Financial Stability
ECB aims for single policy on ‘options and discretions’ with new proposals
Central bank publishes draft documents aiming to create a single policy for the exercise of options and discretions under banking law in financial systems it regulates
FSB refines shadow banking definition with new ‘activity-based’ measure
Attempt at greater precision estimates shadow banking sector represents around 30% of non-banks; final framework for securities financing transactions published
Level playing field could help ‘unlock’ Islamic finance potential, says Lagarde
Speakers at the Islamic Finance Conference in Kuwait highlight the growth benefits of financial inclusion, especially for underserved parts of the Muslim population
Decisions on ELA could be shifted to ECB
Mario Draghi says ‘intricate’ framework for providing emergency liquidity assistance could be reviewed in light of banking union; potential for decisions to become ‘more European’
Christopher Pissarides on QE, the eurozone and economics
The Nobel economist tells Chris Jeffery why events in Europe have undermined neoclassical beliefs, QE is an optimal policy tool and Cyprus should not have joined the euro
The big data revolution and central banking
Central banks are increasingly turning their attention to the challenge of analysing very large datasets. But is ‘big data’ as revolutionary as some claim?
Harnessing network theory for more prudent bank supervision
Closer supervisory activities and data-sharing post-crisis offer the potential to harness network techniques to gain an improved understanding of financial risks
The Islamic liquidity facility conundrum
The rapid growth of Islamic finance could undermine both financial stability and monetary policy if central banks do not set up sharia-compliant facilities
Asia’s Basel III woes
New bank capital rules are bridling Association of Southeast Asian Nations banks with regulations tailored to European and American risk profiles, and may be contributing to a slowdown in growth
Cuba: coming in from the cold
The Central Bank of Cuba faces a number of challenges should the country press ahead with economic reform and reintegration in the global financial system
Book notes: Civic Capitalism, by Colin Hay and Anthony Payne
A book that espouses redesigning capitalism into 'civic capitalism'
Book notes: The challenge of economic rebalancing in Europe, perspectives for CESEE countries, edited by Ewald Nowotny et al
A useful book on the failure of the European economy to recover from the 2008 recession, and the slowing down of the convergence of central and eastern European economies with the core of the EU
Open Forum: Market maker of last resort presents host of issues for central banks
Axel Weber and Minouche Shafik point to perils for central banks looking to step into the role of market maker during a liquidity crisis
BoE’s FPC must be sharp on risks as next phase of credit cycle emerges, Cunliffe says
Cunliffe examines different approaches to setting macro-prudential policy, noting the BoE’s work towards countercyclical stress testing of banks
Low rates from QE poses risks to some pension and insurance firms in eurozone, Visco warns
Pension funds and insurance companies in some eurozone countries may need to adjust their practices to limit the risks arising from asset purchases, Italian governor says
Open Forum: BoE event highlights gulf between perception of public and regulators
Open Forum attempts to break new ground in communication, but a sense emerges that regulators have failed to address public dissatisfaction with financial markets
RBNZ: Auckland housing risks have increased
New Zealand central bank warns Chinese slowdown could affect banks' funding costs as house prices-to-income ratios rise to record highs; effect of macro-pru rules ‘too early to judge'
Basel Committee proposes lighter capital for ‘STC’ securitisations
Simple, transparent and comparable securitisations might not need as much regulatory capital as they do under the current framework, proposals suggest
Oil prices are key drivers of metal prices, Colombian paper suggests
Research utilising ‘frequency-domain approach’ finds oil prices may be a key drivers of metal prices; consider implications for commodity-rich nations
Jamaica will require banks to have recovery plans to access emergency liquidity
Banks must provide recovery plans under new emergency liquidity facility, Jamaican bank governor says
ECB publishes first quarterly statistical report on households
The European Central Bank publishes its first quarterly statistical report on the eurozone’s household sector; underlying figures available online in data warehouse
Czech governor casts doubt on Basel III
Miroslav Singer says he is ‘very sceptical’ about the shift from the second Basel accord to the third in an interview with the Central Banking Journal
BoE paper maps UK bank response to 2008 liquidity shock
Authors contribute to international study of banking networks, finding UK banks that grew faster pre-crisis responded more sharply to the liquidity shock in 2008
UK authority calls on banks to help tackle cyber crime
UK National Crime Agency calls on banks to collaborate with authorities to reduce fraud