Financial Stability
Fed publishes final rules on stress testing
Stress-test scenarios for bank-holding companies and non-bank financial institutions to be set by Fed; questions raised regarding suitability of tests for determining remedial action
Ethiopia to overhaul payments system
The central bank of Ethiopia plans to introduce a new system to centralise payments and communication in the country within a year; $3.6 million contract awarded to Indian tech company
Finland paper investigates how to escape liquidity traps
Bank of Finland study examines whether stimulus or austerity is more effective at avoiding liquidity traps
IMF says urgent action required in eurozone
Fund’s Global Financial Stability Report highlights progress with reforms in Europe but warns risks have increased since April; says eurozone policy-makers must act quickly to ensure stability
Iosco calls for tighter regulation of money market funds
Recommendations aimed at reducing systemic risk posed by money market funds; report published despite opposition from the US Securities and Exchange Commission
Bangladesh governor moves to stamp out imbalances
Atiur Rahman says the Bangladesh central bank will act firmly to prevent build-up of banking imbalances; tells bank CEOs to co-operate with new regulations
ECB chief views speed of reform as critical for success
ECB chief Mario Draghi calls for the fast implementation of single supervisory mechanism despite many details remaining unclear; others say reform needs to be more ‘thought out’
IMF says fiscal consolidation still needed
The ability for many governments to eschew austerity in favour of fiscal spending to spur growth is limited; authorities will also struggle to ‘inflate’ their way out of debt, IMF report finds
Risks of a serious global slowdown ‘alarmingly high', says IMF
IMF lowers global growth forecast; says influence of highly accommodative policies by central banks may be diminishing and the probability of an ‘alarming’ scenario for growth stands at 17%
Eurozone firewall inaugurated as bailouts loom
First meeting of board of governors of the European Stability Mechanism held in Luxembourg with Jean-Claude Juncker describing new institution as a ‘permanent and effective firewall’
Riksbank tightens collateral requirements
Swedish central bank moves against trend in Europe by tightening collateral conditions for loans; will offer banks a transitional period to adjust
G-Sibs facing ‘a tall order’ in meeting 2016 data deadline, UK regulator warns
The FSA’s Gerald Sampson says large, complex banks may struggle to meet a 2016 deadline for risk data aggregation and reporting standards
Bermuda Monetary Authority expands regulation team
Bermuda Monetary Authority plans to expand headcount in banking and insurance regulatory departments
Most countries set to miss Basel III deadline
Progress report on Basel III implementation reveals no country has yet adopted final rules; Stefan Ingves says it is clear some jurisdictions will miss January 1 deadline
Linde says Spain on the path to fiscal adjustment
The governor of the Bank of Spain says country is attaining fiscal adjustment and the largest challenge to the economy is restoring market confidence
Singapore moves to prevent property price bubble
MAS introduces restrictions on loan tenures and lowers loan-to-value ratios in a bid to stem risk of price bubble in property market
Swedish deputy governor says IMF ready for global surveillance role
Barbro Wickman-Parak says IMF should lead surveillance of global financial system due to its legitimacy and depth of knowledge
IMF paper considers risks to sovereign assets
Study by IMF discusses benefits of sovereign asset and liability management frameworks; finds they help account for correlations between separate indicators
EBA positive on capital buffer progress
European Banking Authority says majority of banks met 9% capital requirement by June deadline; four banks fell below threshold and are receiving support
IMF develops flexible approach to funding to meet drawdowns, annual report says
Annual report says IMF has taken steps to improve the flexibility of funding instruments in face of ‘fragile recovery’; expects continued strong demand for funding
Australian CCP cannot delay margin application any further, says RBA
Reserve Bank of Australia says ASX Clear’s deadline for the implementation of equity margins has been extended but cannot be pushed back any further
RBI may force move to electronic payments
Reserve Bank of India plans to channel payments providers into 'less-cash society' through regulation if necessary, according to new report
Bank of Greece abandons 9% core capital requirement
Central bank suspends plans to raise core Tier I capital ratio as banks struggle to raise equity and data show contraction in lending continues
Zambia unveils new currency features
The Bank of Zambia reveals images and security features of new, rebased, currency; now comprises six banknotes and four coins