Financial Stability
Consumption closely tied to house prices in Netherlands – research
Strong correlation attributed to structural features of mortgage market
HKMA exchange fund clocks 10-year high returns
Returns driven by strong global economy and financial markets; 7.1% figure highest since 2007
Risks to China’s financial sector are growing, ECB paper says
Banks are exposed to rapidly growing shadow banking sector, researchers say
Global influence on local financial conditions is stable, research finds
Share of financial fluctuations caused by global factors has not markedly risen in last two decades
Brexit could spell larger mandate for Bank of England – report
House of Lords report asks government to consider adding competitiveness to mandates of FCA and PRA
Commodity price dip ‘likely to persist’ – paper
Bank of Canada research examines how global real economic activity can be used to model commodity prices
BoE suffers transaction-processing glitch
“Regular” IT update led to failed wholesale transactions, although payment systems operated normally, the central bank says
Better data needed amid rise of non-banks – BIS study
Survey of post-crisis banking structure finds sturdier core banking system, but risks shifting to periphery, raising the need for better surveillance
South Africa needs to press ‘reset button’ in 2018 – Mminele
Economy floundered after political instability harmed investor confidence; South Africa should capitalise on the upswing of 2018, says Sarb deputy
Central banks should not be underestimated – DTCC chief
Michael Bodson says central banks will always find a way to deal with crises, even without interest rates at their disposal; Hélène Rey says interconnectedness of system is a risk
Nouy warns eurozone banks to prepare for NPL framework changes
Possible changes to ECB and Commission rules make balance sheet clean-up “crucial”
Deposit guarantee schemes vary widely in calculating risk, EBA says
European directive gives countries’ deposit guarantee schemes “considerable flexibility”
Davos experts weigh risks of future crisis
High debt levels, a rise in real interest rates and China are on the agenda for the panellists, who believe another financial crisis is inevitable
Revised Basel output floor could hit US banks after all
Fall in operational risk weights could push up capital requirements for market and credit risk
Central Banking Awards: Perng Fai-nan recognised for lifetime achievements
The first four 2018 Central Banking Awards are unveiled – banknote and currency management, consultancy, innovation in reserve management, and lifetime achievement
Higher liquidity levels can reduce banks’ funding costs, research finds
Doubling the liquid asset ratio is found to reduce the costs of insurance against default by 24.4%
IMF chief economist warns against ‘complacency’
Recent economic upturn should not be viewed as “new normal”, Obstfeld says, arguing policymakers should be looking to shore up defences
Quarles signals plans for US regulatory revamp
Fed vice-chair outlines some initial plans for a readjustment to post-crisis regulations
Financial regulations have been procyclical historically – research
Regulations tend to weaken during economic booms and strengthen with crisis
Short-selling bans increased instability – ESRB paper
Banks’ volatility, leverage and default probability increased by bans on short-selling – researchers