Financial Stability
NY Fed economist explores election night volatility
Treasuries suffered dramatic moves as Donald Trump was elected in 2016
Rwanda concerned by high NPL levels despite improvement
Central bank records 6.5% decrease in NPL levels but ratio remains above the 5% benchmark
Chinese banks fail tests as PBoC warns of ‘grey rhino’ risks
Half of banks failed the most severe stress tests; central bank says transition to new economy might unleash unexpected risks
US banks’ strategic similarities pose risks – NY Fed official
“Supervisors should be dynamic and continue to evolve as the supervised firms do,” Kevin Stiroh says
UK banks struggle in EU-wide stress tests
Italian banks also suffer heavy losses in EBA’s most severe test conducted to date; BoE says UK faced tougher test than others
Review into New Zealand bank conduct reveals failings
New Zealand’s central bank urges government to provide regulators with sufficient powers to address conduct, as significant weaknesses appear in the sector
The EU tries to rethink its faltering AML regime
The European Union plans to centralise its anti-money laundering efforts following a series of scandals this year. Dan Hardie looks at the options available and the multitude of challenges that remain
Kganyago highlights the dangers of ‘state capture’
Sarb governor says country still suffering from twin deficits
BIS committee finds inadequacies in derivatives data
Challenges remain, despite significant progress, Irving Fisher Committee reports
Nouy says time is right for Europe-wide deposit insurance
Governments should “consider some solidarity”, ECB’s chief supervisor says
Cyprus ex-governor says government errors helped bring bank down
Demetriades rejects attacks claims made by CBC predecessor Orphanides
Sarb moves to liquidate ‘hopelessly insolvent’ bank
Prudential Authority seeks court’s permission to wind up troubled VBS Bank
Private debt and housing prices are main financial challenges in Norway
Rising commercial property prices also a potential threat to financial stability, central bank says
Sino-Japanese political optics right for $30bn swap and Tokyo RMB clearing
BoJ and PBoC agree local currency swap line after long delay; Bank of China set to be RMB clearer in Tokyo
Book notes: The bank that lived a little, by Philip Augar
History of British commercial bank Barclays fails to address key questions, writes Michael Taylor
Draghi confident Italy and European Commission will reach deal
ECB president says momentum is slowing but points to higher negotiated wage growth
Sarb’s Mminele calls for action on benchmark reforms
There is a considerable amount of work to be done before the transition, Daniel Mminele warns
Bruno and Shin investigate EM firms’ dollar vulnerabilities
BIS paper highlights negative effects of US dollar strength on emerging market firms, as figures show dollar borrowing is still on the rise
New York Fed files to dismiss narrow bank lawsuit
“The costs are real and continuing”, TNB says, as the New York Fed continues to delay
ECB paper presents new sovereign stress model
New method builds on earlier CISS model to measure systemic stress in eurozone
Cyprus inquiry into failed bank hears conflicting allegations
Inquiry told of strong political influence over Co-op Bank