Central Banking
Basel III watered down by politics and not fit for purpose, says CLSA risk chief
The most recent draft of the Basel III proposals has been watered down by politics, according to an Asian risk officer
FDIC’s general counsel resigns
Federal Deposit Insurance Corporation general counsel Michael Bradfield becomes second high profile figure to leave this week
China’s Hu: renminbi policy complements market pricing
Market pricing of key economic inputs will complement the reform of the renminbi exchange rate regime, says Hu Xiaolian
Minimum capital requirements increase systemic risk
Netherlands Bank research notes that Basel II capital requirements foster homogeneity
Fannie Mae posts lowest loss since conservatorship
Fannie Mae reports a $1.2 billion loss, the lowest quarterly loss since its conservatorship
New Zealand mulls lightening banks’ reporting load
Reserve Bank of New Zealand seeks to remove doubling in reporting requirements and bring standards for Kiwi banks in line with international practice; mooted changes expected to reduce compliance cost
IMF: foreign investment flows have varying effects
IMF study shows that foreign direct investment flows are more effective in some sector of the economy than others
BoK’s Kim: Asia was well prepared for market turmoil
Bank of Korea governor Kim Choong-soo says Asian crisis taught region many lessons that helped prepare them in onset of the last crisis
Top US economic adviser Christina Romer quits
Chair of US President’s Council of Economic Advisers Christina Romer resigns, citing family reasons; thought to be interested in Janet Yellen’s post at San Francisco Fed
IMF links historical house prices to default loss
IMF study finds strong link between historical house prices and loss in event of default
Turkey’s Yilmaz dismisses benefits of capital deepening
Central Bank of Turkey governor Durmuş Yılmaz says country should focus on increasing existing sources of production instead of increasing capital intensity
Europe has turned a corner: Trichet
European Central Bank president Jean-Claude Trichet says economy back on track; slower growth expected despite positive figures in second quarter
Malaysia’s Ibrahim: lawyers instrumental in developing Islamic finance
Bank Negara Malaysia deputy Muhammad bin Ibrahim thanks legal fraternity for role in developing Islamic finance
IMF’s Min on Fund’s role in safeguarding systemic risk
Dominique Strauss-Kahn's special adviser Min Zhu highlights excess liquidity, international interest rate differentials and systemic risk as future issues
New Turkish notes spark spike in printing costs
Central Bank of Turkey’s Annual Report shows improved lira notes caused banknote manufacture costs to leap by more than half; governor Durmuş Yılmaz praises inflation targeting framework
Greece passes first hurdle of bailout programme
European-IMF review of Greek economic programme says country is on track to receive second tranche of funds
CIC denies interest in UK football club: reports
Chinese sovereign wealth fund refutes suggestions that it is funding a bid to buy Liverpool Football Club
Ageing to drive down asset prices
Bank for International Settlements research says demographic trends will reduce house prices significantly
Barbados’ Worrell urges rethink on economic assumptions
Researchers “rushing down a path to irrelevance” says DeLisle Worrell
Buba: German household investments strengthen
Bundesbank financial accounts showed households’ financial assets gained for fourth consecutive quarter while debt declined
BIS: cross-border flows shaped by global and country specific factors
Bank for International Settlements study shows global and country specific risk factors explain cross-border bank flow patterns
RBI drastically cuts deputy governor Chakrabarty’s role
Reserve Bank of India removes five of deputy governor Kamalesh Chakrabarty’s nine portfolios; move linked to Chakrabarty’s out-of-turn comments on monetary policy
Pakistan set to appoint new governor in coming weeks
State Bank of Pakistan says new governor must be in place by beginning of September, but no frontrunners yet
Singapore slaps biggest bank with extra capital requirements after technical glitch
Monetary Authority of Singapore censures DBS and imposes additional capital requirements after technical failure caused bank’s services to shut down in July; fault pinned on poor risk oversight