Financial Stability
Bernanke muses on future of inflation targeting
Fed chairman sees place for inflation targeting in monetary policy frameworks of the future; hints at further transparency in decision-making
Japan and South Korea reinforce yen-won swap agreement
Bank of Japan and Bank of Korea increase size of bilateral yen-won swap arrangement tenfold; Japanese government also expands swap agreement with South Korea
RBA’s Debelle expresses concern over bank funding pressures
Reserve Bank of Australia assistant governor Guy Debelle outlines differences in bank funding pressures in Europe and Australia
G-4 liquidity caused surge in captal inflows: IMF paper
IMF study attributes recent increase in capital inflows towards emerging markets to highly accommodative monetary policies in G-4 countries
Belarus given guidance to restore 'stability and prosperity'
International Monetary Fund tells Belarus to reduce inflation and raise interest rates; central bank sells off surplus office items
G-20 endorses final G-Sifi rules
Finance ministers and central bankers offer support to G-Sifi rules; want to see framework expanded to all banks deemed too big to fail regardless of global reach
Luxembourg launches new central securities depository
Central Bank of Luxembourg prepares for adoption of Target2-Securities with launch of new central securities depository LuxCSD
Lithuanian central bank assists in counterfeit banknote investigation
Bank of Lithuania says it will help police in investigation to uncover source of recent rise in counterfeit banknotes
BIS’s Caruana urges eurozone to attack root of sovereign debt problem
Bank for International Settlements general manager Jaime Caruana says bolstering banks’ capital buffers not sufficient to regain risk-free status
Euro area must stand ready to bail out banks, says Liikanen
Bank of Finland governor Erkki Liikanen says euro area governments must be prepared to inject capital into banks if they are unable to raise their funds in market
IMF paper assesses supervisory burden of regulatory overhaul
Fund study says US Volcker rule and UK retail ring-fencing proposals must be complemented with supervision of bank activities
Treasury official accuses Iran of ‘increasingly deceptive tactics’
US says Iran is using deception to circumnavigate economic sanctions put in place to compel it to meet nuclear programme obligations; warns central bank of further isolation
ECB's González-Páramo says crisis liquidity measures must be temporary
European Central Bank executive board member José Manuel González-Páramo says permanent enforcement of non-conventional liquidity could trigger imbalances
FSA and SEC continue strategic dialogue meetings
US and UK lead the way on cooperation and idea-sharing as regulatory reforms kick in; collaboration on key changes crucial as world struggles to rebuild after latest economic shocks
Latin American and South-east Asian central banks confer
First Seacen-Cemla conference held in Malaysia; shows increasing cooperation between central banks, particularly in emerging markets
Europe should learn from US mistakes
Former chairman of the Federal Deposit Insurance Company William Isaac warns Europe to heed the lessons from TARP and catastrophic public stress tests
Tail events resemble platypus moment, rather than black swan: RBA’s Ellis
Reserve Bank of Australia head of financial stability, Luci Ellis, says financial supervisors should be alert to rent-seeking behaviour in order to identify looming threats
Systemic capital requirements are often underestimated: BoE paper
Bank of England study examines level of potential losses on bank balance sheets in event of systemic crises
BIS paper highlights growing risk of currency crises
Bank for International Settlements paper authored by Professor Robert Aliber outlines role of cross-border money flows in a currency crisis
Risk.net poll: CCPs should have access to central bank liquidity
The majority of respondents to an online poll support central bank liquidity access for CCPs, but critics argue this would be likely to lead to the break-up of multi-currency clearers
Turkey deputy governor evaluates success of policy moves
Turalay Kenç says decision to act on credit growth in Turkey was necessary; widening the interest rate corridor was a 'successful exercise'
Barroso spells out eurozone recovery plan
European Commission president José Manuel Barroso outlines roadmap to eurozone stability in last ditch effort to end the sovereign debt crisis
RBA’s Debelle highlights risks attached to high-frequency trading
Reserve Bank of Australia assistant governor Guy Debelle says prime brokers may not be monitoring high-frequency trading risks properly
FSB warns members not to misinterpret G-20 commitments
The FSB warns that some regulations appear to be contrary to the spirit of the OTC derivatives reforms agreed by G-20 members – a statement some believe was prompted by a disagreement over the scope of European derivatives regulation