Banks
RBI’s Chakrabarty fleshes out plans for risk-based supervision in India
Deputy governor examines pre-requisites for effective risk-based supervision as central bank prepares ‘phased migration’ to the new approach
VocaLink: Seven-day account switching set to shake up UK banks
Chris Dunne says UK payments are undergoing important changes that could see ‘economic battle' between banks; expects closer scrutiny of infrastructure by regulators
NY Fed paper assesses risk of fire sales in tri-party repo markets
Staff report finds limited tools are available to reduce the damage from pre-default fire sales but says there are no options currently available once a default has occurred
Bundesbank paper finds some banks can improve stability via income diversification
Discussion paper says move into non-interest income sources stabilises smaller and more retail-orientated banks, but destabilises investment banks
Bundesbank paper examines dynamics of crisis repo funding
Discussion paper finds changing pattern of fund management during global financial crisis, as ability of parent banks to protect subsidiaries dwindled; signals importance of strong capital base
Netherlands Bank highlights ‘major risk’ of European crisis escalating
Financial stability report says danger from European debt crisis still looms large; warns of longer-term risks including addiction to low interest rates and incomplete banking union
Fed demands more detailed 'living wills'
Federal Reserve and FDIC request additional information on risks that could derail resolution plans for largest bank holding companies, including issues of international co-operation
French paper warns of banks precipitating crises through hoarding
Research develops new ‘domino effect’ model, examining how banks may bring about crises by attempting to protect themselves
Disjointed regulation could spell end of global banking era
Report says global banks must move faster with reform if their global operations are to weather the 'balkanisation' of financial markets caused by mismatching regulation between jurisdictions
Zimbabwean governor attempts to stem panic as StanChart faces closure
Gideon Gono tells depositors not to withdraw their savings following a government announcement that Standard Chartered will be shut down for non-compliance with indigenisation laws
Zambian governor targets Muslim banking expansion
Michael Gondwe says the economically valuable Muslim community is shunning the use of commercial banks due to lack of appropriate products; proposes banking expansion
Fed tightens rules for retail forex banking
Federal Reserve publishes final rules for banks engaging in foreign exchange transactions with retail customers; includes requirements for risk disclosures, good conduct, capitalisation and margining
Bank of Spain reshapes supervisor to meet new demands
Banking supervision directorate restructured to meet the requirements of Spain’s memorandum of understanding and the move to European banking union
Bank of Lithuania chief urges banks to consider fee cuts as non-cash payments rise
Report shows sharp increase in volume of non-cash payments in Lithuania; governor Vitas Vasiliauskas says this gives banks room to consider cutting fees
Australian banks ‘relatively strong’, says RBA
Reserve Bank of Australia’s latest financial stability review finds banks’ profits and capital levels are increasing; real economy suffering from high exchange rate
RBNZ article says ‘open bank resolution’ helps keep banks in line
Quarterly bulletin describes resolution mechanism aimed at minimising disruption to bank customers; suggests use as an alternative to bail-out strengthens incentive for banks to operate prudently
BoE survey sees signs of easing in UK financial markets
Funding costs fall and investor demand rises ‘significantly’, although total volumes remain roughly flat, Bank of England liabilities survey finds
BoE urges banks to use payments systems directly
Bank of England identifies need to clamp down on banks accessing high-value payment systems through other banks as it creates credit and liquidity risks
Kazakh banks should go beyond Basel III, says central bank
Financial stability report calls for banks to boost capital levels above Basel III requirements; encourages largest banks to clean up balance sheets and lend more
IMF research identifies ‘strong macro-financial linkages’ in eastern Europe
Working paper finds macroeconomic factors closely tied to non-performing loans in central, eastern and southeast Europe; warns of ‘strong feedback effects’ between banks and economy
RBI’s Sinha says good bank governance should reduce need for intervention
Deputy governor sets out Indian corporate governance requirements; says sound corporate practices and regulation should complement one another, reducing the need for supervisors to intervene
Dombret warns national banking systems are too-big-to-fail
Bundesbank’s Andreas Dombret says too-big-to-fail problem extends to whole banking systems; says some eurozone systems could have to be downsized
RBNZ deputy defends bank resolution policy
Grant Spencer insists the Reserve Bank of New Zealand’s resolution policy differs from the controversial Cyprus proposals; says deposit insurance doesn’t prevent bank failures
BoJ researcher finds need for heterogeneous response to credit flows
Working paper shows global common factors account for a ‘quantitatively important’ portion of cross-border credit, but vary between regions; suggests need for tailored policy responses