Regulation
Caruana says ‘naïve' to be seduced by simple rules
Financial markets will continue to innovate to get around financial regulations - meaning regulators must also keep innovating, says BIS's Jaime Caruana
Greater competition leads to riskier banking, ECB working paper says
Paper finds more competition led banks to resort to more securitisation, greater risk and ultimately a higher probability of being bailed out
SSM results could come out early if severe weaknesses are found
Sabine Lautenschläger said today the results of the ECB's assessment of eurozone banks' health could be released early in the case of ‘severe weaknesses'
Rajan predicts ‘revolution’ in banking industry
The Indian banking sector is ‘on the cusp of revolutionary change’ as new developments and growing competition are breaking down the ‘grand bargains’ that once dictated its structure
EC tackling final questions on CCP resolution
The European Commission is drawing up proposals on the recovery and resolution of CCPs, but a number of tricky questions still have to be answered
No full disclosure on FX scandal in 2014, says FCA's Wheatley
Martin Wheatley, head of the UK's Financial Conduct Authority, says ongoing investigation unlikely to be concluded this year; laments prevailing culture of ‘ethical flexibility'
More bank capital means banks lend more, paper finds
More capital means more credit - but greater supervisory capital constraints mean bank credit grows more slowly than when banks are less constrained
Ingves says banking industry must acknowledge problem around risk weights
The variation in how banks set risk weights is a problem that some in the industry are ignoring, says Basel Committee chairman
Debelle and Fisher to head up FSB FX benchmarks review
RBA deputy governor and Bank of England head of markets will lead a review at the FSB, and present findings to G-20 Brisbane conference in November
US Congress committee highlights Volcker rule anomalies
Fed's Tarullo among regulators grilled by US Congress over apparently arbitrary exemptions to the Volcker rule
ECB releases AQR framework
Danièle Nouy and Vítor Constâncio outline the ‘building blocks’ of the asset quality review; say recruitment for the SSM is progressing ‘at full steam’
Ingves calls for consistency in risk weights for credible capital ratios
BCBS chair says underlying differences in risk drive lion's share of risk-weight variations, but some arise from supervisory and practice-based idiosyncrasies
EBA announces key ratios for European bank stress tests
European Banking Authority wants to see CET1 ratios of 8%, with 5.5% the threshold for an ‘adverse scenario'; stress tests to begin in the spring with results due out in October
Liikanen says 'Barnier rule' will allow for international regulatory convergence
Finland governor whose recommendations formed the basis of European bank reform notes that commissioner Barnier's proposals are closer to the 'Volcker rule'
Research shows CEE firms bribe bankers to get credit
Paper finds correlation between the prevalence of bribery in an economy and firms' bank debt ratios - suggesting firms bribe bank officials in order to secure loans
BoE prudential regulator wrestles with early warning indicators calibration
Calibration for general insurers and with-profits funds frustrates regulator's progress
Nepal central bank cautious on Basel III counter-cyclical buffer
Central bank to study need for counter-cyclical buffer in a developing economy
Basel Committee publishes leverage ratio definition
Basel Committee agrees common definition for simple bank leverage ratio; discussions set to continue over the appropriate required level
ECB appoints four SSM department heads
New directors general include a former secretary-general of the BCBS and hires from the central banks of Spain and Finland; ECB endorses Sabine Lautenschläger for its executive board
UK banks win tax exemption for client clearing
UK tax authorities exclude client collateral received as a result of clearing activities from bank levy, after complaints it would act as a disincentive to clearing
US community banks losing their edge with small businesses, paper finds
Fed discussion paper finds small, opaque businesses are just as likely to use a large banking corporation as they are a community bank; strong banking relationships remain important
Frontloading fears remain despite Esma guidance
Uncertainty has been narrowed by Esma Q&A, but dealers say they will still face pricing headaches
Basel Committee says world's biggest banks can't report risk adequately
Globally systemic banks have provided the Basel Committee on Banking Supervision with an update on their progress towards risk reporting goals - revealing deficiencies in data aggregation