Banks
IMF research identifies ‘strong macro-financial linkages’ in eastern Europe
Working paper finds macroeconomic factors closely tied to non-performing loans in central, eastern and southeast Europe; warns of ‘strong feedback effects’ between banks and economy
RBI’s Sinha says good bank governance should reduce need for intervention
Deputy governor sets out Indian corporate governance requirements; says sound corporate practices and regulation should complement one another, reducing the need for supervisors to intervene
Dombret warns national banking systems are too-big-to-fail
Bundesbank’s Andreas Dombret says too-big-to-fail problem extends to whole banking systems; says some eurozone systems could have to be downsized
RBNZ deputy defends bank resolution policy
Grant Spencer insists the Reserve Bank of New Zealand’s resolution policy differs from the controversial Cyprus proposals; says deposit insurance doesn’t prevent bank failures
BoJ researcher finds need for heterogeneous response to credit flows
Working paper shows global common factors account for a ‘quantitatively important’ portion of cross-border credit, but vary between regions; suggests need for tailored policy responses
Robert Pringle’s Viewpoint: Wider lessons of the Cyprus bail-out
The clumsy attempts to resolve a banking crisis in Cyprus underline the need to make more rapid progress on wider issues afflicting much larger financial markets in Europe
Eurozone rocked by Cypriot depositor haircut plan
Markets take a hit, peripheral bond yields rise and commentators raise fears of contagious bank runs as Cypriot parliament debates plans to take 6.75% haircut from ‘insured’ depositors
Icelandic paper finds country's response to banking crisis was optimal
Research by Central Bank of Iceland looks at various alternatives to Iceland’s handling of the 2008 banking collapse, but finds none yield better outcomes than the baseline scenario
Bundesbank paper raises concerns over accuracy of systemic risk measures
Researchers find market-based systemic risk measures may give a façade of safety even as banks enter ‘major tail risks’
Fed stress tests reveal potential for losses of $460 billion
Stress tests show banks would suffer heavy losses if another financial crisis hits, with some hovering very close to the US Federal Reserve’s minimum core capital requirements – and one falling below
National Bank of Slovakia backs controversial law
Slovakian central bank supports draft law to prohibit foreign bank branches from offering mortgage loans; questions over legality of law under EU treaty
Carney says banks should follow the Canadian example in rebuilding trust
Bank of Canada chief says banks – at least those outside Canada – have a long way to go in rebuilding trust, but progress is being made
UK’s Turner says financial fragmentation may not be a bad thing
Chairman of UK FSA says restrictions to cross-border financial flows have important benefits that should be weighed against costs
Draghi backs single resolution mechanism as banking union next step
ECB chief says single resolution authority should be set up when single supervisory mechanism is in place; suggests failure to do so would leave central supervisor toothless
Norwegian governor wary of over-reliance on short-term debt
Øystein Olsen says Norway has weathered recent crises well, but points to possible vulnerabilities in the banking sector and wider economy
Concern in the City over Vickers implementation
Participants at event in the City of London raise varied and numerous concerns about implementing the Vickers proposals in practice
Fed’s Tarullo lays out regulatory priorities for 2013
Federal Reserve governor highlights a number of regulatory efforts planned for the coming year; says US is ahead of its peers in introducing a bank resolution framework
IMF issues reality check on European banking union
Researchers say it could take five years to fully implement banking union in Europe, and warn a piecemeal approach could actually make the situation worse
Bank of Lithuania swoops on troubled Ukio Bankas
Central bank suspends commercial bank’s operations after continual governance shortcomings
RBI deputy wants to make banking a 'fundamental right'
Kamalesh Chandra Chakrabarty champions universal access to basic banking services; says banks’ cost structures are incompatible with the ideal
Visco calls for powers to dismiss bank directors
Bank of Italy governor says the supervisory authority should have the power to remove senior management in banks from their posts
Banks could be forced into Euribor submission
European Commissioner Michel Barnier says banks could be compelled to take part in rate-setting process under new legislation
NY Fed paper highlights money market fund ‘stampede’ risk
Staff report finds intermediation by money market funds can turn unexpected withdrawals into runs, meaning a small shock can bring down the whole banking system
HKMA shores up Hibor-setting mechanisms
Package of measures aims to improve the transparency and robustness of the benchmark rate; UK bank fined $612 million by US and UK regulators over Libor rigging