Banks
Precautionary price stickiness: Bank of Spain paper
Bank of Spain working paper uses two models to assess price setting
G-20 commits to ‘strong and co-ordinated’ response to challenges
G-20 answers calls for united action; countries commit to implementing credible fiscal consolidation plans, and ensuring strong, sustainable and balanced growth
Developing country representatives lament poor banking oversight
Intergovernmental Group Of Twenty-Four On International Monetary Affairs And Development says IMF surveillance of financial institutions is scuppered by weak implementation framework and practices
HKMA’s Chan happy with pace of renminbi internationalisation
Norman Chan accepting of need to test the offshore market with step by step internationalisation of renminbi; urges banks to get ready for trade using Chinese currency
Target2 offers useful liquidity monitoring tool: Netherlands Bank paper
Netherlands Bank study says Target2 payments systems can identify early signs of bank illiquidity
Getting ready for Vickers
Roger Alford an emeritus reader in economics at the London School of Economics takes issue with the core of the British banking system reform
Risks to Korean banking sector have declined: IMF paper
Fund study says Korean banks face less financial and contagion risk since the financial crisis
Kazakhstan reports large decline in credit card fraud
National Bank of Kazakhstan says there was a 25.4% decline in credit card fraud cases in 2010
Riksbank increases outreach efforts
The Riksbank is increasing surveillance of funding markets and interbank markets; talks intensify with domestic banks and other central banks
Banks' funding profiles can indicate future defaults: IMF study
Fund study shows banks' funding profile is a useful predictor of likelihood of bank failure
Asymmetric information amplifies borrowing costs: BIS paper
Bank for International Settlements study shows that higher spreads are charged to syndicates due to asymmetry of information in loan markets
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
LOLR creates incentive for banks to over-leverage: Netherlands Bank paper
A Netherlands Bank study finds central banks’ lender-of-last-resort function motivates banks to take on excessive risk
The new environment facing sovereign investors
Post-crisis, SWFs meet with less official resistance to investment, but markets are trickier and stakeholders no less demanding, writes Donghyun Park
Brazilian reserve requirements inefficient liquidity tool: Fed paper
Federal Reserve study says reserve requirements failed to provide adequate liquidity provisions in Brazil
MAS’s Lim reviews universal banking model
Monetary Authority of Singapore deputy chairman Lim Hng Kiang debates strengths and risks of universal banking model
Toxicity Index levels rising: RBI report
Reserve Bank of India June 2011 Financial Stability Report finds evidence that exposure to inter-bank distress is creeping upward
Prudential rules ease procyclicality of bank lending: IMF paper
Fund study says rules to lower capital adequacy ratios offer relief to banks and distressed borrowers facing shocks
Governments free-ride US bailout: National Bank of Austria paper
National Bank of Austria study says spillover effects of banking crisis provide an element of free-riding for some countries
Sweden’s Nyberg calls for reform to dollar funding
Riksbank deputy governor Lars Nyberg raises awareness on overdependence of banks on central bank reserves for foreign currency
Resolution regimes offer second line of defence: Sweden’s Ingves
Riksbank governor Stefan Ingves says resolution regimes should supplement macroprudential policy
BIS paper highlights change in bank-lending channel
Bank for International Settlements study shows shift in drivers of bank-lending channel in European and United States pre-crisis
Ex-Italy governor should face prison, says prosecutor
Italian prosecutor demands three-and-a-half year jail sentence for former Bank of Italy governor Antonio Fazio’s alleged involvement in failed Banca Nazionale del Lavoro takeover
Albania’s Fullani emphasises importance of stress tests
Bank of Albania governor Ardian Fullani calls for more attention to stress tests as part of central banks’ macroprudential policy