Regulation
BoJ sets out risk management guidelines
The market instability triggered by the US subprime mortgage problem reaffirms the importance of investors accurately recognising and appropriately managing risk, research published by the Bank of Japan states.
Sound risk management essential: Fed's Kroszner
The current financial market turbulence underscores the importance of getting the fundamentals of sound risk management right and being ever vigilant about their consistent application, execution, and improvement in light of new data and experiences,…
UK business leader warns against rushing reform
The British authorities must beware of hurrying through seismic supervisory changes in the wake of the run on Northern Rock, the head of the UK's biggest business lobby has warned.
Kohn on Fed's recent regulatory initiatives
The Fed and other banking agencies have encouraged mortgage lenders to pursue prudent loan workouts in order to help struggling homeowners, said Donald Kohn, the vice chairman of the central bank.
UK government attacked for dithering on Rock sale
The UK government came in for more criticism over its handling of the Northern Rock crisis on Wednesday 5 March, when Peter Hitchens, the leader of PricewaterhouseCoopers's UK banking and capital markets practice, said it had wasted a lot of time…
Liquidity cooperation essential: Japan's Fukui
Given the increase in the volume and complexity of cross-border flows of funds, coordination among central banks in liquidity provision is essential, said Toshihiko Fukui, the governor of the Bank of Japan.
Central banks to review liquidity rules
Central banks are collectively considering alterations to the provision of emergency liquidity, Paul Tucker, the executive director responsible for markets at the Bank of England, said at a conference organised by the Financial Markets Group of the…
BIS's Wellink outlines Basel II amendments
The Basel Committee will review the capital charges for collateralised debt obligations (CDOs) set out in the Basel II framework, said Nout Wellink, the president of the Netherlands Bank and chairman of the committee.
Fed's Kroszner on liquidity risk management
Liquidity risk should be evaluated and addressed on an enterprise-wide basis and should be tightly integrated with capital planning, said Randall Kroszner, a governor at the Federal Reserve.
BoE's Gieve calls for bigger buffers
Regulation must temper the pro-cyclicality of the credit cycle, said Sir John Gieve, a deputy governor at the Bank of England.
Rating agencies at core of lawmakers' grievances
An influential group of British members of parliament has slammed the big ratings agencies for their role in the subprime crisis.
Legislative barriers and Northern Rock
Mervyn King’s assertion that he was “hemmed in” by legislation during the run on Northern Rock has some merits, argues Charles Proctor
Lessons of Northern Rock
British lawmakers are divided over how to fix a broken regulatory framework
BIS's Knight wants procyclicality issue addressed
A strengthening of the so-called "macroprudential approach" to financial regulation is needed to address problems of excessive procyclicality, said Malcolm Knight, the general manager of the Bank for International Settlements.
Iceland a step ahead on liquidity
Iceland's approach to liquidity management is much more developed than in other countries, said Ingimundur Fridriksson, a governor at the central bank.
EU should be "driving force" in SWF regulation
The EU should be at the forefront of the effort to supervise sovereign wealth fund investments, the European Commission has said.
A case for stronger regulation on liquidity
Securitisation's enhancement of and reliance on liquidity, as revealed by the recent bout of turmoil, indicates the need for new rules on liquidity, the Banque de France's latest stability review finds.
UK lawmaker laments lack of chief regulator
John McFall, chairman of the Treasury Select Committee which published its comprehensive report on the Northern Rock crisis at the end of February, reiterated his suggestion that the lack of a central figure in charge of Britain's tripartite regulatory…
Fed's Kroszner on risk and responsibility
America's banking industry and its regulators must together ensure that effective risk management practices are in place, said Randall Kroszner, a governor at the Federal Reserve.
EU to devise SWF code
The European Commission is to propose a voluntary code of conduct for sovereign wealth funds in a bid to ease fears that their investments could compromise national security interests.
FDIC's Bair calls for mortgage transparency
Sheila Bair, the chairman of the Federal Deposit Insurance Corporation, the body responsible for deposit insurance in the US, has called for a return to common sense and back-to-basics lending standards.
New role for SARB in monitoring capital flows
A further relaxation in South Africa's exchange controls, announced this week, will change the South African Reserve Bank's role in overseeing capital flows.
Assessing Australian asset-backed commercial paper
The reason for the superior performance of the Australian asset-backed commercial paper market compared with the United States lies in the specification of conduits, a Reserve Bank of Australia paper finds.
Philippines looks to end special vehicles
The central bank in the Philippines is seeking to draw a line under special purpose investment vehicles that are a legacy of the Asian financial crisis that erupted more than a decade ago.