Banks
FSB spotlight catches assets moving into the shadows
Shadow bank monitoring exercise shows assets stable inside the traditional banking sector but growing outside, as FSB publishes breakdown of data by jurisdiction for the first time
Productivity gains in the banking industry affect interest rates, study finds
More productive banks set lower interest rates on loans and higher rates on deposits, increasing their market share, according to a study by the Bank of Spain
Bank of England seeks global consensus on ‘fair and effective’ markets
Review aims to fix outstanding issues with market structure and conduct; Minouche Shafik says the central bank is working with others globally to build a consensus
Bank of Mauritius governor hails ‘rejuvenated’ staff
Rundheersing Bheenick says new hires and the creation of ‘director of technology’ position help the central bank keep abreast of rapid technological progress in the banking sector
Fed issues tougher and broader 2015 stress tests
Severely adverse scenario adds oil price shock and wider corporate bond spreads; list of stress-tested institutions grows
Fears surface over lack of trust among resolution authorities
Countries still do not trust one another enough to cooperate fully during the resolution of a globally systemic bank, participants at Chatham House event warn
Philippines central bank raises minimum capital requirements
The Central Bank of the Philippines has raised banks’ minimum capital level while unveiling new credit risk management rules that limit the collateral value of real estate mortgages
BoE’s Bailey slams European bonus caps
Deputy governor expresses ‘dismay’ at debate that misses what he sees as key points in designing appropriate incentives; points to flaws in Basel capital standards
European Banking Authority unveils framework for classifying high-quality securitisations
Consultation proposes system for classifying securitisations that are ‘simple, standard and transparent’ and therefore may benefit from more lenient regulation
FSB moves to tackle shadow-banking risks from SFTs
Final framework for setting haircuts on certain securities financing transactions seeks to control leverage outside the banking system and reduce procyclicality
Banks should offer ‘equal service’ when facing a run, research finds
Working paper published by the Bank of Portugal analyses models of bank runs, and finds equal service leads to a faster recovery
Focus on risk culture is ‘remaking’ the banking system
Patricia Jackson highlights ‘big shift’ in banking as firms implement more rigorous risk frameworks; BoE’s Andrew Bailey sets out the PRA’s approach
ESRB paper identifies difficulties in tracing origins of collateral
Occasional paper presents results from two data collection exercises, finding ‘widespread’ use of securities financing transactions and lack of clarity on the reuse of collateral
Hong Kong protests trigger emergency action by HKMA
HKMA activates its business continuity plan and takes extraordinary measures to maintain stability as thousands of pro-democracy protesters take to the streets
Banks must ‘rediscover' relationships with companies, Italian deputy says
Salvatore Rossi says better understanding of companies by banks would complement capital market intermediation as ‘only banks can acquire direct knowledge of firms'
Basel committee revisits 2002 guidance on 'weak banks'
Update to BCBS guidelines is the first since long before the financial crisis; Ingves says ‘early identification and intervention by supervisors is critical'
Brazil central bank gives banks time off for World Cup
Banks must work as usual during the World Cup, the central bank has said - but can take an extra hour off when the Brazil team is playing
NY Fed releases new research on large and complex banks
Special edition of the Economic Policy Review aims to further study and debate, and help inform policy-makers on issues around too-big-to-fail
BoE floats bonus clawback plan
Prudential Regulation Authority issues consultation on new powers to claw back bonuses in case of misconduct; Katharine Braddick reiterates ‘misgivings’ about bonus caps
Serbian central bank sets up overdraft charge comparator
National Bank of Serbia extends comparison services to let consumers compare overdraft facility interest rates in bid to reduce bank charges across the board
Ingves says banking industry must acknowledge problem around risk weights
The variation in how banks set risk weights is a problem that some in the industry are ignoring, says Basel Committee chairman
IMF praises ‘dramatic’ turnaround in Spanish bank sector
Final report on Spain’s financial sector reform programme says ‘steadfast’ implementation paid dividends, but warns of a number of alarming trends still prevalent in the financial sector
UK banks win tax exemption for client clearing
UK tax authorities exclude client collateral received as a result of clearing activities from bank levy, after complaints it would act as a disincentive to clearing
US community banks losing their edge with small businesses, paper finds
Fed discussion paper finds small, opaque businesses are just as likely to use a large banking corporation as they are a community bank; strong banking relationships remain important