Debt
Chinese finance minister Lou Jiwei on local government debt and tax reform
Minister of finance Lou Jiwei talks about fiscal policy under China's 'new normal' and how the country plans to tackle spiraling local government debt
Riksbank paper measures impact of debt-to-income limits
Report weighs the costs and benefits of debt-to-income limits, finding they can be effective in tackling debt and are likely to have a ‘relatively small’ macroeconomic effect
Assessing risks from household debt is a complex task, Riksbank study finds
Economic commentary says risks in household sector seem high, but assessing them properly depends on a host of factors that keep changing and data that may not be available
Riksbank launches streamlined financial stability report
Shorter, more focused report aims to send clearer message to readers; follows close on the heels of a redesigned monetary policy report
RBNZ targets Auckland with new macro-prudential plans
Central bank wants to impose stricter macro-prudential rules on lending to property investors in Auckland; will also force banks to hold more capital against those loans from October
Serbia cuts rate amid IMF call for action on debt overhang
National Bank of Serbia cuts rate for third straight month, as IMF warns dangers may lurk beneath robust overall debt position
Currency shifts could create ‘dilemma’ for Asian economies
IMF regional economic outlook warns policy-makers could face an ‘uncomfortable trade-off’ between external competitiveness and financial stability
Legal questions force Swedish FSA to scrap amortisation rule
Financial Supervisory Authority suspends its plan to force households to pay down their mortgages over time in response to doubts over its mandate; Ingves says policy still needed
Greece raids local authorities for cash as repayments loom
Local authorities instructed to transfer cash balances to treasury accounts at the Bank of Greece; Constâncio says default would not ‘automatically’ push country out of the eurozone
Dallas Fed studies debt impact on exchange rate fluctuations
Countries that are most vulnerable to a sudden shift in capital inflows and a sudden fall in the capital account have ‘a large stock of net non-foreign direct investment external liabilities’
Risks in commercial property have fallen, RBNZ research finds
Article in latest RBNZ bulletin finds less leverage is being used to fund new purchases and developments, while market is showing signs of a ‘robust’ recovery
Carney: BoE ‘nowhere near’ exhausting macropru tools
Governor says Bank of England has ‘some way to run’ in terms of both the number of tools and options for calibration; debates debt levels on panel at Bundesbank conference
Irish deputy encouraged by NPL progress
Cyril Roux says banks have improved their distressed debt operations but warns it will take several years to work though the stock of commercial NPLs still outstanding
RBA research sets out stress test for households
Model emphasises dangers of relying on aggregate measures of household indebtedness when assessing financial stability and setting monetary policy
IMF research looks to jumpstart market for Italian NPLs
Nadège Jassaud and Kenneth Kang discuss their strategy for fostering a market for non-performing loans with Central Banking, stressing the need for ‘decisive action’
NBER paper finds shareholder protection dampens crises
Stock markets provide emergency source of funding during banking crises, and the shock-absorbing effect is stronger if shareholders are better protected, working paper finds
Irish central bank steps up macro-pru communication
Central Bank of Ireland finalises restrictions on mortgage lending; measures feature some relief for first-time buyers following consultation process
Average debt ratio for Swedes with mortgages rose to 315% in 2014
New data from the Riksbank shows Swedish households, especially wealthier ones, increased their debt burden between July 2013 and July 2014
BIS paper argues debt overhang is ‘leading cause’ of sluggish growth
Paper by Stephanie Lo and Ken Rogoff finds debt overhang is the main factor behind countries struggling to recover from crisis, but high leverage may obscure other factors at play
Syriza reaction: Exit fears overblown but bitter struggles to come
Economists respond to Greece’s new Syriza-led coalition government with mixed feelings, but see an exit from the euro as unlikely despite the coming north-south confrontation
BoJ paper outlines enhancements to flow of funds data
Review paper details improvements to flow of funds accounts statistics in Japan introduced since the global financial crisis, and identifies a number of trends that have emerged
G-20 summit delivers agreement on TLAC
Leaders approve standard for total loss-absorbing capacity, but consensus on cross-border cooperation remains hazy; Carney looks ahead to next phase of reforms
BIS' Caruana warns a debt trap 'looms large'
BIS general manager laments lack of analytical framework for dealing with ‘interplay' between finance and the real economy
Fears surface over lack of trust among resolution authorities
Countries still do not trust one another enough to cooperate fully during the resolution of a globally systemic bank, participants at Chatham House event warn