RD News 12March12

• BIS: Quarterly review, March 2012
• Highlights of the BIS international statistics by Stefan Avdjiev and Andreas Schrimpf
• Bank stock returns, leverage and the business cycle by Jing Yang and Kostas Tsatsaronis
• Results of the analysis provides support for the regulatory reform embodied in the most recent revision of the Basel prudential framework for banks. In particular, they suggest that higher capital requirements can be beneficial to equity investors by restraining bank leverage, and provide an additional rationale for the introduction of countercyclical capital buffers.

• Speech by Benoît Coeuré (Member of the Exec Board of the ECB): The reform of financial regulation – priorities from an European Central Bank perspective. Three main issues of special importance from the ECB’s perspective are:
• Timely and consistent implementation of the new Basel III framework.
• Ongoing work to address the “too big to fail” problem, particularly within the specific EU landscape.
• OTC derivatives, market infrastructures, and the MiFID review.

• IMF working paper: Capital Regulation, Liquidity Requirements and Taxation in a Dynamic Model of Banking by Gianni De Nicolò, Andrea Gamba and Marcella Lucchetta

• Debate on transaction tax heats up in Europe

• ECB working paper: CISS – A composite indicator of systemic stress in the financial system by Dániel Holló, Manfred Kremer and Marco Lo Duca

• Federal Reserve Board, International Finance Discussion Paper: The Effect of TARP on Bank Risk-Taking by Lamont Black and Lieu Hazelwood