Banks
BIS researchers use profit-elasticity method to measure China bank competition
Working paper finds competition has increased among China's banks; new PE indicator produces result consistent with financial sector reform
BIS paper weighs up early-warning indicators
Working paper examines which indicators are most effective at foreshadowing banking crises; uses a new statistical method based on particular policy requirements
Euro area bank lending restricted by sovereign debt exposure, say DNB researchers
There is a direct link between deteriorating creditworthiness of foreign sovereign debt and lending by banks holding such debt, according to a working paper from the Dutch central bank
Fed proposals seek to shine light into money markets
Proposals for daily data reporting by a panel of 155 banks aim to improve the Federal Reserve's ability to supervise shadowy money markets
Bank of Italy paper finds women directors improve bank governance
Researchers find that women on bank boards tend to reduce the riskiness of investments, which they say is potentially both an argument for greater gender balance and a factor behind discrimination
IMF paper weighs effect of shifting bank funding in eastern Europe
Researchers from the International Monetary Fund find banks rebalancing their funding sources away from foreign loans; warns global regulation may make this process too rapid
BoE’s Tucker sketches ‘richer’ capital accord
Paul Tucker gives a vision of what an ideal capital accord might look like in future including greater use of CoCos and longer-term debt; stresses this would still not remove the need for supervision
FDIC chief economist highlights factors behind community bank failure
Richard Brown says community banks play a ‘crucial role’ in the US financial system; presents research identifying common factors behind those that failed during various financial crises
National Bank of Denmark tells smaller banks to strengthen their positions
Financial Stability Report for 2013 reveals that while the five nationally systemic banks have plenty of capital, some smaller banks are found wanting
IMF paper proposes ‘more ambitious’ benchmark design
Working paper calls current benchmark designs ‘a legacy from history’; proposes own design to better represent actual wholesale funding costs
Bank of Greece report optimistic that banking sector has ‘weathered the storm’
Monetary policy report for 2012-13 says confidence is gradually returning as banks make repairs, deficits are reduced and the stabilisation programme remains ‘well on track’
RBI executive director sees emerging threats to Indian banking
Deepak Mohanty warns of problems on the horizon, including deteriorating asset quality, high interest margins and the need to build capital buffers
RBI’s Chakrabarty fleshes out plans for risk-based supervision in India
Deputy governor examines pre-requisites for effective risk-based supervision as central bank prepares ‘phased migration’ to the new approach
VocaLink: Seven-day account switching set to shake up UK banks
Chris Dunne says UK payments are undergoing important changes that could see ‘economic battle' between banks; expects closer scrutiny of infrastructure by regulators
NY Fed paper assesses risk of fire sales in tri-party repo markets
Staff report finds limited tools are available to reduce the damage from pre-default fire sales but says there are no options currently available once a default has occurred
Bundesbank paper finds some banks can improve stability via income diversification
Discussion paper says move into non-interest income sources stabilises smaller and more retail-orientated banks, but destabilises investment banks
Bundesbank paper examines dynamics of crisis repo funding
Discussion paper finds changing pattern of fund management during global financial crisis, as ability of parent banks to protect subsidiaries dwindled; signals importance of strong capital base
Netherlands Bank highlights ‘major risk’ of European crisis escalating
Financial stability report says danger from European debt crisis still looms large; warns of longer-term risks including addiction to low interest rates and incomplete banking union
Fed demands more detailed 'living wills'
Federal Reserve and FDIC request additional information on risks that could derail resolution plans for largest bank holding companies, including issues of international co-operation
French paper warns of banks precipitating crises through hoarding
Research develops new ‘domino effect’ model, examining how banks may bring about crises by attempting to protect themselves
Disjointed regulation could spell end of global banking era
Report says global banks must move faster with reform if their global operations are to weather the 'balkanisation' of financial markets caused by mismatching regulation between jurisdictions
Zimbabwean governor attempts to stem panic as StanChart faces closure
Gideon Gono tells depositors not to withdraw their savings following a government announcement that Standard Chartered will be shut down for non-compliance with indigenisation laws
Zambian governor targets Muslim banking expansion
Michael Gondwe says the economically valuable Muslim community is shunning the use of commercial banks due to lack of appropriate products; proposes banking expansion
Fed tightens rules for retail forex banking
Federal Reserve publishes final rules for banks engaging in foreign exchange transactions with retail customers; includes requirements for risk disclosures, good conduct, capitalisation and margining