Financial Stability
BoE researchers unearth further evidence of electronic trading driving liquidity shocks
Study of market liquidity finds episodes of volatility have centred on fast, electronic markets, and says broad trend has been towards greater use of electronic platforms
BoE’s Brazier defends new stress testing framework
Executive director says the Bank of England already has much of the forecasting infrastructure it needs, but will not overestimate its ability to spot the UK’s position in the financial cycle
European banks ‘lagging behind’ in re-thinking strategies, Bundesbank board member says
European commercial banks have been too slow in adapting to a changed regulatory environment and low interest rates, says Andreas Dombret of the Bundesbank
Central Bank of Iceland approves failed bank plans
Central Bank of Iceland approves ‘composition agreements’ by failed banks, offering them the opportunity to duck a heavy stability tax
Riksbank attacks government's amortisation proposals
Sweden’s central bank strongly criticises aspects of government proposals to cool the housing market; says measures threaten the independence of Swedish macroprudential regulator
Emerging markets risk ‘quantitative tightening’, Caruana says
Problems now affecting emerging markets are a continuation of global problems, head of BIS says; response by policy-makers is too reactive and based on domestic circumstances
Countries under credit stress should ‘front-load’ fiscal consolidation, says ECB paper
Front-loading will bring confidence effects, the working paper suggests
Bernanke offers insight into Fed’s political balancing act
Former Fed chair tells of navigating both political and economic pitfalls in crisis response, and says the US central bank’s independence is still under threat
Tightening bank loans explains much of ‘Great Recession’ in eurozone
Tightening bank loans and increases in bond premia explain much of the recent contraction in the eurozone, paper argues
RBA sees no ‘financial stability case’ for repo CCP
Central bank decides not to actively encourage the (re)creation of a repo-focused central counterparty, but says it will work with the industry if it wants to take the project further
Sarb ready to deploy countercyclical buffer from January
South African Reserve Bank says countercyclical capital buffer is ready but not yet needed, in latest financial stability report
Vocalink to deliver ‘new generation’ real-time payments in US
CEO David Yates tells Central Banking there will be unique challenges to delivering real-time payments in the US, as Vocalink is chosen to provide software behind faster payments project
‘First empirical survey of European forbearance’ uses asset quality review data
Weak macroeconomic conditions, supervisory regimes and the weakness of individual banks drive the amount of forbearance on loans practised by European banks, working paper argues
Venezuelan central bank sues US data website
Central bank accuses black market data website of artificially raising the rate of inflation in the country
Hungarian central bank to bid for country’s stock exchange
Hungary’s central bank is in talks with Austrian banks to buy a majority shareholding in the country’s stock exchange
BoE’s Shafik unconvinced regulation is main factor driving volatile liquidity
Deputy governor says regulation ‘only part of the story’ of why market liquidity has experienced bouts of dramatic volatility, and offers opinion on what policy-makers can do to help
National Bank of Kazakhstan plans overhaul of interbank card payment infrastructure
Central bank looks to create new infrastructure for interbank card payments with the aim of improving the efficiency with which banks plug into clearing systems
Asymmetric credit growth drove pre-crisis eurozone imbalances, paper argues
Credit growth and competitiveness major causes of current account deficits, researcher says
Kohn warns of 'serious shortcomings' in US macro-prudential framework
Former Fed vice-chair says inability to impose LTV and LTI ratios on mortgages may imperil US rate weapon at a time when central bank is failing to meet targets
ECB sparks bank tug-of-war over debt eligibility
The European Central Bank may force local regulators to choose whether banks can use senior debt for TLAC or to access its liquidity programme – setting G-Sibs against regional banks
ECB working paper links tight credit conditions to large investment cancellations
Industries most reliant on bank debt in eurozone worst hit by negative bank credit supply shocks, ECB paper finds
South-eastern European banking supervisors agree to co-operate with EBA
Six supervisory agencies agree to share information with European Banking Authority
External debt is Greece’s perennial Achilles heel, economists warn
Cycles of external debt and dependence are ‘perennial themes’ for Greek crises since 1829, and other countries may be similarly vulnerable, Carmen Reinhart and Christoph Trebesch argue