Macro-prudential
European banks suffer as regulators ban Monte dei Paschi short-selling
Banks hit by further shockwaves from UK’s vote to leave EU, while European authorities scramble to shore up crumbling Italian bank Monte dei Paschi di Siena
Report calls for co-operation in appraising macroprudential tools
Research led by Anne Le Lorier for Basel Committee on the Global Financial System says governance arrangements should promote “wider co-operation”
Bank of England cuts CCB to 0% to support credit supply
In wake of Brexit uncertainty, concerns over supply of credit ‘taken off the table’ says Carney; new buffer rate to give confidence to UK economy that banks can lend in ‘challenging times’
IMF paper examines factors affecting US wage growth
US labour market changing “more fundamentally” than before, author finds; wage growth expected to accelerate in near term
Sweden’s FI gauges impact of debt-to-income limit
Financial regulator tries to attach values to the growth and stability impact of DTI limits, one potential tool for tackling rising household indebtedness
Prepare to fail
Jesper Berg offers advice to those looking to build financial stability frameworks, and says failure has to be part of the package
BIS: Central banks playing for 'high stakes' as financial cycles turn
Central banks need to lean against financial cycles but fiscal policy should come to their aid, BIS says; cycles may be turning in opposite directions in advanced and emerging economies
EU exit vote throws up financial stability risks
UK plunged into uncertainty and markets hit hard, with bank stocks some of the worst affected, but more serious problems seem to have been avoided for now
FSB unveils proposals to curb asset management risks
Consultation tackles liquidity mismatch, leverage, op risk and securities lending, with the aim of heading off potential trouble from the recent growth of asset management
Basel Committee approves G-Sib frameworks
All five jurisdictions home to globally systemic banks have established frameworks in line with the Basel accord, first cross-jurisdictional study finds
Negative rates fail to dent Danish bank profitability
National Bank of Denmark concerned banks may be pursuing return targets too aggressively, as profits hit highest level since 2008 crisis; banks reshaping business models to avoid low-rate impact
Nouy renews calls for Pillar 2 'guidance'
European supervisors should employ "capital guidance", Danièle Nouy says; large eurozone banks currently disadvantaged compared with competitors, ECB's supervisory head argues
Liikanen calls for more macroprudential tools in Finland
Bank of Finland governor says new tools should be provided before there is a need to use them; warns of risks associated with growing debt-to-income ratios alongside weaker long-term growth
Irish deputy defends macroprudential policies
Sharon Donnery says macroprudential housing policies would have limited Ireland’s financial crisis; leaked parliamentary report calls for bank to ‘urgently’ review measures
Beware the bond price snapback, says BIS’s da Silva
Poor understanding of inflation drivers and possible disequilibrium from ultra-low rates mean emerging markets should not get too comfortable, says deputy general manager
‘Urgent’ measures needed to counteract household debt – Riksbank report
Finansinspektionen needs powers to implement effective macro-prudential policies in order to combat household indebtedness, latest financial stability report says
Belize governor worried about threat posed by ‘de-risking’
Regulators not fully taking note of uncertainty around regulation implementation; Caribbean region growth and financial stability “threatened” by pullback of global banks, governor says
Kohn encourages Chinese efforts on financial stability
Don Kohn, an external member of the Bank of England's FPC, welcomes Chinese work on a framework for macro-prudential regulation, and offers his insight on counterparts in the UK and US
Iran’s Seif details banking sector clean-up operation
Iranian central bank is working to improve the transmission of its monetary policy, stabilise the banking system and bring itself in line with international standards, governor says
Riksbank survey flags concerns on market functioning
Market participants fear effect of low interest rates and high debt could create largest impact, although they view geopolitical and emerging market issues as the most likely to be realised
Lipton: co-ordinated approach to capital flows ought to be considered
IMF first deputy managing director says it is time for ‘new generation of reforms’; capital flow reversibility has costs as well as benefits
Arab countries must improve macro-prudential arrangements – IMF paper
Many Arab countries need to improve their macro-prudential policy frameworks, an IMF working paper argues; regulators need policy mandates and better information
Colombian paper sees role for international co-ordination of housing policy
This may be needed where national policies have “important” cross-border effects; discusses macro-prudential policy and capital controls
RBI moves to curb concentrated credit risk
Central bank hopes new prudential measures will reduce banks’ “very high” exposures to large corporations and encourage firms to turn to capital markets for funding