Financial Stability
S&P lifts China rating one notch
Ratings agency Standard & Poor’s upgrades Chinese long-term rating; move follows similar step by Moody’s in November, places Chinese debt three marks short of prime rating
Islamic liquidity facility names Zeti chair
Bank Negara Malaysia’s Zeti Akhtar Aziz to chair International Islamic Liquidity Management Corporation; HSBC banker chosen as chief executive
Macroprudential policy – a literature review
Research reviews latest developments, poses future questions
King called for global bailout in March 2008: WikiLeak
Bank of England governor told US ambassador of need for nations to cooperate in order to recapitalise banking sector
Denmark’s Bernstein cites fiscal, Basel III worries
National Bank of Denmark governor Nils Bernstein says Copenhagen must keep tight rein on debt; banks must resolve adjustable rate loan refinancing issues
Chinese house prices overvalued in some places: HKMA research
Hong Kong Monetary Authority study shows prices outstrip fundamentals in some market segments; points to importance of early warning mechanism
HKMA’s Chan stresses importance of SME financing
Hong Kong Monetary Authority chief executive Norman Chan unveils central bank’s new financing scheme for small and medium enterprises
Brazil unveils first of new family of banknotes
Central Bank of Brazil releases second generation of R50 and R100 notes
Cobbold confirmed as De La Rue CEO
Tim Cobbold named banknote manufacturer’s new chief executive
Map of interbank market first step in project to forecast crises
Study to forecast the tipping points where banking crises have systemic implications begins with topology of European interbank market
Bank of Canada – Financial System Review (December 2010)
Canadian central bank says households’ debt levels pose risk
QE2 hopes reflected in dollar, risk reversal trends: BIS
Bank for International Settlements’ December Quarterly Review charts effects of QE2 anticipation, eurozone sovereign debt woes, in fourth quarter
Barnier draws UK lawmakers’ fire over new European supervisory structure
UK parliamentarians cross-examine European Commissioner for internal market regulation Michel Barnier on how much power new European supervisory authorities will have over national regulators
European banks could get slightly different version of Basel III: Basel Committee’s Wellink
Netherlands Bank governor and Basel Committee on Banking Supervision chairman Nout Wellink says “minor changes” possible to European version of Basel III
Italy’s Draghi: eurozone governments must step up
Bank of Italy governor Mario Draghi looks to eurozone governments to tackle fundamental issues; stresses ECB will not dabble in fiscal arena, echoing president Jean-Claude Trichet
ECB points to securitisation, interest rate risk concerns
European Central Bank’s December Financial Stability Review stresses importance of more transparency in asset-backed securities market; highlights interest rate risk worries
European Commission floats concept of investment bans in latest Mifid consultation
The European Commission has produced a consultation paper that suggests a basis for banning certain investments, with structured products making their usual appearance in the limelight
ECB repos, not bond purchases best fix for debt woes: Deutsche Bank note
Deutsche Bank paper moots the use of targeted long-term repurchases to shore up peripheral bond markets, rather than more outright purchases
Strauss-Kahn: global growth can reduce poverty in low-income countries
IMF managing director Dominique Strauss-Kahn says cooperation between countries from advanced and emerging economies can help reduce poverty in low-income countries
ECB - Monthly Bulletin (December)
European Central Bank’s December 2010 bulletin shows recovery of Central and Eastern Europe has been hampered by macroeconomic imbalances
IMF: global stock markets sensitive to US monetary policy shocks
Fund study finds strong relationship between global stock prices and US monetary policy
Electronic methods leading growth of cashless payments in the US, says Fed study
Federal Reserve study shows number of cashless payments has grown, with debit card, automated clearinghouse transactions leading the way
Britain raises bank levy
UK government publishes final bank tax law that will raise the levy on liabilities higher than initial proposals set out in June
Atlanta Fed names new second in command
Retirement of Atlanta Federal Reserve first vice-president Patrick Barron sparks reshuffle in retail payments office