Supporters of economic growth should back stronger regulation of the financial sector, not deregulation, said European Central Bank President Mario Draghi. "Stronger rules for the financial sector and better supervision actually belong to the growth agenda," he said in a report on the ECB's supervisory activities.
Despite the emergence of encouraging data on economic growth and pricing, there is "no reason" for the Bank of Japan to change its aggressive stimulus policies, BoJ Governor Haruhiko Kuroda said. The central bank is still a long way from reaching its 2% inflation target, he said.
The Securities and Exchange Commission has been asked to watch for conflicts of interest in Carl Icahn's position as an adviser to the Trump administration. Icahn's wide-ranging investment portfolio and lack of clarity on his role and influence have raised concerns.
The US would make a big mistake by taking the Dodd-Frank Act completely off the books, but that doesn't mean the law couldn't be improved, according to a paper by Tobias Adrian and Maurice Obstfeld, chief economist for the International Monetary Fund. "There is certainly room for simplification," they wrote.
Jay Clayton, President Donald Trump's nominee to be chairman of the Securities and Exchange Commission, said the Dodd-Frank Act should be looked at to see if its objectives are being achieved, but he doesn't have "specific plans for attack" against the law. The SEC should continue its work on rules mandated by Dodd-Frank that haven't yet been completed, he said.
A European Central Bank official says London-based banks that want to maintain access to the EU's single market after Brexit would be well advised to move key operations to the EU, intimating that their applications may be given expedited entry. Meanwhile, a number of US investment banks with London offices reportedly are actively seeking to move those operations to Frankfurt, Germany.
A European Central Bank economic bulletin indicates robust eurozone growth in the first quarter, prompting it to claim that recovery is becoming more apparent. However, the ECB cautions that numerous political uncertainties could affect continued growth.
The European Commission approved a plan to break down barriers that discourage EU consumers from purchasing financial services from providers outside their home country. Just 7% of EU consumers buy financial services from another EU state, the commission said.
Daniele Nouy, a European Central Bank supervisor, says banks that become unviable might have to be unwound and has called for the ECB to be given more discretion on deciding whether individual banks hold enough capital to continue operating. Her comments come as the Italian government seeks to bail out two ailing regional banks.
MSCI has released a consultation paper that would make China's A-shares a smaller proportion of its emerging markets index than its previous draft. A-shares would now account for 0.5% of the index, down from 1% originally.
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