Financial Stability
ECB's Cœuré welcomes commission proposal on Single Resolution Mechanism
Speaking in Paris, Cœuré says ‘strong central authority' needed as fundamental complement to the SSM
European Commission releases 'radical' proposal to appoint itself resolution arbiter
Single Resolution Mechanism proposal would see the European Commission retain control over whether banks are resolved; argues this would be legal under current treaties, though doubts persist
Fed and FDIC agree 6% leverage ratio for US Sifis
Banking agencies announce rules to increase organisations' leverage ratios; measures remain controversial with the banking lobby and regulators, notably FDIC's Hoenig
Early-warning indicators needed to address failings in Solvency II - PRA chief
Effective and prudent solution needed on Solvency II matching adjustment, says Bank of England deputy governor Andrew Bailey
Governments must not ‘scapegoat' financial markets, says Noyer
The power the financial markets have over states is due to weak regulation and governments' over-reliance on them to finance sovereign deficits
Banknote counterfeit threat carries significant social costs, paper finds
Bank of Canada working paper shows central banks are right to ‘actively respond' to the threat of counterfeiting despite the small incidence of fraud, due to the social costs of the perceived threat
Challenges remain despite 'calmed' markets, says National Bank of Austria
Financial stability report published on Monday shows Austrian growth stalled in the second quarter of 2012 following a concurrent decline in demand for bank loans and a tightening of credit standards
No ‘credit crunch' in the Middle East after Basel I, IMF paper finds
Despite higher capital adequacy ratios, banks expanded credit and asset growth, according to new research
Bank Russia to become ‘mega-regulator' with mandate for growth
New law set to be enacted in September will hand the central bank responsibility for almost all of Russia's financial system, and give monetary policy a broader mandate to support ‘sustainable growth'
Basel Committee finds ‘considerable variation' in bank risk-weights
Variation in bank risk-weights 'driven by diversity in bank and supervisory practices', says Basel Committee as it also moves to strengthen oversight of investments in equity funds
RBA deputy says public sector must stand ready to save banks in a time of crisis
Philip Lowe said it would be a mistake to reject the idea of using public balance sheet during a period of financial stress or crisis
Lithuanian governor lays out economic priorities for Council of EU
Vitas Vasiliauskas says European policy-makers have proven they are ‘ambitious architects’ but must now demonstrate they are ‘good constructors’
Finance sector balance sheets vital for monetary policy transmission, IMF paper shows
Balance sheet effects are comparable in magnitude to the traditional interest rate channel in transmitting monetary policy, say IMF researchers
Sweden's Riksbank holds rates, but new deputy dissents
Ingves suggests the possibility of another increase in mortgage risk-weights after they were raised to a minimum of 15% in April; Riksbank estimates consumer price inflation to remain at 1% in 2013
Fed board member highlights 'especially daunting' challenge of cross-border bank resolution
Jerome Powell says new American approach could serve as a 'simplifier – making theoretically possible something that seemed impossibly complex'
Federal Reserve adopts Basel III for US banks
Fed Board unanimously votes to introduce new capital requirements as of January 1; Daniel Tarullo says additional measures will follow including proposals for a higher leverage ratio
BoE's Tucker wants immediate 3% leverage ratio in UK
BoE deputy governor Paul Tucker calls for 3% leverage ratio to be imposed immediately on UK banks; says banking crisis has taken capacity out of financial system
New York Fed's Dudley says ‘much more' to be done to ensure financial stability
Central bankers and regulators must remain vigilant for ‘symptoms of instability', says Dudley, who admits the task of ‘securing financial stability will never be truly complete'
Chile central bank warns of volatility on US QE withdrawal
Latest monetary policy and financial stability reports say economy and banks remain on the right track, but ‘tapering' from the US Fed could cause volatility in the Chilean financial markets
Cyprus central bank told to dilute governor power
Independent report says too much power was concentrated in the governor’s hands in the build-up to the recent Cypriot crisis; calls for new policy-setting committee with non-executive majority
RBNZ bulletin examines last crisis through ‘macro-prudential lens’
Article finds that a counter-cyclical capital buffer and changes to the core funding ratio could have been ‘usefully employed’ in 2004 to build financial sector resilience
Norges Bank economists examine motivations behind bank regulation
Staff memo sets out reasons why banking is ‘inherently unstable’ activity; says safety nets can create the need for further regulation
Caruana backs Bernanke taper timetable but warns banks to prepare for volatility
BIS general manager says Fed chairman Ben Bernanke was right to signal a tightening of monetary policy but warns stress tests will be needed to prepare banks for an increase in volatility