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Banking : The EU stress test and sovereign debt exposures

13-Aug-2010

This working paper summarises the recently completed EU stress test for banks and, using new data on bank exposures to sovereign debt, appraises the way the tests have treated the sovereign debt crisis. It comments on market concerns about banking sector exposure to sovereign debt during and beyond the period of the stress test.

Government-guaranteed bank bonds and the financial crisis

16-Jul-2010

Government-guaranteed bank bonds have been an effective tool in avoiding the worst during the financial crisis. However, the pricing of the guarantees has created competitive distortions and the continued availability of such guarantees into 2010 may have reduced the pressure on some banks to address their weaknesses.

Thinking beyond Basel III - Avoiding another financial crisis

26-May-2010

Basel III proposes financial reforms regarding capital and liquidity requirements which aim to strengthen the banking sector and help to avoid crisis in the future. This article analyses the strengths and weaknesses of the Basel III proposals, draws implications for the financial reform process and proposes further necessary solutions.

The elephant in the room: The need to deal with what banks do

08-Jan-2010

Banks need to properly address contagion risk and counterparty failure that have been the main hallmarks of the current crisis. This article outlines the reforms essential to dealing with contagion and counterparty risk, as well as emphasising the need for transparent and comparable accounting rules and improvements in corporate governance.

Responding to the crisis: OECD governments are coping with exploding borrowing needs

07-Jan-2010

Most OECD governments are facing a surge in budget deficits, borrowing needs and debt. A new article (The Surge in Borrowing Needs of OECD Governments ) projects that gross borrowing needs of OECD governments are expected to reach around  USD 16 trillion in 2009 and 2010. An accompanying article (Changes in OECD Primary Market Procedures and Portfolio Risk Management ) shows that tougher issuance conditions prompted debt management offices to review existing issuance procedures and the use of indicators relating to the key risks of the maturity structure.

Expanded Guarantees for Banks: Benefits, Costs and Exit Issues

19-Nov-2009

This article provides an overview of the guarantees that have been expanded and/or introduced as part of the policy packages implemented in response to the recent financial crisis and discusses the costs and benefits of this expansion, as well as issues related to the exit from “unusual” types or levels of guarantees.

Insurance companies and the financial crisis

27-Oct-2009

This article discusses vulnerabilities in selected segments of the insurance sector and identifies specific issues related to the role of the insurance sector in the current financial crisis.

G20: International standards on structural policies key to emerging from crisis

25-Sep-2009

Welcoming the adoption of the Framework for Strong, Sustainable and Balanced Growth by G20 leaders gathered in Pittsburgh for the G20 summit, OECD Secretary-General Angel Gurría said new sources of jobs and growth needed for the global economy to effect a sustained recovery, will only emerge if the right structural policies are adopted by the world’s leading global economies.

OECD research supports risk-sharing in private pension arrangements

23-Jun-2009

A new article ("Evaluating Risk Sharing in Private Pension Plans") analyses the main trade-offs embedded in different pension arrangements. The stochastic simulations performed show that hybrid plans (those in between traditional DB and individual DC) appear to offer efficient and sustainable forms of risk sharing.

Finance, Competition and Governance: Priorities for Reform and Strategies to Phase-Out Emergency Measures

18-Jun-2009

This report describes issues that must be addressed to restore public confidence in financial markets and to put incentives in place to encourage a prudent balance between risk and the search for return in (broadly-defined) banking.




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