Articles by Central Banking Newsdesk
FSB says ‘substantial’ work needed on resolution regimes
Financial Stability Board monitoring exercise finds that only four jurisdictions have resolution regimes in line with its Key Attributes; India among those lagging behind on legislative amendments
Netherlands at the ‘forefront’ of global reforms, says FSB
Peer review finds macro-prudential tools and crisis planning in the Netherlands are well-advanced, but FSB says authorities face challenges that provide ‘instructive test’
Chief currency dealer dismissed from Bank of England
Grabiner report unveils transcripts of conversations between BoE's Martin Mallett and market participants discussing 'matching off' trades; BoE says dismissal unrelated to FX investigation
EU court throws out Syrian governor’s sanctions challenge
Adib Mayaleh will remain under EU sanctions after court rejects his challenge to restrictions imposed in 2012; Central Bank of Iran court case ongoing
No evidence US prices were ‘more stable or less uncertain' before or after WWII
Experience shows ‘well-managed fiat regime' can achieve same level of moderation in price swings as gold standard, according to Bank of Korea working paper
ECB's Angeloni defines 'level playing field' for banks
If risk borne by taxpayers is higher than elsewhere, banks receive an implicit public subsidy that distorts the competitive playing field, says Ignazio Angeloni
Riksbank board at a loss over falling inflation, minutes suggest
Ingves says Swedish economy needs ‘two different policy rates: one for households and one for companies', while central bank casts doubt on new mortgage repayment rules
PBoC sheds light on opaque liquidity measures
Central bank confirms injection of billions of renminbi via new ‘medium-term lending facility’ as part of efforts to offset weaker foreign exchange inflows
Zimbabwe governor flags ‘increased vulnerabilities’ in financial sector
John Mangudya is wary of growing fragilities in the financial sector as liquidity shortfalls persist; pins hopes on nebulous government plan to improve economic fortunes
RBA markets head details Australian approach to securitisation
Chris Aylmer outlines RBA’s ‘very high standard’ of ABS risk management in its liquidity operations, saying the approach will evolve over time
FSB overhauls website with help from Bank of Canada
New FSB website makes it easier for user to find and filter content; Mark Carney hails the revamp as a ‘collaborative effort’ from its members, in particular the Bank of Canada
FSB unveils loss-absorbency standards
Minimum standard for total loss-absorbing capacity aims to end ‘too-big-to-fail’ and should reduce the funding advantage of globally systemic banks, FSB says, in consultation document
China and Canada sign deal to set up first RMB clearing bank in North America
Countries also agree on $8.2 billion RQFII quota as part of major bilateral trade initiative; PBoC also signs MoU with Bank Negara Malaysia to set up RMB clearing bank in Kuala Lumpur
Shanghai-Hong Kong Stock Connect to go live next week
Securities regulators unveil final launch date after delays upset markets last month; scheme will allow direct trading of Chinese and Hong Kong stocks within certain limits
Ruble rebounds as Bank of Russia lets currency float
Central bank abandons exchange rate regime after ruble weakens 45% against dollar in five months, says decision will lead to ‘faster adjustment of economy to external changes'
People: Mark Carney reappointed as FSB chair; Bank of Portugal names new head of supervision
Governor of Bank of England gets second term as chair of the Financial Stability Board; Bank of Portugal appoints three new people in banking prudential supervision department; and more
BoJ paper finds US crisis policy more impactful on markets than European measures
Authors test policy responses to the global financial crisis including monetary, liquidity and financial sector policies, finding US announcements led to higher abnormal returns
Malaysian deputy backs ‘constructive ambiguity’ in comms
Muhammad bin Ibrahim says less might be more when it comes to communicating macro-prudential policy; Bank Negara Malaysia allows for some ‘constructive ambiguity’
Powell says ‘good deal more’ needs to be done on CCPs
Fed governor Jerome Powell stresses the need for international coordination to ensure that reforms on the central clearing of OTC derivatives live up to their promise
ESRB report studies allocation of macro-prudential powers
Report from advisory scientific committee says coordinating monetary and macro-prudential policies is easier if the powers sit within a single institution, often the central bank
Cleveland Fed president sees forward guidance evolving in normal times
Loretta Mester suggests it will focus less on when policy will be changed and ‘more on the rationale for policy decisions’; sees FOMC summary of economic projections playing ‘central role’
Hélène Rey warns advanced economies are not safe from US spillovers
Leading economist says spillovers from US monetary policy affect both advanced economies and emerging markets, weakening domestic policy; NY Fed's Bill Dudley responds
FSB sees flaws in OTC derivatives reforms
Despite greater clarity emerging from the range of regulatory initiatives, there are still considerable differences in implementation between jurisdictions
Malaysian deputy says Islamic banking has inclusion role to play
Muhammad bin Ibrahim highlights potential of Islamic banking products to improve financial inclusion, by channelling funds directly to small businesses