Financial Stability
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
Extra inflation forecasts will boost transparency – Mexico’s Guzmán
Mexican deputy highlights importance of transparency in uncertain economic environment
ECB expresses doubts over Irish draft law on consumer credit
Proposed law could create legal uncertainty over Irish central bank’s powers, ECB says
New Zealand’s main banks pass stress tests
Tests cover wider range of risks, including concentration and misconduct risks
Financial literacy of Italians below G20 average – Bank of Italy
Less than half of survey respondents are able to calculate a simple interest rate
Book notes: Unfinished business, by Tamim Bayoumi
Anand Sinha praises Bayoumi’s analysis of how the euro crisis and US housing crash were, in fact, intertwined
Malaysian ex-governor rejects arrested former PM’s accusations
Zeti says former prime minister Najib asked her to lie over money in his bank account
‘Low for long’ endangers stability, warns BIS committee
Some banks could face solvency issues if faced with a “snapback”, warns Philip Lowe
UK regulators review financial firms’ operational resilience
Firms must ensure processes can be maintained after disruption - regulators
Higher capital ratios trade growth for stability – Philadelphia Fed paper
Better capitalised banks reduce lending rates, researcher says
Demographics shaping Australian housing market – RBA’s Heath
Different housing markets are shaped by patterns of population growth, senior economist says
KYC regulation impinging on financial inclusion – Sarb
Fintech firms could help under-served customers through a “digital identity”, which will allow banks to identify customers without them having to visit branches in person
BoE to defend post-crisis regime through ‘running repairs’
Capital regime will need to evolve to stay on top of risks, says Victoria Saporta; BoE set to unveil details of operational resilience requirements
European banking union insufficient to withstand next crisis – Portuguese governor
Common supervisory and resolution tools are in place, but Europe lacks a deposit insurance scheme
Miles warns too much weight placed on untried regulations
TLAC and the resolution regime may not be enough to substitute for higher capital, former Bank of England official says
PBoC seeks to reassure bond investors amid default concerns
Pan Gongsheng says the central bank has not seen any “special abnormalities”
National Bank of Angola settles $426 million debt with Namibian counterpart
Failed currency agreement resulted in huge accumulation of debt as a fall in oil prices stifled Angola’s access to US dollars
Low rates contribute to higher deposits in Denmark
Bank deposits amount to 60% and household deposits 45% of GDP
Central banks do not have tools to change productivity growth – Haldane
BoE chief economist says governments are responsible for productivity, challenging proposals in recent report
European regulator says insurers must prepare for Brexit risks
Firms must put measures in place to ensure continuity for cross-border contracts – Eiopa