News/Financial Stability
Britain unveils sweeping, cross-border bank levy
UK government publishes draft bank tax law which will affect domestic banks operating overseas and foreign bank operations in Britain; proposal highlights international disunity
Trichet opposes EU agreement on fiscal sanctions
European Central Bank president Jean-Claude Trichet refuses to give his backing to sanctions for countries that break rules of stability and growth pact; sees sanctions as too soft
ECB calls for more data to prevent crises
European Central Bank draws attention to information gaps, says broader and more flexible data will aid macroprudential supervision
EU to rely on colleges for cross-border resolution
Plans place ‘resolution colleges’ at the fore of attempts to avoid diplomatic wrangling from a cross-border bank's collapse; Barnier keen on harmonisation of insolvency laws but stresses difficulties
Colombia revisits currency redenomination debate
Central Bank of Colombia governor José Darío Uribe says there are benefits to be had from redenominating peso, despite costs
King demands collaboration
Bank of England governor Mervyn King says countries must reach collective solution over global imbalances or risk crippling the global economy through protectionist policies
More discord over Basel III countercyclical buffers
Basel Committee’s Peter Praet acknowledges disagreement; Charles Goodhart warns lack of consensus will stop central banks acting to stem financial imbalances
ICFA talks Target2- Securities with the ECB
Jean-Michel Godeffroy, chairman of the T2S programme board at the European Central Bank, talks through the future of the settlement platform with Melanie White of ICFA Magazine
Basel Committee sketches regulatory action plan
Basel Committee on Banking Supervision identifies eight issues it is working on as Basel III reform package heads into political sphere
Bail-ins win further support
Bail-in capital meets with favour from speakers at London School of Economics conference
Take more proactive role in macroprudential policy, DSK tells Asia
IMF managing director Dominique Strauss-Kahn says emerging markets should lead by example and complement strong recovery with sound macroprudential policies
Basel Committee releases proposals for pay
Basel Committee on Banking Supervision releases guidelines on methodology for compensation practices; says proposals seek to more closely align risk and performance at financial institutions
Academics embark on €1.8m project to predict crises
European Union-funded project will see economists, computer scientists and physicists cooperate in bid to improve financial forecasting
Hungary sets four hour limit for retail payments
National Bank of Hungary issues decree requiring banks to settle electronic payments within four hours; move may cost banks up to $40m, admits deputy
G30 unveils macroprudential manual
Group of Thirty recommends dual approach to macroprudential policy; says combination of fixed and flexible tools will equip supervisors to address systemic risks
Basel Committee outlines principles for good supervisory colleges
Basel Committee on Banking Supervision publishes its eight principles to guide the construction and running of supervisory colleges
Fed’s Yellen: macroprudential policy must balance rules and discretion
Federal Reserve vice chair Janet Yellen says macroprudential supervisors should be guided by fixed rules, but have discretionary capacity to surprise firms
Monetary policy cannot correct over-leveraging: Bank’s Miles
Higher interest rates will not prevent build-up of debt, which amplified effects of recent crisis, says Bank of England rate-setter David Miles
IIF defends doom-and-gloom Basel III forecasts
Institute for International Finance backs up its predictions of Basel III output loss, which are deeper than regulators’
IASB appoints Hoogervorst as new chairman
Hans Hoogervorst, Dutch former cabinet minister, has been appointed chair of the International Accounting Standards Board
ECB's Constâncio: grant CCPs access to central bank liquidity
European Central Bank's Vítor Constâncio says central counterparties should get access to central bank liquidity so long as they're regulated
IMF/ World Bank meetings: lack of resolution regimes a key concern
Cross-border resolution regime deemed crucial by officials and bankers, but many sceptical progress can be made
ECB sets stage to tackle ‘addicted banks’
European Central Bank publishes toughened rules that will allow it to limit individual banks’ access to short-term funds and exclude asset classes
RBNZ, NZX ink MoU on connected clearing system
Reserve Bank of New Zealand agrees with Wellington-based stock exchange on separate but connected clearing and settlements systems