banking sector

The Blunder Of Negative Interest Rates

Miguel Navascués | The depression and the drop in inflation -or even deflation- have led the central banks to try a disastrous experiment: negative interest rates. Even Christine Lagarde speaks of putting the reference interest rate at -2%. This has been a mistake for several reasons. It discourages the holding of liquid deposits (which logically yield zero or negative), but it does not make people anticipate consumption, if prices stagnate or fall.




Tied hands

The long road towards creating a safe European asset

CaixaBank Research | The European Commission is looking at how the banks can have a more diversified portfolio of public debt securities. It is studying how to obtain a safe European asset without having to establish a tax union to back the issue of said asset.

 




EM banks

Mobiles vs Branches: The future for EM banks distribution

LONDON | May 30, 2015 | Cristina Marzea (CFA) | All the buzz these days is about digital banking: will banks lose business to disruptive entrants, or will they fight back and embark on a massive digital revolution which will see the branch concept become obsolete. Not all EMs are the same – this refers to levels of bancarisation, credit penetration, technology and mobile adoption, as well as the competitive banking landscape that shapes where each banking market is in the technology cycle. 


TLAC proposed calendar in 2015

TLAC next steps: Quantitative Impact Study

BBVA Research | March 30, 2015 | The TLAC’s public consultation period ended on 2nd February. Now is the time for carrying out a comprehensive Quantitative Impact Study (QIS) to define the optimal calibration of the TLAC. The FSB will assess the potential impacts on financial system, financial stability and the real economy.