Risk
IMF paper examines financial intermediation costs in low-income countries
Working paper considers causes of high financial intermediation costs in low-income countries; finds that lack of competition and various bank-specific factors lead to high costs
BoE’s Broadbent examines rising cost of capital
External member of the Bank of England’s Monetary Policy Committee considers causes of rising capital costs; suggests fear among investors of ‘extreme outcomes’ in eurozone
BoE paper investigates banks’ implicit subsidies
Paper discusses models for attempting to quantify implicit subsidy available to banks via government bailout; estimates range from £30 billion to £120 billion
Riksbank survey gauges Swedish risk perceptions
Survey by the Riksbank assesses participants’ perceptions of risk in Swedish financial system; finds limited optimism tempered by uncertainty over eurozone problems
IMF paper analyses savings and investment response to shocks
IMF researchers study response of savings and investment to income shocks; find high volatility of permanent shocks creates “volatility trap”
Central Bank of Colombia paper evaluates CrashMetrics risk estimation
Researchers examine CrashMetrics risk estimation methodology; find it makes better predictions during crises than traditional stress tests
BIS paper examines macro-prudential models and tools
Working paper considers the effectiveness of macro-prudential models in understanding the role of the financial sector in relation to the real economy
Colombia central bank co-director discusses crisis
Carlos Gustavo Cano considers causes of financial crisis; emphasises importance of using macro-prudential tools to prevent asset bubbles and calm investors
Bank of Russia reports solid financial stability in 2011
Financial Stability Review paints good picture of Russian economy in 2011; details steps taken to ensure continued stability
IMF paper evaluates credit risk assessment methods
Working paper compares cumulative accuracy profile and receiver operating characteristic analysis methods for evaluating credit risk
MAS assistant managing director discusses importance of market research
Jacqueline Loh highlights benefits of increased financial research for Asian economies; says risks associated with investing in Asia can be mitigated by enhanced information-gathering
Reserve Bank of New Zealand’s Spencer outlines macro-prudential initiatives
New Zealand central bank deputy governor outlines macro-prudential policy initiatives and says the reserve bank expects to take the lead on implementation
King admits BoE should have done more to prevent banking crisis
Bank of England governor says central bank should have done more to prevent crisis despite its limited powers to act; says new resolution mechanism will not work for global banks
Fed’s Tarullo laments delays in shadow-banking reform
Federal Reserve’s Daniel Tarullo hits out at slow speed of money market and repo market reform; urges debate on functions that ‘shadow banks’ should perform
Riksbank report calls for creation of kronor bond portfolio
Sveriges Riksbank research advises central bank to acquire a portfolio of assets held in Swedish kronor as part of 'toolkit' to help achieve long-term financial stability
RBI’s Sinha calls for enhanced regulation of microfinance
Reserve Bank of India deputy governor calls for greater regulation of the microfinance sector; says there has been a "significant downturn" in the sector's prospects
IMF research investigates impact of asset prices on credit growth
IMF working paper examines the impact of asset prices on credit growth; concludes monetary policy should consider the impact of asset price movements
Banque de France study examines bank loan portfolio management behaviour
Banque de France working paper examines relationship between a 'competitive investor' and 'commercial banks' in relation to long-term loan portfolios
SNB research examines spillover risk in international equity portfolios
Swiss National Bank study finds sector and currency risk attributable for majority of spillover risk in international equity portfolios
Renminbi could be adopted into SDR by 2015, says CentralBanking.com panellist
Latest Central Banking On Air debate asks if reserve mangers should invest more in emerging markets; panellists believe renminbi will be adopted as part of SDR with just the timescale in question
ECB’s Financial Stability Report highlights need for cross-border co-operation on OTC derivatives supervision
Global nature of the OTC derivatives market and risks of regulatory arbitrage cited as reasons for need to adopt cross-border and cross-sector approach to regulation
Bank of Lithuania survey shows improvement in mortgage arrears
The level of mortgage arrears has improved in Lithuania as debtholder sentiment improves, according to central bank survey
BIS research finds greater data sharing needed to monitor systemic risk
Bank for International Settlements working paper says more data sharing is needed at individual bank level to better monitor systemic risk
CPSS and Iosco set out central bank responsibilities for FMIs
CPSS and Iosco issue new standards for financial market infrastructures; include core responsibilities for central banks and other supervisory bodies