Financial Stability
Wheeler shines a spotlight on housing supply
Reserve Bank of New Zealand governor Graeme Wheeler says restrictions on high loan-to-value mortgages will alleviate house price increases, but the bigger issue is housing supply
National Bank of Denmark governor highlights housing concerns
Lars Rohde says investor confidence in the creditworthiness and liquidity of mortgage bonds is ‘at the core' of the Danish mortgage credit system
Basel III requirements could clash with new bail-in rules, warns IMF
Increased pressure on banks to rely more heavily on collateralised debt could combine with ‘depositor preference' rules to raise funding costs at a time when credit conditions remain tight
UK prepares for mobile payment apps
The Payments Council is launching a new mobile payments platform in the UK in 2014, and seminar participants discussed the challenges it will face
Banknotes worth $2m stolen from Swiss printer
Investigation under way into theft of incomplete Sfr1,000 notes that subsequently entered circulation as counterfeits
Bank of England proposes new stress test regime
Deputy governor Paul Tucker says new framework will boost confidence in the UK financial system and help ensure the Bank is publicly accountable for its financial stability operations
BoE's financial policy committee publishes latest minutes
UK macro-prudential regulator says it will prioritise medium-term capital framework for banks, ending ‘too big to fail', and transform shadow banking
ECB research examines ‘inverted V’ yields around bond auctions
Working paper finds yields spiked around auctions during crisis-hit Italian bond issues, creating additional costs for the government that Germany did not face
Italian deputy warns of political pressure on central banks
Salvatore Rossi says central banks’ increasing responsibility for financial stability makes them a ‘perfect target’ for both lobbyists and politicians
IMF warns Italian financial sector is ‘not out of danger'
Assessment finds Italian financial sector to have shown ‘remarkable' resilience, but slender profit margins and worsening loan quality have led to ‘pockets of vulnerability'
HKMA reviews progress on global financial regulation
Bulletin article outlines the stabilisation options that member jurisdictions should have access to in the event that a too-big-to-fail bank does just that
UK ‘Help to Buy' brought forward as data show housing market hotting up
Data out today show some UK housing indicators are back at pre-crisis levels; financial policy committee minutes are due out tomorrow, as government doubles down on ‘Help to Buy' scheme
IMF proposes automatic stabilisers to guard against hot money flows
World Economic Outlook suggests countries can shield themselves from instability caused by volatile capital flows if they foster an environment allowing residents to easily invest overseas
RBNZ rings changes in policy frameworks
Annual report highlights changes in how Reserve Bank of New Zealand is organised, the way in which it formulates policy and the tools at its disposal
ECB’s Cœuré warns impact of bail-ins still unclear
Executive board member says effects on bank funding and lending depend on final design of bail-in regime and interaction with other regulation
ECB fires starting gun on SSM chair selection
New chair will head the single supervisory mechanism and oversee the eurozone's biggest banks from next year; appointment to be made jointly by the ECB and the European Parliament
ECB’s Mersch demands resolution fund clarification
Executive board member Yves Mersch concerned about the loss of credibility if the proposed single resolution fund in the eurozone was drained through a round of bank failures
Constâncio and Issing fear ‘zombie' bank dependency on central bank liquidity
Former ECB chief economist joins current vice-president in warning over weak banks becoming dependent on central bank money - but Constâncio says ECB is ‘exiting quietly and smoothly'
Composite indicator shows Swedish banks' systemic importance varied through crisis
Riksbank research finds large time-based variations in the systemic importance of Sweden's four biggest banks before, during and after the financial crisis
IMF working paper examines tools to measure interconnectedness
Network analysis and price-based measures are both used to measure interconnectedness in systemic risk; paper finds many tools can reduce systemic risk, but interaction is not clear cut
Chinese capital rules meet Basel III standards
Bank for International Settlements report says China’s capital rules are in line with the Basel III minimum standards, but finds two 'potentially material' flaws
Eurosystem repatriation rule-change creates 'level playing field' for CSDs
Senior executives at Clearstream and Euroclear tell CentralBanking.com their companies are ready for the new landscape - and for the launch of T2S
Rajan urges central banks to consider spillovers
Reserve Bank of India governor wants central banks to consider the impact of their monetary policies on cross-border capital flows; questions the efficacy of QE, forward guidance and IMF advice
Higher interest rates no ‘immediate threat' to UK banks, says FPC
Financial Policy Committee still warns firms are not taking sufficient account of potential stresses and that borrowers would be exposed to higher interest rates were debt levels to rise further