Financial Stability
DSK: to counter carry trade EMEs must act
Managing director of the International Monetary Fund places onus on emerging economies; advocates capital controls as part of toolkit to counteract dollar carry trade
Base countercyclical provisioning on expected losses
Bank of Italy looks at Spanish dynamic provisioning
Bank paper outlines macroprudential tools
Bank of England discusses possible forms of countercyclical capital buffers; highlights potential problems
RBA subsidiary chief ousted in graft probe
Managing director of polymer manufacturer Securency stands down as investigation reveals whistleblowers’ bribe claims ignored; offices and homes raided
Norway enables account holders to switch bank in seconds
Finance ministry ruling paves the way for technology that will make Norway the first country to allow customers to change accounts with ease
Accounting overstates banks’ health: IMF paper
International Monetary Fund research finds banks not as healthy as their balance sheets suggest
Roth praises SNB’s monetary policy
Swiss National Bank’s Jean-Pierre Roth says the central bank has fulfilled its mandate for the past decade
OECD hikes growth forecasts
Paris-based organisation raises its growth forecasts for next year and publishes 2011 expectations, citing the momentum of the recovery in non-members such as China
Bank balances set to stay above pre-crisis levels: Fisher
Bank of England’s markets chief says firms likely to hold higher reserve balances at central bank
ECB’s Tumpel-Gugerell: rushing euro adoption no fix
European Central Bank’s Gertrude Tumpel-Gugerell says Central and Eastern European countries must fulfil Maastricht criteria to adopt euro
French regulator refused to help on AIG: Barofsky
Troubled Asset Relief Plan overseer says Commission Bancaire refused New York Federal Reserve’s request for help in reducing payments to counterparties of rescued insurer on legal grounds
IIF’s Abed: financial stability a central bank task
Institute of International Finance’s George Abed says the crisis casts the role of central banks in a new light
Exit easy for India: Mohanty
Reserve Bank of India’s Deepak Mohanty says the central bank should not be troubled by exit from monetary easing
Fed’s Kohn rejects bubble claims
Fed deputy acknowledges carry trade but dismisses fears low rates are stoking asset-price bubbles
Oman signs up to new FX, payments system
Central Bank of Oman’s move represents part of a broader trend by emerging-market central banks to refine operational systems
Bank of Spain – Financial Stability Report (November)
Spanish banks are dealing with the bust in different ways, says central bank’s report
A model to analyse stability
Reserve Bank of New Zealand paper details the development of a cobweb model that will be used in its Financial Stability Report
Buba’s Weber: Germany finance held its own
Bundesbank’s Axel Weber says Germany’s financial sector coped well with the crisis overall
Solomon Islands needs new sources of growth: Rarawa
Central Bank of the Solomon Islands’ Denton Rarawa says the country is too dependent on the logging industry
Shirakawa cautions on carry trade
Bank of Japan’s governor becomes latest official to warn on dangers of low rates in advanced economies; notes balance-sheet adjustments will impact efficacy of monetary policy
UK regulator to be allowed to “tear up” bankers’ contracts
Britain’s financial regulator will have its powers increased, allowing it to punish errant banks and bankers for excessive risk-taking
NY Fed’s Dudley on improving tri-party repos
New York Federal Reserve’s William Dudley says Fed wants to make tri-party repo system more stable
Israelis’ assets back to pre-crisis levels
Bank of Israel publishes new figures detailing the public’s financial assets portfolio
India announces payments overhaul
Root-and-branch reform will see Reserve Bank of India investigate the introduction of a new RTGS system, a domestic card initiative and mobile payments settlement