In this article the author will consider how central banking in the United Kingdom and the United States has evolved in response to the challenges of recent years. He will address a limited set of topics. These remarks are divided into three parts. In the first part, he will discuss several aspects of aggregate monetary policy: central bank independence, policy transparency, and policy tools. In the second part, he will consider differences between the approaches of the two banks to their lender-of-last-resort function. And, third, he will close with brief reflections on the central bank’s responsibility for financial stability.
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The Financial Conduct Authority has today announced that Capita Financial Managers Limited (CFM) has been publicly censured and will pay up to £66 million to those investors who suffered loss as a result of investing in the Guaranteed Low Risk Income Fund, Series 1 (or as it became later known, the Connaught Income Fund, Series 1) (“the Fund”), which is now in liquidation. The payment will be made via the FCA.
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The Bank for International Settlements (BIS) has published the paper ‘Policy Rules for Capital Controls’. This paper exames two possible objectives: macroprudential or trade competitiveness, with which policymakers in emerging market economies (EMEs) may have used capital controls. With this paper BIS attempts to borrow the tradition of estimating policy reaction functions in monetary policy literature and apply it to capital controls policy literature.
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The European banking supervision is operating for three years. At the ECB Forum on Banking Supervison Mario Draghi, President of the ECB, talks about the accomplishments and the benefists of the banking supervision. How its scale have been the changes the single supervisor has prompted in the conduct of supervision. It has broken with the past in a single, but fundamental way. It has brought about a more uniform approach in how banks are supervised, leading to a more resilient banking sector overall.
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The Financial Conduct Authority (FCA) has contributed to the Payment Systems Regulator (PSR) paper on ‘Authorised Push Payment Scams’. The FCA committed to identify if there were any firm-specific or sector-wide issues in the way banks handle authorised push payment scams. The FCA has engaged with a number of banks to understand their policies and procedures for handling push payment scams. Continue reading…

The European Securities and Markets Authority (ESMA) published the priorities to be considered by listed companies, and their auditors, when preparing and auditing their 2017 financial statements. These priorities are set out in the annual Public Statement on European Common Enforcement Priorities (Statement), through which ESMA promotes the consistent application of the International Financial Reporting Standards (IFRS).
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Statement by Federal Reserve Board Chair Janet L. Yellen: I congratulate my colleague Jay Powell on his nomination to be Chairman of the Federal Reserve Board. Jay’s long and distinguished career has been marked by dedicated public service and seriousness of purpose. I am confident in his deep commitment to carrying out the vital public mission of the Federal Reserve. I am committed to working with him to ensure a smooth transition.

With effect from Tuesday 21 November Polish will be added to the Risk & Compliance Platform Europe as the sixth language. At the end of 2014 we started a platform with the languages Dutch, French and English. In the meantime, the German is added and since the beginning of February 2017 the Italian language went live. Important to know is that the sites are managed by different editors, so the articles are unique for each site. In Poland, we work together with Krzysztof Loga-Sowinski, a practicing lawyer. He will operate as a Content Director from Warsaw for our Risk & Compliance Platform Europe. Continue reading…

The bank for International settlements has pupblished a study how different constraints on banks’ activities affect the allocation of capital across business units. In particular, we look at the interplay of risk-based and leverage-based constraints on banks’ lending and marketmaking.
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The European Banking Authority (EBA) in accordance with its Pillar 2 Roadmap launched a public consultation to review three guidelines aimed at further enhancing institutions’ risk management and supervisory convergence in the supervisory review and examination process (SREP). The revisions focus on stress testing, particularly its use in setting Pillar 2 capital guidance (P2G), as well as interest rate risk in the banking book (IRRBB). The consultations on all three guidelines run until 31 January 2018.
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