European Stability Mechanism (ESM)
ECB warns banks face significant losses due to Covid-19
Central bank stresses fiscal and monetary interventions have contributed to stabilise markets
ECB supports giving ESM independence
Reformed ESM should be used to provide “backstop” for bank resolution, ECB says
Lagarde proposes new European fiscal fund
The mechanism would reduce reliance on monetary policy to respond to future crises
ESM hails Greece’s progress in third bailout
The country should exit the programme in August as growth accelerates and bond yields fall
German coalition talks open possibility of reformed ESM
European Commission proposed creating a new institution to lead crisis programmes in December
NGO calls for changes to ESM’s governance
Klaus Regling welcomes some of Transparency International’s conclusions
People: Ireland deputy departs for private sector; BoE’s Broadbent to sit on new prudential committee
Cyril Roux to leave the Central Bank of Ireland in April; Mark Carney appoints Ben Broadbent to new prudential regulation committee; and more
People: CBRC gets new chair; Colombian board member appointed
Veteran official takes top job at Chinese banking regulator; Gerardo Hernández Correa joins Colombian central bank; appointments at ESM and Czech National Bank
Eurozone needs ‘hard laws’ for credible resolution, economist argues
“Soft law” arrangements can break down in crises, Schoenmaker says
Global financial safety net hits snag in regional finance
Jeromin Zettelmeyer warns moral hazard problems are now more serious with the rise of regional funds; central bank swap lines could be a partial solution
Eurozone finance ministers hold extraordinary meeting over Greece
Finance ministers meet in Brussels over Greek debt; recent negotiations marked by public disagreements between IMF and Greek government
Institutions agree to mission to check on Greek reforms
Representatives of European and international institutions have agreed to send a team to Athens to check on reform progress; visit is necessary to allow bail-out to continue
Bank of Portugal governor calls for a European monetary fund
Costa believes such an institution is the only way to ‘guarantee stability’ in Europe; ESM head Regling says current model has created ‘successful status quo’
Buba official warns against tapping ESM for investment
Andreas Dombret says using portion of ESM funds to finance investment in infrastructure would ‘greatly reduce effectiveness’ of rescue fund
German court rejects challenge to ESM legality
Constitutional court backs Germany’s participation in European Stability Mechanism; Basel Committee rules that banks do not have to hold capital against ESM bonds
IMF's Viñals says ESM should backstop ECB's comprehensive assessment
José Viñals says the European Stability Mechanism should be made available as a public backstop for the ECB’s forthcoming comprehensive assessment
Robert Pringle’s Viewpoint: ECB needs to play ‘chicken’ to force reform of Europe’s banks
The ECB won a game of brinkmanship with governments to secure the establishment of the bail-out fund. It needs to use the same tactic with three clear elements to force through bank reform
ESM direct recapitalisation gets go-ahead
Eurogroup reaches agreement over main features of direct bank recapitalisation under the European Stability Mechanism, but commentators warn the deal could still falter; CRD IV also adopted
Leaked document shows deep IMF concerns about Cyprus bail-out
IMF approves Cyprus support package but leaked 'internal document' exposes depth of reservations about the plan among the IMF's executive board
Chan blames QE as HKMA raises macro-prudential defences
HKMA tightens macro-prudential rules applied to mortgage lending in face of emerging property market risks; Norman Chan says quantitative easing has created ‘extremely unusual’ conditions
Europeans round on IMF as rescue plan takes shape
European policy-makers take on critics at the IMF saying the Fund’s view that matters now are worse in Europe compared with six months ago is flawed; set out a roadmap to eurozone stability