Financial Stability
Bank bail-outs risk instability in emerging market economies: IMF paper
Fund study says emerging markets are at risk of creating further macroeconomic instability by injecting money into financial system
Italy reaches crisis point as bond yields soar
Announcement that Italian prime minister Silvio Berlusconi will resign does little to calm markets; bond yields hit euro area record high, raising the stakes for a potential default
Athens heeds Greek governor's plea to agree on coalition government
Outgoing prime minister confirms agreement on coalition government; hours after Bank of Greece governor George Provopoulos called for Athens to stop political squabbling
Iran deputy governor remains in custody
Hamid Pourmohammadi remains in custody as investigation into banking fraud continues; new UN report could lead to more sanctions on the country
Central Bank of Brazil paper on designing an effective macroprudential framework
Central Bank of Brazil study says macro-prudential tools can adversely influence monetary policy transmission mechanism
Ireland releases agreement on split of banking oversight responsibilities
Previously confidential memorandum of understanding between department of finance and central bank shows split of responsibilities; document forms part of bail-out programme
Bank of England is ‘monetising the deficit’ with QE – Monetary Policy Forum
Former BoE employees agree the latest round of quantitative easing in the UK could be seen as a way of monetising the deficit; panellists stress Greece’s exit from the euro would be catastrophic
Carney takes aim at shadow banking activity
New Financial Stability Board chairman emphasises fight against shadow banking institutions; says global liquidity fluctuations are damaging financial stability
Undercapitalisation of banks raised financial distress during crisis: ECB paper
European Central Bank study shows that size, capitalisation of banks and degree of credit expansion contributed to stress in banking sector during the crisis
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