Financial Stability
IMF uneasy on nagging weakness of eurozone’s banks
Fund’s Global Financial Stability Report and World Economic Outlook updates show concern over insufficiency of eurozone stress tests, links between banking and sovereign risks
FSA's tough stance opens door to investment bans
The UK Financial Services Authority has taken a leaf from the book of the European Securities and Markets Authority and started a consultation that may well end up giving the regulator the power to ban investments it deems to be unsuitable.
Oddsson renews spat over Icesave dispute
Former Central Bank of Iceland chairman David Oddsson says Mervyn King gave assurance that Icelanders would not have to bear costs of Icesave deposit insurance
Banking Commission chief makes case for ring-fencing retail operations
Independent Commission on Banking chief John Vickers rules out “radical narrow banking” but says some separation between investment and retail banks could help
Oberthur drops De La Rue bid after increased offer flops
French banknote printer Oberthur Technologies abandons bid for British rival De La Rue following failure of increased offer at 935 pence per share
Safe haven effects caused exchange rate swings: IMF paper
Fund study identifies source of exchange rate volatility during financial crisis
ECB - Monthly Bulletin (January 2011)
European Central Bank January 2011 Monthly Bulletin says data on bonds indicate rise in inflation expectations
Bank of Italy moves to new balance of payments data regime
Bank of Italy releases first complete series of balance of payments data under new collection system; central bank says improvements will provide more accurate measures of firms’ investment income
De La Rue rejects raised Oberthur bid
De La Rue board passes on new offer from French rival Oberthur Technologies of 935 pence per share, says bid still undervalues firm; US equity house Bain Capital reportedly backing Oberthur’s attempt
ECB’s Bini Smaghi: money matters
European Central Bank executive board member Lorenzo Bini Smaghi stresses importance of monetary aggregates as means to counter both inflation and financial imbalances
Bank of England – Trends in Lending (January 2011)
Bank of England’s January 2011 Trends in Lending survey show lending to business in the UK over the three months to November declined by £5 billion
BoJ paper on Chinese cross-border capital flows
Bank of Japan study examines the impact of greater economic integration on cross-border flows in China; makes recommendations on policy prescriptions
Strong settlement system essential: Mexico’s Carstens
Bank of Mexico governor Agustín Carstens says securities settlement system will contribute to sound financial system
Bank of Japan - Bank Lending Survey (January 2011)
Bank of Japan January 2011 bank lending survey reports little change in demand for loans by businesses
Covered bond purchase programme a success: ECB paper
European Central Bank study says Eurosystem’s covered bond purchase was an effective policy tool
FDIC’s Bair calls for reform of mortgage servicing model
Federal Deposit Insurance Corporation chair Sheila Bair says reform of mortgage servicing business model needed in order to realign mortgage servicers’ incentives when managing mortgage payments
ESRB elects sub-committee heads
European Systemic Risk Board elects Poland’s Marek Belka, Italy’s Mario Draghi, Cyprus’ Athanasios Orphanides, Germany’s Axel Weber, to steering committee
Bank’s Haldane borrows from science to explain systemic threats
Bank of England’s Andrew Haldane collaborates with scientist Lord Robert May in top journal Nature to highlight implications of interconnections between firms on stability of the financial system
ECB opinion on derivatives reform spurs debate on CCP liquidity resilience
French authorities welcome ECB's call for the resilience of central bank money to be recognised in EU derivatives legislation.
Israel unveils measures to brace against inflows
Bank of Israel introduces reporting rules, reserve requirements on foreign exchange derivatives trades; measures intended to clarify nature, limit inflows
Central banks after the crisis: many questions, few answers
The turmoil has left our profession facing some uncomfortable truths, Mojmír Hampl notes.
FSoC draws up Volcker rule plan
Financial Stability Oversight Council recommends rules to expand scope, force disclosure of permitted hedge fund investment
Korea’s Kim promotes debate on enhancing macroprudential tools
Bank of Korea governor Kim Choongsoo encourages debate within international circles on more advanced forms of macroprudential instruments to ease emerging market risks
Eurosystem crisis measures averted prolonged crisis: ECB paper
European Central Bank study says introduction of unconventional monetary policy measures during financial crisis successfully provided liquidity to banking system