Financial Stability
Banking ‘deserts’ do not explain financial exclusion – NY Fed economists
Data shows absence of nearby banks fails to explain “unbanked” share of the population
Home truths on Europe’s NPLs
Europe needs to overcome fears of a hypothetical crisis, and impose more intrusive supervision and greater provisioning on its banks
Minneapolis Fed launches too-big-to-fail plan
The four-step plan proposes stricter capitalisation rules for big banks and looser regulation for smaller institutions
HKMA launches consultation on open API framework
Open API enables personalised services for bank users but requires access to customer data
NBIM eyes private equity investment in potential shake-up
Letter to finance ministry says the fund’s structure and goals make unlisted equities a wise investment, but acknowledges a 4% cap would be sensible
IMF’s Obstfeld: effects of accommodative policy remain unclear
The IMF chief economist weighs up the productivity puzzle and whether monetary policy helped or hindered growth following the financial crisis
Angola drops dollar for euro in new exchange rate regime
Kwanza depreciates 11.5% against the dollar following regime change
Irish central bank asks for criminal offence for recklessness
Personal responsibility for senior individuals should be based on UK model, says regulator
ECB dumps Steinhoff stock
Losses on holding in scandal-hit retailer may have been approximately €50 million
Low rates push investors to seek risk abroad – BIS paper
Authors find that low rates at home drive risk-taking overseas and the effect accelerates as rates approach zero
PBoC tightens bond trading rules, relaxes renminbi controls
China’s financial regulators continue their efforts to deleverage the economy and promote renminbi internationalisation
Central Bank of Brazil survey shows poor savings habits
More than half of respondents had no spare earnings over past year to put aside, which could put them at risk if “unforeseen expenses” arise
Fed could use rates to counter instability – Mester
2015 exercise showed major problems in use of macro-prudential tools, says Cleveland Fed chief
‘Decisive’ action needed to deflate China’s credit boom – IMF paper
Lack of reliance on foreign financing, low government debt, and state control help to mitigate effects of credit boom, but buffers should not be relied upon in the long run
BIS paper asks what makes emerging market banks profitable
Both bank-specific and economy-wide factors affect banks’ profitability, authors find
BoE paper outlines big-data-based early warning indicator
Text mining approach seeks to capture how narratives can drive action in financial markets
Fed proposes expanding risk regime to foreign subsidiaries
New consultation suggests widening the scope of the August 2017 proposals to foreign-owned operations
Tanzania revokes licence of five banks
Rising NPLs and insufficient capital ratios in small banks source of concern, IMF says
Macao turns to facial recognition to fight money laundering
Chinese tourists now have to verify their identities in order to withdraw cash at most ATMs in the casino hub
Platforms win small on Mifid day one
Some dealers stopped quoting bilaterally on smaller bond trades
Colombian paper says resolution co-operation is needed in the region
Authors examine how resolution plans have evolved and conclude more work can be done with regard to local systemically important financial institutions and cross-border activities
FSB recommends global governance for UTI
FSB concludes ISO should publish and maintain the standard with additional governance from CPMI and Iosco