Systemic risk
Basel III will cause ‘financial Darwinism’: BaFin’s Sanio
Top German regulator Jochen Sanio says Basel III will squeeze weaker banks, spur formation of large banking groups that will pose more systemic risk
Israel’s Fischer on the meaning of macroprudential policy
Bank of Israel governor Stanley Fischer stresses importance of interconnections in interpreting the macroprudential mandate
Netherlands' Berndsen to build unified model of financial infrastructure
Netherlands Bank's head of oversight Ron Berndsen to construct complete financial infrastructure model as part of professorial appointment
Map of interbank market first step in project to forecast crises
Study to forecast the tipping points where banking crises have systemic implications begins with topology of European interbank market
Large pension funds a threat to financial stability – European Commission
European Commission says pension funds should also be classed as “too big to fail”
Conflicts of interest and systemic risk
In regulating against conflicts of interest, central bankers will have to study exactly how each major bank is making its profits in future, John Chown argues
Politics won't get in the way of Sifi plans: FSB's Draghi
Financial Stability Board chairman Mario Draghi says resolution regimes for systemically important banks operating across borders need not be bogged down in political tensions
PBoC’s Zhou wants enhanced macroprudential policy in China
People’s Bank of China governor Zhou Xiaochuan says macroprudential policy must keep pace with the country’s financial growth
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
No single structure for clearing industry: CPSS
Bank for International Settlements report on clearing industry says differences in market structures reflect diverse sets of risks to operations
New Fed office to aid stability, macroprudential efforts
Federal Reserve sets up financial stability policy office to coordinate institution-wide analysis on stability risks; J. Nellie Liang named director of office
FSB sets out markers for intense, effective supervision of Sifis
FSB issues recommendations to shape top notch oversight of systemically important financial institutions; calls for expansions, clarifications to core Basel principles
Central banks should regulate financial system: CentralBanking.com poll
CentralBanking.com poll shows more than 58% of readers think central banks should regulate banks in addition to insurance firms, hedge funds, and brokers
FSoc to debate measures to toughen money market funds
US Presidential Working Group including Federal Reserve chairman Ben Bernanke and Treasury secretary Timothy Geithner proposes eight steps to prevent runs on money market funds
Academics embark on €1.8m project to predict crises
European Union-funded project will see economists, computer scientists and physicists cooperate in bid to improve financial forecasting
G30 unveils macroprudential manual
Group of Thirty recommends dual approach to macroprudential policy; says combination of fixed and flexible tools will equip supervisors to address systemic risks
Fed’s Yellen: macroprudential policy must balance rules and discretion
Federal Reserve vice chair Janet Yellen says macroprudential supervisors should be guided by fixed rules, but have discretionary capacity to surprise firms
Too big to fail solution essential, says Weber
Bundesbank president Axel Weber says financial system will be unsafe unless too big to fail problem is solved
ESRB big leap for Europe: Trichet
European Central Bank president Jean-Claude Trichet says launch of European Systemic Risk Board indicates significant progress in regulatory architecture
IMF on link between collateralised borrowing and systemic risk
Fund study says rapid declines in the value of bank collateral can cause systemic risks
CNB creates stability wing in bid to beef up systemic oversight
Czech National Bank separates financial stability and economic research department; says independent department move will enhance financial stability mandate
IMF makes FSAPs compulsory
Fund says 25 countries with systemically important financial sectors will be required to undergo check-ups every five years
ECB’s Tumpel-Gugerell outlines challenges for ESRB
ECB executive board member Gertrude Tumpel-Gugerell says European Systemic Risk Board must overcome limitations to measuring systemic risk
ECB’s Bini Smaghi calls for more studies into sovereign risk
European Central Bank executive board member Lorenzo Bini Smaghi calls for more research into how markets react