Financial Stability
Taper surprises could cause more volatility, warns Mexico deputy
Structural reforms should put the Mexican economy on a stronger footing, deputy governor Manuel Sánchez says, but warns economic rebound could suffer from tapering without stronger US growth
IMF paper warns half-hearted Japanese reforms would push up long-term rates
Researchers say long-term yields and banks’ interest rate exposures will increase if structural and fiscal reforms are not seen through to the end
Fed heavyweights warn new bank resolution laws won't end ‘too big to fail'
Dudley, Lacker and Tarullo say 'single point of entry' framework under 'Title II' provision is important but inadequate; FOMC members call for long-term debt requirement for Sifis
RBI launches ‘advanced’ new RTGS system
New platform expected to ‘significantly’ boost efficiency, and thought to be first ISO 20022-compliant RTGS system; Rajan says it keeps central bank a step ahead of financial markets
Malaysian deputy says ATM network can drive e-banking adoption
Muhammad bin Ibrahim urges banks to go to greater pains to educate their customers in the benefits of e-banking; says ATMs are important means of making electronic transactions
RBA’s Ellis warns against regulatory ‘monoculture’
Reserve Bank of Australia’s financial stability head says regulatory consistency is ‘important’ but should not result in identical business models that could all be vulnerable to one particular shock
Bailey sets resolution criteria for foreign banks' UK branches
Bank of England’s Andrew Bailey says foreign banks will not be able to operate branches in the UK if their home regulator’s resolution regime is not up to scratch
Fed's Fisher slams ‘fiscal misfeasance’ of US government
Dallas Fed president urges American politicians to show some leadership and put the US on a more sustainable fiscal path; Cleveland Fed researchers say shutdown will damage inflation estimates
Swedish policy-makers clash on mortgage risk weights
Heads of Sveriges Riksbank and Swedish Financial Services Authority disagree over where to set the risk-weight floor on mortgages
BIS publishes data disclosure standards for CCPs
CPSS and Iosco set requirements for which quantitative data central counterparties should release and when; aims to increase transparency around the risks associated with them
Cyprus finance minister says governor Demetriades is 'under scrutiny'
Harris Georgiades says expanded central bank board will improve governance; argues banks will succeed in raising equity as capital controls are lifted
Mix of micro and macro indicators improves chances of spotting bank distress early on
ECB working paper presents ‘early warning model' using bank and country-level data for predicting individual bank distress in Europe
BIS praises ‘complex’ payments reform in Macedonia
New payment system implemented near the turn of the century created a more efficient and sophisticated industry; potential EU membership driving additional reforms
European Council approves ECB's single supervisory mechanism
The SSM is a precondition for enabling the European Stability Mechanism to be able to directly recapitalise banks - breaking ‘the vicious circle' between banks and sovereigns, Council says
UBS and Credit Suisse still pose risks to financial stability, SNB vice-chair says
Jean-Pierre Danthine argues Basel III is inadequate and does not rule out possibility of future public bail-outs; warns Switzerland's biggest banks still 'very large by international standards'
IMF paper finds macro-prudential policy can offset loss of monetary autonomy
Researchers build DSGE model of the eurozone to find optimal monetary and macro-prudential mix; find macro-prudential policy boosts welfare and ‘lends a hand’ to monetary policy
New BoE deputy says European banking union would benefit the UK
Jon Cunliffe says ECB has enough tricks up its sleeve to address any further shocks in the eurozone; believes the mutualisation of risk may prove a bridge too far for European banking union
FDIC chair says Dodd-Frank means US regulators can manage failing Sifis
Martin Gruenberg argues Dodd-Frank Act's Title I and II provisions give ‘significant new authorities' to the FDIC to ‘plan for and manage the orderly failure of a Sifi'
BoE’s Tucker says big US banks will now be allowed to fail
Paul Tucker says authorities have enough resolution 'technology' in place to resolve almost all systemically important US banks, but more work needs to be done to make the process smoother
ECB's Asmussen tells G-20 to slim down policy focus
Executive board member argues informal economic forum should concentrate on financial regulatory reform rather than ‘food security and labour issues'; calls for permanent G-20 secretariat
Bank of Italy paper tests monetary and fiscal defences against speculative attack
Researchers devise co-ordination game to assess interaction of monetary and fiscal policy when policy-makers attempt to resist a potential speculative attack
RBI sets up mobile banking committee
Committee will examine the possibility of introducing a payment system allowing millions of unbanked Indians to make transfers using their handsets
EC's Pearson urges US and European regulators to ‘talk the same language'
European Commission's financial markets head tells US and European regulators to find common ground on the technical details of their reform programmes; Cyril Roux backs greater cooperation
Inclusion begets stability, Bangladesh Bank governor says
Atiur Rahman argues loans to diverse small-sized firms make for lower aggregate credit risk than big loans to ‘a few large borrowers'