Regulation
BoE’s Bailey slams European bonus caps
Deputy governor expresses ‘dismay’ at debate that misses what he sees as key points in designing appropriate incentives; points to flaws in Basel capital standards
Top regulators seek to dispel myth of global regulatory harmonisation
Officials from IMF, Bank of England and US Treasury say perfect harmonisation is next to impossible; key now is a shift from design of standards to implementation
European Banking Authority unveils framework for classifying high-quality securitisations
Consultation proposes system for classifying securitisations that are ‘simple, standard and transparent’ and therefore may benefit from more lenient regulation
FSB moves to tackle shadow-banking risks from SFTs
Final framework for setting haircuts on certain securities financing transactions seeks to control leverage outside the banking system and reduce procyclicality
Kuwaiti governor argues for credit ratings regulator
Mohammed Al-Hashel says rather than reducing reliance on credit ratings, he would like to see an independent institution established to ensure high-quality ratings
IMF launches consultation with external advisors on Islamic finance
Fund working group looks to publish ‘staff discussion note’ on Islamic finance before the end of the year and organise a ‘high-level’ conference in 2015
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
Fixing Libor needs more work, says NY Fed’s Dudley
NY Fed president says gaps in the Libor framework still need to be plugged; Fed and FSB working on solutions
Bank of England asks for new tools to curb mortgage lending
Financial Policy Committee recommends it be equipped with controls on loan-to-value and debt-to-income ratios; Mark Carney says Help to Buy scheme does not pose ‘material risks’
Carney spells out ‘right ideas’ for insurance regulation
Bank of England governor sets out three forthcoming strands of reform to the way insurers will be regulated, to avoid systemic crises in the style of AIG
Financial Stability Board prepares to publish FX benchmark reforms
Recommendations due to be published within days; broad consensus among market participants, but questions hang over certain elements
EBA zeroes in on recovery and resolution trigger conditions
European Banking Authority publishes final guidelines on testing for bank failure and launches consultation on what conditions could trigger a resolution process
Carney hints at coming shift in FSB focus
Mark Carney says Financial Stability Board will need to shift its focus towards ‘evolving’ threats such as shadow banking; ending too-big-to-fail high on the agenda for Brisbane G-20 summit
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.
Zeti: Proportionate regulation necessary to ‘advance’ financial inclusion
Bank Negara Malaysia governor lays out plan to ‘advance financial inclusion to its next level’, saying global standard-setting bodies will play an ‘important role’
Israeli officials look to remove obstacles to securitisation
Joint team of financial regulators renew efforts to promote securitisation; former deputy governor Zvi Eckstein backs proposed legislative changes
Botswana's banking sector grew in 2013
Entry of two Indian banks took the number operating there to 13; greater use of technology plus more branches and ATMs improved access to finance
Germany finds Emir enforcement fix for OTC derivatives
Derivatives users in Germany face Emir compliance audit - but enforcement in other EU countries may be impossible, lawyers say
Widening fix window won't solve forex benchmark issues, industry tells FSB
Broad support for reforms proposed by Debelle- and Fisher-led working group, but industry also makes a variety of alternative proposals
Hungarian ruling party condemns ECB ‘pressure' on behalf of foreign banks
ECB concerned that new rules requiring banks to compensate Hungarian borrowers over foreign exchange loans could hit parent banks and threaten European financial stability
Choosing a suitable exchange rate suitable for price-takers
Flexible exchange rates can act as an asset price as well as a price for goods and services, so movements can distort the market for goods and services. Taxing capital inflows can address the matter
Financial inclusiveness and financial stability are key to success
Bangladesh has achieved growth in excess of 6% for the past decade, aided by its focus on financial inclusion. The next step is to modernise finance, writes Atiur Rahman
Time for clock synchronisation – regulators
Global regulators assess the need for a central reference clock to aid investigations into alleged abuse of financial markets
PRA highlights restrictions on group own funds
Implementation note says capital instruments issued by third-country undertakings must conform to Solvency II to qualify as loss absorbing