Regulation
EBA sovereign scenarios under scrutiny
European Banking Authority stress tests reveal eight banks failed to meet 'tougher' 5% core Tier I capital ratio amid concerns over sovereign risk scenarios
Foreign banks get temporary respite from China’s new ‘Volcker rule’
Foreign banks in China greet decision by China Banking Regulatory Commission to postpone new rules on onshore non-hedging business with relief
ECB and World Bank call for exemptions from US derivatives rules
World Bank believes imposition of national regulations on multilateral development institutions is unprecedented intrusion on the internal operations of international organisations
Basel and Dodd-Frank create arbitrage potential, say analysts
Removal of credit ratings under Dodd-Frank will create arbitrage opportunities – and is already being exploited by some US banks, research claims
BIS’s Caruana urges completion of regulatory reform agenda
Bank for International Settlements general manager Jaime Caruana highlights a number of challenges facing national authorities in implementing critical reforms
Sudan relinquishes control of financial system in the South
Measures to relinquish control of southern financial system following independence declaration of South State
New lending rules for Chinese SMEs overlook deeper structural issues in credit market, say analysts
China Banking Regulatory Commission introduces new measures to boost lending to small businesses; analysts say real problems lie in regulatory framework that favours the state sector
Regulators may not have authority to delay Dodd-Frank, warn lawyers
Some lawyers claim the CFTC and SEC may not have power to delay enforcement of the Dodd-Frank Act – a grey area that could lead to disputes
France’s Noyer assesses economic implications of Basel III
Banque de France governor Christian Noyer says implementation of Basel III designed to reduce economic impact of tougher regulation
RBI asked to regulate entire microfinance sector
Reserve Bank of India to receive powers to regulate entire microfinance sector under proposed bill
Going-concern triggers on CoCos unrealistic, says White
Contingent capital instruments designed to provide a capital boost before the point of non-viability are laudable but unrealistic, says former RMMG chair Mark White
Tucker hints at shifting BoE attitudes and policies
Paul Tucker, deputy governor at the Bank of England hints he might vote to raise interest rates; calls for new “social contract” with banks
BoE’s Fisher: markets uncertain over new regulation
Bank of England executive director of markets Paul Fisher says UK financial markets are hesitant over new regulatory regime
Canada’s Côté talks shadow-banking regulation
Bank of Canada deputy governor Agathe Côté outlined policy options to regulate shadow-banking sector
Basel Committee will not impose CoCo requirement for Sifis
Basel Committee proposes a staggered common equity capital surcharge for systemically important banks, but steers clear of contingent capital
MAS’s Lim reviews universal banking model
Monetary Authority of Singapore deputy chairman Lim Hng Kiang debates strengths and risks of universal banking model
FSA outlines strategy for new conduct authority
UK Financial Services Authority says Financial Conduct Authority will be tougher and bolder than past consumer regulator
Financial institutions scramble to avoid Sifi label
Federal Deposit Insurance Corporation detects “absolutely no interest” from any financial institution in being named a systemically important financial institution
Australian regulators suggest clearing exemption for FX
Reserve Bank of Australia discussion paper commits to harmonising rules with US and Europe
IIF’s Dallara criticises Basel Committee for shortcomings on governance reform
Institute of International Finance managing director Charles Dallara “deeply troubled” by the Basel Committee’s lack of focus on improving banks’ risk culture
Tarullo on Basel III implementation framework
Federal Reserve governor Daniel Tarullo highlights Standards Implementation Group's efforts to monitor implementation of Basel III rules
Switzerland votes for tougher capital rules on big banks
Swiss upper chamber backs bill to raise capital requirements of largest banks to 19%; Swiss National Bank vice-chairman Thomas Jordan says potential losses must be fully absorbed
UK chancellor backs ring-fencing of banks
Chancellor of the exchequer endorses plans to separate retail from investment arms; says FPC’s stability remit to be reviewed annually
LCR should include equity, says ACP’s Nouy
Basel III liquidity coverage ratio should admit equities with significant haircuts, says Danièle Nouy at the Autorité de Contrôle Prudentiel