Financial Stability
Portugal succeeds at auction but fails to sway analysts
Portugal sells $1.6 billion worth of government debt at auction, but commentators remain wary of fundamentals
Fed uncooperative and audit insufficient, claims influential senator
US senator Bernie Sanders dissatisfied with Federal Reserve’s response to further questions on audit of emergency lending facilities
IMF paper identifies de-dollarisation drivers in South America
Fund study says de-dollarisation of deposits and development of local capital markets key factors in Latin American countries
Barclays’ Diamond argues case for universal banking
Barclays' chief executive Bob Diamond adamant bank’s model funds cheaper lending and is less risky
Oberthur given takeover deadline as De La Rue spat intensifies
French banknote printer told to “put up or shut up” by 7 February; ruling comes on the heels of efforts to force De La Rue to clarify relationship with RBI, failed November takeover bid
High inflation stirs banknote shortage in Argentina: reports
Inflationary pressures in Argentina create shortage of high-denomination banknotes forcing long queues at cash machines
Spain’s monetary policy could not have prevented housing bust: IMF
Fund study says retaining the peseta would not have necessary prevented the housing collapse in Spain over the last decade
Trichet proposes macroeconomic scoreboard system
European Central Bank president Jean-Claude Trichet outlines ideas for a new macroeconomic framework for euro area
It's the forest stupid
Dodd Frank fails to deal with systemic risk, former chairman of the Federal Deposit Insurance Corporation William Issac argues
What Basel III means to us
The Basel Committee on Banking Supervision published the final text of Basel III on December 16, which introduces new minimum capital requirements, two liquidity ratios, a charge for credit value adjustment and a leverage ratio, among other things. Risk…
Sudan bans some imports as forex shortage looms
Bank of Sudan bans imports of luxury items, goods with local substitutes, to conserve foreign currency; currency wobbles on secession, oil fears
Stability objective should drive financial policy, says BoE’s Bailey
Bank's Bailey says stability goal must not be swayed by “murky compromises with other objectives”
PBoC’s Yi promotes Chinese-EU financial co-operation
People’s Bank of China deputy governor Yi Gang promotes benefits of financial co-operation between China and the European Union
NY Fed: US consumers ease debt burdens
New York Federal Reserve study measures scope of consumer indebtedness and impact of credit issuance
IMF in bid to strengthen governance of cross-border capital flows
IMF executive directors support greater Fund role in surveillance of cross-border capital flows and creation of rules for capital account policies
Renminbi liberalisation, price stability priorities: PBoC
People’s Bank of China says currency internationalisation, price stability top priorities for 2011, following annual meeting
Icelandic central bank, regulator ink deal to collaborate
Central Bank of Iceland and Financial Supervisory Authority sign landmark agreement to work together on oversight in areas including systemic risk
Public expectations of banking supervision unrealistic: Netherlands Bank study
The Netherlands Bank study says high public expectations of banking supervision can adversely impact financial stability
Irish central bank names advisers for stress test exercise
Central Bank of Ireland calls for BlackRock Solutions, Boston Consulting Group and Barclays Capital to assist in stress tests
Debt management poses greater refinancing risks: Netherlands Bank
The Netherlands Bank study says greater reliance on short-term debt requires better coordination between debt managers and central banks
Brussels sets the stage for senior debt haircuts
Internal markets directorate publishes consultation paper calling for senior bondholder haircuts in resolution regimes; analysts worry move could further disrupt funding for troubled banks
Haircut fears push up bank CDS prices
Spreads on the credit index for senior European financials widen as EU releases burden-sharing consultation paper
Brazil steps up efforts to ease real gains
Central Bank of Brazil raises reserve requirements on domestic banks' foreign exchange position in bid to halt real appreciation
IMF paper investigates financial integration in Asia
Fund study finds equity and debt markets within Asian countries remain considerably more integrated with countries outside the region than within