Financial Stability
Iceland – Financial Stability Review (June 2009)
Central bank flags cautious signs for optimism but warns that more is to be done
Mnyande on Sarb’s mandate and financial stability
South African Reserve Bank chief economist cites two biggest financial stability challenges facing central bank
Maastricht criteria tough enough to contain crisis threat: Cyprus
Central Bank of Cyprus paper finds risk of default zero if debt-to-GDP and primary surplus ratios remain below limits set out in Maastricht Treaty; paper mentions Greece and Italy as states where there is a default risk n
Fed scoops prize for best swap lines: BIS
Bill Allen and Richhild Moessner study the effects of central banks’ swap lines and find those established by the Federal Reserve to provide dollar liquidity went furthest in achieving their aims
German rumours of French pact with ECB display tensions
Coverage of German magazine article alleging European Central Bank's bond purchase programme was aimed at helping the French indicative of fertile breeding ground for conspiracy theories
Estonia on the lookout for dud euro notes
Bank of Estonia begins training staff from commercial banks and larger retailers to spot fake euro banknotes
IMF: Capital, not liquidity, limited post-crisis lending
Fund paper on bank lending finds that capital rather liquidity constraints froze lending following the 2007 sub-prime mortgage crisis
Brussels calls for European ratings supervisor
European Commission proposes new body to oversee all credit ratings agencies operating in the European Union; security issuers must provide information to all agencies to boost competition
China’s Li calls for tightening on back of housing bubble fears
People’s Bank of China monetary policy committee member Li Daokui warns economy may overheat unless tighter monetary policies are put in place
Goodhart: CoCos 'not silver bullets' for bank capital reform
Regulators should ban dividend payments or curb banker pay to conserve cash, instead of championing CoCos, says economist
Bernanke praises emerging-market response to crisis
Federal Reserve chairman Ben Bernanke praises the Bank of Korea's policy response to the financial crisis
Bank tests joint credit and interest rate risk model
Bank of England research tests endogenous model to calculate credit and interest risk; finds results differ substantially
BoE payments research offers tips on economising on collateral
Bank of England study into payments systems argues that under a collateral-based real-time gross settlement system liquidity savings mechanisms can improve welfare
Ratings agencies blindly mimic market jitters: Noyer
Banque de France governor becomes latest euro-area official to slam credit rating agencies for worsening debt crisis; remarks follow Spain’s second downgrade in two months
BOE payments review finds scope for cost cutting
Bank of England review on real-time payment and settlements systems shows significant opportunities for cost savings
HKMA's Chan: markets will be punished if lessons are not learnt
Hong Kong Monetary Authority chief executive Norman Chan warns over complacency in regulating markets
Richmond Fed's Lacker: poor incentives created financial crisis
Richmond Federal Reserve president Jeffrey Lacker says 'too big to fail' no reason to save creditors
BIS’s Cecchetti: change data collection to create “map” to stem crises
Bank for International Settlements’ chief economist Stephen Cecchetti suggests adapting existing statistical reporting frameworks in pursuit of “holy grail” of systemic risk monitoring
Missed mortgage payments spike in Ireland
Thirteen percent of mortgage payments overdue by more than 90 days; chief regulator Matthew Elderfield says there is no simple solution to the problem
Portugal's Constâncio: markets cannot self regulate
Bank of Portugal governor Vítor Constâncio discusses new vision of European regulation
Shirakawa wants financial stability as primary mandate
Governor of the Bank of Japan believes central banks' key task should be to achieve a stable financial environment; says higher inflation targets would do little good at the zero bound
Sarb - Banking Supervision Annual Report (2009)
Sarb banking supervision annual report puts forth proposals on compensation practices to be used in new banking sector legislation
Brussels backs bank tax to fund new resolution network
European Commission calls for a network of resolution funds to bear cost of winding down firms; cost covered through levy on lenders
US, Chinese regulators sign cross-border resolution deal
Federal Deposit Insurance Corporation and China Banking Regulatory Commission to cooperate and write shared contingency plans for cross-border failures; move follows United Commercial Bank failure