Regulation
IMF researcher proposes new method for top-down stress testing
New, simple methodology for structural market-based top-down macro stress tests aims to overcome onerous data requirements
IMF annual report says asset bubbles among risks of ‘MP-plus'
IMF warns of risk associated with loose monetary policy in the world's biggest economies, but says stance should remain 'very accommodative until recovery is well established'
Disjointed regulation could spell end of global banking era
Report says global banks must move faster with reform if their global operations are to weather the 'balkanisation' of financial markets caused by mismatching regulation between jurisdictions
Haldane issues call to arms in fight against regulatory complexity
Bank of England executive director warns incremental approach to regulation papers over cracks and leads to a burdensome, ineffectual patchwork of rules
BIS' Caruana warns low rate environment allows reforms to be postponed
BIS chief warns regulators may be 'fighting the last war', and calls for central bankers to push for 'a return to sustainable government finances'
IMF and Sarb push for stronger systemic supervision in Africa
Joint effort to highlight importance of macro-prudential approach in addition to scrutiny of individual institutions; IMF pushing for tighter supervision
Asean pioneers lay foundation for economic union with capital markets move
Thailand, Malaysia and Singapore press ahead with capital markets integration in bid to jump-start Asian Economic Community
Australia shuffles top managers but governor Stevens stays on
RBA governor Stevens reappointed for three more years, while Wayne Byres moves from Basel Committee to head up prudential regulator Apra
Asean report maps road to financial integration
Key to achieving an Asean Economic Community will be capital account and financial services liberalisation; member states should integrate at their own pace, to avoid EMU-style crises
UK enters new regulatory landscape
UK’s new conduct and prudential regulators take over from the FSA and aim to avoid the failings of their predecessor
Portugal must strengthen institutions to attract foreign direct investment - working paper
Bank of Portugal researchers call for a focus on corruption and strengthening the independence of the financial system to increase attractiveness for FDI
Asia corporates unfairly ‘penalised’ by CVA capital charge
The move by European authorities to exempt European banks from holding CVA capital should be matched by regulators in Asia, according to senior bankers in the region
UK FSA finalises Libor regulations
Financial Services Authority produces final rules for regulating benchmarks, days before it will cease to exist; regulated firms will undergo compliance review by new watchdog in coming year
US banks and regulators both failed on Basel II parallel runs, says Fed official
Failure to exit Basel II parallel runs represents a 'black eye' for US financial sector, says Federal Reserve Bank of Richmond unit head
Depositors will trust EU guarantee despite Cyprus, says Banque de France official
Policy-makers have incentive to accelerate deposit guarantee plans, says Sylvie Matherat of the Banque de France
Bangladesh Bank governor says micro-finance regulation must tread fine line
Atiur Rahman says supervisors must strike a difficult balance between encouraging over-indebtedness and damaging financial inclusion when regulating micro-finance
BIS finds Singapore compliant with Basel III
Consistency assessment finds Singapore compliant in 12 areas and ‘largely compliant’ in remaining two; report notes 46 deviations were initially identified, but many were addressed during the review
Goodhart argues bail-outs are better than bail-ins
LSE panel highlights unintended consequences of new regulation, in areas including bail-ins, capital requirements and banking separation; Charles Goodhart says investors will not buy bail-inable debt
De Larosière slams US protectionism and EU Solvency II rules
Former IMF and Banque de France chief Jacques de Larosière says the introduction of a swathe of new regulations in Europe – by contrast to the US – may jeopardise the continent’s growth
UK FSA admits response to Libor lowballing was too slow
Internal audit concludes Financial Services Authority should have moved faster, broadened its focus and been more ‘inquiring and challenging' about Libor fixing
NY Fed paper says monitoring is essential to fix Dodd-Frank’s ‘significant limitations’
A growth in shadow banking is one risk from the Dodd-Frank Act that must be addressed by broad and forward-looking monitoring, a staff report says
European legislators agree sweeping rules for banking sector reform
European Parliament and Commission agree CRD IV package to tighten capital rules, increase bank transparency and curb bankers' bonuses
UK regulators back tough action on banking sector competition
FSA and FCA chiefs say new regulators will try to reduce banking sector concentration, including potentially breaking up large banks; Wheatley warns PRA and FCA may not see eye-to-eye on the matter