Financial Stability
Leverage ratio disincentives clearing – BoE paper
Leverage ratio appears to have made some banks less willing to take on new clients
‘Living wills’ have reduced implicit subsidy – Fed paper
Higher cost of capital implies resolution measures have reduced ‘too big to fail’ subsidy, authors say
Fed paper questions value of debt as crisis indicator
Asset prices and current account balance more important, author finds
Argentina launches new measures to stem peso depreciation
Analysts concerned new central bank tools to control peso are not enough
UK lawmakers ‘satisfied’ with Visa response to outage
Visa has promised an independent inquiry into the incident that saw 5.2 million payments fail; firm reveals details of its recovery efforts
UK card transactions surpass cash for first time
Report shows card transaction volume was marginally higher than cash in 2017
Experts warn Mexico’s peso defence could be costly
Risks on the horizon prompt concerns around the Bank of Mexico’s approach to forex volatility
Italy’s trial
Francesco Papadia argues Italy is likely to suffer financial and economic damage under its new political leadership, but will still not leave the euro
Bundesbank forecasts German growth will continue
Fiscal expansion will support aggregate demand in coming year, says Bundesbank
Fed acts to limit largest banks’ mutual exposures
Largest banks in the US face limits on their exposures, but smaller banks are exempt for now
Trump’s fiscal policy threatens emerging markets – Lagarde
Looser fiscal policy could increase market volatility and worsen global imbalances- IMF chief
Bank of Thailand allows securities firms to provide forex trading services
Central bank says rule change will improve market flexibility
China eases restrictions on foreign investors
New rules allow qualified foreign investors to move funds more freely out of China, a step forward on capital account liberalisation
IMF report says Mauritius central bank needs clearer resolution powers
Current framework restricts regulator from acting in a timely manner – IMF staff
Bank of Lithuania to regulate ICOs that mimic securities
Where coin offerings have properties of securities, the central bank will have oversight; financial institutions could have licence withdrawn if regulation is not followed
French government raises counter-cyclical buffers for first time
“Economic and political uncertainty” call for hike to “moderate level” of 0.25%, council says
Egyptian central bank pledges to write off companies’ debt in ‘crisis’ measures
Debt relief and increased funding could cost up to $5.6 billion, governor says
Sia given green light to access Eurosystem’s instant payment system
ECB permits first network provider to give access to new Tips platform
Bank of Finland working on payments backup system
Board member says Finland must be able to maintain control of “critical infrastructure” should disruptions occur