Capital
Basel Committee seeks feedback on streamlined version of Basel III
Sprawling array of PDFs was getting difficult to handle, committee says; some elements have been trimmed and ambiguities removed
Risk management worsened in 2018 at large EU banks – ECB
Supervisory review of EU banks shows fall in quality of governance, but no rise in funding risks
The IFF China Report 2019: New globalisation – The path to the future
Multilateral rules and multilateral bodies will need to be upgraded in the coming years to better represent the shift in economic gravity towards Asia, which has emerged as the largest contributor to global growth during the past decade.
BoE to improve supervision in light of bank’s near-collapse
Report on the Co-op Bank’s near-failure warns ‘open banking’ could throw up new systemic risks
Bank capital ratios fall for first time since 2011
Basel monitoring report finds declines in both risk-weighted capital and leverage ratios
Should central banks be more aggressive on climate change?
Discussion weighs up whether central banks should take more drastic action via monetary policy channels, but some warn they may overreach
BoE official warns of Brexit investment impact
Investment is unlikely to bounce back to pre-Brexit levels, Haskel says, regardless of whether a deal can be agreed before the deadline
Fed IOER amendment aimed at ‘thwarting’ The Narrow Bank
The move appears to specifically target The Narrow Bank’s business model, the firm says
Spanish governor de Cos now leads Basel Committee
Stefan Ingves steps down as chairman after nearly eight years in the role
Regulators must not be too strict in a crisis – BIS paper
Cyclical capital requirements should account for downturns as well, author argues
Foreign banks expect Fed proposal imminently
New framework for tiering foreign bank requirements could come as early as this week
Buffers should not be rebuilt too quickly – Bank of Canada paper
Requirements should be lower during crisis recovery to avoid bank default, researcher argues
Climate change: a new challenge for financial stability?
Do climate change and the transition to a low-carbon economy pose a risk to financial stability? What is the role of central banks?
Philippine central bank handed new stability powers and mandate
Act removes money supply and credit as determinants for monetary policy in addition to granting central bank broader supervisory scope
The Brexit conundrum
The Bank of England has only limited room to respond to a hard Brexit
IMF prepares to overhaul its financial surveillance
Fund agrees with IEO report that there is much room for improvement, but budget remains an issue
For-profit CCPs may not hold socially optimal capital – BIS paper
“For-profit CCPs have incentives that are misaligned with financial stability,” author says
FSB publishes annual work programme for first time
Priority is to address new vulnerabilities, while finalising, implementing and evaluating reforms
Data overhaul needed to enhance insolvency frameworks – IMF
Paper highlights the importance of data in analysing efficiency of current resolution policies
Central bank of the year: Monetary Authority of Singapore
Singapore’s central bank stands out for its pioneering fintech efforts combined with its consistency of performance in monetary policy, financial stability and supervision
Capital requirements impact collateral demands – BoE paper
Higher capital requirements can make banks demand more collateral, authors find
IMF endorses Hong Kong’s tight macro-prudential measures
But risks to the outlook appear to be building, the fund says
PBoC denies that new liquidity tool is a ‘form of QE’
Central bank bills swap is essentially quantitative easing, says one analyst
Tighter US capital ratios eased inequality – Bundesbank paper
Richer households’ incomes fell while Fed’s easing cushioned effects on middle and low earners