Bank for International Settlements (BIS)
Mario Draghi confirms Basel III is complete
Governors and heads of supervision grant final approval to the amended Basel III framework, but the parties fail to agree on sovereign asset treatment
BIS paper examines how banks use credit default swaps
Banks use CDS for position taking as well as insurance, but there is little evidence of their use to circumvent capital rules
Fed hikes have created ‘paradoxical’ easing – BIS
Review draws parallels between current episode and “Greenspan conundrum” of mid-2000s
Cocos lower banks’ funding costs – BIS paper
Mechanical triggers and equity conversion strengthen cocos’ impact, paper finds
How crypto is my currency?
Richard Heckinger examines how central banks are grappling with new ideas on crypto-currency and distributed ledgers
More work needed on supply channel of finance – BIS paper
Demand-side links between the financial and real sectors are better understood, say authors
Fernando Restoy looks to realign Basel’s FSI
The Financial Stability Institute chair discusses the prospects for implementing Basel III, the challenging political context and the FSI’s role in it all
FCA to publicly recognise selected codes of conduct
Regulator says the public recognition of good practice will encourage adherence
People: Riksbank appoints new head of financial stability
Sweden confirms the head of financial stability; BIS appoints new advisory board; Ukraine has new director of payment systems; and Angola reshuffles board of directors
Race to replace Agustín Carstens enters final stages
With less than a month to go before Bank of Mexico governor Carstens retires, analysts review potential candidates
Productivity puzzles and the neutral rate of interest
Monetary policy frameworks should be subjected to internal and external reviews to ensure they remain fit for purpose
BIS paper studies how weak banks beget zombie firms
Weak banks have a tendency to misallocate capital, authors find, though the effect is only important in the long run, in contrast to earlier studies
OTC derivatives fall to lowest levels since financial crisis, BIS says
The gross market value of outstanding OTC derivatives contracts falls to below $13 trillion at mid-2017
BIS paper surveys financial shocks in Latin America
Authors study the most effective policy response to financial shocks in different countries
Tapping into big data’s potential
Central Banking convened a panel of experts to discuss how central banks can harness big data for their needs, hopefully without falling foul of some of the many pitfalls that await.
Internal capital reallocation matters, BIS paper finds
Authors model response of a bank to tightening capital constraints, shedding light on how banks may respond to changes in their environment
A new era for the BIS
As Basel III inches towards closure and a new BIS general manager prepares to move into his post, Jaime Caruana talks to Daniel Hinge about his eight years at the helm
BIS could have done more to convey capital benefits – Caruana
Outgoing general manager says he would like to have better conveyed the “positive message” around capital, and made more progress on policy spillovers
FSI paper offers lessons from Asia for IFRS 9 transition
Jurisdictions may wish to draw on Asian approach to provisioning when moving to IFRS 9
Cross-border credit slips back into contraction
Latest BIS statistics show rebound of cross-border claims was temporary; China bucks trend with rapid growth of inward credit
Swing pricing can help ease liquidity pressure – BIS paper
Open-ended mutual funds can mitigate the risk of “self-fulfilling” runs by using the pricing technique, researchers say
FSI offers guide to liquidity monitoring tools
Basel III makes liquidity more comparable and consistent, but more tools may be needed to capture “jurisdiction-specific issues”, Financial Stability Institute says
EMs should work to avoid ‘macro-prudential war’ – BIS article
Use of macro-prudential policies should be co-ordinated internationally for maximum effect, say Luiz Pereira da Silva and Michael Chui
People: Israel picks MPC members after lengthy process; Brazil promotes deputies
Bank of Israel MPC members appointed after process spanning several years; Brazil promotes internal candidates; RBA has new international director; and more