In my latest post on The Conversation, I argue in favour of disclosure of stress test results of individual banks. The current hot housing market creates fertile ground for speculation about the financial stability of the New Zealand banking system. See the latest addendum to the RBNZ Financial Stability Report, which creates the impression that… Read More The Conversation: “Why now would be a good time for the Reserve Bank to publish stress test results for individual banks”

Yesterday, The Conversation featured a publication that Professor David Tripe initiated. It is about Westpac. First time for me to co-author with David, and I am happy with the result. See the link to the article here.

I always hold my breath when a bank official speaks in public about some nerdy accounting topic. Last week was no exception: Bank of England’s Governor Andrew Bailey spoke about the prudential treatment of software assets, see the speech here. The short story is that the Bank of England doesn’t like the way Europe treats… Read More Software assets – to deduct or not to deduct …

I posted my paper on SSRN. It examines the association between discretionary capital buffers, capital requirements, and risk for European banks. The discretionary buffers are banks’ own buffers, or headroom: the difference between reported and required capital. I exploit capital requirements data that banks started to disclose since the release of a 2015 European Banking… Read More Max Headroom: Discretionary Capital Buffers and Bank Risk

Michael Reddell’s blog post of today reminded me that RBNZ governor Adrian Orr is scheduled to appear before the Parliament’s Epidemic Response Committee (PERC) tomorrow. The appearance will be an interesting event for sure, because it is difficult to challenge the Governor, ask him important or prickly questions in the flesh. In testing times like… Read More More questions for the RBNZ