Capital
Yellen sees ‘room for improvement’ on risk management
Fed chair says banks have strengthened their risk management, internal controls and governance, but more can be done and supervisors will be ‘watching closely’
Capital markets union must be carefully focused, say BoE researchers
Paper puts forward framework for analysing the myriad proposals under the umbrella of ‘capital markets union’, and argues they should be more targeted
Buba research links output volatility and capital flows
Discussion paper finds countries with more volatile growth rates face greater procyclicality of capital outflows, which may be a result of precautionary saving
BoE researchers flag potential flaws in CCP default funds
Paper asks whether ‘cover two’ standard for central counterparties is tough enough to prevent ‘disaster’; some distributions of risk give cause for concern
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
EBA zeroes in on recovery and resolution trigger conditions
European Banking Authority publishes final guidelines on testing for bank failure and launches consultation on what conditions could trigger a resolution process
French paper warns buffers ‘may not be sufficient’ to avoid credit crunch
Banque de France working paper finds an increase in market pressure to hold more capital can ‘limit the ability of banks to expand credit’ and trigger a crisis
Central American central bank losses smallest in 25 years
However, capital positions remain weak and would even be negative if claims on governments were valued according to cashflow, IMF study finds
Poor co-ordination on capital controls could prove ‘highly detrimental’, paper warns
Paper presented at RBA annual conference finds significant spillover effects from US monetary policy and calls for greater co-ordination of attempts to control capital flows
World's biggest banks $80bn short of Basel III capital
Results from Basel Committee's latest monitoring exercise of banks' compliance with new regulatory framework shows progress but also some setbacks
Capital vulnerability at US banks began four years prior to crisis, NY Fed paper finds
CLASS model projections show capital vulnerability in the US banking sector started as far back as 2004, before it peaked during the financial crisis at the end of 2008
Banks respond differently to capital target deviations, ECB paper shows
Working paper finds banks tend to reshuffle risk-weighted assets or increase holdings when above Tier I ratio, but more inclined to increase equity levels when below target
Constâncio insists private sector will play ‘major’ role in filling capital shortfalls
The ECB’s vice-president says banks will be able to fill any capital holes turned up in the central bank’s comprehensive assessment at least partly through private funds
Federal Reserve reveals new, tougher stress tests
Details of stress tests for 2014 include scenario based on severe global recession, with some banks facing additional criteria; tests will be applied to 12 more banks than before
Portugal governor: banks are stronger now than pre-crisis
Bank of Portugal's Carlos da Silva Costa argues stringent capital requirements 'well above the EU 8% benchmark' are starting to pay off; banks' average loan-to-deposit ratio was 123% in June
Scandinavians open macro-pru toolbox to cool overheated housing markets
Rising property prices, increasing household debt and towering banking sectors are pushing Norway, Sweden, and Denmark to consider unconventional measures to pre-empt a crash
Bank of England publishes banking primer to educate public
Article says role of prudential regulation is to ensure the soundness of banks by ensuring they have sufficient capital and liquidity to avoid disruption of critical services provided to the economy
European Commission launches shadow banking onslaught
Commission looks to impose more stringent liquidity and capital requirements on money market funds; industry body hits out at 'ill-considered' proposals
Capital flows are 'fickle' and always have been, paper finds
Capital flow volatility is a fact of life for all economies at all points in time, say IMF researchers, who point out that bigger advanced economies are best placed to deal with ebb and flow
Bank of England's prudential regulator consults banks on capital requirements
The UK's Prudential Regulatory Authority wants to hear from financial institutions about the best way to implement Europe's new CRD IV legislation
Slovenian stability review scolds ‘inactive and irresponsible' bank owners
Slovenian banks are squeezed by increasingly expensive wholesale funding and heavy exposure to an anaemic corporate sector, stoking fears of 'systemic risk' at the central bank