Financial Stability
Basel Committee signals shift towards Basel III implementation
With Basel III standards largely finalised, the Basel Committee’s 2015-16 work programme indicates focus on implementation and efforts to shore up confidence in capital ratios
Swiss gain greater access to renminbi markets in new deal
SNB and PBoC ink deal on RQFII quota for Switzerland and establish renminbi clearing in the country; latest in a string of agreements aimed at renminbi internationalisation
EBA chairman says supervisors should break up unresolvable banks
Supervisory entities ‘should have the guts’ to break up an unresolvable bank, European Banking Authority chairman Andrea Enria tells Davos audience
NY Fed's Baxter targets stronger ethical culture in banks
Thomas Baxter says progress is more important than ‘perfection' in promoting better behaviour among financial industry workers
Offshore renminbi clearing banks could face competition from 'superhighway'
As host countries play up significance of new clearing banks, questions emerge over whether they will become obsolete once Chinese ‘payments superhighway' comes into being
Fed’s Powell offers support for ‘ambitious’ BoE review
Jerome Powell points to the importance of reflecting on structural changes in the fixed-income, currency and commodities markets
BoE’s Cunliffe wants better allocation of capital in Europe
Better functioning capital markets would encourage savings to be put to better use, allow greater risk sharing and provide alternative sources of finance, deputy governor says
Honohan: EU-IMF programme a qualified success
Following conclusion of programme Central Bank of Ireland governor says it did 'what it said on the tin' by restoring market confidence and stabilising the economy
RBI director cautions against foreign ‘investment tourists’
Financial stability implications of investors leaving India 'at a whiff of trouble' must be kept in mind as the country progresses down path of liberalisation, Padmanabhan says
Basel III helps Russian banks handle economic turmoil, says Yudaeva
Russia’s adoption of international banking rules has given its banks partial protection from a plunging currency and soaring interest rates
Capital controls may do more harm than good: NBER paper
Working paper attempts to gauge the adverse effects of imposing capital controls, including segmented financial markets, more expensive capital, and reduced investment
Leaning against the wind may boost shadow banking: BoE researchers
Contractionary monetary policy may encourage growth of shadow banking even as it restricts commercial banks, casting doubt on the ability of central banks to ‘lean against the wind’
EBA declares LCR 'not likely' to have negative impact
Impact assessment by European Banking Authority finds liquidity coverage ratio is unlikely to negatively impact bank lending or financial stability; some banks show shortfall
Cuban central bank to issue three new large-value banknotes
Central bank plans to issue banknotes worth 200, 500 and 1,000 domestic pesos; the largest note currently in circulation is worth 100 pesos
Cash settlement shifts to central bank platform in Kenya
Cash settlement of equity and corporate bond transactions on Nairobi Securities Exchange now taking place on Central Bank of Kenya’s real-time platform
ESRB on the hunt for experts to join macro-prudential advisory committee
Applicants for a seat on Advisory Scientific Committee must be academics or industry practitioners and cannot be employees of a member institution
Central Bank of Colombia director calls for new policy tools
Colombia’s central bank needs to ‘steer regulation towards dealing with the systemic risks in the financial sector as a whole’ and not as isolated parts, argues director
Ireland’s Honohan: organisational structure to be ‘thoroughly overhauled’
Central Bank of Ireland governor details ongoing efforts to rectify the regulatory failings that led to the 2008 crisis in the country's banking system
Central Bank of Nigeria eases rules for bank dollar holdings
Nigeria’s central bank has eased the rules for interbank dollar holdings in attempt to boost liquidity in forex trading market, but one FX strategist warns of ‘marginal impact’
Coins and notes with same value to circulate in Angola
Angola’s central bank will issue two new coins in November, of 50 and 100 kwanzas, which will circulate with equal denomination banknotes
IMF paper considers merits of macro-prudential liquidity buffer
Working paper asks whether such a buffer would be desirable, and how it might operate in practice; authors say it would complement other requirements including the LCR and NSFR
Economics in Central Banking: Claudio Borio
The Bank for International Settlements’ economics head secures win for his work applying the concept of ‘excess financial elasticity’ to the international monetary and financial system
BoJ paper outlines enhancements to flow of funds data
Review paper details improvements to flow of funds accounts statistics in Japan introduced since the global financial crisis, and identifies a number of trends that have emerged
PBoC to accelerate reform process in 2015
Chinese central bank signals more financial reforms and a faster opening of financial markets in 2015; focus on ‘prudent’ monetary policy but more stimulus a possibility