United Kingdom
BoE’s Hauser says markets review will avoid heavy-handed regulation
Andrew Hauser says UK’s Fair and Effective Markets Review will seek to achieve its aims through market discipline if possible, instead of imposing burdensome regulation
Treasury Committee attacks FCA’s use of media as ‘tool of regulation’
UK conduct regulator defends use of press to disseminate its policies, but MPs call the process ‘bizarre’ and a ‘colossal risk’
BoE's Forbes says few MPC members are 'perennial hawks or doves'
External member lays out key risks to Bank of England's central forecast, including stronger US growth, lower oil prices, and exchange rate pass-through
People: Sri Lanka gets new governor, Albania 'very close'
Arjuna Mahendran appointed governor of the Central Bank of Sri Lanka following elections last week; Gent Sejko on track to become Albanian governor, says spokesperson; and more
BoE wartime minutes show sharp contrast between Court of then and now
Minutes from 1914-1946 show an evolving Court of Directors, but one radically different from today; the latest release covers both World Wars and the Great Depression
Banks are being herded into using similar risk methods by regulation, experts warn
Regulation is encouraging banks to manage risk using similar methods, which presents a threat to financial stability, witnesses tell a UK parliamentary committee
Bank of England MPC still split 7-2 on rates
Minutes from the December meeting show Ian McCafferty and Martin Weale voted for a 25bp hike for the fifth consecutive month; they argue wage growth could ‘pick up sharply’
FCA director says breakdown in controls led to communications blunder
Clive Adamson says FCA has taken steps to improve internal procedures; tells MPs the organisation can struggle to operate in a crisis
UK payments regulator may use powers to force innovation
Payment Systems Regulator emphasises its "strong" powers over industry and says it will not hesitate to use them if firms fail to collaborate on innovation
Davis Report reveals extent of FCA communications blunder
Report uncovers misguided comms strategy, poor supervision by senior managers and sluggish response as FCA ‘taken by surprise’
UK's FCA unveils reshuffle amid criticism
Conduct supervisor admits supervisory model for small firms has been "under strain" as three directors quit; critical report due to be published this week
Cluster effect helps explain size of UK banking sector, BoE bulletin finds
Firms and people locating near one another means banks may be able to provide services more efficiently in the UK than other countries, researchers say
Top EU court should dismiss UK bonus cap plea, says advocate general
Opinion rejects UK’s main legal challenge to EU bonus cap law and argues use of word ‘cap’ is misleading; UK Treasury says opinion ‘demolishes’ case for fixed ratio
UK bank reforms may be ‘diluted’, warns parliamentary commission
Former members of the Parliamentary Commission on Banking Standards warn regulations are at risk of being misinterpreted, diluted by lobbying, or applied incorrectly
Chief currency dealer dismissed from Bank of England
Grabiner report unveils transcripts of conversations between BoE's Martin Mallett and market participants discussing 'matching off' trades; BoE says dismissal unrelated to FX investigation
UK launches probe into banking sector competition
Investigation will assess whether retail banking market is too concentrated, with barriers to entry and opacity under scrutiny
Bank of England seeks global consensus on ‘fair and effective’ markets
Review aims to fix outstanding issues with market structure and conduct; Minouche Shafik says the central bank is working with others globally to build a consensus
Broadbent: Neutral real rates will stay low for ‘some time’
Bank of England deputy governor Ben Broadbent expects neutral real rates of interest to rise ‘eventually’, but expects them to remain low ‘for some time yet’
Carney launches review into RTGS failure
Independent review will look into ‘technical issue’ that knocked RTGS system out of operation yesterday, and consider the central bank’s response
Bank of England resumes settlement after 'technical issue’
UK’s high-value payment system was ‘paused’ for several hours today, but is now back up and running; central bank extends opening hours to deal with backlog
BoE lifts lid on Scottish independence contingency plan
Plan warned of ‘potential instability’ from use of pound north of the border; central bank prepared emergency liquidity and clear communication strategy in run up to vote
BoE unveils draft rules for ring-fencing UK banks
Prudential regulator issues consultation on rules relating to legal structure, governance and maintaining core operations; Andrew Tyrie welcomes structural recommendations
Stronger pound has pushed down UK inflation rate, says BoE's Forbes
MPC member says 14.5% appreciation between March 2013 and July 2014 will have powerful effects on the UK economy over the coming quarters
Bank rules and their impact on inequality
Banking regulation has a profound effect on levels of long-term financial inclusion around the world; US engaged in a failed ‘lottery ticket’ effort by the US to offer housing to the poor.