Risk
Central Bank of Chile paper links instability to austerity
Central Bank of Chile study finds positive correlation between austerity and instability in Latin American countries
Monetary policy impacts credit risk: CEPR paper
Centre for Economic Policy Research study examines impact of monetary policy on bank riskiness
EBA plans new round of stress tests
New European Banking Authority announces second round of stress tests for European banks at opening meeting
MBS purchase programme sent strong signal to mortgage market: Fed paper
Federal Reserve study says mortgage-backed security purchase programme had strong signalling effect on mortgage bond market
Rise in income tax can boost growth: Fed study
Federal Reserve research shows increase in capital-income tax can provide insurance against investment risk and raise overall welfare
BoE: seniority claims good indicator of default
Bank of England study shows claims by senior debt holders a good measure of future default risk
Irish banks’ pay reforms inadequate: central bank
Central Bank of Ireland says banks’ remuneration policies are not sufficiently aligned with risk management strategies
Risks to Swedish markets have not abated, says Riksbank survey
Riksbank's autumn 2010 risk survey shows more than half of market participants believe markets in Sweden have not normalised
BoJ: liquidity strains alter investor behaviour
Bank of Japan study shows investors sell or buy a liquid asset more quickly in distressed environments
Canada calls for holistic approach to regulation
Bank of Canada study says regulators must consider capital, liquidity and short-term liabilities jointly when addressing systemic risk
IMF: stricter ring-fencing creates greater incentive to build capital buffers
Fund study shows that policies to employ stricter ring-fencing on bank subsidiaries requires them to hold larger capital buffers
Norway’s sovereign wealth fund makes first property investment
Government Pension Fund Global takes stake in British Crown Estate’s Regent Street portfolio as part of new strategy to better hedge against inflation
St Louis Fed says TAF announcement raised risk premiums
St Louis Federal Reserve study shows announcement of Fed’s Term Auction Facility unintentionally caused market participants to revise upward their expectations of seriousness of financial crisis
BIS investigates drivers in US stock market
Bank for International Settlements study says changes in expected excess returns on dividends main driver of US stock market
IMF: tax hikes increase success of austerity measures
Fund study shows tax rises in addition to spending cuts help reduce public debts more effectively
NY Fed’s Dudley backs Basel III
New York Federal Reserve president William Dudley says Basel III will capture risk better than pre-crisis standards
Bank of Canada: central banks prefer higher haircuts
Bank of Canada study shows haircuts on collateralised assets is greater when central banks cannot lend exclusively to illiquid institutions
Philly Fed: school failure insurance reduces dropout rates
Philadelphia Federal Reserve study says introduction of insurance against college failure risk could increase retention rate
IMF: Gulf bank balance sheets severely impaired by economic downturn
Fund study finds link between economic conditions in Gulf states and banks’ nonperforming loans in region
Basel Committee demands more rigorous governance standards
Basel Committee on Banking Supervision issues new corporate governance principles for banks; calls for independent chief risk officer
González-Páramo: macroprudential policy implementation a work in progress
European Central Bank executive board member José Manuel González-Páramo says policymakers must understand full effects of macroprudential policies
BoJ vigilant over financial risks
Bank of Japan Financial System Report warns decline in quality of bank loans could undermine progress in financial markets
Fed’s Lacker: constructive ambiguity is unworkable
Richmond Federal Reserve president Jeffrey Lacker says fudging tactics over bailouts will be short-lived
Fed's Alvarez favours balanced incentive compensation design
Federal Reserve general counsel Scott Alvarez says overly restrictive compensation packages may create risk to organisations