Micro-prudential
Canada’s Wilkins calls for non-bank stress testing
Portfolio flows are now the dominant source of capital movements, but asset management risks are not well understood, says deputy governor
Supervisory compliance weaker on 55% of Basel III principles – IMF
FSAP reports uncover potentially worrying trend on financial supervision since mid-2013
Eurozone lending constraints are effective but only after a time lag, researcher says
IMF paper looks at efficacy of tighter lending on curbing house prices and credit
Brexit might allow simpler regulation for small UK firms – PRA chief
Sam Woods says “simpler, not weaker” regulation might boost both competition and safety
Supervisory lessons: resolution is a ‘dirty business’
Former Bank of Spain head of supervision Aristóbulo de Juan reveals his principles for resolving problem banks in the final article of a four-part series
RBI reverses course on restructuring of troubled loans
Decision goes against previous demands that banks cease policy of “extend and pretend”
US regulators find ‘shortcomings’ in foreign bank living wills
Banks will have to correct the problems when they next file a resolution plan
BoE unveils ‘final major piece’ of UK resolution regime
Consultations outline how the BoE will assess banks’ “resolvability”; banks will be expected to submit self-assessments every two years
Malaysia charges Goldman Sachs over 1MDB scandal
Bank allegedly benefited from inflated fees after employees bribed officials
Basel Committee unveils ‘streamlined’ disclosure requirements
Parts of the requirements “substantially streamlined” after complaints from industry
Supervisory lessons: the need for intrusive supervision
Former Bank of Spain head of supervision Aristóbulo de Juan reveals his central principles for the (intrusive) supervision of banks in the third of a four-part series
Chinese banks fail tests as PBoC warns of ‘grey rhino’ risks
Half of banks failed the most severe stress tests; central bank says transition to new economy might unleash unexpected risks
UK banks struggle in EU-wide stress tests
Italian banks also suffer heavy losses in EBA’s most severe test conducted to date; BoE says UK faced tougher test than others
RBNZ plans tougher discipline on banks’ regulatory breaches
Proposals would see major breaches linked to disclosure dashboard, highlighting when a bank has broken the rules
Basel Committee finalises streamlined stress-testing guide
Updated principles reflect “rapid evolution” of stress-testing since 2009
Emerging market governors back targeted capital controls
Governors says capital flow measures can be important tools in some circumstances
BoE to demand senior financiers tackle climate risks
Proposals from PRA would hold senior managers accountable for climate change risks, and capital surcharges may follow
Draghi’s ‘whatever it takes’ cut bank risk-taking – BIS paper
Study examines Mexican markets to pick out effects of the ECB president’s intervention
Supervisory lessons: fault lines in prudential regulation
Former Bank of Spain head of supervision Aristóbulo de Juan highlights the lessons he has learnt about weaknesses in prudential regulation, in the second of a four-part series on supervision
‘Momentum building’ behind financial response to climate change
FSB welcomes progress on disclosures; BoE report finds many UK banks are facing up to the risks
Stronger macro-prudential intervention may be needed – Minneapolis Fed paper
Shadow banking sector takes greater risks in times of stringent macro-prudential policy for banks, researcher finds
BIS paper finds sound economy may not prevent capital outflows
Emerging markets could use pre-emptive macro-prudential policies to safeguard against capital outflows, researchers say
BIS paper weighs economic impact of macro-prudential policy
Cutting the LTV ratio leads to reduced output in emerging markets, authors find
Goldman, Morgan Stanley push for stress test changes
Balance sheets will shrink in a crisis, not grow, trading houses argue