Regulation
Banking Commission chief makes case for ring-fencing retail operations
Independent Commission on Banking chief John Vickers rules out “radical narrow banking” but says some separation between investment and retail banks could help
Brussels seeks clarity on solving national regulators’ spats
European Commission calls for amendments to laws stating what the role of new supervisory authorities will be in resolving disputes between national regulators
Basel III will cause ‘financial Darwinism’: BaFin’s Sanio
Top German regulator Jochen Sanio says Basel III will squeeze weaker banks, spur formation of large banking groups that will pose more systemic risk
Basel bids to ensure all regulatory capital can be used to buffer losses
Basel Committee on Banking Supervision sets out rules to ensure instruments deemed Tier I and Tier II capital can be used to soak up losses; instruments issued after January 2013 must comply
PBoC allows Chinese firms to invest renminbi abroad
People’s Bank of China to allow domestic banks to settle investments abroad in renminbi as part of cross-border investment pilot
Argentina raises deposit insurance ceiling: reports
Central Bank of Argentina quadruples cap on bank deposit insurance to better reflect falling peso
Israel’s Eckstein backs new gas levy
Bank of Israel deputy governor Zvi Eckstein supports committee recommendations on natural gas levy
Senior officials for new European regulators named
European regulators in Paris and Frankfurt appoint a number of new heads and board members
Barclays’ Diamond argues case for universal banking
Barclays' chief executive Bob Diamond adamant bank’s model funds cheaper lending and is less risky
What Basel III means to us
The Basel Committee on Banking Supervision published the final text of Basel III on December 16, which introduces new minimum capital requirements, two liquidity ratios, a charge for credit value adjustment and a leverage ratio, among other things. Risk…
Renminbi liberalisation, price stability priorities: PBoC
People’s Bank of China says currency internationalisation, price stability top priorities for 2011, following annual meeting
Icelandic central bank, regulator ink deal to collaborate
Central Bank of Iceland and Financial Supervisory Authority sign landmark agreement to work together on oversight in areas including systemic risk
Brussels sets the stage for senior debt haircuts
Internal markets directorate publishes consultation paper calling for senior bondholder haircuts in resolution regimes; analysts worry move could further disrupt funding for troubled banks
Haircut fears push up bank CDS prices
Spreads on the credit index for senior European financials widen as EU releases burden-sharing consultation paper
Israel’s Fischer on the meaning of macroprudential policy
Bank of Israel governor Stanley Fischer stresses importance of interconnections in interpreting the macroprudential mandate
Forecasting ability fails to justify rating agencies’ power grab
Rating agencies forecasts “not particularly outstanding” during decades following the Great Depression, Bank for International Settlements paper finds
Philippines’ central bank takes ownership of golf course: reports
Central Bank of the Philippines takes over local golf club resort following default on loan by failed lender, local media say
CentralBanking.com’s top ten stories of 2010
Regulatory change features heavily
Spain’s Aríztegui on savings banks mergers
Bank of Spain deputy governor Javier Aríztegui discusses institutional protection schemes
Accountability and risk management key to banking: Albania’s Fullani
Bank of Albania governor Ardian Fullani tells bankers how central bank is raising the standards against which they are judged
Ireland lifts lid on tough new enforcement approach
Central Bank of Ireland publishes first-ever enforcement strategy, detailing tough line on sanctions; publication accompanies penalties on Allied Irish Banks, NCB Stockbrokers