financial stability News

Institutional Investors Ignore Climate Risks Despite Bank of England Warning

The number big investors ignoring climate change risk increased last year despite a stark warning from Bank of England Governor Mark Carney about the potential for “huge” losses from a sudden shift in regulation designed to curb global warming and …

German Advisers Warn Europe’s Low Interest Rate Policies Risk Financial Stability

The German government’s panel of economic advisers said on Wednesday the European Central Bank’s low interest rates were creating substantial risks, and Finance Minister Wolfgang Schaeuble warned of a “moral hazard” from loose monetary policy. The double-barreled message came after …

Inclusion on List of Too-Big-to-Fail Insurers May Alter Business Strategy: Fitch

A change to the list of globally systemically important insurers (G-SIIs) suggests the potential for being added to or removed from the list could play a significant role in setting strategy for some major insurers, according to Fitch Ratings. The …

Aegon, Transamerica’s Owner, Added to FSB’s List of 9 Too-Big-to-Fail Insurers

Aegon NV, the Dutch owner of U.S. insurer Transamerica Corp., has been added to a list of insurers deemed systemically important by global financial rule makers, while Italy’s Assicurazioni Generali SpA was removed. The updated list of nine too-big-to-fail insurers …

Bank of England Governor: Insurers Face Huge Exposure to Climate Change Risks

Bank of England Governor Mark Carney said UK insurers face potentially “huge” exposure to shifts in climate-change policy and Group of 20 nations need to do more to combat associated financial stability risks. “The challenges currently posed by climate change …

FSOC’s Woodall Warns of ‘Inappropriate’ Global Influence On U.S. Policy

Roy Woodall, a member of the U.S. panel charged with preventing another financial crisis, said he is concerned that global regulators have too much influence over policy in Washington. “International regulatory organizations may be attempting to exert what I consider …

AIG, Prudential Financial on Federal Reserve’s List of 15 Firms for Extra Supervision

The Federal Reserve released a list of 15 firms that merit an extra layer of supervision because they pose heightened systemic risks, including JPMorgan Chase & Co. and Bank of America Corp. The tally published on the Fed’s website today …

Iceland Seen Threatened by Capital Flight from Its Own Citizens

Its own citizens may follow if the government doesn’t show it can lift capital controls in place since 2008 without triggering a currency sell-off, according to Iceland’s biggest insurance firm. If people lack confidence, they will take their money elsewhere …

Europe Insurer Trade Group Criticizes Listing Companies as G-SII’s

Europe’s insurers criticized the approach taken by international regulators which named firms considered systemically important as they try to reduce financial risks from the sector. Two global financial watchdogs released a list of nine insurers late on Thursday they said …

Insurers Seek Separation from Banks for Systemic Risk Regulation

U.S. insurance company trade groups have sent a letter to President Obama requesting his assistance with G20 leaders in efforts to de-link insurers from the timelines for identification of globally systemically important financial institutions from the Financial Stability Board’s (FSB) …