International
Basel III changes set to create big winners and losers
Capital hit for G-Sibs ranges from 28% drop to 43% jump, quantitative impact study reveals
Mario Draghi confirms Basel III is complete
Governors and heads of supervision grant final approval to the amended Basel III framework, but the parties fail to agree on sovereign asset treatment
BIS paper examines how banks use credit default swaps
Banks use CDS for position taking as well as insurance, but there is little evidence of their use to circumvent capital rules
People: Fiji appoints deputy; Commission proposes new SRB chair term
Esala Masitabua will become deputy governor in Fiji on January 1, 2018; European Commission proposes extending Elke König’s mandate as chair of the SRB; and more
BIS top body poised to approve Basel III
The GHOS meets on December 7, and all signs indicate it will finally give Basel III the green light
Fed hikes have created ‘paradoxical’ easing – BIS
Review draws parallels between current episode and “Greenspan conundrum” of mid-2000s
FSB consults on bail-ins and funding during resolution
Consultations seek to unpick the operational complexities of implementing resolution regimes
Digital currencies may foster competitiveness in retail payments, research finds
But central banks should be cautious and implement non-anonymous models to preserve security
OECD issues warning as debt peaks
Debt rises in volume and falls in quality in many OECD countries; New York Fed figures show US household debt at new high
How crypto is my currency?
Richard Heckinger examines how central banks are grappling with new ideas on crypto-currency and distributed ledgers
Public satisfaction with BoE rises with policy understanding
The research recommends targeting young people with low incomes, as well as women
More work needed on supply channel of finance – BIS paper
Demand-side links between the financial and real sectors are better understood, say authors
FSB unveils latest G-Sib list
One bank joins and other drops off the list of the world’s most systemically important firms
Fernando Restoy looks to realign Basel’s FSI
The Financial Stability Institute chair discusses the prospects for implementing Basel III, the challenging political context and the FSI’s role in it all
Fed’s Williams proposes new tools to deal with future crisis
Structural factors beyond central banks’ control keep natural rate of interest lower
People: Riksbank appoints new head of financial stability
Sweden confirms the head of financial stability; BIS appoints new advisory board; Ukraine has new director of payment systems; and Angola reshuffles board of directors
Communication key to convey policies and objectives to public, central bankers say
Yellen, Draghi, Kuroda and Carney reflect on reaction of markets and public to policy communication
Productivity puzzles and the neutral rate of interest
Monetary policy frameworks should be subjected to internal and external reviews to ensure they remain fit for purpose
SNB’s Jordan defends central bank independence
In contrast to monetary policy, macro-prudential should also be shaped by government
AI adoption lag could explain productivity shortfall – research
Erik Brynjolfsson, Daniel Rock and Chad Syverson argue the productivity slowdown is not as surprising as it may seem, and there are reasons to be hopeful
OTC derivatives fall to lowest levels since financial crisis, BIS says
The gross market value of outstanding OTC derivatives contracts falls to below $13 trillion at mid-2017
People: Powell and Yellen comment on Fed chair pick; FPC member appointed
Nominee as Fed chair praises predecessors; UK’s FPC has new external member; and more
‘Black box’ AI could pose macro risks – FSB
Rise of artificial intelligence in finance may promote efficiency, but it can be hard to tell where the dangers lie, report finds
Internal capital reallocation matters, BIS paper finds
Authors model response of a bank to tightening capital constraints, shedding light on how banks may respond to changes in their environment