Risk
Fed's governance structure should be revisited
The conventional model of central bank independence may need to be revisited given the unprecedented expansion of the Federal Reserve's balance sheet, new research from the International Monetary Fund notes.
Plosser joins district criticism of Fed
Charles Plosser, the president of the Reserve Bank of Philadelphia, added his voice to a growing chorus of discontent from regional banks over the policies of the Washington-based Federal Reserve Board.
Bank may extend support operations
Paul Tucker, deputy governor of the Bank of England said on 28 May that the Bank might give permanent form to some of the programmes it created specially during the financial crisis.
EU to implement De Larosiere group's proposal
The European Commission has proposed a raft of ambitious reforms to the region's supervisory framework, building on guidelines set out in the recent De Larosiere report.
SARB's Mboweni: flight to quality ironic
Tito Mboweni, the governor of the South African Reserve Bank, said it was ironic that capital was now flowing back to the United States, the source of the current crisis.
Bernanke defines macroprudential approach
Ben Bernanke, the chairman of the Federal Reserve, on Thursday detailed how a macroprudential approach to regulation would look.
Systemic rules a key challenge: Fed's Rosengren
Some of the most challenging issues on the regulatory agenda surround the role and powers of the institutions charged with systemic regulation, Eric Rosengren, the president of the Boston Federal Reserve, has said.
Research puts a price on systemic threat
Research from the Bank for International Settlements (BIS) estimates that the cost of insuring against steep losses at major American banks had increased to up to $250 billion as of July 2008.
A new method for evaluating risk aversion
Researchers from the European Central Bank have uncovered a new method of extracting time-varying risk aversion from asset prices.
Risk management to include parameter uncertainty
Risk-management systems should account for parameter uncertainty, a new paper from the Bank for International Settlements posits.
Bernanke: emergency aid will be repaid
The Federal Reserve's support facilities for specific institutions carry more risk than traditional central bank liquidity support, but we nevertheless expect to be fully repaid, said Ben Bernanke, the chairman of the central bank.
Hong Kong's banks' have minimal liquidity risk
Despite a deterioration in liquidity conditions, default risks in the Hong Kong banking system are minimal, new research from the territory's central bank posits.
Canada's Carney: don't cut off banks from markets
Banks should not be divorced from the markets to avoid liquidity problems. Instead the perimeter of regulation should be expanded, said Mark Carney, the governor of the Bank of Canada.
Don't rely too heavily on capital-adequacy models
Supervisors should guard against placing undue reliance on the overall level of capital implied by economic capital models in assessing capital adequacy, a new paper from the Bank for International Settlements posits.
Geithner outlines regulatory overhaul
Tim Geithner, the US Treasury secretary, sounded the knell of light-touch regulation on Thursday, outlining a reform agenda that if passed will see a single systemic-risk supervisor clamp down on all financial firms deemed either too big, or too…
ECB's Papademos calls for macroprudential schema
The establishment of a framework for macroprudential supervision is urgently needed, said Lucas Papademos, the vice president of the European Central Bank.
New BoJ discussion paper series launched
The Bank of Japan has published a new issue of its online discussion paper series.
Switzerland's Jordan counters currency critics
The Swiss National Bank's foreign-currency measures should not be misinterpreted as a 'beggar-thy-neighbour' policy, said Thomas Jordan, a member of the central bank's governing board.
SARB's Mboweni advocates common sense
Financial and risk modelling should continue to play a role in future but it should be better balanced by basic business common sense, said Tito Mboweni, the governor of the South African Reserve Bank.
FSA's Sants heralds "supervisory revolution"
Limitations of a purely principles-based regulatory regime have to be recognised, Hector Sants, the chief executive of the Financial Services Authority (FSA), the British industry regulator, has conceded.
Canada's Longworth faults VaR
Methodologies based on Value at Risk (VaR) that are too dependent on short historical samples cause procyclicality, said David Longworth, a deputy governor of the Bank of Canada.
RBI's Gopinath on CRAs
Capital requirements that are based solely on credit ratings will need to be replaced by a more granular and nuanced approach, said Shyamala Gopinath, a deputy governor of the Reserve Bank of India.
Sovereign risk exacerbates procyclicality
The risk premium associated with the possibility of sovereign default plays a key role in the procyclicality of fiscal policy in emerging economies, finds a new paper from the Richmond Federal Reserve.
Bulgaria takes counter-cyclical measures
The Bulgarian National Bank has taken counter-cyclical measures to support its domestic banks.