Macro-prudential policy
Book notes: Money in the Great Recession, by Tim Congdon
A stimulating collection of papers on the monetarist theory that had central bankers in late 2008 focused on boosting the quantity of broad money “the Great Recession would not have happened”
Macro-pru tools helped offset taper tantrum – paper
Macro-prudential measures helped reduce the impact on cross-border lending growth, say authors
One big bank falls short of ECB’s capital requirements
One bank falls short and a second comes close, although five banks failed the test in 2016
CNB ramps up financial stability department role
Central bank “elevates” the department in its governance structure to reflect its growing importance; hikes countercyclical buffer amid lending boom
Iran needs financial sector reform – IMF staff
Central bank should have greater independence and supervisory powers, urge IMF staff
Stress tests find vulnerabilities in European pension funds
More than a quarter of institutions could not fulfil their commitments following an adverse scenario
Fed proposes sharing more information about stress tests
Proposal includes insights about how the regulator estimates hypothetical losses
Flexible exchange rates vital to autonomy – Mexican deputy
Flexible exchange rates should not be abandoned in times of stress, says Guzmán, encouraging policymakers to increase the efficiency of frameworks
Implementation of new ECB rules on NPLs may be delayed
Daniele Nouy dismisses criticisms as “myths and misinterpretations”
Large Danish banks fail stress test in 'severe recession' scenario
Central bank warns low rates, higher house prices and stronger growth are building up risk
RBNZ eases housing market restrictions
New government’s policies should “dampen” housing market pressures, acting governor says
Powell to explain policy outlook before US Senate
Nominee set to defend loose policy stance and independence of central bank as new chair
Solomon Islands central bank in contingency planning push
Central bank asks financial institutions to establish boards for crisis management
Banks hit back at RBNZ macro-prudential proposal
RBNZ’s proposed debt-to-income limits criticised by commercial banks, which question methodology and claim measure would increase financial instability
Sweden still needs loose policy – IMF
Elevated house prices, public debt and low wage growth are the biggest risks to the economy
Fernando Restoy looks to realign Basel’s FSI
The Financial Stability Institute chair discusses the prospects for implementing Basel III, the challenging political context and the FSI’s role in it all
RBNZ seeks liquidity and stability with new mortgage bond standard
New Zealand central bank hopes standard will support market liquidity and improve its own risk position
Book notes: The Right Balance for Banks, by William Cline
An interesting analysis of optimal capital requirements for G-Sibs, examining whether Basel III requirements will be enough to stem another financial crisis
SNB’s Jordan defends central bank independence
In contrast to monetary policy, macro-prudential should also be shaped by government
ECB’s Nouy urges banks to complete Brexit plans
Almost 50 banks have approached supervisor to assess their options
Fed’s Quarles wants more transparent and simple financial supervision
Vice-chairman stresses importance of clearly conveying objectives of regulation and supervision
Supervision bolsters monetary policy transmission – Draghi
No sign of housing bubble developing across eurozone as a whole, ECB president says
High debt threatens financial stability in Norway, central bank says
Household debt ratios and rising property prices are the two main vulnerabilities for the system
A new era for the BIS
As Basel III inches towards closure and a new BIS general manager prepares to move into his post, Jaime Caruana talks to Daniel Hinge about his eight years at the helm