Financial Stability
RBI’s Subbarao: trade between EMEs’ should be exploited
Reserve Bank of India governor Duvvuri Subbarao says developing world can secure prosperity by focusing on trade with other emerging markets
Hungary sets four hour limit for retail payments
National Bank of Hungary issues decree requiring banks to settle electronic payments within four hours; move may cost banks up to $40m, admits deputy
G30 unveils macroprudential manual
Group of Thirty recommends dual approach to macroprudential policy; says combination of fixed and flexible tools will equip supervisors to address systemic risks
Basel Committee outlines principles for good supervisory colleges
Basel Committee on Banking Supervision publishes its eight principles to guide the construction and running of supervisory colleges
Fed’s Yellen: macroprudential policy must balance rules and discretion
Federal Reserve vice chair Janet Yellen says macroprudential supervisors should be guided by fixed rules, but have discretionary capacity to surprise firms
Monetary policy cannot correct over-leveraging: Bank’s Miles
Higher interest rates will not prevent build-up of debt, which amplified effects of recent crisis, says Bank of England rate-setter David Miles
IIF defends doom-and-gloom Basel III forecasts
Institute for International Finance backs up its predictions of Basel III output loss, which are deeper than regulators’
IASB appoints Hoogervorst as new chairman
Hans Hoogervorst, Dutch former cabinet minister, has been appointed chair of the International Accounting Standards Board
BoC: Business Outlook Survey
Bank of Canada Business Outlook Survey shows domestic firms’ growth outlook remains muted
Firms have cut reliance on debt financing: RBA’s Battellino
Reserve Bank of Australia deputy governor Ric Battellino says businesses have raised equity and looked to their profits for funding
BIS’s Caruana says central banks have pivotal role in regulation
Bank for International Settlements general manager Jaime Caruana says central banks are best placed and have the necessary expertise to regulate markets
ECB's Constâncio: grant CCPs access to central bank liquidity
European Central Bank's Vítor Constâncio says central counterparties should get access to central bank liquidity so long as they're regulated
IMF/ World Bank meetings: lack of resolution regimes a key concern
Cross-border resolution regime deemed crucial by officials and bankers, but many sceptical progress can be made
ECB sets stage to tackle ‘addicted banks’
European Central Bank publishes toughened rules that will allow it to limit individual banks’ access to short-term funds and exclude asset classes
ECB: monetary policy could have prevented the crisis
European Central Bank study finds low benchmark rate had significant role in lax lending standards before crisis
BIS’s Cecchetti on benefits of phasing in Basel III
Bank for International Settlements economic adviser Stephen Cecchetti says stronger capital requirements will be easier to swallow if phased in with new ratios
RBNZ, NZX ink MoU on connected clearing system
Reserve Bank of New Zealand agrees with Wellington-based stock exchange on separate but connected clearing and settlements systems
T&T solves remittances anomaly
Central Bank of Trinidad and Tobago study explains drop in remittances to developing world
BoK’s Kim: Asia needs stronger domestic demand
Bank of Korea governor Kim Choongsoo says domestic demand can aid structural imbalances in Asia
Czech National Bank withdraws smallest banknote
Czech National Bank says Kc50 note will be replaced with coin in April; cites cost of replacing notes and change in value
Irish bonds sixth riskiest: report
Credit default swap spreads on Irish bonds spike more than any other in third quarter; Portugal also among ten riskiest sovereign issuers
Bank of Canada: central banks prefer higher haircuts
Bank of Canada study shows haircuts on collateralised assets is greater when central banks cannot lend exclusively to illiquid institutions
RBA’s Ellis warns of complacency over new Basel rules
Reserve Bank of Australia head of financial stability Luci Ellis calls for diligent policing of financial markets; says Basel rules are insufficient protection
Ireland’s Elderfield rules out senior debt haircuts
Holders of senior debt must not be forced to shoulder losses, but issuing banks could negotiate with them, says Central Bank of Ireland’s Matthew Elderfield