Financial Stability
LatAm countries play down talk of burgeoning currency war
Peruvian and Colombian central banks say dollar purchases are being made to build reserves and reduce volatility; Latin America faces wide range of currency challenges
Swedish deputy insists on stronger macro-prudential framework
Kerstin af Jochnick wants clearer macro-prudential mandate and decision-making structure; says recent committee proposals are not the answer
Banking crises scar labour productivity, finds BoE paper
Research says short-term growth of productivity and long-run levels are damaged by financial and banking crises
Dutch paper attempts to fill gaps in European unsecured lending data
Working paper develops algorithm to extract information on unsecured money-market loans from Target2 data, then uses the new data to identify trends in lending
Payments update proposed for UK money markets
Bank of England reveals details of new clearing and settlement system for gilt repos; executive director Chris Salmon encourages market participation
Ingves deflects criticism of ‘complex’ Basel III framework
Basel committee chairman says it is naïve to think complex banks can be regulated by simple rules, following criticism of Basel III’s ‘overly complicated’ system of risk weights
Bank of Italy steps in to investigate ‘hidden' derivatives deals
Central bank to investigate Monte dei Paschi di Siena trades in collaboration with judicial authorities, as the Italian bank seeks €500 million in 'Monti bonds' to cover potential losses
Mixed reactions from banks as ECB prepares to wind down LTROs
Repayment window for LTROs set to open on January 30; some commentators raise concerns over possible monetary tightening, while others view early repayments as sign of financial health
Macro-prudential policy can prevent euro area imbalances, says Polish paper
National Bank of Poland study finds macro-prudential instruments can prevent periphery and core imbalances emerging in the euro area, but only if applied regionally
Draghi optimistic as ‘darkest clouds’ in euro area subside
ECB president Mario Draghi praises the euro area’s achievements in 2012, and urges countries to be unrelenting in their pursuit of reform
UAE central bank launches lending cap consultation
United Arab Emirates central bank responds to finance community's concerns by sending a questionnaire to canvas opinion on home loans caps
ECB working paper posits improved volatility measure
Paper proposes new measure of volatility that provides information on whole market rather than single maturities; authors say results are simpler and more robust than existing models
IMF paper considers macroprudential needs of resource-rich countries
Study considers Mongolia’s commodity boom, finding that risks arise from loose fiscal policy, increasing credit availability and a high risk appetite
Stricter governance standards proposed in Cayman Islands
Cayman Islands Monetary Authority hopes to create a database with basic details on every financial institution it regulates; directors seeking to sit on six or more boards will be scrutinised
BoJ paper challenges FSB governance style
Discussion paper asks whether ‘new governance’ model used by Financial Stability Board is effective, and suggests possible avenues for reform
Finnish paper finds sterilisation bonds can benefit Asia
Bank of Finland discussion paper examines rising use of sterilisation bonds by six central banks in Asia and finds ‘encouraging’ evidence of their effectiveness
Dallas Fed calls for a return to 'traditional' system of smaller banks
Special report advocates limiting the size of banks; champions a return to less public support and greater market discipline
Albania governor calls for deeper European integration to fight crisis
Ardian Fullani says Europe at "opposite end of the spectrum" from China; adds integrating eastern neighbours would be mutually beneficial
Bundesbank deputy stresses need for SSM improvements
Sabine Lautenschläger says foundation of Europe’s single supervisory mechanism needs work; legal and governance structures unfinished at present
Calomiris unveils ‘Sword of Damocles’ CoCo to hold over CEOs
Columbia academic and ESRB committee member Charles Calomiris believes CoCos designed to force top bank executives to issue equity well before they are triggered would reduce systemic risk
Bank of Estonia eyes payments upgrade
Estonian central bank proposes new retail payments system that will meet incoming Sepa requirements; final selection requires approval of commercial banks
Dallas Fed president demands end to 'too-big-to-fail'
Richard Fisher rejects Dodd-Frank provisions for too-big-to-fail institutions; urges rolling back of safety net and downsizing of banking institutions
RBI mulls bank supervision changes in light of IMF report
Indian central bank accepts potential for ‘moral hazard' in supervisory system; IMF report finds regime on the whole ‘well developed and largely in compliance with international standards'
Vickers lends support to ring-fence ‘electrification’
John Vickers backs powers to enable the UK’s financial regulator to forcibly split banks’ activities if they violate ring-fence