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Category Archives: Financial System

Second GPFI/BIS conference explores implications of rapid progress on digital financial inclusion

News release: “The Financial Stability Institute of the Bank for International Settlements (BIS) hosted the second G20 Global Partnership for Financial Inclusion (GPFI) Conference on Standard-Setting Bodies and Financial Inclusion on 30-31 October. The conference’s theme was “Standard-setting in the changing landscape of digital financial inclusion.” An estimated 2.5 billion people currently have no access to formal financial services such as payments, credit, insurance and savings. Conference participants explored the implications for regulators, supervisors, standard-setting bodies and customers themselves of the innovative, low-cost, digital transaction platforms that are facilitating financial inclusion. The pace of change is dramatic, as shown in a video prepared for the event. In Bangladesh, for example, in just two years a single digital transaction platform has reached nearly a quarter of the country’s adult population of over 160 million. Similar platforms are emerging in other countries. In more than 80 countries, mobile phones are used by hundreds of millions of poor households and tiny businesses that lack access to formal banking channels. BIS General Manager Jaime Caruana noted in his opening remarks, “The regulatory, supervisory and standard-setting challenges – and likewise the solutions – include those we currently face, and others we can only imagine as billions of new digital finance users go online.”

Basel III: the net stable funding ratio (Basel Committee)

“The NSFR is a significant component of the Basel III reforms. It requires banks to maintain a stable funding profile in relation to their on- and off-balance sheet activities, thus reducing the likelihood that disruptions to a bank’s regular sources of funding will erode its liquidity position in a way that could increase the riskContinue Reading

Doing Business 2015

“Doing Business 2015: Going Beyond Efficiency, a World Bank Group flagship publication, is the 12th in a series of annual reports measuring the regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies—from AfghanistanContinue Reading

OIG’s List of Major Management Challenges for the CFPB

Major Management Challenges for the Consumer Financial Protection Bureau, September 2014 Management Challenge 1: Improving the Operational Efficiency of Supervision Management Challenge 2: Building and Sustaining a High-Performing Workforce Management Challenge 3: Implementing New Management Operations

Federal Reserve issues FOMC statement – October 2014

“Information received since the Federal Open Market Committee met in September suggests that economic activity is expanding at a moderate pace. Labor market conditions improved somewhat further, with solid job gains and a lower unemployment rate. On balance, a range of labor market indicators suggests that underutilization of labor resources is gradually diminishing. Household spendingContinue Reading

Pew Report Finds Military Checking Account Practices Need Improvement

Checks and Balances, Stars and Stripes, Banking practices at financial institutions serving the military, October 28, 2014 “Service members, like all consumers, need access to concise, easy-to-understand documents that lay out the key terms, conditions, and fees associated with their checking accounts. Clarity and transparency are especially important for Americans and their families serving in the military,Continue Reading

Combating a Flood of Early 401(k) Withdrawals – NYT

New York Times | Your Money – By Ron Lieber: “This week, the Internal Revenue Service announced that people under age 50 in 401(k) and similar workplace retirement plans will be able to deposit up to $18,000 in 2015, an increase of $500 from this year. Those 50 and over can toss in as much asContinue Reading

Regional Economic Outlook: Middle East and Central Asia

IMF – Regional Economic Outlook: Middle East and Central Asia, October 2014. “Despite setbacks, an uneven global economic recovery continues. Largely due to weaker-than-expected global activity in the first half of 2014, the growth forecast for the world economy has been revised downward to 3.3 percent this year, 0.4 percentage point lower than in theContinue Reading

Decoding Stock Market Behavior with the Topological Quantum Computer

Racorean, Ovidiu Sorin, Decoding Stock Market Behavior with the Topological Quantum Computer (June 25, 2014). Available for download at SSRN: “A surprising image of the stock market arises if the price time series of all Dow Jones Industrial Average stock components are represented in one chart at once. The chart evolves into a braidContinue Reading

European Central Bank’s in-depth review shows banks need to take further action

News release: “The European Central Bank (ECB) has today published the results of a thorough year-long examination of the resilience and positions of the 130 largest banks in the euro area as of 31 December 2013…Key results of comprehensive assessment of 130 largest euro area banks: Capital shortfall of €25 billion detected at 25 participantContinue Reading

JPMorgan Data Breach Involves Information on 76 Million Households

JPMorgan Data Breach Involves Information on 76 Million Households, 7 Million Small Businesses, CRS Legal Sidebar, October 23, 2014 “JPMorgan did not provide individual customers with notice of the breach because it believed that it had no obligation to do so because no “sensitive customer information” was involved in the data breach. This means thatContinue Reading

Signaling Status: The Impact of Relative Income on Household Consumption and Financial Decisions

Finance and Economics Discussion Series- Divisions of Research & Statistics and Monetary Affairs. Federal Reserve Board, Washington, D.C. Signaling Status: The Impact of Relative Income on Household Consumption and Financial Decisions. Jesse Bricker, Rodney Ramcharan, and Jacob Krimmel. 2014-76. “This paper investigates the importance of status in household consumption and financial decisions using household data from the Survey of Consumer FinancesContinue Reading