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 [...]
Introductory statement. By Jean-Claude Trichet, President of the European Central Bank. Ladies and gentlemen, the Vice-President and I are very pleased to welcome you to our press conference. We will report on the outcome of today’s meeting of the Governing Council, which was also attended by Commissioner Rehn. Based on its regular economic and monetary [...]
A new US federal infrastructure bank - A Fannie Mae for infrastructure. Here’s a novel idea: Have Congress create a “bank” that could borrow huge sums with only a small federal outlay and would be independent of any political interference. If you believe in this miracle, you probably thought Fannie Mae was a private company that [...]
The world’s largest financial institutions warned Wednesday that proposed rule changes in the European Union could encourage insurance companies to invest in riskier assets like bank debt and sovereign bonds, and they called for reconsideration of the measure. A report by the Institute of International Finance, which represents more than 400 of the largest financial [...]
by Katrin Forster, Melina Vasardani and Michele Ca’ Zorzi. Non-technical summary. The global financial crisis that started in 2007 and intensified after the collapse of Lehman Brothers in September 2008 abruptly interrupted the more than two-decade-long process of increasing world financial integration. With the complex web of global interlinkages contributing to the spreading of the [...]
IMF World Economic Outlook 2011
The IMF has published the 2011 edition of its World Economic Outlook The recovery is gaining strength, but unemployment remains high in advanced economies, and new macroeconomic risks are building in emerging market economies. In advanced economies, the handoff from public to private demand is advancing, reducing concerns that diminishing fiscal policy support might cause [...]