Europe
Brussels will drain London banking sector: top bankers
HSBC chair Stephen Green warns that European legislation will eradicate London’s competitive edge as a financial centre; says Basel III will curb trade finance
UK’s Hoban wants greater say over European regulatory reform
UK financial secretary to the Treasury Mark Hoban concedes London’s prominence as financial centre has ended, says Britain must have stronger voice in Europe on regulatory reform
Hikes in Asia as region shrugs off euro sovereign debt concerns
South Korea and Malaysia raise rates on inflation fears, Australia signals intent to continue tightening; elsewhere Riksbank tightens
Taking the credit in eastern Europe
Need for credit higher in eastern, than western, Europe, Swiss National Bank research finds
Europe hikes capital rules, slashes banker bonuses
Legislation adopted by European Parliament requires banks hold up to four times more capital to protect against trading risk; half of bankers’ bonuses to be paid in contingent capital
Cebs unveils details of EU stress tests
Committee of European Banking Supervisors names 91 banks that will be subject to stress tests; vague on methodology
Differing sovereign debt haircuts to be included in EU stress tests: reports
Reports quote German banking officials as saying that extreme scenarios will apply steep haircuts to PIIGS sovereign debt, but none to bunds or French paper
ECB attacks Bucharest over central bank pay cuts
European Central Bank criticises Romania’s decision to impose wage cuts on central bankers after its government failed to consult Frankfurt
Greek debt crisis sparks widening of almost all global CDS spreads
Cost of protecting against a Greek default up 190% in three months to mid-June as CDS spreads widened for 93% of sovereign debt on back of sovereign debt crisis in Europe
IMF: FDI undermined competitiveness in central and eastern Europe
An IMF study on real effective exchange rates reveals large volumes of foreign capital flows reduced competitiveness in central and eastern and European countries
EU faces tough call on sovereign scenarios for stress tests
European Union officials split on whether to run sovereign debt scenarios on stress tests; plans afoot to extend number of banks tested
Markets rejoice as Beijing reverts to managed float
Investor risk appetite soars as China drops the renminbi’s rigid dollar peg; analysts say Beijing’s policy shift sparked by potential benefits, rather than international pressure
Draghi backs EU move on stress tests
Bank of Italy governor Mario Draghi sees publication of results of stress tests of Europe’s biggest banks as key to calming market jitters; EU move follows Spanish decision to publish results of its stress tests earlier this week
Sri Lanka's Cabraal gets second term
Sri Lankan central bank governor Ajith Nivard Cabraal gets a further six years at the helm; credited with bringing inflation back under control
RBA minutes show central kept rates unchanged over euro fears
The Reserve Bank of Australia’s board kept rates on hold at 4.5% amid uncertainty over Europe’s fiscal position
Bank of England - Quarterly Bulletin (Q2 2010)
Bank's Quarterly Bulletin says yields on UK gilts fell in the last quarter due to lower expected future interest rates
US must clarify degree of Basel III implementation: Bini Smaghi
ECB executive board member Lorenzo Bini Smaghi says US needs to clarify its implementation of Basel III proposals
Market tensions prevail, Trichet warns
ECB president says financial sector still shows signs of stress despite the success of the central bank’s bond purchase program
Bernanke: US should not rely on safe haven status of dollar
Federal Reserve chairman Ben Bernanke said country should take measures to cut deficit despite unique role in global currency markets
Shilling weakened after Kenya bought euros, say analysts
Analysts link recent weakness in Kenya’s shilling to euro purchases by the central bank
Asian economies not autonomous from Europe: IMF's Shinohara
Fund deputy managing director Naoyuki Shinohara touches on lessons from the crisis and how shocks in Europe reverberated in Asia
Ten legal gaps Europe’s regulators must close
René Smits identifies ten key issues that European financial legislators must consider when constructing the post-crisis regulatory framework
Mix of bad luck and policy fuelled credit boom in Eastern Europe
IMF research finds both bad luck and poor policymaking led to credit boom in new EU member states
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