Financial Stability
Debt growth a better warning signal than levels – BoE’s Broadbent
Deputy governor says countries with high debt levels did not necessarily suffer more during the 2008 crisis
Bahamian financial sector shrinks by more than a third in six years
De-risking in international finance has disproportionately hit Caribbean banks, Rolle says; Bahamian banking reforms heighten concerns
Sudan central bank again pledges new banknotes as crisis continues
Rising prices fuel violence in capital as governor says he will seek foreign funds
BoE paper studies CoCo effects in ‘one-shot game’
Game theoretic approach suggests CoCos cut risk-taking in certain circumstances
RBI governor: India must ‘brace’ for global turbulence
Shaktikanta Das stresses need to stay firm on banks’ asset quality, despite earlier leniency
Innovation prompts firms to hold more cash – IMF paper
Firms must hold enough liquidity to insure against risky research and development
Establishing the Fed worsened the Great Depression – St Louis Fed paper
Setting up lender of last resort reduced banks’ incentive to manage risk, paper argues
Nigerian central bank to set up national micro-lender
Leading presidential candidate says he will not give governor a second term
Brexit might allow simpler regulation for small UK firms – PRA chief
Sam Woods says “simpler, not weaker” regulation might boost both competition and safety
BoJ must normalise policy to cope with ageing population – former official
Japanese firms face labour shortages and limited ability to raise prices- Shirai
Fall in technology use helped slow Canadian productivity, BoC paper finds
But slowdown in labour productivity began eight years before fall in technology use – researchers
Ireland ready to shield insurance policy-holders in ‘hard Brexit’ – deputy governor
Irish financial system should prove resilient if UK quits EU without a deal, Ed Sibley says
Costa Rica credit rating downgraded two notches amid persistent fiscal deficit
Fitch Ratings revised rating down despite early repayment of central bank and fiscal reforms
EU supervisors set out process for cross-border AML data sharing
Agreement will allow ECB and national supervisors to share data on suspected money-laundering
BoE’s leveraged loan research draws interest from overseas
UK exposures are modest but firms in US and Japan have bigger holdings of CLOs, which carry echoes of the subprime mortgage crisis
Bhutan strengthens relations with India through payment co-ordination
New proposals will limit the number of tourists having to bring cash into the countries as ATMs and POSs become interoperable with local cards
Moldovan central bank suspends rights of lenders’ shareholders
Move is latest effort to enforce law in notoriously difficult banking sector
Lebanese central bank orders wire services not to use dollars
Economy under strain from political division, fiscal shortfall and refugee crisis
MAS to gain powers over wider set of payment services
Central bank will also enforce new limits for coin payments
Basel Committee softens impact of revised market risk framework
Final framework cuts expected increase in average capital requirements almost in half; committee may consider some further rule-making in 2019
Supervisory lessons: resolution is a ‘dirty business’
Former Bank of Spain head of supervision Aristóbulo de Juan reveals his principles for resolving problem banks in the final article of a four-part series