Risk
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
Basel Committee will not impose CoCo requirement for Sifis
Basel Committee proposes a staggered common equity capital surcharge for systemically important banks, but steers clear of contingent capital
BoJ’s Shirakawa on how to address tail risks
Bank of Japan governor Masaaki Shirakawa says public involvement is crucial in addressing tail risks
Buba paper identifies inconsistencies in central bank risk forecasts
Bundesbank study raises concern over systematic connection between risk assessments and central bank forecasts
IIF’s Dallara criticises Basel Committee for shortcomings on governance reform
Institute of International Finance managing director Charles Dallara “deeply troubled” by the Basel Committee’s lack of focus on improving banks’ risk culture
EMEs more sensitive to risk premiums: IMF paper
IMF study shows a lower risk premium can reduce inflation in emerging economies
Industry models not sufficiently developed to calculate CVA charge, says Basel Committee
Basel Committee sticks to its decision not to allow banks to use their own models to calculate the CVA capital charge under Basel III
Global imbalances top Riksbank Risk survey
Riksbank Spring 2011 Risk Survey shows market participants believe global imbalances pose greatest threat to Swedish financial system
New chief economist for SEC
Vanderbilt professor Craig Lewis named SEC chief economist and director of RiskFin Division
UK outlines strategy for new micro regulator
Prudential Regulation Authority will focus attention according to risk; new five-step strategy to capture key threats
Azerbaijan working to improve banking sector
Helped by the IFC and the World Bank, central bank is training bank board members in oversight and risk management best practices
Basel Committee unveils final proposals on pay
Basel Committee on Banking Supervision reveals risk-adjusted remuneration report; urges large firms to move away from remunerating employees based purely on their profits
Japan set to up legal reserve to safeguard against losses
Japan applies to increase capital buffer; wants to "maintain its financial soundness"
IMF paper on enhancing stress-test framework
Fund study examines simple techniques to improve risk sensitivity in bank stress test exercises
PboC’s Yi warns advanced economies about risks to recovery
People's Bank of China deputy governor Yi Gang says advanced countries should not lose focus on growing vulnerabilities in financial sector