Research
SMEs possibly worst hit by fragmentation of monetary policy transmission, ECB paper finds
Small and medium enterprises may have suffered most from fragmentation in monetary policy transmission following the financial crisis, according to research
Buy-to-let investors take houses off the market quicker and spend less
BoE working paper examines BTL in the UK between 2009 and 2014, finding properties spend five days less on the market and usually sell at a discount
Research draws on lessons from Polish prudential policy
The implementation of loan-to-value (LTV) and debt-to-income (DTI) ratios successfully manages credit risk, but the housing loan portfolio remains a concern
Education is key for Malawi’s financial institutions
Increasing focus placed upon financial literacy and consumer protection in Malawi’s financial institutions throughout 2014
Network theory allows systemic risk assessment of banks, paper argues
Analysing the network structure of the financial sector can help assess the systemic risk presented by individual European banks, and offers useful data for regulators, an ECB working paper says
Consistent implementation key to Basel III success, research notes
Boston Fed policy perspective highlights importance of consistent implementation of liquidity regulation across G20 jurisdictions
IMF staff identify ‘priority areas’ for SSA reform
Staff members in the IMF African department chart the progress of financial development in sub-Saharan Africa, the challenges that remain and how they might be addressed
BoE paper explores impact of dark trading on primary exchange
Bank of England paper argues dark trading did not lead to worse market quality on the primary exchange for members of the FTSE 100 index between September and December 2012
ECB bulletin: risks to taxpayer funds gradually diminishing
An article in the European Central Bank's latest bulletin weighs the fiscal impact of financial sector support during the crisis, highlighting the benefits of a move towards banking union
National Bank of Denmark confident it possesses ‘necessary tools’ to defend currency
The ministry of finance will resume issuing government bonds in October after measures to stabilise the krone have ‘desired effect’
German paper explores risks of sub-custodian chains
The structures to safeguard financial assets are opaque and possibly risky, and could benefit from further study as regulation is overhauled, the discussion paper argues
Regulatory regime differences may drive international capital flows, study argues
Financial regulation may need to extend the principle of automatic reciprocity between national jurisdictions, working paper argues
BoE paper offers framework for exploring impact of regulation on interbank lending
Central banks could benefit from studying the impact of regulation on the levels of overnight interbank interest rates
Synthetic financial cycle model allows crisis predictions, paper argues
A model of a synthetic financial cycle performs better than the credit-to-GDP gap in predicting financial crises, a European Central Bank working paper argues
Norges Bank memo presents indicator of systemic stress
Staff memo outlines ‘composite indicator of systemic stress’ to help with decision on when to lower the countercyclical capital buffer
Flaws in banking laws common across countries, working paper finds
IMF working paper examines the weaknesses in specific banking laws, concluding they are not country specific; seeks to provide a blueprint for ways to improve
IMF paper challenges idea of debt threshold effect
Countries with high levels of public debt can grow just as fast as their peers, provided the debt is on a downward trajectory, research finds
Danish paper explores prevalence of interest-only mortgages
Interest-only loans lead some families ‘to save less and increase their leverage’ assets, which could pose a financial stability risk, research shows
German reforms did not create eurozone imbalances, paper finds
German model illustrates the positive effect of structural labour reforms between 1999 and 2008 on GDP, consumption, investment and employment, but also the eurozone more widely
ECB paper makes case for Bayesian model averaging in stress-test models
Working paper highlights the differences between using Bayesian model averaging and a series of handpicked equations
Maltese not ‘aggressive’ in restructuring assets in 2014
Financial Stability Report indicates core domestic banks re-balanced assets to boost returns but were not aggressive in their approach
Research questions whether Asia development has permanent effect on long-run price of commodities
RBA paper reveals that developments in Asia has had a significant effect on the level of commodity prices, but the increase was smaller than first thought
DNB sizes up pension fund recovery plans
DNB assessment of recovery plans highlights funds do not intend to cut pensions in order to achieve new regulatory requirements
RBA economist proposes ‘survival model’ of banknote life
The research discussion paper outlines an alternative method of predicting how long banknotes will last, finding the ‘survival model’ produces less volatile estimates