By Simon Johnson, a former chief economist of the IMF, is a professor at MIT Sloan, a senior fellow at the Peterson Institute for International Economics. In the discussion of whether America’s largest financial institutions have become too big, a sea change in opinion is underway. Two years ago, during the debate about the Dodd-Frank financial-reform [...]
By Michel Barnier* Five years after the outbreak of the financial crisis, Europe’s economic and political situation remains fragile. A mild recession is expected in Europe this year, and unemployment is on the rise. Beyond deficit reduction, we need to implement a €120 billion ($155 billion) European investment plan, and deepen the European Single Market [...]
The IMF Executive Board’s adoption on September 19 of a strategy for financial surveillance affirms the IMF’s efforts to strengthen the surveillance of its member countries’ financial sectors and global financial developments. Given the critical importance of financial systems for economic growth and stability, it is essential to have effective financial surveillance to enable the [...]
Banks aren’t always popular even in the best of times, but the anger of recent years is unprecedented. The anger, while understandable, has fueled the misguided idea that we should break up the nation’s largest banks. By WILLIAM B. HARRISON Jr. * The argument is simple and sound-bite ready: In the years before the crisis, [...]
14 May 2012 Joint Consultation Paper on the proposed response to the European Commission’s Call for Advice on the Fundamental Review of Financial Conglomerates Directive. The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA) is launching today a three-month public consultation on the proposed response to the call for technical advice from [...]
International Monetary Fund. World Economic Outlook (WEO): Growth Resuming, Dangers Remain, April 2012. The World Economic Outlook (WEO) presents the IMF staff’s analysis and projections of economic developments at the global level, in major country groups (classified by region, stage of development, etc.), and in many individual countries. It focuses on major economic policy issues [...]
Speech by BoE’s Chris Salmon: Three principles for successful financial sector reform. In a speech delivered at City Week 2012, Chris Salmon, Executive Director for Banking Services and Chief Cashier, at the Bank of England, reviews the regulatory response to the financial crisis. Salmon begins by recapping the objectives of the response and the key [...]
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 [...]
In the months leading up to the Group of 20 nations meeting in Cannes, global banking executives have mounted a furious attack on the Basel III reforms that will force their institutions to hold more capital and liquid assets. They single out the capital surcharge for “global systemically important financial institutions” (GSifis), which is on [...]
Overview. It is crunch time for the Group of 20. If things go well, the Cannes summit will mark the moment the “premier global economic forum” acts to defuse the economic risks being run in the world. The alternative is to allow them to fester, contributing towards another destructive financial and economic crisis. Underlining the [...]