Financial Stability
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
UK launches probe into banking sector competition
Investigation will assess whether retail banking market is too concentrated, with barriers to entry and opacity under scrutiny
Central Bank of Kuwait highlights improving banking sector health
Banking sector saw improvements on ‘almost all fronts’ as Islamic banking continued to rise, according to annual financial stability report; income and return on equity see drop
BoJ team surveys payment innovation landscape
Central bank lays ground for retail payments innovation in Japan with survey of what has been tried elsewhere; highlights different forces driving change in each country
Ingves: Consistent implementation needed to bring about ‘full benefits' of Basel III
Basel Committee chair says regulators and supervisors now 'accountable for the outcomes' of Basel III as reform agenda draws to a close
Georghadji sees ‘turning point’ for Cyprus banking sector
Central bank of Cyprus governor says the outlook for the country’s banks is ‘very positive’, but warns against a return to the sector’s previous lending practices
Swiss paper examines cost of different clearing set-ups
Research finds more sophisticated clearing arrangements for OTC trades can improve welfare – in a Pareto sense – but require more collateral
PBoC names first RMB clearing bank in Middle East
Doha branch of ICBC named following several deals inked between PBoC and Qatar Central Bank yesterday, including swap line and RQFII quota
ECB’s Godeffroy sees clear path to 2015 T2S launch
Director-general leading Target 2 Securities project says testing is largely going to plan; platform to create ‘survival of the fittest’ environment for European CSDs
Visco calls for ‘block disposal’ of impaired assets
Bank of Italy governor laments growing stock of NPLs in country’s banking system; calls for ‘active management and recovery procedures’ to address it
Danièle Nouy says banks are ready to lend on eve of SSM
SSM supervisory board chair says banks are ready to lend and flow of credit to real economy now depends on ‘other actors’; first wave of ECB staff migrate to new premises
Asian central banks build ‘brick house’ to withstand ‘big bad wolves’
Tetangco sets out plan to insulate Philippines against global market volatility; Thailand's Prasarn warns macro-prudential measures are ‘reaching their limits’
HKMA revamps RMB liquidity operations to cope with 'phenomenal' growth in demand
Central bank to provide new intraday facility to cover rapid growth of renminbi payments in past year; seven banks designated ‘primary liquidity providers’
Dutch central bank adopts new supervisory structure
The Netherlands Bank is creating four new divisions as part of its response to the SSM launching this week; Femke de Vries has been appointed secretary-director as part of reshuffle
Bank of England proposes three-pronged leverage ratio
Financial Policy Committee recommends ‘supplementary leverage ratios' for UK's biggest banks and wants power to set them from 2016
Basel Committee adds final plank to Basel III
Committee unveils final version of the net stable funding ratio, bringing to a close the core of the Basel III standard-setting process
ECB enlists asset managers to carry out ABS programme
Deutsche Bank and State Street among private sector actors that will help spur credit creation in eurozone following ‘competitive' tender procedure; no fees disclosed
FSB spotlight catches assets moving into the shadows
Shadow bank monitoring exercise shows assets stable inside the traditional banking sector but growing outside, as FSB publishes breakdown of data by jurisdiction for the first time
Haldane laments poor grasp of international monetary system
BoE chief economist says regulators have paid insufficient heed to the global financial system as a whole; wants ‘Star Trek chair’ from which to survey the landscape