Financial Stability
Infrastructure financing not harmed by post-crisis reforms – FSB
First study of regulatory impact on intermediation finds infrastructure finance largely unscathed
Ugandan governor says central bank not ‘obliged’ to bail out banks
Bailouts could encourage mismanagement, he says
Carney: Brexit could trigger ‘extreme fragmentation’ of EU markets
Lack of agreement on derivatives likely to be more costly for European markets than UK ones, BoE governor says; stance contrasts sharply with European Commission
PBoC warns businesses not to reject cash
Businesses are being given one month to rectify their practices
Trump tariffs could force Fed’s hand – IMF
US central bank could be forced to raise rates more quickly if tariffs force prices higher
ECB approves of proposed NPL backstop
European Commission’s proposed law change will not prevent supervisors from ordering banks to increase coverage – ECB
Regulators using blockchain for KYC data sharing
Central Bank of Colombia and Federal Reserve Bank of Boston collaborate with R3 on KYC pilot
Cyprus bail-ins were justified, ECJ rules
Court rejects claims of unfair treatment from bondholders, shareholders and large depositors
FCA’s Bailey stresses need for Libor backstop
Chief executive warns firms the end of Libor is not a “black swan” event, but a certainty, as contracts referencing the benchmark continue to grow
European Court of Justice overrules ECB on French banks’ leverage
ECB’s reasoning on treatment of French savings accounts was “manifestly incorrect”, court rules
Seychelles must act fast on money-laundering, says central bank
Failure to act could lead to major damage from loss of correspondent banking, report says
BoE paper reports ‘lab experiment’ on banker bonuses
Test subjects tended to take larger risks when their bonuses could not be taken away
FCA chair warns of big data-driven ‘algocracy’
Technology could lead to a society ruled by algorithms, if safeguards are not put in place, says Charles Randell
Australia is open to payments innovation – RBA’s Bullock
Assistant governor says regulators will step in where they see a need, but will take a “graduated” approach
Bank of Russia says cost of major bailout is rising
Central bank makes further capital injection into failed lender Otkritie
Bank of Thailand: housing market oversupply needs monitoring
Oversupply is pushing down prices, but developers continue to rack up debt
Singapore moves to curb private housing boom
Buyers have to pay higher taxes and face tougher loan-to-value limits
Failed bank depositors to gain unrestricted access to funds – Sarb
Around 97% of retail depositors will be paid in full, the central bank says, as investigation into mismanaged bank continues
Competitive housing markets fostered risk taking before crisis – IMF research
In areas with higher price volatility institutions lowered lending standards