Financial Stability
RBNZ releases blueprint for macro-prudential tools
Central bank outlines decision-making process behind macro-prudential intervention; says there is more room for policymaker judgement than in monetary policy
IMF paper proposes measure of tail-risk events
Study seeks to quantify what constitutes a systemic financial stress event, and tests the resulting metrics on 11 early-warning indicators in Europe and the US
National Bank of Denmark details FMI implementation progress
Central bank working with financial market infrastructure providers to ‘interpret and translate’ the CPSS-Iosco principles into a form applicable to Denmark
Italian deputy sees difficulties in macro-prudential policy implementation
Fabio Panetta discusses ways that macro-prudential policies may be circumvented or rendered ineffectual and suggests possibilities for solving these problems
Fed paper says macro-prudential policy is not a new idea
Research studies various macro-prudential policies employed in the past, seeking insights for contemporary policy-makers
Robert Pringle's Viewpoint: Watch what central bankers do, not what they say
Recent speeches by Ben Bernanke and Mark Carney signal a new phase in the development of central bank rhetoric. The big question is whether they preface a change in policy
Leaked document shows deep IMF concerns about Cyprus bail-out
IMF approves Cyprus support package but leaked 'internal document' exposes depth of reservations about the plan among the IMF's executive board
Caruana tells central banks to focus more on financial stability
BIS general manager calls for central banks to adopt a 'fully integrated macro-financial perspective' and lengthen policy horizons when financial stability concerns grow
Fed director says rest of world lagging behind on cross-border resolution
Michael Gibson says US has had its resolution authority in place for years, but slow progress in other jurisdictions is causing delays; FDIC chair says talks with G-Sib host countries are ongoing
BoE research examines links between channels of macro-prudential policy
Financial stability paper looks at the well-studied allocation channel and the less-studied signalling channel, finding the two to be closely linked
Central Bank of Kenya cracks down on crime
Report highlights ‘significant progress’ in strengthening defences against money laundering; optimistic about development of banking sector ‘despite 2013 being an election year’
RBNZ gets macro-prudential go-ahead
New Zealand’s’ central bank tools up with four macro-prudential instruments; analyst says continued growth in house prices could prompt action before year-end
Orphanides lambasts European ‘blunders’
Former Central Bank of Cyprus governor attacks European authorities for mismanaging sovereign debt crisis; holds communist party responsible for Cypriot bailout
RBI’s Chakrabarty fleshes out plans for risk-based supervision in India
Deputy governor examines pre-requisites for effective risk-based supervision as central bank prepares ‘phased migration’ to the new approach
ECB research uses game theory to assess optimal T2S adaptation
Working paper attempts to find optimal lump-sum investment by central securities depositories migrating to Target2 Securities, and tests possibility of tacit collusion
VocaLink: Seven-day account switching set to shake up UK banks
Chris Dunne says UK payments are undergoing important changes that could see ‘economic battle' between banks; expects closer scrutiny of infrastructure by regulators
Swedish deputy wants central bank independence reconsidered
Barbro Wickman-Parak, in her last speech at the Riksbank, says independence is ‘essential’ for price stability but needs to be reviewed with regard to macroprudential policy and financial stability
Irish plan for distressed borrowers attracts criticism
Central Bank of Ireland encourages cooperation between lenders of secured and unsecured debt to keep distressed borrowers from bankruptcy; Irish League of Credit Unions denounces scheme
Iceland’s Guðmundsson backs MAS-style stability model
Icelandic governor says managed float and strong supervision are important lessons to be taken from Singapore; says capital controls helped avoid a default in Iceland, but should not be used lightly
Bernanke outlines Fed's ‘intensified' monitoring of financial system
Focus is on Sifis, shadow banking, asset markets, and the non-financial sector, according to the chairman of the Federal Reserve
Ireland’s Elderfield says ‘imperfect’ Solvency II should still go ahead
Deputy governor highlights many imperfections in the Solvency II framework but says it is better than the fragmentation and rising costs that are the alternative
FDIC’s Thomas Hoenig on bank separation, safety nets and Basel III
Hoenig tells Christopher Jeffery that Basel III is flawed, universal banks require legal separation, financial safety nets need cutting and monetary policy should move to non-zero interest rates
The SSM, banking union and the future of prudential policy in Europe
The establishment of a single supervisory mechanism under the ECB will help mitigate a number of threats to Europe’s financial system, writes Ignazio Angeloni. But still more needs to be done
