Articles by Central Banking Newsdesk
Paraguay’s central bank president calls for new powers
Carlos Fernández Valdovinos says the national law needs to be updated, in a manner that allows the regulator to adapt quickly in the face of emerging risks
IMF paper sees EU inflation expectations holding firm
Working paper says low core inflation in eurozone has had ‘significant’ impact on the rest of the region, though the main driver of disinflation remains food and energy prices
Bank of Finland paper examines impact of Basel II on international bank lending
Research finds sovereign credit rating revisions have become more important since the implementation of Basel II capital rules
Cœuré says payments innovation is a double-edged sword
ECB’s Benoît Cœuré says new innovations such as virtual currencies can reveal ‘inefficiencies’ in existing products or approaches, but ‘often imply financial or security risks’
BoE minutes hint at dovish shift
Committee still split 7-2 in favour of holding rates, but language takes a more dovish tone with housing market and external environment providing cause for concern
People: Mexican deputy gets second term; Paraguay names new director
Mexican president reappoints Legaspi as deputy governor of Bank of Mexico; Central Bank of Paraguay promotes legal unit manager to director; and more
ECB health check ‘putting strains’ on Cyprus central bank
IMF staff report finds the operational capacity of the Central Bank of Cyprus is being stretched by the transition to the SSM, including the ECB's comprehensive assessment
Angolan central bank looks to boost BESA capital by $4.3 billion
National bank of Angola sets out plans to recapitalise BESA; Novo Banco will get a 9.9% stake in the bank and receive $850 million over ten years in restructuring deal
Failure to improve culture will be punished, say Dudley and Tarullo
Fed officials say banks that fail to improve culture will face regulatory sanctions, including the possibility of being ‘dramatically downsized and simplified’
Dollar and renminbi can coexist as global currencies, Eichengreen says
Bank of Korea paper finds that ‘networks are open and several international currencies can coexist’, suggesting the dollar and the renminbi will share the role in the future
Trade balance improves after fiscal devaluation, study finds
European economists analyse the effects of a temporary fiscal devaluation in Spain and Portugal, finding it leads to improved trade balance
RBA’s Lowe wants more market appetite for ‘real investments’
Deputy governor says key to returning growth and monetary policy to normality is persuading investors to create new assets rather than pumping up the prices of existing ones
West African countries take stock of ‘capacity building project’
The West African Monetary Institute is hiring an external consultant to review the $2 million project, as it works towards establishing second monetary union in region
IMF paper examines causes of financial market spillovers
Research finds financial market spillovers are affected by ‘bilateral portfolio asset holdings, as well as a country’s geographical preferences’
Fed paper models impact of return to normal rates
Discussion paper studies the likely effect of returning interest rates to more normal levels; finds different combinations of tools would have different effects on financial intermediation
Bank of England resumes settlement after 'technical issue’
UK’s high-value payment system was ‘paused’ for several hours today, but is now back up and running; central bank extends opening hours to deal with backlog
Philippines central bank raises minimum capital requirements
The Central Bank of the Philippines has raised banks’ minimum capital level while unveiling new credit risk management rules that limit the collateral value of real estate mortgages
French paper examines impact of ECB policy changes on asset prices
Working paper considers how ‘policy shocks’ affected short-term interest rates, as well as the expected future path of short-term interest rates, between 2002 and 2013
Andrew Sheng says international monetary system is fundamentally flawed
Former chairman of Securities and Futures Commission says the world is breaking up into national currency blocks, and the revival of ‘Cold War 2.0’ makes it difficult to fix
BoE’s Bailey slams European bonus caps
Deputy governor expresses ‘dismay’ at debate that misses what he sees as key points in designing appropriate incentives; points to flaws in Basel capital standards
SBP launches shariah-compliant open market operations
Islamic banks in Pakistan will now have access to central bank liquidity operations; survey reveals strong demand for Islamic finance in the country, but coverage remains patchy
Yellen ‘greatly’ concerned by inequality in US
Fed chair takes unusual step of addressing inequality in her speech at a Boston Fed conference; explores four ‘building blocks’ of economic opportunity
European Commission approves central bank’s BES intervention
Bankruptcy would have led to losses up to €28 billion; European Commission says central bank decision is ‘compatible with the internal market for reasons of financial stability’
Mersch: Asset buying may widen income inequality
Non-standard measures ‘shouldn’t last too long’, according to ECB executive board member Yves Mersch, because they could ‘widen income inequality’