Financial Stability

Cash costs more than cards in Sweden

Debit and credit card payments have a lower social cost than cash transactions for purchases of more than €8 and €18 respectively, research published by the Riksbank has found.

Target2: ready to go

Five years in the making, Europe's new large-value payments system, known as Target2, is ready to go live on 19 November.

Europe set for SEPA after Sibos session

"SEPA is here! I met it in Boston," declared Jean-Michel Godeffroy, head of payments systems and market infrastructure at the European Central Bank (ECB), as Europe's payment players agreed to send, receive and process euro payments according to new…

Egypt to use SIA-SSB payments system

Egypt's central bank picked SIA-SSB, an Italian technology company, to develop its new large-value payments, the company announced at Sibos.

US needs global payments standards, says industry

Should the US adopt international standards in its domestic payment systems? Surprisingly, "yes" was the overwhelming answer at a packed Sibos, Nick Carver, editor of SPEED, writes from Boston.

Ex-BoE supervision head criticises FSA

According to Peter Cooke, a former head of banking supervision at the Bank of England, the Northern Rock crisis revealed the need for a proper "mechanism for crisis management", a greater official focus on liquidity rather than solvency and more…

CSDs sceptical of ECB's settlement plans

Clearstream and Euroclear, Europe's two largest central securities depositories, were sceptical that the European Central Bank's (ECB) plans to build a single settlement platform will deliver the benefits the central bankers promise, Central Bank News…

Banks struggle with SEPA set-up

More than half of banks will not be able to comply with the Single Euro Payments Area (SEPA) initiative, which comes into effect in January.

SWIFT responds to privacy fears with new EU base

SWIFT will open a Europe-based global processing centre for payments as part of a response to allay concerns over data privacy raised after the United States asked for data on financial transactions by Europeans following the 9/11 attacks.

Contrasting views on Old Lady's role in crisis

Charles Goodhart and William Buiter, both former monetary policy committee members at the Bank of England and both now professors at the London School of Economics (LSE), had sharply differing opinions on how the Bank should have handled the recent…

We're not out of this yet - Greenspan

Despite a "creep back to normality" in the asset-backed commercial paper and inter-bank markets, Alan Greenspan, the former governor of the Federal Reserve, cautioned that the recent turmoil could have further repercussions.

Why King lacks allies

Just when Mervyn King, the governor of the Bank of England, was hoping for a respite from the battering he has received from the Treasury Select Committee and others over his handling of the Northern Rock debacle, along comes a heavyweight in the shape…

UK business chief singles out King

Richard Lambert, a former member of the monetary policy committee who now heads the Confederation of British Industry (CBI), dismissed Mervyn King's blaming of the Northern Rock crisis on regulatory complexity as unsatisfactory.

Politicians want more power to veto Bank

An enquiry into the crisis at Northern Rock by Treasury ministers is expected to result in calls for their colleague, the chancellor of the exchequer, to be able to overrule the Bank of England and the Financial Services Authority (FSA).

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