Financial Stability
Philly Fed explains inventory build up prior to crisis
Philadelphia Federal Reserve study explains why prices and trade volumes increase first before collapsing in the run up to a crisis
IMF: unequal income distribution raises leverage
Fund study shows high income households’ greater bargaining power induces high leverage and financial crises
ECB’s Tumpel-Gugerell urges further reform in eurozone
European Central Bank executive board member Gertrude Tumpel-Gugerell calls for eurozone countries to avoid complacency and improve governance structures
IMF: financial innovation has spillover effects on public information
Fund study shows financial innovation reduces incentive to collect private information and increases likelihood of liquidity shocks
De La Rue set to name new chief executive
Former Chloride president Tim Cobbold is “preferred candidate”; news comes after company says paper scandal has had “significant” impact on revenues
Buba finds advantages in industry specialisation
Bundesbank study finds significant monitoring benefits from specialisation of cooperative and savings banks
Finland identifies source of business-cycle volatility in Hong Kong
Bank of Finland study says loan-to-value ratio and housing preference shocks are main source driving business cycle volatility in Hong Kong
RBA plans to sell scandal-hit Securency
Reserve Bank of Australia plans joint sale of polymer subsidiary following alleged bribery scandal
The dangers of relying on point in time
With Basel III, regulators have a chance to improve models used by banks to manage risk. However, they risk repeating past mistakes, says Patricia Jackson
Liquidity regulation and its consequences
The Basel Committee’s proposals for liquidity buffers could have some dangerous side effects, William Allen warns
Interview: Andrew Sheng
The crisis has undermined much of the economic theory that has influenced central banking in recent decades. This has significant consequences for policymaking, the chief adviser to the China Banking Regulatory Commission tells Claire Jones.
The People’s Bank of China’s battle on two fronts
Events both at home and abroad have kept China’s central bank busy in recent months. Hui Feng reports.
Ireland’s Honohan calls for greater disclosure of residential mortgages
Central Bank of Ireland governor Patrick Honohan says greater disclosure on residential mortgages loans will help drive confidence in markets
Explaining the crisis and informing the future
Frank Vibert examines how analyses of the fundamental causes of the financial crisis are shaping the policy debate
The euro funding gap and its consequences
The crisis has highlighted that the euro is far from a true reserve currency. That has worrying implications, argue Annina Kaltenbrunner, Duncan Lindo, Juan Pablo Painceira and Alexis Stenfors
Data and the crisis: gaps, initiatives and challenges
The crisis has highlighted a number of holes in financial data. Much has already done to plug them, writes Alfredo Leone.
Interview: Agustín Carstens
The governor of the Bank of Mexico tells Claire Jones about how the central bank is improving its capacity to safeguard financial stability
Interview: Sir Andrew Large
The former deputy governor of the Bank of England talks to Robert Pringle about how officials can better safeguard stability, and bankers’ behaviour in the run-up to the crisis
Underpinning systemic stability - the case for standards
Measures designed to make the financial system safer may not achieve their aim. There is a better way, Sir Andrew Large and Sir David Walker argue
The StabFund: a look at the inner workings of a 'bad bank'
Marcel Zimmermann and Zoltan Szelyes explain how the Swiss National Bank managed to strengthen the country’s largest financial institution at the height of the crisis by creating a bad bank.
Communicating macroprudential policy
A sound communications strategy can enhance the impact of macroprudential policy actions and build the political support needed for such steps, Tim Ng writes
Trichet: ESRB to review counter-cyclical capital buffers
European Central Bank president Jean-Claude Trichet says counter-cyclical capital buffers a good starting point for European Systemic Risk Board