Banks
Quick action needed to tackle housing busts – RBNZ paper
Paper studies housing busts around the world and how best to respond to them
Fed finalises new market benchmarks
Three transaction-based alternatives to US dollar Libor will launch in 2018
FCA mulls use of AI to tackle money laundering
Crime unit head says the financial regulator views machine learning as a complement to human judgement, not a replacement
IMF warns Chinese banks are undercapitalised
The IMF report highlights the insufficient capital of Chinese banks, conflicting tensions of growth and stability, and the financial system’s complexity
Fed proposes sharing more information about stress tests
Proposal includes insights about how the regulator estimates hypothetical losses
Basel III changes set to create big winners and losers
Capital hit for G-Sibs ranges from 28% drop to 43% jump, quantitative impact study reveals
BIS paper examines how banks use credit default swaps
Banks use CDS for position taking as well as insurance, but there is little evidence of their use to circumvent capital rules
Flexible exchange rates vital to autonomy – Mexican deputy
Flexible exchange rates should not be abandoned in times of stress, says Guzmán, encouraging policymakers to increase the efficiency of frameworks
BoE seeks to enhance stress-test model oversight
Prudential Regulatory Authority to enforce new stress-test model principles in 2018; smaller banks asked to tailor them to their operations
BoE warns high court of insurance Brexit fallout
UK central bank expects number of insurers filing court claims to be three to five times the “normal level” following Brexit
Russian central bank closes two more banks for malpractice
Smaller banks will be able to operate with “basic licences” from 2018, Nabiullina says
Asian banks vulnerable to fintech disruption, report finds
Banks reliant on transaction fees will struggle to compete with fintech firms who will offer cheaper alternatives; banks in HK, Korea and Singapore all at risk
Instant payments crucial to stop crypto disruption – Mersch
ECB board member reiterates concerns around viability of crypto-currencies, while encouraging banks to adopt instant payment networks
Bank Indonesia expands reserves averaging mechanism
Bank Indonesia to extend the scope of its reserve requirement averaging mechanism to include foreign currency and Islamic banks
Swift warns of greater cyber threats as security control deadline nears
Customers have until December 31 to implement 16 mandatory controls
Cocos lower banks’ funding costs – BIS paper
Mechanical triggers and equity conversion strengthen cocos’ impact, paper finds
RBNZ eases housing market restrictions
New government’s policies should “dampen” housing market pressures, acting governor says
Central Bank of Myanmar retreats from stricter loan rules for banks
CBM loosens regulations on overdraft facilities in response to market concern
Most UK banks withstand ‘disorderly Brexit’ stress tests – BoE
Majority of banks unfazed by tests “more severe than the financial crisis”, but a few struggle with lingering issues
Libyan PM calls for unification of country’s central banks
Eastern branch functions as separate central bank and issues Russian-made currency
Banks hit back at RBNZ macro-prudential proposal
RBNZ’s proposed debt-to-income limits criticised by commercial banks, which question methodology and claim measure would increase financial instability
Some eurozone banks must reform audits – ECB supervisor
Boards do not always pay enough attention to audits, says Pentti Hakkarainen
EBA announces move to Paris
The decision will guarantee the “seamless continuation” of its activities, says EBA