Financial Stability
Risk management reforms a work in progress: IIF survey
Institute of International Finance survey says further progress on risk management reforms necessary; calls for more work to promote appropriate risk culture
FSB outlines road to shadow banking regulation
Financial Stability Board sets out detailed definition of shadow bank; outlines possible future steps to better regulate the system
Shirakawa on earthquake response efforts
Bank of Japan governor Masaaki Shirakawa says he feared earthquake would lead to deterioration in business sentiment
UK banking commission keen on ring-fencing retail operations
Safeguards on retail banking “common sense” chairman claims; Sifis need minimum capital ratio of 10%
IMF praises PMA as Palestine bids for statehood
Palestine Monetary Authority “now in a position to carry out functions of a central bank” as the territory bids for statehood recognition as of September
Belgium unveils financial health indicator
National Bank of Belgium designs financial health indicator to monitor risk of company failures; says probability of bankruptcy higher than 25% for least financially sound
Bank’s Haldane warns capital inflows may overwhelm emerging markets
Bank of England executive director for financial stability Andrew Haldane says rapid rate of investment in emerging markets could lead to financial instability
Consumers move back to cash payments: Boston Fed paper
Boston Federal Reserve study finds evidence of decline in credit and debit card usage and increase in cash payments during financial crisis
BoJ - Monthly Report of Recent Economic and Financial Developments (April 2011)
The Bank of Japan’s April 2011 Monthly Report of Recent Economic and Financial Developments finds evidence of a sharp slowdown in production following Tohoku earthquake
Sepa end-dates should be set in stone: ECB
European Central Bank proposes concrete end-dates for migration to Single Euro Payments Area
Greek debt still the most risky: CMA survey
CMA labels Greek sovereign debt as most risky in the world, second quarter in a row; countries elsewhere in Western Europe performed the best
EBA reveals benchmark for EU stress tests
European Banking Authority to apply 5% core Tier I capital ratio of risk-weighted assets on stress tests; says 90 banks will participate in tests
HKMA’s Chan reviews merits of universal banking
Hong Kong Monetary Authority chief executive Norman Chan says central bank will take balanced approach to universal banking
Japan offers ¥1 trillion to firms in disaster-stricken regions
Bank of Japan makes ¥1 trillion available for loans to financial co-operatives and banks in disaster-stricken regions
Portugal seeks bailout, Trichet confident rate hike will only help
Portugal seeks financial assistance from Brussels; European Central Bank president Jean-Claude Trichet says rate hike will help build confidence in stricken sovereign
Sweden picks famous faces for new banknotes
Riksbank announces motifs to be emblazoned on new banknotes; include actress Greta Garbo, author Astrid Lindgren and singer Birgit Nilsson
IMF paper explores measures of default probability
Fund paper investigates methods to measure market price of risk and probability of default
Basel Committee’s Walter: consensus reached on method to identify Sifis
Basel Committee has now agreed on criteria for banks posing systemic threat; FSB agrees on accelerated timetable for G-20 recommendations
Ireland’s Elderfield: we’ll not haircut senior debt
Matthew Elderfield, Ireland’s head regulator, assures senior bondholders in four banks they will not face “action”
Financial cycle dynamics: IMF paper
Fund study finds financial cycles tend to be long, severe and highly synchronised within and across countries
New York Fed to set up working group on OTC reforms
New York Federal Reserve receives commitment from market participants to support strategic road map on reforms to over-the-counter derivatives markets
Riksbank report examines links between housing and financial stability
Report notes that housing slumps seldom result in banking crises outside the US; highlights data deficiencies
Bank of Japan- Tankan Survey (March 2011)
Bank of Japan March 2011 Tankan survey shows business conditions continue to deteriorate in Japan
IMF moots policy framework for capital inflows
Fund devises “key elements” of possible policy framework for managing capital inflows; framework notable in allowances for capital controls