Europe
Nordic and Baltic regions strike financial stability deal
Eight Nordic and Baltic countries sign Memorandum of Understanding on cross-border financial stability and crisis management
Norway’s wealth fund slumps to first loss in a year
Government Pension Fund–Global posts $25 billion loss for first quarter; fund’s equity portfolio takes a beating, led by BP shares
ECB flags concerns over new capital rules
New capital rules may incentivise banks to dump risky assets on central bank
Greece passes first hurdle of bailout programme
European-IMF review of Greek economic programme says country is on track to receive second tranche of funds
IMF: European debt measurements misleading policies
Fund study says European Union spending cuts neglect impact of policies on future
EU stress tests detail exposure to Piigs debt
Stress tests show which banks are heavily exposed to riskiest sovereigns
Kosovo’s governor arrested
Kosovo central bank governor Hashim Rexhep arrested on alleged corruption charges, central bank to be investigated
Bank of Albania: country has seen double digit FDI growth
Albanian central bank monetary policy statement says foreign direct investment rose by double digits in 2008
ECB will always end up bailing out sovereigns: Buiter
Former Bank of England rate-setter Willem Buiter says ECB will lose in “game of chicken” with finance ministries over who rescues sovereigns
Hungary prepares bracing bank tax, wage caps
Hungarian parliament set to approve hefty bank levy to shear budget deficit; public sector wage freeze will affect central bank employees, despite ECB protests
RBA rate hold linked to European stability concerns
Minutes of Reserve Bank of Australia’s rate meeting show developments in Europe led board to keep rates flat
EU’s Barnier: paradigm shift in regulating OTC derivatives
European Commission commissioner for internal market and services Michel Barnier says concept of light touch regulation is history
ECB's Bini Smaghi: Europe must regain competitive edge
ECB executive board member Lorenzo Bini Smaghi says even surplus countries in eurozone must improve competitiveness
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