Credit conditions
Netherlands Bank report urges restructuring of mortgage finance
First meeting of the Netherlands Bank’s Financial Stability Committee endorses action to address risks surrounding high mortgage indebtedness
Bundesbank paper analyses drivers of default risk
Study published by the Deutsche Bundesbank finds systematic factors are responsible for up to a quarter of the differences in the default risk of individual banks' credit portfolios
BoJ research warns of unintended policy consequences from Libor
Working paper says reference rates such as Libor can provide valuable information to markets but may also skew central bank policy-making by adding noise to credit spreads
BoE survey shows businesses credit increased ‘significantly’ in fourth quarter
Bank of England survey finds credit extended to households and the corporate sector increased in the last quarter of 2012
Asmussen stresses importance of institutions for EMU
Member of the Executive Board Jörg Asmussen says genuine financial union and a stronger economic union are key priorities for 2013
Pakistani minutes show weak economy but low inflation
State Bank of Pakistan minutes show low level of private-sector credit and declining foreign investment behind stagnant economy; inflation lower than expected
IMF paper studies SME financing as source of Japanese recovery
Research says restructuring small and medium-sized enterprises and deepening capital markets in Japan would better boost recovery than costly government support
BIS research identifies ways to smooth the financial cycle
Bank for International Settlements working paper designs model of financial cycles and examines the difficulties of reducing the size of their peaks and troughs
Arab Spring countries boast higher credit limits, says Finnish paper
Bank of Finland research shows Middle Eastern and North African countries that experienced uprisings lend more to small businesses
National Bank of Hungary warns of tight lending conditions
Quarterly lending survey finds number of companies with access to credit is falling, with a further squeeze possible when the Hungarian transaction tax feeds through
Fed paper assesses impact of government funding on loan provision
Study by Cleveland Fed examines a US scheme designed to boost lending to low-income but high-quality borrowers
Greece working paper dissects consumer credit
Bank of Greece researchers identify and separate demand and supply factors in Greece’s consumer lending
FSB task force proposes enhancements to risk disclosure
Private-sector task force organised by the Financial Stability Board outlines seven principles designed to improve banks’ risk disclosure, with implementation of some sections to begin immediately
Papua New Guinea governor to tackle high liquidity
Loi Bakani discusses the state of Papua New Guinea’s economy; outlines the risks linked with high levels of fund inflows and how the central bank is addressing them
IMF develops flexible approach to funding to meet drawdowns, annual report says
Annual report says IMF has taken steps to improve the flexibility of funding instruments in face of ‘fragile recovery’; expects continued strong demand for funding
Bank of Greece abandons 9% core capital requirement
Central bank suspends plans to raise core Tier I capital ratio as banks struggle to raise equity and data show contraction in lending continues
Early-warning indicators useful in emerging markets, says Finland paper
Bank of Finland study applies advanced economies' asset price indicators to emerging markets, saying they can be effective with only slight adjustment
Fed paper estimates impact of more stringent bank supervision
Discussion paper studies changes in the stringency of the US bank ratings system ‘Camels’; finds although variation is small, closer supervision leads to a significant decline in lending
Fed’s beige book reveals increased economic activity
US Federal Reserve economic summary reports expanding economic activity in the US; credit conditions said to be improving
Central Bank of Ireland highlights tight credit conditions for SMEs
Economic letter shows rejection rate for small and medium-sized enterprises in Ireland is second highest in eurozone; identifies slight improvement since Q4 2011
Central Bank of Barbados notes strong but static banking sector
Financial stability update shows domestic banking system has sufficient capital to withstand significant losses; says overall credit to private sector remained flat in past year
Bank of Thailand statistics show ‘resilient’ banking system
Figures for second-quarter 2012 indicate strong growth of lending and profits in Thai banking sector; results boosted by continued decline in non-performing loans
Croatian National Bank identifies increasing risks to financial stability
Financial stability report says contagion from eurozone, deleveraging by European banks or collapse of confidence in fiscal sustainability could push Croatia into deeper recession
Cleveland Fed researchers find fault with BoE’s Funding for Lending
‘Economic Trends’ research from the Federal Reserve Bank of Cleveland identifies possible flaws in the Bank of England’s Funding for Lending Scheme; warns of risk to independence