Financial Stability
BIS paper examines effects of negative asset price bubbles in Asia-Pacific
Bank for International Settlements study shows underpricing of assets in Asia-Pacific caused cross-border spillovers
Philippines re-launches economic and financial learning centre
Central Bank of the Philippines reopens economic and financial learning centre in its Cabanatuan Branch Office; education activities continue throughout the country
The dangerous scramble for liquidity
William Allen of the Cass Business School in London warns there is a danger that capital requirement measures intended to make the financial system safer may do more harm than good
SNB’s Hildebrand ready to intervene in Swiss franc market
Swiss National Bank chairman Philipp Hildebrand says central bank is prepared to weaken “highly valued” currency further if deflationary risks materialise
Time for timidity has passed, says Lagarde
Christine Lagarde calls for action from developed and emerging economies; tells Russia to rebuild fiscal buffers
Ireland introduces revised requirements for lenders dealing with SMEs
Ireland changes rules for banks lending to small and medium-sized enterprises when they are facing financial difficulties; new code updates 2009 effort
Bank of Canada paper evaluates degree of banking stress in high-income countries
Bank of Canada study shows high-income countries dominated capital flows and experienced largest banking sector stresses during crisis
Brics funding to low-income countries is risk-weighted: IMF paper
Fund study shows degree of loans concessionality to low-income countries is negatively correlated with risk profile
IMF to supervise Italy on debt reduction plan
Italian prime minister Silvio Berlusconi agrees to invite International Monetary Fund to Rome to oversee its fiscal consolidation efforts but turns down option for financial support
Final rules to tackle systemically important institutions announced
G-20 agrees on policy measures to address risks posed by systemically important financial institutions; 29 institutions identified as of global systemic importance
Central banks react to eurozone situation
Denmark and Romania lower benchmark rates and Australia lowers growth expectations; all point to continuing eurozone uncertainty as key decision-making factor
Sifi rules will make financial system safer: BIS’s Cecchetti
Bank for International Settlements head of the monetary and economic department Stephen Cecchetti says new Sifi rules will provide positive externalities to entire financial system
Papandreou retreats on referendum as lawmakers revolt
Greece’s beleaguered prime minister, George Papandreou, faces increasing pressure to resign after announcing U-turn on euro referendum
Brazilian politicians take on inflation-targeting mandate
Bill to alter Central Bank of Brazil's inflation target mandate passes Senate Economic Affairs Committee; discussion flares-up as to whether central bank is already employing a mulit-target mandate
BoE data shows Project Merlin on schedule to hit targets
Bank of England’s Trends in Lending shows UK’s five largest banks are on target to meet lending commitments under programme to boost UK financing to businesses
Argentina crisis lessons for Europe: CEPR paper
Centre for Economic Policy Research study says beleaguered eurozone countries can learn from Argentina’s financial crisis
Eurozone leaders hold emergency meeting in Cannes
Greek prime minister George Papandreou is summoned to Cannes for crisis talks ahead of G-20 meetings after receiving the backing of his cabinet to hold a referendum on the eurozone bailout
Risk USA: Regulators need to be wary of capital overshoot, says Roldán
Adding to Basel III capital levels might have unintended consequences, says former chair of Basel Committee’s standards implementation group
Netherlands takes on systemically important banks
Netherlands Bank expresses concern at exposure of Dutch banking sector to sovereign debt crisis; tells systemically important banks to begin preparations to raise capital and build recovery plans
Cleveland Fed paper outlines benefits of new early-warning system
Cleveland Federal Reserve study assesses latest model for developing early-warning systems to highlight build-up of systemic risk
IMF stresses importance of central banks’ role in macro-prudential policy use
IMF releases research into macro-prudental tools; stresses importance of central banks’ roles in using policy to fend off financial crises
Greece referendum puts eurozone rescue plan in jeopardy
Athens throws spanner in the works with the announcement of a referendum on the eurozone rescue package in January; parliamentary confidence vote also due on Friday
Bank of Canada inflation target mandate set to stay
Governor Mark Carney appears before House of Commons Standing Committee on Finance to explain research done on topic; finance minister confirms inflation targeting to stay
Jenkins calls for shift in bank profitability calculation
Newest Interim FPC member, Robert Jenkins, says banks “confuse” return on equity with shareholder value; calls for “clear-headed” dialogue on the “true cost of capital”