Financial Stability
Irish central bank to investigate fund manager fees
The Central Bank of Ireland intends to investigate the levels of fees charged by asset managers based in the country; review will be one of 12 ‘themed inspections’ of the finance industry
Bahraini central bank launches ‘almost real-time’ payments
Central Bank of Bahrain launches Electronic Fund Transfer System, comprising services for near real-time payments, deferred net settlement and bill aggregation
Global value chain key to realising growth potentials, says Sri Lanka governor
Mahendran says Sri Lanka has not integrated fully into the international value chain; former World Bank chief economist Lin discusses ‘new’ structural economics
BIS’s Shin highlights global liquidity dilemma for EMs
Head of research points to an uncomfortable balancing act among emerging markets exposed to foreign currency debt, which may be a factor behind the recent slowdown in their economies
Shocks to income have pushed Australian inequality higher, paper finds
Both income and consumption inequality have risen among Australian households due to the effect of short-term and long-term shocks to income, an RBA paper argues
UK banks must raise extra £27bn to meet resolution needs under BoE proposals
Large banks will have to issue additional subordinated debt to meet MREL requirement under proposals designed to ensure banks will continue to operate under resolution
Spanish paper finds issues with Basel III approach to calculating risk-weighted assets
The approach to calculating banks’ risk-weighted assets introduced by Basel III may create incentives for ‘regulatory arbitrage’, a Bank of Spain paper argues
Seacen Centre’s Genberg calls for research into effects of macro-prudential tools
Hans Genberg warns ‘we do not have much experience with the consequences’ of macro-prudential policies with respect to risk distribution and cross-border effects
Further macro-prudential policies ‘may be needed’ in UK, says IMF
Staff say existing measures have eased but not eliminated risks to household finances; encourage BoE to keep monetary policy unchanged until inflationary pressures are ‘clearer’
Nabiullina says ‘risk’ scenario for Russian economy more likely now
Governor Elvira Nabiullina fears oil prices may fall further and have an adverse affect on the economy, as the Bank of Russia leaves its policy rate unchanged
TCH and VocaLink set sights on US real-time payments
CEOs emphasise effort to create level playing field for 14,000 US financial institutions to access the system, as the firms finalise real-time payments deal
Spanish paper offers guide to using BIS data
A paper published by the Bank of Spain offers an introduction to the statistical data on international banking published by the BIS
Irish economy improving but still vulnerable to shocks, central bank warns
Ireland’s economic outlook improved during the second half of the year, but the country is still vulnerable to financial shocks, says the Central Bank of Ireland in its latest macro-financial review
Eurozone QE ‘much needed’ but not enough for growth, Greek deputy says
Bank of Greece deputy governor Iannis Mourmouras praises ECB programme but suggests more measures needed from elsewhere; criticises poor sequencing of structural reforms in past
PBoC confirms Korea on track to issue first sovereign 'panda bond'
Korean government authorised to raise 3bn yuan in interbank market, China's central bank confirms; Seoul reportedly marketing bond during China roadshow this week
Dynamics and volatility of capital flows a concern, says Mexican deputy
Manuel Ramos-Francia says EM policy-makers are concerned not only with the size of capital outflows, but also the dynamics of those flows, at conference hosted by Bank of Mexico
Central Bank of Armenia says currency turbulence has raised credit risks
Financial stability report says economy has been affected by sharp depreciation of the dram, worsening credit risk as many loans are denominated in US dollars
EU survey calls for more cohesion on cloud computing
There appears to be a lack of clear and formal guidance from financial supervisors on banks’ use of cloud-based IT services, while their use is underestimated, an EU agency says
Banks may need major overhaul to handle new disclosures, FSB task force says
Many banks will need to make ‘substantial changes’ to systems and processes to cope with new and more complex standards on accounting for expected credit losses, report finds
South Africa evades recession with positive growth in third quarter
Agriculture sector remains a concern despite economic growth in third quarter, most recent Sarb quarterly review notes
BIS: Artificial calm in markets cannot last
Quarterly review presents latest evidence of fault lines running through financial markets; Claudio Borio says tension between market behaviour and underlying conditions must be resolved eventually