Regulation
Forbearance incentive is greater among Sifis: IMF paper
Fund study says regulators have strong incentive to forebear systemically important financial institutions
IMF paper outlines unintended consequences of Basel III and Solvency II
Fund study shows higher capital standards can have unintended consequences for cost of capital and funding patterns
Central Bank of Iran faces ‘crippling sanctions’ from US
US senators urge President Barack Obama to apply strict financial sanctions on Central Bank of Iran
Basel III charge could spur interest in CCDS
Development of CCDS could be pushed ahead by Basel III CVA charge, suggest market participants
CEPR paper finds increased investment in private firms
Centre for Economic Policy Research study says greater privatisation of firms and more independent regulators lead to greater investment
RBA places eight more people on financial sanctions list
Reserve Bank of Australia freezes assets of eight people associated with Syrian Al-Assad regime and one person linked to Qadhafi regime; 17 Zimbabweans taken off the financial sanctions list
IMF expresses ‘disappointment’ at Commission’s Basel III proposals
IMF says European Commission’s proposals to adopt Basel III are too soft and do not offer national authorities sufficient flexibility over macroprudential policy
Fed warns of Dodd-Frank clash with Basel III
Proposal to remove references to credit rating agencies conflicts with Basel III wording; Fed faces tough process to find alternative standards of creditworthiness
Ireland copies UK in new central bank law
Central bank can now order financial services providers to have an independent expert prepare a report on any regulatory matter; similar to UK provision
Draghi backs ‘consistent’ implementation of Basel III
In his foreword to a new book, Mario Draghi says consistent implementation of Basel III rules must be achieved
Afghanistan denies oversight failures
Afghanistan’s government defends itself against claims it failed to co-operate with auditors to safeguard US funds; says relationship with US watchdog is “strained”
Canada’s Macklem on regulating the shadow banking sector
Bank of Canada senior deputy governor Tiff Macklem says regulation must be aware of impact higher bank liquidity and capital standards will have on incentives for arbitrage
Irish government sells share in Bank of Ireland
Ireland to sell €1.1 billion stake in Bank of Ireland; taxpayers to make 10.25% return from preference shares and 10% gain from contingent capital at bank
Philippines introduces new financial reporting rules
Central Bank of Philippines revises guidelines on financial reporting to improve stability of financial institutions; new rules bring Philippines into line with international standards
Fed aims for summer Sifi regulations
Bernanke says Fed expects to issue proposed rules on Sifi oversight this summer; also 'on schedule' to implement Basel III
Sri Lanka ponders 'fit and proper' tests for non-bank lenders
Bill is pending that would introduce ‘fit and proper’ tests for senior executives of non-bank lenders
UK lawmakers call for rethink of banking carve-up
UK Treasury Select Committee requests Independent Commission on Banking to re-evaluate option to 'separate' retail and investment banking activities
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