Financial Stability
IIF’s Abed: financial stability a central bank task
Institute of International Finance’s George Abed says the crisis casts the role of central banks in a new light
Exit easy for India: Mohanty
Reserve Bank of India’s Deepak Mohanty says the central bank should not be troubled by exit from monetary easing
Fed’s Kohn rejects bubble claims
Fed deputy acknowledges carry trade but dismisses fears low rates are stoking asset-price bubbles
Oman signs up to new FX, payments system
Central Bank of Oman’s move represents part of a broader trend by emerging-market central banks to refine operational systems
Bank of Spain – Financial Stability Report (November)
Spanish banks are dealing with the bust in different ways, says central bank’s report
A model to analyse stability
Reserve Bank of New Zealand paper details the development of a cobweb model that will be used in its Financial Stability Report
Buba’s Weber: Germany finance held its own
Bundesbank’s Axel Weber says Germany’s financial sector coped well with the crisis overall
Solomon Islands needs new sources of growth: Rarawa
Central Bank of the Solomon Islands’ Denton Rarawa says the country is too dependent on the logging industry
Shirakawa cautions on carry trade
Bank of Japan’s governor becomes latest official to warn on dangers of low rates in advanced economies; notes balance-sheet adjustments will impact efficacy of monetary policy
UK regulator to be allowed to “tear up” bankers’ contracts
Britain’s financial regulator will have its powers increased, allowing it to punish errant banks and bankers for excessive risk-taking
NY Fed’s Dudley on improving tri-party repos
New York Federal Reserve’s William Dudley says Fed wants to make tri-party repo system more stable
Israelis’ assets back to pre-crisis levels
Bank of Israel publishes new figures detailing the public’s financial assets portfolio
India announces payments overhaul
Root-and-branch reform will see Reserve Bank of India investigate the introduction of a new RTGS system, a domestic card initiative and mobile payments settlement
HK’s Tsang fears the Fed
Hong Kong’s chief executive says Federal Reserve is stoking next bubble through near-zero interest rates
ECB’s Tumpel-Gugerell on dangers of all roads leading to Rome
Gertrude Tumpel-Gugerell, an ECB executive board member, says the work of the European Systemic Risk Board would be crucial in future approach to financial stability
Evaluating economy-wide risk measurement tools
Bank of Canada paper acknowledges useful information exists on credit risk models, but argues further work is needed
Woodford unveils new model for transmission mechanism
New York Federal Reserve paper co-authored by Michael Woodford introduces a new model for monetary policy which considers the effects of unconventional policy
BuBa’s Weber: no global regulator without global law
Bundesbank’s Axel Weber says global financial regulator not a good idea as international law not in place
Rules must cover link between liquidity and default: Goodhart, Tsomocos
Interrelationship between liquidity and defaults must be addressed by regulatory proposals
ECB publishes inaugural payments oversight report
European Central Bank reports on robustness of payments systems to increase transparency and public understanding
Draghi calls for unity to back “major” changes
Financial Stability Board’s Mario Draghi says regulators from across the globe must co-operate to create a world in which no bank becomes too big to fail
Separating the casino from the retail bank will not work
A division between investment and retail banking will not prevent future financial crises, Clive Briault, the founder of Risk and Regulation Consulting and a former managing director at the Financial Services Authority, argues
Senator calls for Fed’s powers to be cut
Chris Dodd, head of the Senate Banking Committee, submits bill demanding reduction in Fed’s supervisory ambit; calls for one overall regulator
Multilaterals define systemic importance
Report suggests an initial framework that can be adapted by individual countries