Financial Stability

BoE paper on efficient payment systems

The Bank of England Working Paper "The welfare benefits of stable and efficient payment systems" examines the importance of smoothly functioning payment systems to the economy by extending a recently developed theoretical model of banks.

ACU to discuss payment systems efficiency

Members of the Asian Clearing Union (ACU) will meet in Dhaka this week to discuss ways to make their payment systems easier to use to boost trade, a Bangladesh central bank official told Reuters.

Comment: Will McCreevy's approach work?

The European commissioner for internal market and services, Charlie McCreevy, has called for an industry-driven "code of conduct" to reduce the costs of European cross-border settlement and clearing, rather than propose a directive. Will his famous light…

RBNZ countdown to smaller lighter coins

On 31 July the current 50, 20, and 10 cent coins will be replaced with smaller and lighter coins, and the 5 cent coin will begin to be phased out, the Reserve Bank of New Zealand said on Monday 10 July.

Dutch central bank wants better payment system

The Dutch central bank has called for a more efficient payment system and is considering a set of measures to encourage people to pay more by electronic means, MarketWatch reported.

Comment: Dutch banks lose on payments

A recent report by McKinsey, a consulting firm, finds that Dutch banks are losing money on processing payments. Moreover, the report suggests that margins will be under even greater pressure as banks have to implement a plethora of new regulations.

EU Parliament wants information on SWIFT

The European Parliament adopted a resolution on Thursday 6 July asking EU governments, the Commission and the European Central Bank to explain what they know about the SWIFT agreement.

ECB considers new securities settlement service

The European Central Bank said Friday 7 July it is considering setting up a new service for securities settlement in the eurozone. Through the new system, the ECB said it aims for synergies and harmonized settlement of securities transactions in the euro…

Comment: LCH.Clearnet chief departs

After months of speculation that his days were numbered, David Hardy resigned as chief executive of LCH.Clearnet on 5 July. The announcement was met with an air of inevitability. The episode raises some fundamental questions about the European clearing…

Garganas on regional financial stability

In the speech 'Regional financial stability around the Eurozone' given on 1 June Nicholas Garganas of the Bank of Greece said it is important to recognize that, as the financial systems of South-Eastern European countries are liberalized and their…

ECB paper on financial stability challenges

The ECB Occasional Paper 'Macroeconomic and financial stability challenges for acceding and candidate countries' reviews macroeconomic and financial stability challenges for acceding (Bulgaria and Romania) and candidate countries (Croatia and Turkey).

ANALYSIS: The irresistible rise of e-trading

Technological innovations are making electronic trading the method of choice - even in assets where floor-based trading looked set to dominate. Resisting technology can prove costly for the world's more established exchanges.

Consultation paper on Payments System Risk Policy

The Federal Reserve has published a consultation paper to seek information from financial institutions and other interested parties on their experience in managing intraday liquidity, credit, and operational risks relating to Fedwire funds transfers and…

Comment: Passing the buck

The current outcry over American intelligence officials' access to private information linked to international money transfers has raised some thorny issues over who regulates the international messaging and financial telecommunications group, SWIFT.

The IMF's balance-sheet and credit risk

The authors of this Bank of Canada Working Paper examine the characteristics of International Monetary Fund (IMF) lending from the 1960s to 2005. They find that there has been an increase in portfolio concentration and that lending terms have effectively…

Ingves on regional financial sector assessments

In the speech 'Can regional financial sector assessments provide additional values to the EU countries?' given on 13 June Stefan Ingves of the Sveriges Riksbank said the whole FSAP process was created to meet a specific purpose: to reduce the incidence…

New global note arrangement for debt securities

The ECB confirmed Monday 12 June that the so-called New Global Note (NGN) arrangement for international debt securities is in compliance with the Eurosystem's Standards for the use of EU securities settlement systems in ESCB credit operations.

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