Macro-prudential policy
Unco-ordinated macro-prudential policies could result in ‘capital war’, says BoJ paper
Johns Hopkins professor argues that, absent any co-operation, countries across the globe will implement macro-prudential policies in a manner ‘reminiscent of an inefficient arms race’
Ingves calls for consistency in risk weights for credible capital ratios
BCBS chair says underlying differences in risk drive lion's share of risk-weight variations, but some arise from supervisory and practice-based idiosyncrasies
Central banks must lean against boom and bust to retain credibility, says Borio
A more symmetrical response to booms and busts is required to leave policy-makers with the ammunition and credibility to tackle them, says top BIS economist
Riksbank worries over fallout from ‘sharp corrections' in house prices
Swedish households' interest-rate expectations guided by current levels rather than projections, recently published document finds; Lars Svensson calls findings potentially ‘biased and misleading'
Turkish banks 'sound' despite 'significant increase' in non-deposit funding, central bank says
Lenders' asset quality and capital adequacy high enough to withstand shocks according to new financial stability report; liquid FX assets cover 'half' of sector's short-term external debt
Riksbank board grappling with ‘genuine policy dilemma'
Minutes show last month's cut in interest rate was preceded by considerable apprehension, with one board member describing it as his ‘most difficult' decision to date at the central bank
Bernanke looks back on his time at the top
Fed chairman, who steps down on February 1, offers his take on an array of issues, including the long-term implications of asset purchases, central bank accountability and financial stability reforms
Macro-prudential and fiscal co-ordination could pay big dividends, IMF staffers say
International co-ordination of macro-prudential and fiscal policies would have a far greater effect than the literature predicts for internationally co-ordinated monetary policy, paper shows
SSM offers best chance of successful regulation, says Cyril Roux
Irish regulator-in-chief says supervisory authorities suffer from in-built weaknesses that the SSM may go some way to overcoming
Reserve Bank of New Zealand looks to ramp up ‘alternative' communication
RBNZ doubles down on speeches and alternative media channels such as videos and infographics to cut through post-crisis ‘noise'; follows Riksbank's communication strategy overhaul earlier this week
Norges Bank issues ‘secret' advice on prudential regulation
Norwegian finance ministry will publish central bank recommendations on countercyclical buffers only once it has decided whether or not to follow the advice; bank holds interest rates at 1.5%
Sveriges Riksbank calls for higher risk weights on mortgages
Central bank's latest financial stability report supports regulatory proposal to raise minimum amount of capital banks must back up housing loans with from 15 to 25%
Brazil’s Tombini says ‘we still do not fully understand’ macro-prudential tools
Governor of the Central Bank of Brazil warns that limited understanding of new policies presents ‘significant communication challenges’ for central banks
Monetary policy is the incorrect tool to curb asset bubbles
There is no evidence the use of monetary policy in Sweden to keep household debt in check actually works. Such a policy only undermines employment and results in the Riksbank breaching its mandate
Lautenschläger enunciates Buba's macro-pru approach
Focus on individual banks must be complemented by efforts to stem 'pro-cyclical' tendencies of the financial system as a whole, says Bundesbank deputy
NY Fed researchers study how, and how not, to co-ordinate policy
Staff report looks at best ways to co-ordinate monetary and macro-prudential policy, and highlights a number of potential pitfalls; model suggests macro-prudential policy should lead
Norges Bank governor heralds countercyclical capital buffer
Øystein Olsen says 'primary purpose' of prudential tool is increasing banks' resilience as systemic risk increases; buffer will vary between zero and 2.5% of risk-weighted assets
Portugal governor: banks are stronger now than pre-crisis
Bank of Portugal's Carlos da Silva Costa argues stringent capital requirements 'well above the EU 8% benchmark' are starting to pay off; banks' average loan-to-deposit ratio was 123% in June
ECB's Cœuré urges eurozone to take lessons from Asia
Executive board member says governments' response to the Asian financial crisis, including overhaul of domestic financial sectors, made for painful adjustment but swift recovery
Netherlands Bank says macro-prudential tools have ‘added value’ in currency union
Dutch central bank points to national and regional benefits of macro-prudential policy; says the ECB’s ability to intervene in an individual country’s policy will help counter the ‘inaction bias’ of policy-makers
Bundesbank's Lautenschläger raises leverage ratio concerns
Introducing the leverage ratio as the primary regulatory requirement would mean taking two steps back to the risk-insensitivity of Basel I and even beyond, Bundesbank deputy president argues
Bundesbank warns over surge in German property prices
House prices in the country's biggest cities are up more than a quarter since 2010, as investors search for yield amid record low interest rates; lack of supply also plays a role, says new study
Buba paper: Banks with volatile loan demand load up on wholesale funds
Bundesbank discussion paper argues ‘loan uncertainty' not only result but determinant of wholesale funding, implying regulatory cap on wholesale funding increases exposure to ‘asset-side shocks'