In his speech, Fernando Restoy, Chairman, Financial Stability Institute, Bank for International Settlements, on the institutional organisation of financial supervision. “I will focus on how supervisory models have changed since the financial crisis and, in particular, how the role of central banks has evolved in that regard. For that purpose I will draw on a recent publication by the Financial Stability Institute (Calvo et al (2018)) in which we analyse the changes observed in the organisation of financial sector supervision during the last decade across a broad sample of jurisdictions.”

Continue reading…

The Federal Reserve Board on Thursday approved a rule to prevent concentrations of risk between large banking organizations and their counterparties from undermining financial stability. As demonstrated during the financial crisis, excessive exposure between the largest financial institutions spread contagion and eroded confidence in these institutions.

Continue reading…

In his opening speech at the DNB housing market seminar, Klaas Knot shares his view on how housing prices can become a problem for broader economic wellbeing, and thus form an area of interest to central bankers. A more balanced and suitable supply of housing is needed. The new Dutch housing agenda is a promising example of the leading role our government should play on the Dutch housing market.

Continue reading…

Switzerland’s federal government appears poised to crack down on money laundering in the wake of banking scandals and investigations linked to FIFA chiefs and Vladimir Putin’s favorite cellist among others. After the International Consortium of Investigative Journalists 2016 Panama Papers investigation, the inter-governmental Financial Action Task Force (FATF) called on the Swiss, known for bank secrecy, to do more to thwart financial crime.

Continue reading…

The study ‘Recent RMB policy and currency co-movements’ investigates how variation in the determinants of the renminbi’s daily fixing since the August 2015 exchange rate reform maps on to variation in the co-movement of the renminbi with regional and other emerging market currencies. We first identify three post-reform periods of RMB management: transition, basket management and countercyclical management. The co-movement with regional and Latin American currencies peaked in the basket period, when the daily fixing was most predictable and multilateral. By contrast, the decline in co-movement in the countercyclical management period between May and July 2017 leaves it premature to speak of a renminbi zone. The dependence of the co-movements on renminbi management has important implications for renminbi internationalisation.

Continue reading…

Financial services firms are required to maintain robust anti-money laundering (AML) systems and controls, since they are at risk from those seeking to launder the proceeds of crime or to finance terrorism. Between 26 November 2012 and 29 January 2016, Canara failed to maintain adequate AML systems and failed to take sufficient steps to remedy identified weaknesses, despite having been notified of shortcomings in its AML systems and controls.
Continue reading…

The Financial Conduct Authority (FCA) has today finalised rules creating a new category within its premium listing regime to cater for companies controlled by a shareholder that is a sovereign country. In July last year, the FCA consulted on proposals aimed at encouraging such companies to choose the higher standards of premium listing, rather than standard listing.The FCA thinks there is considerable benefit to investors if corporate issuers agree to meet these additional premium requirements.
Continue reading…

The Independent Evaluation Office of the IMF published a report “The IMF and Social Protection”. While the report recognizes that the Fund has made progress in advancing its engagement on social protection issues, it also notes that there is room to do better. One of the key IEO recommendations was for the IMF to establish a new strategic framework on its engagement on social protection issues. This recommendation was endorsed by the Board and the IMF Management proposed (see Management Implementation Plan) that a paper be prepared for Board discussion by February 2019.
Continue reading…

The Financial Conduct Authority (FCA) has published draft rules outlining how it will regulate claims management companies (CMCs) when regulation passes to the FCA on 1 April 2019. Following a review of CMC regulation commissioned in 2015, the Government announced that the FCA would take over regulation of CMCs. Regulation will extend to Scotland, where firms are currently unregulated. The FCA has today set out how it proposes to authorise and supervise firms and the steps it will take should CMCs breach FCA rules.
Continue reading…