Insolvency
Banks will continue to gamble with public money, says Gordon Brown
Former UK prime minster says lax punishment of banks has left risky culture intact; “inevitable” rogue bankers will continue to gamble with public money
RBI welcomes $32 billion public bank recapitalisation
Government unveils funding package designed to free India’s large public banks from a heavy burden of non-performing loans
Bank of Zambia outlines resolution plan for failed lender
Balances of 99.8% of IBC depositors will be restored in full under new arrangement, which will see creation of new commercial bank
RBI closes in on ‘endgame’ in bank clean-up
Governor Urjit Patel says the central bank’s new powers have allowed it to overcome “severe” moral hazard problems; state-owned banks will need recapitalisation, he says
Bank resolution regime rolls out in Hong Kong
HKMA chief outlines how the new bank resolution regime can end the use of taxpayers’ money in case of a bank failure; authority also plans to conduct a public consultation on loss absorbency
RBNZ considers cutting contingent instruments from capital regime
Central bank casts sceptical eye over debt instruments with in-built conversion triggers, following recent problems in Europe
ECB calls for insolvency and banking taxation reform
Europe would benefit from greater M&A activity in banking, European Central Bank says
IMF paper sheds light on solvency and liquidity interactions
Neglecting the “solvency-liquidity nexus” could lead to mistakes in stress-testing models, authors warn
Bank of Jamaica proposes ‘hybrid’ resolution framework
New “hybrid framework” proposed after FSB report showed gaps in current resolution processes; parties have until April 14 to comment
US and EU outline final rules on loss-absorbency
Fed adopts final rule on loss-absorbency, while EBA makes final recommendations to European Commission; US rules include grandfathering and exceptions for foreign firms
Bank of Zambia closes fourth bank this quarter
Commercial bank deemed insolvent by the regulator; Bank of Zambia takes over control of the institution to “safeguard” depositors
Ugandan governor emphasises banking system is sound
Tumusiime-Mutebile steps in to calm investors, dismissing negative reports following the acquisition of Crane Bank; banking system is “stable, sound and profitable”, he says
Sri Lanka sets up enforcement unit after insolvency failures
Central Bank of Sri Lanka sets up new enforcement branch after unsuccessful attempt to restructure four failing financial institutions; legal action to be taken against Entrust Securities
Structural funding ratios could have helped detect failing banks – BoE working paper
Bank of England working paper reveals structural funding ratios could have helped detect which banks were likely to fail in the 2008 crisis; wholesale funding structures most prone to failure
Booknotes: Bull By the Horns: Fighting to Save Main Street from Wall Street and Wall Street from itself
This is a great book with a clear message: no more bailing out of too-big-too-fail banks.
Norwegian regulator to ease internal model timetable in wake of Solvency II delays
France's regulator also considering adjusting pre-approval schedule
Distinguishing between signs of illiquidity and insolvency: BoJ paper
Bank of Japan study examines how central banks can use lending signals to determine the solvency of firms
Ireland clears way for greater central bank power
New Bill allows central bank to step in when banks are “failing or likely to fail”; will be able to shift assets to other institutions or replace management at a troubled bank
When the price is wrong
Determining how best to step in when markets struggle to price assets fairly remains a key unanswered question from the crisis
Bank’s Bailey stresses importance of forward-looking approach to regulation
Bank of England executive director of banking services, Andrew Bailey, says regulation should be more forward-looking
Afghan governor insists country’s biggest bank is solvent
Bank of Afghanistan governor Abdul Qadeer Fitrat refutes reports top officials at Kabul Bank have been fired due to corruption; stresses bank remains solvent as graft rumours threaten to spark run
Europe's banking fragility needs urgent attention
Europe's banks are so fragile that measures must be implemented within the next 12 months, a paper by Adam Posen and Nicolas Veron, two economists at the Peterson Institute for International Economics, posits.
Basel, IADI issue deposit insurance guidelines
The Basel Committee on Banking Supervision and the International Association of Deposit Insurers (IADI) has issued a set of global guidelines for deposit guarantee systems.
Integration raises solvency risks
More financial integration and innovation increases the risk of market and liquidity stress resulting in insolvency, a new paper from the International Monetary Fund finds.