Financial crisis
Venezuelan crisis deepens; rating agencies declare default
Russia agrees to restructure $3.15 billion to facilitate repayments to creditors
Forward guidance essential in times of stress – Fed’s Evans
Chicago Fed president says central banks should plan for inevitable future scenarios now, in order to best prepare the public and to ensure policies are understood
Communication key to convey policies and objectives to public, central bankers say
Yellen, Draghi, Kuroda and Carney reflect on reaction of markets and public to policy communication
Book notes: The Right Balance for Banks, by William Cline
An interesting analysis of optimal capital requirements for G-Sibs, examining whether Basel III requirements will be enough to stem another financial crisis
Accommodative policies can continue in Europe due to weak inflation, IMF says
Reduction of non-performing loans in weak banks remains a priority
SNB’s Jordan defends central bank independence
In contrast to monetary policy, macro-prudential should also be shaped by government
Bernanke, Geithner and Paulson to conduct forensic analysis of 2008 crisis
Protagonists of US crisis response to lead research into detailed design choices behind the main measures taken
Softened liquidity rule would still be misguided – US asset managers
The Treasury proposals are welcome, firms say, but a watered-down SEC rule would leave risks unaddressed
Stifling cross-border banking hurts developing countries – World Bank
World Bank offers advice on successful cross-border banking but warns developing countries against over-reliance
Fed’s Quarles wants more transparent and simple financial supervision
Vice-chairman stresses importance of clearly conveying objectives of regulation and supervision
Supervision bolsters monetary policy transmission – Draghi
No sign of housing bubble developing across eurozone as a whole, ECB president says
NY Fed paper estimates US contagion risks
Authors design a network model incorporating non-banks to estimate how the risk of a “default cascade” has changed over time
NBK intervenes as Kazakh banking troubles spread
Central bank moves in to rescue one bank and triggers liquidation of another
Former BoE economist proposes new regulatory approach
Panellists discuss whether post-crisis regulation has gone too far, asking whether banks need the extra capital
BoE’s Taylor pushes back against complaints of over-regulation
Capital requirements could have been made much tougher, and the FPC strives to achieve balance and accountability, Martin Taylor says
German central bank in Nazi era will be ‘special focus’ of independent study
Bundesbank funds research into twentieth century German central banks
Making the most of big data
Per Nymand-Andersen, adviser to senior management at the European Central Bank, discusses how central banks can benefit from embracing big data and what this could mean for the industry in the near future.
PBoC’s Zhou warns of ‘sudden’ contagion risks
Governor continues with tough line on financial imbalances as he prepares to hand the reins to an as-yet-unnamed successor
Bank of Spain warns Catalan crisis may cut growth by 60%
Uncertainty could imperil Spain’s recovery and reduce growth by 2.5% of GDP until late 2019
OTC derivatives fall to lowest levels since financial crisis, BIS says
The gross market value of outstanding OTC derivatives contracts falls to below $13 trillion at mid-2017
People: Powell and Yellen comment on Fed chair pick; FPC member appointed
Nominee as Fed chair praises predecessors; UK’s FPC has new external member; and more
High debt threatens financial stability in Norway, central bank says
Household debt ratios and rising property prices are the two main vulnerabilities for the system
European firms’ net debt cramped investment, Bank of Italy paper finds
Paper looks at eurozone and UK firms from 2006 to 2012
‘Black box’ AI could pose macro risks – FSB
Rise of artificial intelligence in finance may promote efficiency, but it can be hard to tell where the dangers lie, report finds