Financial Stability
IMF assessment highlights China’s frailties in financial system
IMF’s first Financial Sector Assessment Programme in China says country must move towards more liberal financial system
Singapore’s Tai on deepening Islamic capital markets
Monetary Authority of Singapore executive director Tai Boon Leong says wider range of products will help deepen Islamic capital markets
British bankers disagree over ring-fencing
Controversial proposals for reform of UK banking system spark dispute among representatives of ‘big four’ banks; disagree over ring-fencing option
Sovereign spillovers normalised Asian spreads, says IMF study
Fund paper attributes volatility in Asian sovereign debt markets during crisis to sovereign risk spillovers
Thieves seize 500,000 pesos from Argentina coffers: reports
Central Bank of Argentina robbed of 500,000 pesos' worth of withdrawn bills, say reports; central bank declines to comment
Philippines launches next leg of public education programme
Central bank wants the public to be able to make “well-informed economic and financial decisions”; also opens new building in Dumaguete City
Finland to close two cash distribution offices
Bank of Finland says it will shut its Tampere and Kuopio offices as cash distribution services are outsourced to private sector
IMF study on financial frictions in EMEs
Fund paper shows developing economies are more exposed to financial frictions than emerging markets
NY Fed’s Dudley urges collaboration in tackling global imbalances
New York Federal Reserve president William Dudley says imbalances in growth between United States and emerging economies are unsustainable in long term
Sweden’s Öberg calls for Riksbank to merge with regulator
Riksbank first deputy governor Svante Öberg says merging central bank with Finansinspektionen will aid task of safeguarding financial system
San Francisco Fed paper on merits of leaning against asset prices
San Francisco Federal Reserve study makes case for monetary policy to lean against asset price movements
Prudential rules ease procyclicality of bank lending: IMF paper
Fund study says rules to lower capital adequacy ratios offer relief to banks and distressed borrowers facing shocks
Bafin chairman pans European Banking Authority stress tests
European Union’s bank stress standards lack “legitimacy”, according to top German regulator
UK lawmakers highlight lack of market expertise on FPC
Treasury Committee labels Alistair Clark an “insider”; calls on Michael Cohrs to make more public pronouncements
BIS data highlights US banks’ exposure to Greece
Bank for International Settlements data reveals United States’ heightened “potential exposure” to Greek default
FDIC board creates Advisory Committee on Systemic Resolutions
New committee will advise on resolution of banks once categorised as "too big to fail"; first meeting later this month
Japan earthquake caused widespread risk retreat
Bank of International Settlements Quarterly Review June 2011 says Japan earthquake caused widespread but brief investor retreat to less risky assets
González-Páramo calls for greater transparency of rating agencies
European Central Bank executive board member José Manuel González-Páramo says regulators must ensure greater disclosure of rating agency processes
ECB conference reviews crisis measures
European Central Bank Sixth ECB Central Banking Conference contributions highlight policy approach during financial crisis
US banks at risk of downgrade following Dodd-Frank
Credit rating agency Moody’s launches review of eight banks’ ratings after legislation makes uncertain implicit promise of government support in event of failure
Yellen sees signs of exuberance in corporate debt markets
Comments highlight Fed’s methods for monitoring imbalances; rate hikes “last resort” to tackle financial excess
BoE outlines risk of higher intraday liquidity buffers
Bank of England study says new measures to enhance intraday liquidity risks jeopardising payment and settlement operations; recommends tools to mitigate banks’ incentive to delay settlement
FDI boosts external balances: IMF paper
IMF study shows central eastern and southeastern Europe region benefited from large foreign direct investment pre-crisis
Bankers underestimate need to recapitalise: ECB paper
European Central Bank study shows bankers’ incentive to recapitalise during periods of crisis are undermined by negative externalities