment’ for the Fed
Federal Reserve revises stress test results due to ‘inconsistent’ assumptions of banks’ capital plans; ‘undermines confidence’ in the institution, according to former official
Bank of Canada deputy says Libor and FX scandals have damaged trust
Bank of Canada deputy governor Tim Lane says problems of benchmark rigging must be addressed through mix of 'reform and replacement'
Eurozone policy was ‘backward' in the financial crisis, says Draghi
The policy measures brought in by the ECB and other eurozone authorities in 2010–11 were right in isolation but introduced in the wrong sequence, Mario Draghi has said
East Africa takes more steps on path to integration
East African Community agrees to expand its relationship with a regional counterpart; implements new project to harmonise payment and settlement systems
Japan FSA proposes two phases for mandatory clearing
The proposals would force financial institutions to clear their yen interest rate swaps, although insurance companies and pension funds are absent from JFSA plans
Financial inclusion is prompting shift in ‘the landscape of central banking’
Reserve Bank of Fiji governor believes central banks have taken a ‘lead role’ in driving financial inclusion; points to new departments dedicated to the cause
ABS innovations aim to clear credit rating log-jam
Innovative way of calculating capital requirements for securitisation portfolios could take rating agencies out of the game - and put the European economy on the path to recovery
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