Financial Stability
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
ECB paper reviews euro area credit card interchange fees
European Central Bank study calls for fresh look at credit card interchange fees in euro area
Video: Banks can arbitrage central bank liquidity provision
A conflict between new liquidity regulations under Basel III and existing central bank operations leaves a gap that banks may be able to exploit, warns financial stability expert
ESRB publishes foreign currency lending recommendations
European Systemic Risk Board releases recommendations on lending in foreign currencies; new measures addressed to member states, national supervisory authorities and European Banking Authority
Dexia bailout spells trouble for Belgium and France, say analysts
Nationalisation of banking group Dexia threatens downgrades to sovereign credit rating of Belgian and French governments
ECB’s Constâncio highlights challenges in measuring contagion risk
European Central Bank vice-president Vítor Constâncio says difficulties in identifying contagion risks requires policymakers to be more vigilant of spillover risks
Liquidity risks raised crisis funding costs: Bank of Italy paper
Bank of Italy study shows heightened liquidity risk caused interbank market spreads to widen during the financial crisis
IMF modelling work on liquidity risk points to capital hike, says Jobst
Recent analysis by the International Monetary Fund indicates that banks in the US need to raise capital to cover systemic liquidity risk threats
ECB’s Constâncio favours single prudential rulebook for euro area
European Central Bank vice-president Vítor Constâncio says maximum harmonisation of prudential requirements will support financial integration and reduce costs
Mortgage securitisation fuelled housing bubble: Bank of Spain paper
Bank of Spain study says increased mortgage securitisation in Spain had strong impact on new borrowers' access to credit during recent housing boom
Sri Lanka releases customer protection charter for banks
Central Bank of Sri Lanka issues direction on customer protection in licensed banks; covers banks' commitments to customers and ways customers must also behave to ensure safe banking practices
Riksbank narrows banknote design contest
Swedish central bank selects eight finalists out of 46 entrants to go on to final stage of krona banknote design competition; winner to be announced next April
IMF paper measures longevity of housing cycles
Fund study examines the dynamics of housing market cycles and the length of boom-and-bust periods
Bank of Israel reviews lessons learnt from crisis
Bank of Israel report looks at evidence from recent financial crisis and how policymakers can be more prepared in future
EU plans coordinated action to recapitalise banks
European Commissioner Olli Rehn says capital positions of European banks must be reinforced; calls for comprehensive strategy to restore confidence in Europe
ECB’s Constâncio stresses commitment to T2S settlement platform
First ever Europe-wide platform for settlement of bonds and equities trades has ECB’s full support; will play a crucial role in future of the single market, says Vítor Constâncio
SEC report reveals failings at top three rating agencies
A report released by the US SEC reveals S&P, Moody's and Fitch all still have significant failings in their operations
Fed liquidity helped US escape Great Recession: NY Fed paper
New York Federal Reserve study says Fed liquidity policies helped economy avert another Great Depression
Buba’s Dombret opposes EU Tobin tax
Bundesbank executive board member Andreas Dombret warns financial transaction tax could overburden financial institutions
Poland moves to halt zloty decline
National Bank of Poland intervenes in foreign exchange markets for third consecutive week to curb depreciation of zloty; Central Bank of Brazil also acts to smooth flow of real against dollar
Financial Stability Board finalises Sifi measures
FSB settles on plan to tackle the 'too big to fail' problems posed by systemically important financial institutions; measures will be sent to G-20 summit in November
Bank of Canada paper measures systemic importance of banks
Bank of Canada study builds framework to identify systemically important financial institutions
RBI’s revised securitisation guidelines could ‘kill’ Indian market
Latest Reserve Bank of India revised draft guidelines for securitised transactions draw criticism; one lawyer says the rules would "nearly kill" securitisation in the country