Risk
RBA hands over responsibility for autonomous financial sanctions
Reserve Bank of Australia no longer has regulatory responsibility for autonomous financial sanctions; Department of Foreign Affairs and Trade now handles implementation and administration of law
Buba discussion paper uncovers secrets of board risk-taking
Researchers find board changes that result in more female executives at banks can lead to increased risk-taking; executives with PhD qualifications reduce risk
Dutch working paper investigates risk preferences
Netherlands Bank working paper provides new field of evidence on risk preferences over small stakes
Goodbye VAR? Basel to consider other risk metrics
Trading book review will look at replacing value-at-risk, but quants say the obvious alternative - expected shortfall - is not much better
Data: a core challenge for financial regulatory reform
Improving financial stability through the use of interconnected and predictive supervisory tools requires a rethink on data. By Constantin Gurdgiev and Keith Saxton
Bank of Canada sees 'significant risks' to inflation outlook
Bank of Canada’s Monetary Policy Report for January 2012 sets out “significant risks” that threaten the inflation outlook
Risk-weighted assets proved useful indicator during crisis, says IMF paper
Fund study shows banks with lower risk-weighted assets were able to weather the recent financial crisis better than those with more risky assets
RBI issues final guidelines on bank compensation
Reserve Bank of India releases final guidelines on compensation practices for private banks operating in India; measures will come into effect later this year
Kansas City Fed’s George discusses the mis-pricing of risk
Kansas City Federal Reserve president Esther George says policy-makers face difficult balancing act to boost the housing market and prevent misallocation of capital
Lithuania overhauls banking supervision
New streamlined financial markets supervision body will save government $1.9 million a year; economist in charge of new Supervision Service
IMF working paper on bank competition
Researchers look at effects of intermediation technology on banking competition and financial stability
CB.com panel discusses changes in reserve management functions
CentralBanking.com poses the question: What do central banks want from reserves and reserve managers? Panellists discuss how the financial crisis has altered the role of reserve managers
Bahrain’s Al Maraj on similarities of Islamic and conventional banking regulation
Central Bank of Bahrain governor Rasheed Mohammed Al Maraj discusses comparisons between regulation in Islamic and conventional finance
Governments must ‘earn’ quasi-risk-free status: BIS’s Hannoun
Bank for International Settlements deputy general manager Hervé Hannoun says advanced economy governments can earn back quasi-risk-free status through prudent fiscal policy
Limited liability leads to excessive risk-taking: IMF paper
Fund study shows excessive risk-taking by banks increases as the interest rate decreases
IMF paper identifies risk-sharing, contagion trade-off in Asia
Fund study shows risk sharing in Asia is found to be low between countries in the region compared with contagion effects
ESRB publishes foreign currency lending recommendations
European Systemic Risk Board releases recommendations on lending in foreign currencies; new measures addressed to member states, national supervisory authorities and European Banking Authority
Liquidity risks raised crisis funding costs: Bank of Italy paper
Bank of Italy study shows heightened liquidity risk caused interbank market spreads to widen during the financial crisis
UK’s FPC changes tack on capital requirements
Loosely-worded document does not clarify FPC’s demands on banks; new regulatory body asks for more powers in new legislation
Risk management in central and eastern Europe: Hungarian research paper
National Bank of Hungary releases working paper that looks at risk management approaches in central and eastern Europe
Worldwide warnings of escalating risk
International Monetary Fund and European Systemic Risk Board caution authorities over worldwide risk dangers; urge swift and decisive action
ECB paper on changing trend of capital inflows
European Central Bank study shows capital inflows globally have been driven by a variation of pull and push factors since the crisis
China insists local government debt is ‘manageable’
People’s Bank of China dismisses claims local government financing vehicles owe 14 trillion yuan; says risks from the debts are manageable
Central banks are vulnerable to financial risks: Norges Bank paper
Norges Bank study says the current international financial architecture leaves central banks exposed to financial risks