Regulation
IMF research warns Liikanen, Vickers and Volcker could cause instability
IMF economists including José Viñals call for global cost-benefit analysis to assess cross-border impact of national plans to restructure banks
Lack of co-ordination of bank resolution regimes behind subsidiarisation push
Asia still behind on global rules forcing subsidiarisation of foreign banks in the region
Germans clash over banking union treaty change
ECB board member opposes German finance minister's plan to introduce limited version of banking union to allow time for treaty change
Plosser warns US regulations could cause unnecessary bail-outs
Philadelphia Fed president says existing efforts to end too-big-to-fail may ‘come up short' and advocates a more rules-based approach; criticises Basel III risk weights
Banks push alternative to Basel Committee securitisation model
Basel proposals would kill European market, banks warn – and some regulators sympathise
European Parliament poised to approve next step in banking union
European political groupings have reached agreement on a text for the recovery and resolution piece of Europe's planned banking union
UK regulator right to retain flexibility to force changes on internal models
Head of the PRA plans to use early warning indicators in supervisory work, notwithstanding the risk of EU challenge
Dijsselbloem defends Eurogroup over Cyprus bail-in plan
Eurogroup president fields questions from European Parliament and defends the original Cyprus plan; refuses to name names over who proposed levy on smaller depositors
Fed’s Tarullo says wholesale funding is the most important gap in regulation
Fed governor warns regulation does not yet adequately address vulnerabilities in the financial system, citing wholesale funding and ending too-big-to-fail as particular problems
UK’s FCA faces serious challenges in meeting competition objective, survey warns
Industry survey highlights ‘scale of challenge’ for conduct regulator in promoting competition; says many measures taken so far may actually be anti-competitive
Bank of Japan raises ‘major concerns' over US foreign bank rules
Letter to Fed governor challenges proposed regulation of foreign banks on the basis of inconsistency with international standards and restrictive liquidity rules; Germans also weigh in
Gieve calls for BoE leading role in European diplomacy
Former deputy governor of the Bank of England says London is not in mortal danger from European regulation, but the UK central bank should play more of a leading role in negotiations with the ECB
Basel intra-day liquidity standards a ‘box-ticking exercise'
Industry panel questions limited detail in Basel Committee document; says numerous problems remain in fleshing out details, levelling playing fields and managing vast volumes of data
Czech central bank opposed to joining banking union
Vice-governor says Czech National Bank will recommend staying out of SSM; ECB's Asmussen calls on non-eurozone countries to decide by July
CCP ‘armageddon’ could lead to sovereign default, warns HSBC executive
Single bank default could affect multiple CCPs, leading to crippling default contribution for existing members and a chain of bank failures
BIS researchers fear separation rules could make banks harder to resolve
Recommendations from Vickers, Volcker and Liikanen examined in new paper focusing on implications for global banking business models
Banks to blame for regulatory fragmentation, says Basel Committee’s Coen
Bank lobbying has encouraged national supervisors to water down global standards, says deputy secretary-general of Basel Committee
European Parliament claims substantive agreement on EU bank resolution legislation
Vote on legislation for harmonised recovery and resolution processes postponed till May, but European Parliament says it has reached agreement on all the main points
Barnier takes Bernanke to task over foreign bank rules
Letter from European commissioner to Fed chief says proposed rules for foreign banks put global efforts at regulatory harmony in jeopardy and could spark ‘protectionist reaction’
Banque de France devotes 17th Financial Stability Review to OTC regulation
Biggest players in international financial regulation contribute to French central bank's compendium of the latest thinking on OTC derivatives regulation
Finance ministers warn US on extraterritoriality
Letter to US Treasury secretary says OTC rules should be applied within national borders only. Signatories include French, German, UK finance ministers
ECB working paper puts forward new model for use in stress tests
Working paper based on risk-return optimal program in which banks aim to maximise risk-adjusted returns while taking into account regulatory capital and liquidity constraints