Systemic risk
HSBC chief identifies four steps to resolve ‘emerging markets’ crisis in Europe
HSBC chief executive Stuart Gulliver believes a European ‘tarp’ plus issuance of eurobonds needed to keep eurozone intact; says Spain and Greece failed to learn lessons from Asian crisis
Ingves says Europe not ready for common regulatory capital rules
Basel Committee chairman Stefan Ingves says Europe lacks necessary common legal powers and mechanisms to standardise regulatory capital treatment; advises Europe against introducing a Tobin tax
Ireland central bank proposes changes to regulatory reporting
Central Bank of Ireland publishes consultation paper on regulatory reporting; proposes move to a new online reporting system
IMF paper quantifies structural subsidies for Sifis
Researchers from the International Monetary Fund estimate value of subsidies implied by expectations of government support for Sifis; find a sizeable cost advantage for these institutions
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
Book notes: Soft Law and the Global Financial System
An explanation of the role of international standards in regulating the global financial system
HKMA strikes a cautious note on territory’s banking sector
Hong Kong Monetary Authority concerned about continued credit expansion in the territory and contagion risk from the European sovereign debt crisis
IMF discussion note calls for 'bail-ins' for resolution of Sifis
International Monetary Fund discussion note explores the potential for ‘bail-ins’ to resolve problems posed by systemically important financial institutions (Sifis)
Fed names academics on 2012 model validation council
US Federal Reserve names academic economists that will provide independent advice regarding models used in annual stress test of major banks and financial institutions
BoE's Tucker: FPC capital powers 'won't be popular'
Attendees at ACT conference raise concerns about increased lending costs after Bank of England’s Tucker argues for powers to raise sectoral capital levels
Fed’s Tarullo sees early wins for dynamic capital supervision
Daniel Tarullo, a governor of the Federal Reserve, believes the introduction of new dynamic capital techniques in the US has improved regulation; says static rules have serious flaws
Bernanke outlines shadow banking reform priorities
Fed chairman outlines regulatory steps taken so far in relation to shadow banking; says careful monitoring and supervision of the whole system are required
Chakrabarty: Crisis has turned policy frameworks 'on their head'
Reserve Bank of India deputy governor tells conference that policy focus has moved towards future crisis prevention
IMF facility not as good as own-funds, says Bank of Mexico’s Duclaud
Reserve managers in some developing markets believe own-country foreign exchange reserves are safer than IMF credit lines
Commission paper sheds light on dangers of shadow banking
The potential for shadow banking to damage the wider banking system and disrupt the macro-prudential aims of the ECB has been highlighted in the latest green paper from the European Commission
Tighter euro rules will also target trade surplus countries, says González-Páramo
Europe needs to create new mechanisms to fulfill the duties of ‘missing institutions’ to ensure the euro can survive. New monitoring capabilities will also target trade surplus countries, says ECB board member
IMF board approves €28 billion for Greece
IMF releases first tranche of funds as part of Greece’s ‘exceptionally high-risk’ economic adjustment programme; Iceland repays some IMF debt early
Robert Pringle's Viewpoint: Strauss-Kahn on central banks, the euro and the dollar
Dominique Strauss-Kahn’s personal failings deprived the world of a leader with the expertise, vision and drive to push though vital monetary and economic reform. But his views still hold weight
ECB working paper proposes indicator of systemic stress
European Central Bank researchers outline a new indicator of contemporaneous stress in the financial system, called the composite indicator of systemic stress
IMF readies €28bn in support of Greece
International Monetary Fund managing director Christine Lagarde plans to get funds approved this week; Isda rules debt restructuring a ‘credit event’
Greece’s private bondholders approve ‘voluntary’ debt swap
An 85.8% majority approves Greek sovereign debt swap but strong-arm tactics raise concerns about the future legal certainty of sovereign bonds
IMF’s Min Zhu on macro-prudential policy implementation
Deputy managing director of the IMF opens conference on macro-prudential policies; says countries must address three “crucial issues” to make these policies effective
Use of behavioural finance will not stop next crisis, says CNB adviser
The use of behavioural economics in management decisions and supervisory models would not prevent a future crisis, says Czech National Bank adviser, Michal Skořepa
Regulators ignore data challenges at their peril, say CBJ authors
Standards-setters around the world seeking to improve financial stability are destined to fail unless they can get to grips with core data needs, according to the authors of a new Central Banking Journal article