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Bank
Supervision
 Restoring market liquidity in a financial crisis
Welcoming remarks by Mr Timothy F Geithner, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the Second New York Fed-Princeton University Liquidity Conference, New York, 13 December 2007.
We are going to need some time and perspective before we will know enough to draw conclusions and recommendations from the events of the past six months. The conditions that led to this crisis took a long time to develop and they will take some time to resolve. I think it is appropriate, though, that as central banks act to address the challenges in markets today, we also begin to define the agenda for future research and policy. On December 12, the Federal Reserve and several other major central banks, announced a series of actions in response to the elevated pressures in funding markets. Together, these actions provide a more flexible and potentially more effective set of instruments, alongside our conventional monetary policy instruments, to help mitigate the risks that liquidity pressures in markets going forward could pose to the broader economy.
 Principles for home-host supervisory cooperation and allocation mechanisms in the context of Advanced Measurement Approaches (AMA)
Basel Committee on Banking Supervision. November 2007 .
The primary objectives of the paper are to clarify the key elements of supervisory cooperation with respect to the implementation of AMA and establish a framework of principles to facilitate information sharing in the assessment and approval of AMA methodologies; and to establish a set of principles to promote the development and assessment of allocation mechanisms incorporated in a hybrid AMA.
 Global capital – surrender of national policies? Lessons from the recent events in credit markets
Speech by Mr Jean-Claude Trichet, President of the European Central Bank, at the 17th Frankfurt European Banking Congress “Global Capital – Threat or Salvation?”, Frankfurt am Main, 23 November 2007.
The present significant market correction with episodes of turbulences should not come as a surprise to us. The ECB, as well as the other central banks, has issued warnings in the past on the global phenomenon of under-pricing of risks. In many respects the present episode can be interpreted as bringing to the forefront anomalies and structural deficiencies which we have identified earlier. While it is too early to make a full assessment, I believe there are some first provisional lessons which can already be drawn at the current stage, which I will present today.
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Recommended
Readings
 Bancarization in Latin America. A challenge for Spanish banking groups
Jose María Ruiz. Inspector of Credit Entities of the Latin American Group. Dirección General Adjunta de Supervisión. Banco de España.
The differences in the bancarization figures between Spain and Latin America are greater than ones that would the differences in rent would justify. In the present document we pretend, in first place, to analyze which could be the causes of this situation. The main cause that is observed is the lack of confidence in the local financial systems, given their recurrent crises. Additionally, the existence of institutional and technical obstacle creates difficulties in task to increase bancarization to a level of countries like Spain.
(text in Spanish)
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 The financial market turmoil
Speech by Mr Lars Nyberg, Deputy Governor of the Sveriges Riksbank, to the Riksdag Committee on Finance, Stockholm, 22 November 2007
I will discuss how we at the Riksbank view the recent unrest in the financial markets. I shall begin by talking about the background to the market turbulence and about the spark that ignited the actual chain of events. Then I shall go on to discuss developments during the autumn and what we can learn from what has happened – as far as is possible at this early stage. In conclusion, I shall talk about the risks we see before us.
 Some thoughts on current financial turbulences
Speech by Mr Christian Noyer, Governor of the Bank of France, at the Euro Fixed Income Forum, Paris, 4 December 2007.
These are difficult times for policy makers. Financial turmoil has created macro economic uncertainties. Events are still unfolding. In those circumstances, I thought best to have a look at the dynamics driving recent turbulences; then describe potential consequences for the economy; finally make remarks on challenges for Central Banks and best ways to preserve and restore international financial stability.
Momentum of the global economy and the recent turbulence in the financial markets
Testimony of Mr Miguel Fernández Ordóñez, Governor of the Bank of Spain , to the Parliamentary Committee on Financial Affairs, Madrid, Spain. September 18, 2007 .
I wish to begin by emphasising the non-existence in the euro area of the sub-prime mortgages that are accepted practice in the United States. Therefore, in the first analysis, the rise in doubtful assets in the United States should affect only the European financial intermediaries that acquired securities linked to sub-prime mortgage loans originated in that economy. However, the propagation of contagion is not confined to the influence of this channel alone, but rather is transmitted through a wider range of shocks.
Overview: Markets hit by renewed credit woes
Ingo Fender & Peter Hördahl. BIS Quarterly Review. December 2007.
Further deterioration in the US housing market and concerns about associated economic and financial risks continued to take centre stage during the period under review. Prices for risky assets had recovered into October, as earlier worries about systemic risk had eased, not least because of determined central bank action in the money markets. However, uncertainties about subprime and other credit market exposures remained, adding to more general concerns that US housing market woes would deepen and eventually contribute to broader economic weakness. With market participants refocusing on these risks and liquidity conditions in money markets remaining tense, sentiment worsened once again from mid-October.
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