Systemic risk
ECB working paper proposes indicator of systemic stress
European Central Bank researchers outline a new indicator of contemporaneous stress in the financial system, called the composite indicator of systemic stress
IMF readies €28bn in support of Greece
International Monetary Fund managing director Christine Lagarde plans to get funds approved this week; Isda rules debt restructuring a ‘credit event’
Greece’s private bondholders approve ‘voluntary’ debt swap
An 85.8% majority approves Greek sovereign debt swap but strong-arm tactics raise concerns about the future legal certainty of sovereign bonds
IMF’s Min Zhu on macro-prudential policy implementation
Deputy managing director of the IMF opens conference on macro-prudential policies; says countries must address three “crucial issues” to make these policies effective
Use of behavioural finance will not stop next crisis, says CNB adviser
The use of behavioural economics in management decisions and supervisory models would not prevent a future crisis, says Czech National Bank adviser, Michal Skořepa
Regulators ignore data challenges at their peril, say CBJ authors
Standards-setters around the world seeking to improve financial stability are destined to fail unless they can get to grips with core data needs, according to the authors of a new Central Banking Journal article
IMF working paper formulates new forecasting framework
New IMF research looks into systemic real and financial risks; focuses on the measurement of them, predicting them and stress testing
De Larosière fears another crippling credit crunch in Europe
New international banking regulations aimed at cleaning up the financial system could cause a crippling credit crunch in Europe, says Jacques de Larosière
Macro-prudential powers are no panacea
Central banks will take on substantial new macro-prudential supervisory powers in the years ahead. But this is a dangerous experiment, and a step in the wrong direction
Brendan Brown on life after death for the Emu
Brendan Brown puts forward a proposal for how a functioning monetary union in Europe could operate if the current system was to fail
Robert Pringle’s Viewpoint: Central bank macro-prudential powers are no panacea
Central banks will take on substantial new macro-prudential supervisory powers in the years ahead. But this is a dangerous experiment, and a step in the wrong direction
IMF paper proposes new toolkit to monitor fiscal vulnerabilities
Fund study builds new toolkit to assess fiscal risks in advanced economies; framework contributes to IMF-Financial Stability Board Early Warning Exercise
UK financial system faces severe sovereign risks: BoE survey
Bank of England Systemic Risk Survey shows risk managers believe probability of high-impact event in the UK financial system has increased sharply in 2011
Accommodative policies risk triggering interest rate traps: Norges Bank paper
Norges Bank study says low interest rate environments provide banks with incentive to rely on public provisions for liquidity
Final rules to tackle systemically important institutions announced
G-20 agrees on policy measures to address risks posed by systemically important financial institutions; 29 institutions identified as of global systemic importance
Cleveland Fed paper outlines benefits of new early-warning system
Cleveland Federal Reserve study assesses latest model for developing early-warning systems to highlight build-up of systemic risk
Identifying Sifis: Central Bank of Colombia paper
Central Bank of Colombia releases a working paper outlining a method to establish the systemic importance of financial institutions; offers an alternative method to the BIS
Bundesbank’s Dombret backs temporary higher capital buffers for European banks
Bundesbank’s executive board member Andreas Dombret says 9% core tier 1 capital for systemically important banks is feasible
IMF paper assesses supervisory burden of regulatory overhaul
Fund study says US Volcker rule and UK retail ring-fencing proposals must be complemented with supervision of bank activities
Systemic capital requirements are often underestimated: BoE paper
Bank of England study examines level of potential losses on bank balance sheets in event of systemic crises
IMF modelling work on liquidity risk points to capital hike, says Jobst
Recent analysis by the International Monetary Fund indicates that banks in the US need to raise capital to cover systemic liquidity risk threats
Fed's Tarullo calls for more research into systemic risk
Daniel Tarullo asks for more research into industrial organisation and systemic risk