Financial Stability
King named vice chair of European Systemic Risk Board
Bank of England governor Mervyn King named Trichet’s deputy on ESRB
Carney cautions on dangers of low rates
Bank of Canada governor Mark Carney warns that cheap money is far from viable as a long-term growth strategy
Boston Fed surveys evidence of a credit crunch
Boston Federal Reserve policy brief attempts to understand how supply and demand of bank business loans changed in period following Lehman Brothers’ collapse
Basel III won’t be a problem if implemented correctly, says Bank of England
Latest Financial Stability Report stresses importance of long transition to new rules, and concerns over central counterparty clearing
Four steps to financial stability: Turkey’s Yilmaz
Central Bank of Turkey governor Durmuş Yılmaz says debt ratios, maturities, forex positions and exchange rate risk key factors
Brussels forges ahead with Sepa end-date proposal, despite differences
European Commission proposes deadlines for national credit and debit transfers to migrate to Sepa system; move could divide stakeholders
S&P lifts China rating one notch
Ratings agency Standard & Poor’s upgrades Chinese long-term rating; move follows similar step by Moody’s in November, places Chinese debt three marks short of prime rating
Islamic liquidity facility names Zeti chair
Bank Negara Malaysia’s Zeti Akhtar Aziz to chair International Islamic Liquidity Management Corporation; HSBC banker chosen as chief executive
Macroprudential policy – a literature review
Research reviews latest developments, poses future questions
King called for global bailout in March 2008: WikiLeak
Bank of England governor told US ambassador of need for nations to cooperate in order to recapitalise banking sector
Denmark’s Bernstein cites fiscal, Basel III worries
National Bank of Denmark governor Nils Bernstein says Copenhagen must keep tight rein on debt; banks must resolve adjustable rate loan refinancing issues
Chinese house prices overvalued in some places: HKMA research
Hong Kong Monetary Authority study shows prices outstrip fundamentals in some market segments; points to importance of early warning mechanism
HKMA’s Chan stresses importance of SME financing
Hong Kong Monetary Authority chief executive Norman Chan unveils central bank’s new financing scheme for small and medium enterprises
Brazil unveils first of new family of banknotes
Central Bank of Brazil releases second generation of R50 and R100 notes
Cobbold confirmed as De La Rue CEO
Tim Cobbold named banknote manufacturer’s new chief executive
Map of interbank market first step in project to forecast crises
Study to forecast the tipping points where banking crises have systemic implications begins with topology of European interbank market
Bank of Canada – Financial System Review (December 2010)
Canadian central bank says households’ debt levels pose risk
QE2 hopes reflected in dollar, risk reversal trends: BIS
Bank for International Settlements’ December Quarterly Review charts effects of QE2 anticipation, eurozone sovereign debt woes, in fourth quarter
Barnier draws UK lawmakers’ fire over new European supervisory structure
UK parliamentarians cross-examine European Commissioner for internal market regulation Michel Barnier on how much power new European supervisory authorities will have over national regulators
European banks could get slightly different version of Basel III: Basel Committee’s Wellink
Netherlands Bank governor and Basel Committee on Banking Supervision chairman Nout Wellink says “minor changes” possible to European version of Basel III
Italy’s Draghi: eurozone governments must step up
Bank of Italy governor Mario Draghi looks to eurozone governments to tackle fundamental issues; stresses ECB will not dabble in fiscal arena, echoing president Jean-Claude Trichet
ECB points to securitisation, interest rate risk concerns
European Central Bank’s December Financial Stability Review stresses importance of more transparency in asset-backed securities market; highlights interest rate risk worries
European Commission floats concept of investment bans in latest Mifid consultation
The European Commission has produced a consultation paper that suggests a basis for banning certain investments, with structured products making their usual appearance in the limelight
ECB repos, not bond purchases best fix for debt woes: Deutsche Bank note
Deutsche Bank paper moots the use of targeted long-term repurchases to shore up peripheral bond markets, rather than more outright purchases