Risk
NY Fed paper proposes two-tier capital model
New York Federal Reserve study suggests creating a two-tier capital model to solve leverage conflicts
‘Disquieting developments’ in ETFs warrants attention: FSB
Financial Stability Board warns of potential issues arising from recent trends in exchange-traded funds (ETFs)
Risk management reforms a work in progress: IIF survey
Institute of International Finance survey says further progress on risk management reforms necessary; calls for more work to promote appropriate risk culture
Greek debt still the most risky: CMA survey
CMA labels Greek sovereign debt as most risky in the world, second quarter in a row; countries elsewhere in Western Europe performed the best
Risk Europe: no-go on CoCos, says panel
Traditional investors won't be won over by debt that converts into equity, says conference panel - and one CoCo issuer raises threat of feedback effects
Korea’s Kim on clash in balance of risks
Bank of Korea governor Choongsoo Kim says combination of strong upside and downside risks makes policy task increasingly challenging
An overemphasis on risk models was the key flaw in the regulatory architecture
Risk models are useful for banks’ risk managers, but regulators should beware, Brandon Davies notes
Bank of England - Payment Systems Oversight Report (March 2011)
Bank of England’s March 2011 Payment Systems Oversight Report says further steps could be taken to reduce risks in UK payment systems
ECB’s González-Páramo calls on central banks to reinvent risk strategies
European Central Bank executive board member José Manuel González-Páramo says central banks must re-think their risk management framework; moots new toolkit
Central Bank of Chile paper links instability to austerity
Central Bank of Chile study finds positive correlation between austerity and instability in Latin American countries
Monetary policy impacts credit risk: CEPR paper
Centre for Economic Policy Research study examines impact of monetary policy on bank riskiness
EBA plans new round of stress tests
New European Banking Authority announces second round of stress tests for European banks at opening meeting
MBS purchase programme sent strong signal to mortgage market: Fed paper
Federal Reserve study says mortgage-backed security purchase programme had strong signalling effect on mortgage bond market
Rise in income tax can boost growth: Fed study
Federal Reserve research shows increase in capital-income tax can provide insurance against investment risk and raise overall welfare
BoE: seniority claims good indicator of default
Bank of England study shows claims by senior debt holders a good measure of future default risk
Irish banks’ pay reforms inadequate: central bank
Central Bank of Ireland says banks’ remuneration policies are not sufficiently aligned with risk management strategies
Risks to Swedish markets have not abated, says Riksbank survey
Riksbank's autumn 2010 risk survey shows more than half of market participants believe markets in Sweden have not normalised
BoJ: liquidity strains alter investor behaviour
Bank of Japan study shows investors sell or buy a liquid asset more quickly in distressed environments
Canada calls for holistic approach to regulation
Bank of Canada study says regulators must consider capital, liquidity and short-term liabilities jointly when addressing systemic risk
IMF: stricter ring-fencing creates greater incentive to build capital buffers
Fund study shows that policies to employ stricter ring-fencing on bank subsidiaries requires them to hold larger capital buffers
Norway’s sovereign wealth fund makes first property investment
Government Pension Fund Global takes stake in British Crown Estate’s Regent Street portfolio as part of new strategy to better hedge against inflation
St Louis Fed says TAF announcement raised risk premiums
St Louis Federal Reserve study shows announcement of Fed’s Term Auction Facility unintentionally caused market participants to revise upward their expectations of seriousness of financial crisis
BIS investigates drivers in US stock market
Bank for International Settlements study says changes in expected excess returns on dividends main driver of US stock market
IMF: tax hikes increase success of austerity measures
Fund study shows tax rises in addition to spending cuts help reduce public debts more effectively