Financial Stability
Periphery CDSs break records as sovereign fears continue
Portugal might be next peripheral to seek help, economist warns, as its CDS hits record high.
Malta's Bonello warns of complacency over rapid recovery
Central Bank of Malta governor Michael Bonello says Malta's dependence on external demand growth creates vulnerability
Markets, analysts unconvinced by Irish bailout
Officials welcome deal but euro, continental bourses drop in response to €85 billion rescue package for Ireland
Europe reveals new stability mechanism
Eurozone finance ministers outline European Stability Mechanism designed to offer financial assistance to troubled single currency states
Qatar launches m-payment scheme
Qatar Central Bank licenses two telecoms providers to offer mobile payment services; move makes it first in region to operate scheme
Lender of last resort function essential: Norges Bank’s Qvigstad
Norges Bank deputy governor Jan Qvigstad says central bank’s lender of last resort role was critical during the financial crisis
RBNZ’s Bollard: external shocks and internal rebalancing will prolong recovery
Reserve Bank of New Zealand governor Alan Bollard says Western countries have to contend with both external shocks and internal rebalancing
Estonia nabs firms over euro leak
Bank of Estonia fines two companies for mishandling euro coins ahead of the currency’s launch in 2011; strong link to coin sale in neighbouring Latvia
Basel Committee sets out principles for deposit insurance
Basel Committee on Banking Supervision outlines principles on the scope, operation and legal dimensions of deposit insurance systems
Philippine banks migrate to new remittance payments system
Central Bank of the Philippines says all twelve participating banks are using new electronic payments system for remittances
Video: Japan FSA's Chikahisa Sumi talks about regulation's post-Basel III focus
The G-20 does not plan to sit still after its historic endorsement of Basel III. New targets include too-big-to-fail institutions, the shadow-banking system and commodity derivatives, according to Sumi.
ECB’s Tumpel-Gugerell on Sepa end dates
European Central Bank member executive board Gertrude Tumpel-Gugerell says meeting Single Euro Payments Area end dates is a requirement for migration to new system
Philly Fed explains inventory build up prior to crisis
Philadelphia Federal Reserve study explains why prices and trade volumes increase first before collapsing in the run up to a crisis
IMF: unequal income distribution raises leverage
Fund study shows high income households’ greater bargaining power induces high leverage and financial crises
ECB’s Tumpel-Gugerell urges further reform in eurozone
European Central Bank executive board member Gertrude Tumpel-Gugerell calls for eurozone countries to avoid complacency and improve governance structures
IMF: financial innovation has spillover effects on public information
Fund study shows financial innovation reduces incentive to collect private information and increases likelihood of liquidity shocks
De La Rue set to name new chief executive
Former Chloride president Tim Cobbold is “preferred candidate”; news comes after company says paper scandal has had “significant” impact on revenues
Buba finds advantages in industry specialisation
Bundesbank study finds significant monitoring benefits from specialisation of cooperative and savings banks
Finland identifies source of business-cycle volatility in Hong Kong
Bank of Finland study says loan-to-value ratio and housing preference shocks are main source driving business cycle volatility in Hong Kong
RBA plans to sell scandal-hit Securency
Reserve Bank of Australia plans joint sale of polymer subsidiary following alleged bribery scandal
The dangers of relying on point in time
With Basel III, regulators have a chance to improve models used by banks to manage risk. However, they risk repeating past mistakes, says Patricia Jackson
Liquidity regulation and its consequences
The Basel Committee’s proposals for liquidity buffers could have some dangerous side effects, William Allen warns
Interview: Andrew Sheng
The crisis has undermined much of the economic theory that has influenced central banking in recent decades. This has significant consequences for policymaking, the chief adviser to the China Banking Regulatory Commission tells Claire Jones.
The People’s Bank of China’s battle on two fronts
Events both at home and abroad have kept China’s central bank busy in recent months. Hui Feng reports.