Financial Stability
Household debt is main risk for New Zealand – RBNZ’s Bascand
Deputy also notes country is more reliant than most on overseas funding
Supervisory lessons: the need for intrusive supervision
Former Bank of Spain head of supervision Aristóbulo de Juan reveals his central principles for the (intrusive) supervision of banks in the third of a four-part series
MAS chief laments ‘data localisation’
Misguided notions of data security threaten digital growth, says Menon; central bank further strengthens fintech support
RBNZ launches review into collapsed insurer
CBL Insurance to be liquidated after failing to assemble rescue plan
Sarb reprimands HSBC for AML deficiencies
Central bank fines commercial lender over $1 million after weaknesses in AML detection and reporting were discovered
The euro: a troubled third decade?
Italy’s pact-busting budget highlights ongoing eurozone frailties
Fed will delay stress capital buffers, Quarles says
Vice-chair says Fed is looking to modify stress-testing methods
EU offers Iran sanctions relief with new clearing house
Iran retains access to Swift network despite US sanctions, but new clearing house could provide permanent loophole
Book notes: The Fed and Lehman Brothers, by Laurence Ball
Ball claims the Fed could have lent to Lehmans, lawfully and prudently, had it chosen to do so, writes Reddell. But agreeing the Fed could have provided liquidity support does not automatically imply it should have
Fed proposes further regulatory loosening for small firms
Governor Lael Brainard voted against the last proposed reductions in regulation
ECB nominates Enria as next head of banking supervisor
Italian candidate likely to be accepted as next head of SSM
Lagarde calls for an end to trade tensions
IMF chief says countries should ‘fix’ global trade system, not ‘destroy’ it
Barbados has done ‘reasonably well’ meeting IMF targets, says governor Haynes
Central bank records reserves uptick in latest quarterly review, as government commits to IMF financing targets
Standard-setters can only partially support inclusion – BIS’s da Silva
Standard-setters can balance risks and opportunities, but cannot tackle deeper structural issues
NY Fed economist explores election night volatility
Treasuries suffered dramatic moves as Donald Trump was elected in 2016
Rwanda concerned by high NPL levels despite improvement
Central bank records 6.5% decrease in NPL levels but ratio remains above the 5% benchmark
Chinese banks fail tests as PBoC warns of ‘grey rhino’ risks
Half of banks failed the most severe stress tests; central bank says transition to new economy might unleash unexpected risks
US banks’ strategic similarities pose risks – NY Fed official
“Supervisors should be dynamic and continue to evolve as the supervised firms do,” Kevin Stiroh says
UK banks struggle in EU-wide stress tests
Italian banks also suffer heavy losses in EBA’s most severe test conducted to date; BoE says UK faced tougher test than others