Financial Stability
Former BoE economist proposes new regulatory approach
Panellists discuss whether post-crisis regulation has gone too far, asking whether banks need the extra capital
BoE’s Taylor pushes back against complaints of over-regulation
Capital requirements could have been made much tougher, and the FPC strives to achieve balance and accountability, Martin Taylor says
Payments overhaul under way in Aruba
Central bank to give up clearing responsibilities to oversee new payments infrastructure; consumer behaviour will be a challenge, bank says
Dudley: use ‘paring knife not meat cleaver’ on Dodd-Frank
New York Fed president accepts that some elements of Dodd-Frank could be improved, but also says vulnerabilities remain
Mauritius governor opens new currency museum named after first governor
Museum ‘Aunauth Beejadhur’ will exhibit Mauritian currency throughout the ages, with plans to expand scope to include financial literacy at a later date
PBoC’s Zhou warns of ‘sudden’ contagion risks
Governor continues with tough line on financial imbalances as he prepares to hand the reins to an as-yet-unnamed successor
Uruguay launches digital currency pilot
10,000 users will have access to the network, run in conjunction with the state-owned telecoms company and national payments system
High debt threatens financial stability in Norway, central bank says
Household debt ratios and rising property prices are the two main vulnerabilities for the system
‘Black box’ AI could pose macro risks – FSB
Rise of artificial intelligence in finance may promote efficiency, but it can be hard to tell where the dangers lie, report finds
BIS paper surveys financial shocks in Latin America
Authors study the most effective policy response to financial shocks in different countries
Supervisors must co-ordinate on ‘significant-plus’ branches – EBA
Guidelines set out advice for handling branches with “critical” functions
MAS bans individuals involved in 1MDB scandal
Six people involved in 1MDB-related breaches have been issued prohibition orders by MAS, with two more facing potential future bans
US senators chase regulators on Treasury market reform
Crapo and Warner push regulators to ensure reforms to improve transparency are still in the pipeline; gaps in data remain a concern
BoE’s Woods: 75,000 Brexit job losses ‘plausible’
Deputy governor estimates 10,000 finance job losses on first day of Brexit, with wider long-term repercussions
Internal capital reallocation matters, BIS paper finds
Authors model response of a bank to tightening capital constraints, shedding light on how banks may respond to changes in their environment
Paper examines EM response to global liquidity shocks
Emerging markets reduce rates and increase reserves in the face of positive liquidity shocks
FCA’s Bailey: firms need Brexit clarity fast
Financial firms will have to make decisions over the coming months that will be very hard to unwind, so certainty on the Brexit transition is pressing
BoE paper scrutinises 2016 sterling flash crash
Paper makes detailed study of the “flash episode”, concluding later price drops were abnormal