Financial Stability
BIS' Caruana warns a debt trap 'looms large'
BIS general manager laments lack of analytical framework for dealing with ‘interplay' between finance and the real economy
RBA strikes clearing deal with PBoC
Australian authorities agree clearing arrangements and RQFII quota with Chinese counterparts; announced in wake of G-20 summit and follows similar Canadian deals
Argentina enjoys a rare period of ‘currency peace’
Peso sees a recovery in the black market after the central bank cracks down; economists suggest a boost in dollar reserves is the main reason for the appreciation
G-20 Brisbane Summit: What to look for
Leaders of the G-20 countries meet this weekend to try to thrash out a deal on financial stability, growth and employment; Central Banking looks at some of the main issues on the table
Bank of Portugal looks set to audit banks' conduct
Central bank is expected to focus on banks’ governance models during the exercises, in an effort to prevent the issues associated with BES from resurfacing elsewhere
Payments technology progressing in ‘leaps and bounds,' says Canada deputy
Carolyn Wilkins says Bank of Canada is keeping a close eye on risks posed by new forms of electronic money and modernising its oversight framework for payments
French first deputy defends real estate picture
Anne Le Lorier says French banks are ‘well-guarded’ against any real estate downturn; accepts the authorities must improve data on commercial property
Lautenschläger highlights ‘unbelievable heterogeneity' in eurozone housing markets
ECB board member also has ‘Christmas wish list' with instruments that will complete eurozone's macro-prudential toolkit
RBNZ not ready to ease LVR speed limit
Graeme Wheeler welcomes falling house price inflation, but is wary of a potential ‘resurgence’ on the back of strong immigration flows; keeps speed limit in place for now
RBI wants foreign banks to offer commercial services
R Gandhi, deputy governor of the Reserve Bank of India, argues the local economy needs foreign banks to offer commercial services, ‘to ensure further penetration of banking activities’
Poll: Central bankers favour clampdown on bitcoin
Latest Central Banking poll shows most central bankers favour regulating or banning virtual currencies, despite most institutions so far just issuing warnings or advice
FSB says ‘substantial’ work needed on resolution regimes
Financial Stability Board monitoring exercise finds that only four jurisdictions have resolution regimes in line with its Key Attributes; India among those lagging behind on legislative amendments
Netherlands at the ‘forefront’ of global reforms, says FSB
Peer review finds macro-prudential tools and crisis planning in the Netherlands are well-advanced, but FSB says authorities face challenges that provide ‘instructive test’
ECB's Angeloni defines 'level playing field' for banks
If risk borne by taxpayers is higher than elsewhere, banks receive an implicit public subsidy that distorts the competitive playing field, says Ignazio Angeloni
Riksbank board at a loss over falling inflation, minutes suggest
Ingves says Swedish economy needs ‘two different policy rates: one for households and one for companies', while central bank casts doubt on new mortgage repayment rules
Zimbabwe governor flags ‘increased vulnerabilities’ in financial sector
John Mangudya is wary of growing fragilities in the financial sector as liquidity shortfalls persist; pins hopes on nebulous government plan to improve economic fortunes
FSB overhauls website with help from Bank of Canada
New FSB website makes it easier for user to find and filter content; Mark Carney hails the revamp as a ‘collaborative effort’ from its members, in particular the Bank of Canada
FSB unveils loss-absorbency standards
Minimum standard for total loss-absorbing capacity aims to end ‘too-big-to-fail’ and should reduce the funding advantage of globally systemic banks, FSB says, in consultation document
China and Canada sign deal to set up first RMB clearing bank in North America
Countries also agree on $8.2 billion RQFII quota as part of major bilateral trade initiative; PBoC also signs MoU with Bank Negara Malaysia to set up RMB clearing bank in Kuala Lumpur
Malaysian deputy backs ‘constructive ambiguity’ in comms
Muhammad bin Ibrahim says less might be more when it comes to communicating macro-prudential policy; Bank Negara Malaysia allows for some ‘constructive ambiguity’
Powell says ‘good deal more’ needs to be done on CCPs
Fed governor Jerome Powell stresses the need for international coordination to ensure that reforms on the central clearing of OTC derivatives live up to their promise
ESRB report studies allocation of macro-prudential powers
Report from advisory scientific committee says coordinating monetary and macro-prudential policies is easier if the powers sit within a single institution, often the central bank
Hélène Rey warns advanced economies are not safe from US spillovers
Leading economist says spillovers from US monetary policy affect both advanced economies and emerging markets, weakening domestic policy; NY Fed's Bill Dudley responds
FSB sees flaws in OTC derivatives reforms
Despite greater clarity emerging from the range of regulatory initiatives, there are still considerable differences in implementation between jurisdictions