International regulatory framework for banks (Basel III). What is Basel III? Around the world, central bankers, regulators and governments have responded to the financial crisis with new regulation and legislation. The cornerstone of this global initiative to contain risk is Basel III – sweeping new regulatory standards for banks on capital adequacy and liquidity. Basel [...]
The new UK Twin Peaks Regulatory Framework. Since his 2010 Mansion House speech, where Chancellor George Osborne set out his agenda for reforming the current system of financial regulation*, the situation has progressed. The current system – which shares responsibility for financial stability between the Treasury, the Bank of England and the Financial Services Authority [...]
Principles for the oversight of payment systems Central banks’ involvement in the oversight of payment systems arises from their core role as the systems’ settlement bank, providing the ultimate settlement asset, central bank money. This gives central banks a very direct interest in any potential systemic risks inherent in such systems. More broadly, payment systems [...]
What is financial stability? Financial stability can be defined as a condition in which the financial system is capable of withstanding shocks, thereby reducing the likelihood of disruptions in the financial intermediation process which are severe enough to significantly impair the allocation of savings to profitable investment opportunities. The financial system can be said to [...]
George Osborne, Chancellor in the UK conservative-liberal coalition government, announced, on 16 June, the end of the existing tripartite arrangement* for financial regulation in favour of a twin peaks approach increasing the powers of the Bank of England. This presentation outlines the Government’s plans to reform the institutional framework for financial regulation. The tripartite system [...]
We provide an adaptation, in presentation form, of the recent speech by by US Federal Reserve Governor Daniel K Tarullo at the Council of Institutional Investors Meeting. (Washington, DC, April 2010). The Federal Reserve and other financial regulators have, under existing statutory authority, already implemented some changes to prudential rules and to supervisory oversight processes. [...]
A central bank, reserve bank, or monetary authority is a country’s primary monetary authority. Central banks usually have responsibility for issuing currency, administering monetary policy, holding member banks’ deposits, facilitating the nation’s banking industry, and acting as a lender of last resort to the banking sector during times of financial crisis (private banks often being [...]
This mini module is based on the pound and the Bank of England, BoE How does the BoE track the pound? The BoE generates a trade-weighted index as a key indicator of the value of the pound. The index measures the average exchange rate against a range of currencies. The BoE will also take into [...]
November 2009. The economic crisis has prompted governments across the world to re-evaluate their financial regulatory framework, to try to tackle the causes of, and fallout from, the global downturn. The next 12 months could bring the most dramatic change in financial services regulation in decades. This interactive graphic provides an overview of the financial [...]