Financial Stability
IMF paper explores interaction of capital controls and macro-pru
Capital controls do not “consistently” mitigate potential increases in cross-border flows
RBI steps in to tackle liquidity crunch
Central bank steps up market operations as financial markets wobble
Supervisory lessons: fault lines in prudential regulation
Former Bank of Spain head of supervision Aristóbulo de Juan highlights the lessons he has learnt about weaknesses in prudential regulation, in the second of a four-part series on supervision
Zombie firms drag down productivity in economy – BIS paper
Lower interest rates create conditions for “zombie firms”, researchers find
Draghi calls for new macro-prudential tools
Policy-makers do not fully understand “shadow banking” sector, Draghi tells ESRB
DNB says Dutch banks must tighten money laundering controls
Netherlands Bank calls for harmonisation of European AML regulations and beefed-up EBA role
‘Momentum building’ behind financial response to climate change
FSB welcomes progress on disclosures; BoE report finds many UK banks are facing up to the risks
EBA warns on funding stresses from QE exit
‘Mediterranean’ banks’ reliance on repo funding could be tested by withdrawal of stimulus
ECB narrows down choices for next supervisory head
Donnery, Enria and Ophele will appear before European Parliament
HKMA launches new faster payments system
New system will reduce transaction time and scrap interbank fees
Local factors have greater influence on global lenders – BIS paper
Researchers examine data on 53 largest commercial banks
Bundesbank paper looks at secondary markets’ role in bank runs
Adding secondary markets to model significantly alters possible equilibria, authors say
G20 showing progress at tackling data gaps
Considerable progress” in third phase of implementing data gaps initiative, down from “substantial progress” in previous phase, FSB-IMF report says
Stronger macro-prudential intervention may be needed – Minneapolis Fed paper
Shadow banking sector takes greater risks in times of stringent macro-prudential policy for banks, researcher finds
EU countries to build payments link with Iran
“Special purpose vehicle” designed to allow “legitimate business” with Iran, despite US sanctions
RBI prepared to step in as non-banks suffer liquidity shortage
Government and regulators stress readiness to act amid non-bank liquidity pressures
IT failures reveal vulnerabilities in UK banking system
Barclays and NatWest are latest victims of internal failure
BIS paper finds sound economy may not prevent capital outflows
Emerging markets could use pre-emptive macro-prudential policies to safeguard against capital outflows, researchers say
Danish supervisor reopens Danske Bank investigation
UK’s National Crime Agency opens investigation of British entity with links to Danish bank
BIS paper defends credit gap measure
Use of Hodrick-Prescott filter is controversial but the gap still outperforms others, authors find