Financial Stability
Italian paper finds difficulties in risk weighting sovereign debt
Researchers at the Bank of Italy warn that applying higher risk weights to sovereign debt could be detrimental to banks’ funding conditions
Cœuré defends Troika to European Parliament
ECB’s top negotiator with European Parliament defends the adjustment programmes shaped by the Troika and tells politicians not to ‘blame the fire brigade for the fire damage’
National Bank of Belgium sells iconic Antwerp building
Belgium’s central bank has closed its Antwerp branch as part of its ongoing consolidation process, and will now sell the distinctive triangular building
Rajan looks to mobile banking for financial inclusion
Reserve Bank of India governor says that India is not ‘where it should be’ on mobile payments and calls on telecom firms to help drive the proliferation of cheap and safe payments
Banking union can create sustainable financial integration in eurozone, Draghi says
Speaking at the 20th anniversary of the establishment of the European Monetary Institute, the forerunner to the ECB, Mario Draghi says banking union can strengthen financial integration
CLS set to add Russian ruble in November, source says
Industry settlement utility CLS is poised to add the ruble to its currency universe in November
RBI paper explores quality of Indian banks’ assets
Researcher acknowledges that asset quality has suffered in the wake of the crisis, but is convinced that banks’ balance sheets are ‘not alarming at the current juncture’
Hungary central bank sets out stress test methodology
Working paper explains how the National Bank of Hungary conducts its stress tests, aimed at ensuring the system can survive an intensive month-long liquidity shock
Governors grapple with regulatory implications of African mobile money growth
African central bank heads agree to develop comparative surveys of mobile money regulation, as mobile banking takes off
ECB ‘strongly supports’ new payments directive
The European Central Bank gives its backing to a new payments directive that aims to create a more integrated European market for electronic payments
Visco calls for ‘rapid’ SRM agreement
Bank of Italy governor Ignazio Visco urges the European Parliament and Council for the EU to find a common ground on the SRM; argues for single resolution fund to be fast-tracked
Asia uses macro-prudential policies to greater effect, IMF paper finds
Macro-prudential policy has curbed credit growth and bank leverage in several Asian countries over the past decade; loan-to-value ratio caps and housing tax measures among most effective instruments
ECB unveils ‘co-operation framework’ for SSM
European Central Bank outlines how it will co-operate with national authorities in the forthcoming single supervisor mechanism; proposals open to public consultation
Capital vulnerability at US banks began four years prior to crisis, NY Fed paper finds
CLASS model projections show capital vulnerability in the US banking sector started as far back as 2004, before it peaked during the financial crisis at the end of 2008
Political impasse threatens SRM progress
European parliamentarians express frustration with the slow negotiations over the single resolution mechanism; Martin Schulz urges finance ministers to pick up the pace
Regulatory reliance to blame for faulty credit ratings, paper claims
The growing importance of credit ratings to financial regulators and prudential regulation explains more of the distortion in ratings than the question of who pays for the rating
US Congress committee highlights Volcker rule anomalies
Fed's Tarullo among regulators grilled by US Congress over apparently arbitrary exemptions to the Volcker rule
Fed proposals for updated payments system meets with mixed response
Some industry practitioners tell Fed it should move faster on payments reform, though others argue if it isn't broken, don't fix it
Bank of England says BBA could co-ordinate response to banking cyber attacks
Sweeping exercise aimed at preparing UK banks against attacks against financial infrastructure by ‘hostile nation state' also sees some firms struggle with new dual regulatory structure
Reserve Bank of Fiji targets more effective communication
The central bank will build a new communications framework and resurrect plans for a financial stability report as part of its strategic outlook for 2014-18
National Bank of Hungary honours Austrian governor
Ewald Nowotny receives Lamfalussy Award for ‘exceptional international efforts’; associated conference in Budapest features comments from a host of European central bankers