Financial stability
Leaked EU doc could shield legacy swaps from clearing grab
Council paper being debated today sets terms for swaps clearing landgrab
Public interest loophole casts doubt on EU banking union
Bondholders face fresh uncertainty about European use of bail-in, critics warn
Twin member default would hit up to 23 CCPs
New FSB analysis reveals interdependencies of clearing system
Networks and lending conditions: empirical evidence from the Swiss franc money markets
In this paper, the author provides an empirical analysis of the network characteristics of two interrelated interbank money markets and their effect on overall market conditions.
Securities lending by asset managers facing scrutiny
FSB concerns about regulatory arbitrage might prove tricky for the likes of BlackRock
Closer ties between banks could mean more risk-taking
Model points to risks of core-periphery structure
Topology matters: why regulators may be missing a trick
Bank networks evolve to be liquid but unstable, new research shows
A map of collateral uses and flows
This paper provides insights into the increased demand for collateral, the reduced capacity for banks to act as collateral intermediaries and examples of risks and vulnerabilities in collateral flows.
Financial networks and bank liquidity
This papers is the first to link bank liquidity performance and core–periphery network structures.
IMF's systemic risk findings called into question
Financial connectedness measure “not usually sharply aligned with systemic risk”, says Darrell Duffie
Looser capital won’t ease bond liquidity – SNB’s Rime
Central banker calls for counter-cyclical leverage ratio and scrutiny of funds’ role
Algo trading feedback loops an urgent worry, Carney warns
Some traders don't understand risks of algos, BoE says
European government bond dynamics and stability policies: taming contagion risks
This paper develops methodologies to measure spillover risks in European sovereign bond markets in the period 2004–15.
ECB flags threat of ‘abrupt reversal’ in risk premia
Latest review identifies two ‘medium-level systemic risks’ to eurozone
More central banks should oversee financial stability – Zeti
Malaysia central bank chief urges giving peers greater regulatory powers
Large hedge funds highly exposed to asset-backed securities
Biggest funds also exposed to US junk corporate debt
BoE's Tucker wants more robust CCP governance
Bank of England deputy governor Paul Tucker raises concerns over the size and for-profit nature of CCPs
BoE's Haldane says UK could help redefine global banking rules
Andrew Haldane says UK is in a position to lead with fixes to Basel III, tightening remuneration policies and removing barriers to bank account switching
Haldane says macro-prudential tools needed to prevent earnings 'arms race'
Bank of England's Andrew Haldane describes the tools macro-prudential policy-makers need to prevent future crises
Euro crisis could cause full EU break-up, warns ex-BoE official
John Gieve, former deputy governor for financial stability at the Bank of England, warns of an "explosion" waiting to happen in the EU
China's financial regulation 'needs improvement'
The World Bank's first assessment of the financial sector in China finds inadequacies in its regulation
Sweden will go beyond Basel III capital rules, says Ingves
Riksbank governor Stefan Ingves says Sweden will follow Switzerland and UK in implementing higher capital adequacy requirements than Basel III for largest banks; details to be released soon