Capital
Basel Committee moots changes to leverage ratio
Regulation could be amended to mitigate central clearing impact; committee also critical of banks’ “window dressing” behaviour
RBI’s Acharya stresses need for ‘prompt corrective action’
Tool allows supervisors to intervene early and should discipline bank managers, deputy says
BoE to demand senior financiers tackle climate risks
Proposals from PRA would hold senior managers accountable for climate change risks, and capital surcharges may follow
Stress tests are ‘most significant’ regulatory outcome of crisis – Hirtle
New York Fed official says stress tests created “safe environment” for banks to raise capital
BoE calls on EU to act on Brexit stability risks
Failure to act could disrupt $90 trillion of derivatives contracts, central bank warns
Shift to internal models has increased largest EU banks’ risk – Finnish paper
Exposure to market risk of biggest European banks has grown over last 30 years, researchers find
A stressful week: saving the UK banking sector
One frenetic week in 2008 led to the formation of the UK’s modern stress-testing approach
Draghi’s ‘whatever it takes’ cut bank risk-taking – BIS paper
Study examines Mexican markets to pick out effects of the ECB president’s intervention
Supervisory lessons: fault lines in prudential regulation
Former Bank of Spain head of supervision Aristóbulo de Juan highlights the lessons he has learnt about weaknesses in prudential regulation, in the second of a four-part series on supervision
Globalisation becomes more divisive as it advances – Dani Rodrik
Harvard economist says gains from trade may not outweigh redistributive problems
Demetriades on political pressures on central banks and their governors
Former governor of the Central Bank of Cyprus speaks about the Cypriot banking crisis, the need for EU-wide AML oversight, independence and his fears for stability of the monetary union
A decade on: Lehman Brothers at the brink
On September 14, 2008, there remained hope that Lehman could be saved and a crisis averted. Events moved rapidly thereafter
Lender of last resort is not enough, says Geithner
There is a lot of “magical thinking” about what central banks can do, says former US Treasury secretary
RBA’s Bullock: Australia faces large housing risks
Debt-to-income ratio has risen and banks are highly exposed to the housing sector
Fed’s Rosengren sees less room to tackle next recession
Fiscal, monetary and regulatory buffers are not as high as they should be, says Boston Fed president
Automation of financial services poses problem for labour market
Central bankers fear the labour market may not recover as quickly as during previous technological revolutions
An informed approach to banknote security and durability
De La Rue explains how its data consultancy service, DLR Analytics, allows central banks to ensure notes in circulation are secure and durable, and offers value for money in spite of increasingly prominent alternative payment solutions. By facilitating…
Supervisory lessons: management traits of problem banks
Former Bank of Spain head of supervision Aristóbulo de Juan highlights the lessons he has learnt about the management of problem banks and how to stop dangerous activities before they take hold – in the first of a four-part series on supervision
Book notes: Capitalism without capital, by Jonathan Haskel and Stian Westlake
The authors have created a compelling framework to characterise and explain the nature of intangible investments in our economies, writes Michael Reddell, but their conclusions are lacking in analysis and data
Banks ask Fed to delay CECL impact on stress testing
Fed asked not to implement CECL into CCAR until 2021
Capital markets union a la Willie Sutton
When Sutton was asked why he robbed banks, he said: “That’s where the money is.” Europe has yet to address where the capital markets union funding should come from, but there is a solution
Goldman, Morgan Stanley push for stress test changes
Balance sheets will shrink in a crisis, not grow, trading houses argue
IMF backs RBI’s Patel in call for full oversight powers
Fund urges Indian authorities to grant the central bank full powers over public sector banks
FPC better equipped for crisis than FSOC – BoE paper
Paper compares how macro-prudential regulators in UK and US would handle a 2008-style crisis