Regulation
Repo market coping with liquidity regulations for now, panellists say
Participants at Euroclear’s Collateral Conference say repo markets have delivered new efficiency gains to keep collateral supply up, but the outlook over the coming year looks less certain
Esma official slams CFTC margin rules
US rules driven by competitive rather than prudential concerns, Fabrizio Planta charges
Finma's Branson calls for Basel leverage ratio hike
The minimum Basel leverage ratio for large banks should be higher than 3%, says Finma CEO Mark Branson, noting "the world has moved on" since it was initially set
IMF paper finds no link between efficiency and Basel compliance
Banks in jurisdictions that have adopted Basel ‘Core Principles’ for supervision are no more efficient than their peers elsewhere, working paper finds
Emerging markets close in on Basel III completion
Latest Basel Committee progress report shows most jurisdictions have moved significantly closer to full Basel III implementation, with emerging markets making particularly rapid progress
Fed updating supervisory guidance on community banks
A deputy director tells subcommittee in House of Representatives the Fed has ‘several efforts underway’ to provide regulatory relief for community banks
Bank of Mexico lays out new rules for local derivatives
Interest rate swaps will have to be traded on electronic platforms and derivatives exchanges and transacted through clearing houses, according to new rules
Volcker proposes new regulatory structure with Federal Reserve at its heart
The Volcker Alliance sets out proposals for a new regulatory structure in the US that seeks to address the ‘fragmentation, overlaps and glaring gaps’ in the current system
Proactive regulation could help a billion to access financial services by 2020
RBI’s unique ID decision helps 33 million people gain access to financial services in six months; proactive approach by regulators could help World Bank offer finance to another billion people
Bundesbank's Dombret: shadow banking oversight is 'miles away'
Regulators may never be able to fully monitor the risks created by shadow banking, says Bundesbank board member
Fischer looks to strengthen non-bank solvency and liquidity
Fed vice-chair says key issues for promoting non-bank sector stability are solvency and liquidity, and suggests policies that could be used to strengthen these areas
Fischer sets sights on shadow banks
Fed vice-chair says US regulators must do more to regulate non-banks, including improvements to wholesale funding, better data and regulation that evolves at the same pace as the industry
India to become netting friendly on bankruptcy law reform
Different treatment of public and private banks stymied netting - but this could now change
UK’s PRA gives small bank managers an easier ride
Prudential Regulation Authority finalises first phase of Senior Managers’ Regime, giving some concessions to small firms; more rules set to follow later this year
Hellwig and Wolf question efficacy of financial reforms
Martin Hellwig and Martin Wolf discuss flaws in financial reforms aimed at breaking the sovereign-bank linkage in book on country and political risk
RBA research finds CCP rules are effective in containing severe shocks
Paper tests central counterparties under extreme ‘tail of tail’ scenarios and finds new rules designed to promote their stability are effective
ESRB group wants treatment of sovereign debt reviewed
Report published by European Systemic Risk Board argues sovereign debt can no longer treated as risk-free, and outlines different ways the regulatory framework could be adapted
BIS paper says liquidity regulation should not replace lender of last resort function
Lender of last resort and liquidity regulations perform separate roles, and therefore one cannot replace the other, working paper says
FSB-Iosco tweaks systemic shadow bank definition after criticism
Initial proposals for identifying systemic ‘non-bank non-insurers’ ran into criticism last year, with asset managers complaining rules put too much emphasis on size
First CPMI-Iosco peer review finds gaps in trade repository principles
Peer review of Principles for Financial Market Infrastructures in Europe, Japan and the US finds jurisdictions have made good progress with CCPs, but gaps remain among trade repositories
In qualified support of coco bonds
Europe’s supervisors need to develop a code of best practice to support the prudential issuance of contingent convertible bonds, argues Andreas Dombret
UK regulators flesh out proposed punishments for bankers
Consultation papers set out details of how presumption of responsibility will work in practice, including narrowed scope, and seek to extend greater protections to whistleblowers
Islamic finance: Nigerian central bank reveals shape of advisory body
Central Bank of Nigeria publishes guidelines for the Financial Regulation Advisory Council of Experts, charged with offering ‘expert advice’ on the industry and approving new products
MAS takes first steps towards crowdfunding regulations
Proposed regulations aim to strike a balance between encouraging a valuable source of finance for small businesses and managing the high risks associated with securities-based crowdfunding