Financial Stability
Open Forum: Market maker of last resort presents host of issues for central banks
Axel Weber and Minouche Shafik point to perils for central banks looking to step into the role of market maker during a liquidity crisis
BoE’s FPC must be sharp on risks as next phase of credit cycle emerges, Cunliffe says
Cunliffe examines different approaches to setting macro-prudential policy, noting the BoE’s work towards countercyclical stress testing of banks
Low rates from QE poses risks to some pension and insurance firms in eurozone, Visco warns
Pension funds and insurance companies in some eurozone countries may need to adjust their practices to limit the risks arising from asset purchases, Italian governor says
Open Forum: BoE event highlights gulf between perception of public and regulators
Open Forum attempts to break new ground in communication, but a sense emerges that regulators have failed to address public dissatisfaction with financial markets
RBNZ: Auckland housing risks have increased
New Zealand central bank warns Chinese slowdown could affect banks' funding costs as house prices-to-income ratios rise to record highs; effect of macro-pru rules ‘too early to judge'
Basel Committee proposes lighter capital for ‘STC’ securitisations
Simple, transparent and comparable securitisations might not need as much regulatory capital as they do under the current framework, proposals suggest
Oil prices are key drivers of metal prices, Colombian paper suggests
Research utilising ‘frequency-domain approach’ finds oil prices may be a key drivers of metal prices; consider implications for commodity-rich nations
Jamaica will require banks to have recovery plans to access emergency liquidity
Banks must provide recovery plans under new emergency liquidity facility, Jamaican bank governor says
ECB publishes first quarterly statistical report on households
The European Central Bank publishes its first quarterly statistical report on the eurozone’s household sector; underlying figures available online in data warehouse
Czech governor casts doubt on Basel III
Miroslav Singer says he is ‘very sceptical’ about the shift from the second Basel accord to the third in an interview with the Central Banking Journal
BoE paper maps UK bank response to 2008 liquidity shock
Authors contribute to international study of banking networks, finding UK banks that grew faster pre-crisis responded more sharply to the liquidity shock in 2008
UK authority calls on banks to help tackle cyber crime
UK National Crime Agency calls on banks to collaborate with authorities to reduce fraud
Italian NPL legislation should shorten bankruptcy proceedings, paper says
Legislation recently passed by the Italian parliament should shorten bankruptcy proceedings and may stimulate a private market for Italy’s non-performing loans, a Bank of Italy paper argues
Different economies need different types of structural reform, IMF paper finds
Economies at different levels of development need different types of structural reform, a policy paper by the International Monetary Fund says
Australian property market must be watched by regulators, assistant governor says
Residential and commercial property prices are rising rapidly in Sydney and Melbourne, Australian assistant governor says; evidence of some ‘slipping in lending standards’
‘Disclosure task force’ can tackle climate risks, FSB says
Industry-led group would develop voluntary disclosures relating to climate change; Mark Carney says better information could head off a ‘climate Minsky moment’
FSB unveils final TLAC standard
Global systemically important banks will need to build sizeable stocks of loss-absorbing capacity by 2019; many jurisdictions are lagging behind on implementing resolution framework
Information content of capital flows affects exchange rate impact, SNB paper finds
Private information conveyed by different kinds of capital flows affects the impact on the exchange rate, a working paper published by the Swiss National Bank finds
Central Bank of Iceland under scrutiny on crisis response
Supervisory board to investigate complaints over the handling of breaches in capital controls and legal uncertainty surrounding the holding company established by the central bank
Belarus to re-denominate its currency from July 2016
Ruble to be cut to one ten-thousandth of its value when new series rolled out; new banknotes printed years ago, but delay saw them stashed in central bank vault
‘Closed’ nature of eurozone banks increases vulnerability, Portuguese paper says
Commercial banks in the eurozone are more likely to be hit by country-specific shocks compared to US given fewer foreign branches; greater use of asset-backed securities may be a solution
Chile bides time on macro-prudential debate
Governor of the Central Bank of Chile says the bank will continue to ‘watch’ macro-prudential debate with view to ‘carefully studying’ different tools