Financial Stability
Book notes: Currency, credit and crisis, by Patrick Honohan
Honohan brings an analytical eye to the measures taken to avert a deep crisis in Ireland
RBI toughens liquidity rules for non-banks in wake of 2018 stress
Default by IL&FS triggered liquidity problems across financial markets
ECB paper looks at short-term costs of higher capital ratios
Monetary policy should cushion blow caused by moving to higher capital requirements – researchers
BoE may impose capital floors on UK firms – PRA chief
Sam Woods says some leveraged loans are based on “heroic” risk assumptions
FSB launches review of ‘too-big-to-fail’ policies
Bundesbank’s Claudia Buch to lead evaluation of post-crisis reform efforts
RBNZ review lends support to loan-to-value limits
Macro-prudential tool has been helpful in promoting financial stability, study finds
Local shocks may outweigh global factors for EMEs – ECB paper
US monetary shocks less important than much recent literature argues, researchers say
Indian central bank to set up new supervisory body
Move follows tension between RBI and government over banking supervision
IMF publishes first review of programmes since financial crisis
Directors say growth assumptions are often unrealistic and call for closer look at debt restructuring
Cyber crime is ‘present danger’ for financial system – BoE deputy
Sam Woods emphasises need for more widespread stress-testing of cyber security
Powell plays down fears about record levels of corporate debt
Fed chair’s remarks strike similar chord to those of Ben Bernanke in 2007, but Powell says this time is different
BoE seeks to make financial stability more transparent – Brazier
Policy-makers look to improve communications and design tests more systematically
BIS paper finds cross-border links between monetary and macro-pru policy
Authors discover “significant interactions” between policies
ECB criticises revised Romanian tax law
New proposals could harm banks and distort lending, ECB says
New Zealand banks attack RBNZ capital proposals
Central bank proposal would almost double banks’ minimum capital requirements
Israeli banks and households resilient to higher rates and unemployment
Housing market withstands adverse scenarios in macroeconomic stress test
Saudi central bank fines 16 commercial lenders
Country’s largest banks fined in what may be part of crackdown on consumer finance abuses
Bank of Canada warns of corporate debt risks
Annual financial system report notes the growing corporate debt in Canada’s extractive industries
Weakened international co-operation could hinder crisis response – Bernanke
Christina Romer ‘loses sleep at night’ about internationals' readiness to fight a future crisis
BoE’s Woods sees value in ditching EU-style rulemaking
Detailed legislation behind banking regulations may be unnecessarily restrictive for UK, says PRA chief; post-Brexit harmonisation with Europe could still cause problems