Regulation
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
Osborne quizzed over banking commission recommendations
UK chancellor questioned by parliamentary commission for omitting recommendations on capital rules and full retail banking separation in new banking legislation
EBA stakeholder group chair to quit
Sony Kapoor quits role heading banking stakeholder group at European Banking Authority; new group to be selected in September this year
US politicians plot national impact study for Basel III
Basel III could face more delays in the US as legislators press for a national impact study
EU Parliament poised to reject two Esma technical standards on OTC derivatives
Parliament is unhappy with the treatment of corporate end-users, and could require Esma to redraft standards
Bank of Finland researchers examine role of liquidity creation in bank failures
Experience of Russia from 2000–07 suggests early identification of excessive liquidity creators can 'mitigate systemic distress'
Irish deputy lays out arguments for banking union and SSM
Gerlach says while monetary policy and bank supervisory bodies should be separate, siting them together can bring benefits
MAS sets out FMI supervisory framework
Monograph gives details of Monetary Authority’s approach to regulating financial market infrastructures in line with CPSS-Iosco principles
Asia needs bigger voice in international financial rule-making, say regulators
Regulators from Malaysia, Dubai and Australia call for more countries in the region to take a stronger role in shaping the global agenda
Basel eases final LCR rules but struggles with NSFR
Group of Governors and Heads of Supervision endorses relaxed phase-in rules for final liquidity coverage ratio but the proposed net stable funding ratio looks set to present further problems
HKMA’s Yue on consumer education and protection
Market players, regulator and consumers all have roles to play to ensure that trust remains in financial services, says Hong Kong deputy chief executive
Book notes: Guardians of Finance
This is a book offering a useful contribution to the debate over the future of regulation. By James R Barth, Gerard Caprio Jr and Ross Levine
UK’s Wheatley outlines behavioural foundations of FCA approach
CEO-designate of UK’s Financial Conduct Authority says regulator’s new approach will centre on behavioural economics rather than treating consumers as fully rational
Fed’s Tarullo outlines update to regulation of foreign banks
Rules for foreign banks operating in the US need to be strengthened, but should not be so harsh as to give domestic banks a competitive advantage, says Daniel Tarullo
Hong Kong regulator cautious about CoCos
The HKMA is unconvinced about banks issuing contingent convertible instruments, according its deputy chief executive, Arthur Yuen
Raft of changes could shrink Basel III liquidity buffers
Basel Committee estimates liquid asset shortfall could be cut by 14% if a menu of potential changes is adopted
FSB takes next steps towards shadow banking regulation
Financial Stability Board gives recommendations for regulating financial institutions outside the regular banking system; estimates shadow banking sector reached $67 trillion in 2011
National Bank of Denmark rejects Liikanen report
Danish central bank governor says nations should be able to opt out of proposed Liikanen banking rules; favours bail-inable debt
Hungarian government abandons central bank transaction tax
Hungary’s minister for the national economy says transaction tax will not be applied to central bank following pressure from European authorities and the IMF
EBA report finds banks €199 billion short of Basel target
European Banking Authority report details capital shortfall of largest banks in eurozone; calls for ‘significant effort’ to hit targets
Bulgarian governor against accession to banking union
Ivan Iskrov expresses opposition to the idea of Bulgaria joining the proposed EU banking union; discusses protecting domestic economic interests
Spain’s Restoy highlights ‘demanding’ timetable for single-supervision mechanism
Deputy governor of the Bank of Spain applauds 'well founded' eurozone-wide banking oversight plan; but says schedule for implementing the changes will be tough