Financial Stability
New regulatory initiatives pose stability risks: National Bank of Austria paper
National Bank of Austria study says overdose of Tobin tax can lead to severe instability of financial system; ban on short selling increases tail risk
Limited liability leads to excessive risk-taking: IMF paper
Fund study shows excessive risk-taking by banks increases as the interest rate decreases
BoE’s Salmon discusses latest banknote security features
Bank of England banking services executive director Chris Salmon explains use of motion thread in new £50 banknote
ECB threatens to stop trading swaps with US counterparties
ECB invokes US legal amendment providing it with broad immunities and says it might stop using US dealers unless granted exemptions from Dodd-Frank Act rules
Treasury Select Committee grills King
Bank of England governor faces quick-fire questions on quantitative easing and lending to small and medium-sized enterprises; discusses the timing of the latest asset purchase programme boost and reminds government of their responsibilities
Liquidity concerns explain high level of cash transactions: Bundesbank paper
Bundesbank study says high percentage of cash transactions due to consumers' willingness to monitor liquidity
Credit booms fuelled by lax monetary policy: IMF paper
Fund study says accommodative monetary policy was main driver of credit booms in last half century
BoE’s Haldane discusses broad reforms
FPC member calls for comprehensive reform of bankers’ remuneration and warns Basel III may not go far enough
ECB announces new T2S start date
European Central Bank announces T2S project to launch in June 2015; key changes demanded by Advisory Group behind delays
Uganda defends monetary policy
Executive director of research at the Bank of Uganda releases a statement explaining the central bank’s monetary policy; outlines what policy can do and what it cannot
Identifying Sifis: Central Bank of Colombia paper
Central Bank of Colombia releases a working paper outlining a method to establish the systemic importance of financial institutions; offers an alternative method to the BIS
Fed’s Duke explains link between personal finance and national economy
Elizabeth Duke discusses how improving individual financial stability would ultimately build a stronger economy in the US
India faces ‘significant’ inflation challenge
Macroeconomic and Monetary Developments review outlines action taken in recent months and describes challenge of bringing down inflation to an acceptable level on a sustainable basis as “significant”
Developing country scoops currency award
Ugandan shilling wins 2011 Best Series Award from International Association of Currency Affairs
Norges Bank proposes amendments to collateral framework
Norges Bank announces plans to increase haircuts on collateral held at central bank from 4% to 9% to reduce exposure to counterparty risk
BIS’s Cecchetti highlights merits of G-sibs surcharge
Bank for International Settlements economic adviser Stephen Cecchetti says reducing probability of G-sibs failing is cornerstone of regulatory response to too-big-to-fail
IMF paper identifies risk-sharing, contagion trade-off in Asia
Fund study shows risk sharing in Asia is found to be low between countries in the region compared with contagion effects
FSB sets out framework for monitoring implementation of financial reforms
Financial Stability Board announces co-ordination framework for implementation monitoring of G20/FSB financial reforms; priority areas set for extra scrutiny
RBA’s Edey assesses future global CCP model
Reserve Bank of Australia assistant governor Malcolm Edey warns abstract model of central clearing pictured by G-20 leaders may not be realised in practice
Bundesbank’s Dombret backs temporary higher capital buffers for European banks
Bundesbank’s executive board member Andreas Dombret says 9% core tier 1 capital for systemically important banks is feasible
China banking regulator talks of reform ‘determination’
Liu Mingkang says rating agencies and analysts “underestimate” China’s determined reforms to the banking sector; warns of shadow banking clamp down
Lords take Vickers to task over robustness of plans
Vickers faces fierce questioning on Independent Commission on Banking’s final report and recommendations; incentive for banks to cheat the system discussed
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