Financial Stability
EBA to launch new stress tests
European Banking Authority unveils timeline for second round of EU-wide stress tests with launch set for Friday; first executive director and internal committee named
FX flexibility can act as buffer to hot money: IMF’s Shinohara
IMF deputy managing director Naoyuki Shinohara encourages emerging markets to adopt more flexible exchange rates to help curb flow hot money
Consumer behaviour influences financial distress: ECB paper
European Central Bank study shows individuals’ behavioural traits may contribute to level of financial distress experienced by consumers
Investment grade status provides premium: IMF paper
Fund study shows upgrade to investment grade status leads to sharp decline in sovereign spreads
Map of global banking network shows climb in contagion since late 1980s
Bank of England paper uses BIS banking stats to show potential for cross-border contagion has been rising for past two decades, reaching its apogee at the time of the Lehman Brothers’ collapse
SNB to close Geneva office as cash distribution services are outsourced
Swiss National Bank says Geneva office will close next year as cash distribution services to be carried out by private firms; fifteen staff affected by closure
Efficient markets’ failure hamstrung central banks: CentralBanking.com panel
Reliance on efficient markets hypothesis to develop policy frameworks must be reversed, LSE’s Brandon Davies and Fathom director Danny Gabay argue
National Bank of Hungary – Lending survey (Q4 2010)
National Bank of Hungary’s fourth quarter of 2010 lending survey shows unexpected tightening of credit conditions in Hungary
Loan-to-value ratios effective macroprudential tool: HKMA paper
Hong Kong Monetary Authority study finds evidence in support of loan-to-value ratios as a macroprudential tool
King warns of delay in switch to new regulatory regime
Bank of England governor Mervyn King says correct implementation of regulatory reforms takes precedence over achieving deadlines
Draft Irish law sketches resolution fund, living wills
Draft legislation from Irish government sets out rules on resolution fund that all banks must pay into, living wills; law includes strict penalties for failure
Bailout renegotiation looms following Irish election
Ireland’s new prime minister-elect expected to press for renegotiation of EU-IMF bailout deal; scheduled to meet European Commission head José Manuel Barroso on Friday
Iosco draws systemic risk roadmap for securities regulators
International Organisation of Securities Commissions sets out ways in which securities authorities can help control systemic risk
Italy’s Draghi on new Sifi guidelines
Bank of Italy governor Mario Draghi says prudential guidelines for systemically important financial institutions set to be complete in mid-2011
Richmond Fed’s Lacker on stress test disclosure
Richmond Federal Reserve president Jeff Lacker says appropriate level of stress test disclosure poses serious challenge
China attends first Seacen meetings
People's Bank of China governor Zhou Xiaochuan joins in 31st meeting of regional central bank heads in Sri Lanka
Trichet on common fallacies of competitiveness
European Central Bank president Jean-Claude Trichet describes common misconceptions on attributes of a competitive economy
St Louis Fed paper denies direct Fed link to 1930s recession
St Louis Federal Reserve study says Fed’s doubling of reserve requirements was not cause of contraction in 1930s
Mortgage lending falls: HKMA survey
Hong Kong Monetary Authority January 2011 residential mortgage survey reports decline in lending
Europe contributed to global savings glut: Fed paper
Federal Reserve study says European demand for US securities helped push US Treasury yields lower
RBI aims to cut reliance on banknote paper imports by half with new mill
Reserve Bank of India governor Duvvuri Subbarao says new state-of-the-art paper mill will cut imports for banknote paper by “more than half”
BoE - Agents' Summary of Business Conditions (February 2011)
The Bank of England’s February 2011 Agents' Summary of Business Conditions finds evidence of moderate pick-up in retail sales
China’s financial system, not renminbi, source of imbalances: St Louis Fed paper
St Louis Federal Reserve study says revaluation of renminbi will not address source of trade imbalances and may prove counterproductive
Japan’s Yamaguchi: recovery reignited by exports
Bank of Japan deputy governor Hirohide Yamaguchi says country is beginning to exit a temporary slump in exports