Banks
Bank of Greece says new banking model needed to sustain recovery
The country's economy is ‘stabilising', according to the central bank's annual report on monetary policy, but until the banking sector returns to health, alternative funding channels will be needed
Uncertainty constrains credit supply, IMF paper finds
Working paper tests the theory that uncertainty would reduce the supply of loans in an economy, and finds it holds true - especially for smaller credit institutions
'Sticky' deposit rates could cost US households dearly when Fed raises rates
Unwillingness among retail banks in the US to pass on rising market interest rates to depositors costs the country's poorest savers up to $100 million a year, Fed economists find
RBI tries to persuade foreign banks to put down roots
Revamped framework unveiled by India's central bank yesterday will make it easier for foreign lenders currently operating through branches to set up wholly owned subsidiaries in the country
RBI paper finds Indian banks were not spared by financial crisis
Working paper says that despite the global financial crisis being concentrated in advanced economies, weaker Indian banks saw their margins ‘impaired significantly’
BoE’s Tucker says big US banks will now be allowed to fail
Paul Tucker says authorities have enough resolution 'technology' in place to resolve almost all systemically important US banks, but more work needs to be done to make the process smoother
Malaysia’s Ibrahim tells Asian banks to be more data-savvy
Bank Negara deputy governor outlines changes that are sweeping the region’s financial markets; says banks need to do a better job of embracing technology if they are to keep up
BoE prepares to implement Banking Standards recommendations
Response to final report of the UK’s Parliamentary Commission on Banking Standards endorses the majority of the findings, although many points require further consultation
Rosengren paper tackles role of banks in monetary transmission
Boston Fed president presents evidence on the effectiveness of the bank lending channel and provides observations about likely consequences of changes associated with the financial crisis
BIS research finds capital requirements had minor impact on bank lending
Quarterly review article presents evidence that banks have adjusted to higher capital requirements mainly via retained earnings, rather than by cutting lending, with less of a macroeconomic impact
Dutch executive director warns banks against ‘charm offensive’
Jan Sijbrand says banks will only win back public trust by making more ‘prudent’ decision-making, and explains how the central bank has bolstered its corporate governance
BIS researchers use profit-elasticity method to measure China bank competition
Working paper finds competition has increased among China's banks; new PE indicator produces result consistent with financial sector reform
BIS paper weighs up early-warning indicators
Working paper examines which indicators are most effective at foreshadowing banking crises; uses a new statistical method based on particular policy requirements
Euro area bank lending restricted by sovereign debt exposure, say DNB researchers
There is a direct link between deteriorating creditworthiness of foreign sovereign debt and lending by banks holding such debt, according to a working paper from the Dutch central bank
Fed proposals seek to shine light into money markets
Proposals for daily data reporting by a panel of 155 banks aim to improve the Federal Reserve's ability to supervise shadowy money markets
Bank of Italy paper finds women directors improve bank governance
Researchers find that women on bank boards tend to reduce the riskiness of investments, which they say is potentially both an argument for greater gender balance and a factor behind discrimination
IMF paper weighs effect of shifting bank funding in eastern Europe
Researchers from the International Monetary Fund find banks rebalancing their funding sources away from foreign loans; warns global regulation may make this process too rapid
BoE’s Tucker sketches ‘richer’ capital accord
Paul Tucker gives a vision of what an ideal capital accord might look like in future including greater use of CoCos and longer-term debt; stresses this would still not remove the need for supervision
FDIC chief economist highlights factors behind community bank failure
Richard Brown says community banks play a ‘crucial role’ in the US financial system; presents research identifying common factors behind those that failed during various financial crises
National Bank of Denmark tells smaller banks to strengthen their positions
Financial Stability Report for 2013 reveals that while the five nationally systemic banks have plenty of capital, some smaller banks are found wanting
IMF paper proposes ‘more ambitious’ benchmark design
Working paper calls current benchmark designs ‘a legacy from history’; proposes own design to better represent actual wholesale funding costs
Bank of Greece report optimistic that banking sector has ‘weathered the storm’
Monetary policy report for 2012-13 says confidence is gradually returning as banks make repairs, deficits are reduced and the stabilisation programme remains ‘well on track’
RBI executive director sees emerging threats to Indian banking
Deepak Mohanty warns of problems on the horizon, including deteriorating asset quality, high interest margins and the need to build capital buffers