Risk
BIS paper asks what makes emerging market banks profitable
Both bank-specific and economy-wide factors affect banks’ profitability, authors find
Fed proposes expanding risk regime to foreign subsidiaries
New consultation suggests widening the scope of the August 2017 proposals to foreign-owned operations
Complex instruments still pose systemic risks – paper
Discretion granted by financial reporting standards increases opacity and complexity, say authors
Sarb rejects nationalisation plan
Sarb says nationalising the central bank would increase uncertainty in an already “fragile economic situation”
GFXC publishes final word on last look
The Global Foreign Exchange Committee releases the new and final version of Principle 17, and adds two examples to illustrate best practice
Bank Negara Malaysia issues new digital currency regulation
Proposed regulation aims to hold digital exchanges to a higher standard of transparency, while ensuring they identify any AML/CFT risks that may arise
Ukrainian central bank warns over ‘lengthy delay’ to IMF aid
National Bank of Ukraine calls for urgent action on state-owned banks; governor’s post remains unfilled
HKMA offers fast-track model vetting in swaps hub pitch
Streamlined process could take just six months, says official
MAS expands consumer debt management toolkit
New measure caps “unsecured credit” that banks can offer indebted borrowers; it is a “pre-emptive measure”, says MAS official
Reforms helped oil states weather shock – Kuwaiti governor
Governor says banks may not have fared so well without regulatory reforms; he says operational risks rules may need adjustment in face of cyber attacks
Central banks and supervisors launch green finance group
Seven central banks and two supervisory authorities found network to tackle climate risks and promote green finance
Policymakers need wider range of systemic risk models – paper
Researchers attempt to combine systemic importance and systemic risk approaches
Paper: foreign fund inflows raised US pre-crisis risk-taking
The Bank of Italy paper correlates data on foreign inflows with four indicators of risk
Basel III changes set to create big winners and losers
Capital hit for G-Sibs ranges from 28% drop to 43% jump, quantitative impact study reveals
Mario Draghi confirms Basel III is complete
Governors and heads of supervision grant final approval to the amended Basel III framework, but the parties fail to agree on sovereign asset treatment
Richmond Fed appoints McKinsey executive its next president
Tom Barkin will serve as a full FOMC member as of 2018
UK debt could be a stability risk, says BoE’s Sharp
FPC member goes against advice for central bankers to “stick to their knitting” and discusses how fiscal policy could impact BoE’s financial stability work
Bank of Mexico cuts growth forecasts for 2017 due to earthquakes
Renegotiation of Nafta is main downside risk for economy, outgoing governor Carstens says
Turkish central bank takes action over falling currency
Rate rises are very likely, and the Turkish president’s actions are key, says observer
‘Paradigm shift’ needed for S Korea, warns IMF paper
Authors say “big push” is needed toward implementing social protection and “greater” economic freedoms
Some eurozone banks must reform audits – ECB supervisor
Boards do not always pay enough attention to audits, says Pentti Hakkarainen
China takes fresh steps to rein in financial sector risk
Five regulators jointly release standardised rules on asset management products
EBA releases guidelines for internal model risk parameters
Revisions aim to strike a balance between comparability of models and risk sensitivity, says EBA