Financial Stability
EC gives go-ahead for Spanish recapitalisation plans
European Commission says recapitalisation and resolution plans for four Spanish banks under Frob control do not violate state aid rules; paves way for capital injection in early December
Kenyan coin shortage is a public misperception, says central bank
Central Bank of Kenya says “perceived shortage” can be eradicated if members of the public raid their piggy banks
Eurogroup agrees on Greek aid package
Eurozone countries agree on measures to boost Greek debt sustainability alongside a €43.7 billion ($56.5 billion) disbursement from the European Financial Stability Facility
Ireland’s Elderfield sees tension between micro and macro objectives
Deputy governor of the Central Bank of Ireland says micro-prudential emphasis on ‘more and faster’ capital requirements could fuel pro-cyclicality and harm debt sustainability
Norges Bank urges banks to continue accumulating capital
Financial stability report says although financial market conditions have improved, banks should strengthen their capital positions; supports supplementary capital requirements for Norwegian banks
Korea to start mandatory clearing in October 2013
Legislative hold-up means Korea OTC derivatives clearing will be delayed
Low volatility driving forex turnover down, says Bank of England FX chief
Speaking at the FX Week Europe conference, Michael Cross explained why turnover in foreign exchange spot is declining for the first time in a decade
Liikanen: Capital and resolution rules will not suffice
Bank of Finland governor, who has proposed banking separation in Europe, defends the value of structural reform in the financial system
ECB’s supervisory board must oversee all banks, Draghi says
ECB president emphasises potential for smaller financial institutions to be systemically important
RBA moves closer to implementing real-time payments system
Reserve Bank of Australia publishes criteria for proposals of real-time consumer and business payments provision following consultations with the industry
Bundesbank’s Dombret dismisses banking separation
German central bank executive board member says banking separation will not solve too-big-to-fail problem
ECB’s Cœuré concerned about online card fraud
Benoît Cœuré says greater innovation is needed in the internet payments market
King urges government to consider going beyond ring-fencing
BoE’s Mervyn King, Paul Tucker and Andy Haldane give evidence on Vickers proposals on ring-fencing retail banks; King argues recommendations could be extended to full separation of investment arms
Strategic plan for Ireland revealed
Central Bank of Ireland targets reform of regulatory and supervisory framework; aims to exit from EU-IMF support programme by 2014
Fed paper finds benefits in card networks’ price discrimination
Study finds the use of linear ad-valorem fees is capable of improving social welfare
Interest rates ‘too blunt’ to address financial stability, says Chilean governor
Chile’s Rodrigo Vergara says rates are often not the most efficient instrument to tackle financial stability issues
UK’s Wheatley talks tough on financial market intervention
Head of UK’s Financial Conduct Authority says he will act ‘early and decisively’ in cases of misconduct; fleshes out details of wholesale market and client asset regulations
BoE’s Bailey says stronger internal governance needed
Andrew Bailey says central bank’s court must hold people to account and be accountable itself; warns of strong banking lobby against ring-fencing plans
Fed paper assesses German ‘debt brake’
Study finds a rule intended to lower government deficit in Germany helps stabilise the country’s private sector
ECB paper highlights locational importance of asset bubbles
Working paper finds asset bubbles have differing effects on the economy depending on whether they are located with banks or ordinary savers, with implications for macro-prudential policy
Ingves explores common characteristics between crises
Riksbank governor says liquidity measures are only temporary solution; warns government deficits are unsustainable
New UK regulators may have some overlap, says FSA’s Nicoll
Director of conduct policy at UK’s FSA says there may be crossover between ‘twin peaks’ regulators; report suggests banking lobby can influence rule-making and industry complacent over costs
US Treasury confirms forex exemption from mandatory clearing
After two years of consideration, the US Treasury confirmed its decision to exempt forex swaps and forwards from mandatory clearing and exchange trading on Friday evening
Sarb seeks to improve interbank rate governance
South African central bank says review of Jibar has revealed interbank rate is ‘fundamentally sound’, but produces code of conduct to improve rate-setting process