Europe
ESM’s Pacciani says public bodies must balance risk and mission
Public institutions must meet their mandates without losing sight of sound risk management, the chief risk officer says
Risks posed by some ‘shadow banking’ firms not fully known, ESRB says
“Significant data gaps” prevent full assessment of “other financial institutions”, report says
FCA’s Bailey hits back at EU location demands
It is not necessary for all EU financial activity to take place in the EU if co-operation is close and rules are aligned, the FCA chief argues
ECB should not be lead agency for EU financial stability – Mersch
Democratically elected institutions should play main role, ECB board member says
Eurozone’s largest banks are penalised for intra-EU transactions – Praet
International regulations should recognised progress made under banking union, says senior ECB official
Financial literacy differs greatly between countries – OeNB paper
Some differences are due to survey methods but others may reflect institutional factors, find researchers
Foreign jurisdictions could disrupt European payments, Mersch warns
EU must end reliance on foreign-based payment card providers, ECB official says
Time running out for EU Brexit temporary permissions regime
UK clearing houses may need to eject EU member positions if BoE scheme is not reciprocated by year-end
Weidmann urges Greece to implement further reforms
Deutsche Bundesbank president recommends additional reforms and “sound” fiscal policy
ECB calls for changes to draft investment firm regulations
EU proposals omit macro-prudential measures and could cause statistical problems, ECB says
Banking stress tests need more robust methods – Bundesbank paper
Current methodologies suffer from significant uncertainty, researchers say
IMF authors dismiss global Phillips curve as euro inflation driver
Domestic factors largely behind “remarkably stable” inflation in eurozone
ECB asks for changes to EU’s covered bond proposals
Suggested new regime could lead to significant national differences within EU, ECB says
Politician given National Bank of Austria presidency
Harald Mahrer named bank president as Freedom Party prepares for governor appointment
Financial stability mandate could ‘undermine’ monetary policy – Weidmann
Bundesbank governor says putting financial stability on par with price stability would be a mistake
The battle for cyber resilience
The cyber attack on Bangladesh Bank prompted central banks around the world to change their approach and refocus on contingency planning, but are they ready now?
Capital markets union a la Willie Sutton
When Sutton was asked why he robbed banks, he said: “That’s where the money is.” Europe has yet to address where the capital markets union funding should come from, but there is a solution
Negative policy rates increases risk-taking by high-deposit banks - ECB paper
Eurozone banks with high deposit levels have changed lending patterns since 2014, say researchers
Trade data can detect illegal financial flows, Bank of Italy paper says
Authorities largely ignore “trade-based money laundering”, authors argue
James Bullard on 2% rates, tariffs and Fed leadership
The president of the Federal Reserve Bank of St Louis speaks about the impact of US trade policies, the disruption to the banking industry from Silicon Valley, shrinking the Fed balance sheet and the potential for agent-based modelling
Dealers seek FRTB carve-out for Libor transition
Swaps could be hit with capital add-on as liquidity tails off in Libor
Eurozone mortgage lending back to pre-crisis levels – ECB
New loans reached 4.5% of GDP in the year to March 2018; average since 2001 is 4.4%
ECB unveils guidelines for hiring ‘ethical hackers’
“Tiber-EU” framework designed to help financial institutions toughen cyber defences
Rising wages set to increase inflation – ECB research
Strong GDP growth and employment creation underpins higher underlying price pressures