Regulation
IMF paper investigates valuation impacts of geographic diversification
Paper finds shareholders are less able to monitor firm executives in diverse bank holding companies; allows corporate insiders to extract larger private benefits
Basel DVA capital deduction could cost banks billions
Billions of dollars in capital could be excluded under Basel proposals on derivatives DVA - with US banks hardest hit
US Treasury clarifies sanctions on Central Bank of Iran
US issues detailed list of frequently asked questions; says assessment of which transactions fall under sanctions will be done on case-by-case basis
Central Bank of Ireland reveals enforcement priorities
Irish central bank tells financial service providers what it will focus on in terms of enforcement actions in 2011; warns reactive enforcement will also occur outside of set priorities
Overburdensome regulation can generate shadow activities, says IMF paper
Fund study says institutions have a larger influence on the size of the underground economy than on tax rates
IMF paper captures spillover effects from tougher capital rules
Fund study shows international spillover effect from higher capital requirements typically account for 20-25% of the total impact on output
EU vows fresh sanctions against Syrian central bank
European Union due to impose freeze on Central Bank of Syria's assets as part of efforts to strengthen sanctions against the Syrian government
Renminbi restrictions pose obstacle to internationalisation of currency, says BoJ’s Nishimura
Bank of Japan deputy governor Kiyohiko Nishimura says renminbi internationalisation is ‘implausible’ without significant capital-flow deregulation
BoE’s Salmon urges regulators to resist watering down reforms
Bank of England executive director Chris Salmon says regulators must withstand pressure to water down reforms and instead provide longer transition periods
FSA chief hails new twin peaks approach to regulation
Financial Services Authority head Hector Sants says approach to supervision of banks in the UK will be more proactive and judgement-based; warns of 'tick box' approach to regulation in Europe
Italian banks may need state aid to hit 9% core capital, says Saccomanni
Bank of Italy director-general says country’s banks may require government assistance to meet stricter 9% core Tier I capital ratio; new deputy director Salvatore Rossi optimistic growth outlook
Czech central bank concerned over Esma's power
National supervisors should be responsible for their domestic institutions, says Czech National Bank
BoE's Posen continues crusade for SME credit
Posen laments decline of political interest in plans for credit easing for SMEs in the UK; reaffirms his drive to improve the provision of finance for smaller non-financial corporations
Governor of the Central Bank of the Philippines talks Basel III
Amando Tetangco explains how Basel III has a “perverse” impact on countries with strong fiscal discipline and why the Sifi designation is less important than rigorous regulation
Ireland overhauls market abuse oversight rules
Markets supervision directorate at the Central Bank of Ireland will now monitor and investigate market abuses instead of Irish Stock Exchange; ends arrangement in place since 2005
Switzerland investigates need for ‘more specific’ insider trading rules
Head of legal services at the Federal Confederation explains the investigations under way into the circumstances that ultimately caused Philipp Hildebrand to resign as governor of the Swiss National Bank
Russia gears up for central securities depository
Russian central securities depository (CSD) could be ready by the end of 2012, although there is more work to be done
EU freezes assets of Iranian central bank
EU follows US lead by announcing strict new sanctions on Iranian central bank; heart of action is to limit the country’s nuclear programme
Bundesbank’s Dombret calls for rigorous monitoring of Basel III implementation
Bundesbank executive board member Andreas Dombret says financial market's attempts to create global level playing field for regulation should face scrutiny
Ingves targets domestic Sifis with tougher capital rules
Basel Committee chairman Stefan Ingves says all institutions whose disorderly distress or failure could trigger a systemic crisis should be subject to additional capital requirements
Swedish authorities improve macroprudential policy co-operation
The Riksbank and Finansinspektionen form a new council for co-operation on macroprudential policy; group will not infringe on two authorities' independence in decision-making
Fed’s Tarullo identifies supervisory difficulties in applying Volcker rule
Federal Reserve board member Daniel Tarullo says regulators were finding it difficult to distinguish proprietary trading from market-making activities
Robert Pringle's Viewpoint: Policy-makers in thrall to group thinking
Philipp Hildebrand’s resignation has renewed fears about market practitioners working in central banks. But FOMC minutes from 2006 reveal a deeper problem – placing too much reliance on economists