Articles by Central Banking Newsdesk
UBS buys back ‘bad bank' from Swiss central bank
Switzerland's biggest bank is reacquiring vehicle set up by the Swiss National Bank in 2008 to relieve it of illiquid assets and save it from potential collapse; Deal earns SNB $3.8 billion in profit
Fed retains credibility following forward guidance, says Dutch paper
Dutch researcher says the Federal Reserve’s forward guidance resulted in a ‘significant reduction’ in Treasury yields as a whole, but did not change the relationship between real and nominal yields
NY Fed's Dudley says Sifis must build firmer foundations
Reducing the chances of a systemically important financial institution (Sifi) failing - and bringing the system down with it - is key to overcoming 'too big to fail', says Bill Dudley
ECB says no treaty change needed for SRM
Central bank pushes for introduction of ‘lawful' SRM by 2015; warns delay of bail-in tool may undermine resolution efforts by creating regulatory inconsistency and uncertainty
Italian interbank market kept working through crisis
A study of interbank lending in Italy from 2007-2011 finds the hypothesis of liquidity hoarding in times of crisis did not apply in the instance examined
Danish authorities tackle mortgage bond refi risk
Lars Rohde hails a new bill forged by the central bank and the government as the solution to the ‘excessive refinancing risk’ in Denmark’s mortgage bond market
RBA monetary policy statement says currency is too strong
Depreciation of the Australian dollar to the start of August has since been undone by the postponed Fed taper and positive Chinese data; weaker dollar will be needed to achieve balanced growth
ECB paper questions quantity theory of money in low-inflation countries
Researchers say evidence for the theory is 'just not there' in countries with low or moderate inflation, but becomes a ‘better fit' when correcting for variation in output growth
Bank of Slovenia lifts lid on bank health checks
The 10 banks under investigation will be subjected to asset quality reviews and bottom-up stress tests; results will be challenged by an outside consultancy
Krugman says ‘Greek-style’ crisis in US or UK would have ‘expansionary effect’
Economist extends Paul de Grauwe's point that countries borrowing in own currency are immune to self-fulfilling liquidity crises; says loss of investor confidence would raise output in large economies
Czech central bank starts targeting exchange rate
Czech National Bank finally says it will start intervening in the forex market, a year after it cut rates to the zero lower bound; Czech koruna almost hits target level straight after announcement
Focus on non-linearity can improve macro estimates, research finds
Czech National Bank working paper argues considering non-linearity can advance probabilistic economic assessments; focuses on relationship between credit markets and the rest of the economy
Pianalto confident housing market on road to recovery
It was the housing market that ‘got us into this situation', Cleveland Fed president says - but nevertheless a recovery in the overall economy will translate through to a housing rebound
BoE's Kohn stresses predictable nature of FPC ‘knockout'
Financial Policy Committee member Donald Kohn tells Oxford audience the Bank of England's new macro-prudential powers should allow monetary policy to act more effectively
People: Barclays economist returns to BoE; Cleveland steps up search for Pianalto replacement
Bank of England hires Simon Hayes from Barclays to replace Robert Wood in charge of MPC economic forecasts, reporting to Spencer Dale; Cleveland Fed hires search firm to find new president
Fed has moved ‘considerably closer’ to flexible inflation target, paper finds
Federal Reserve researchers say the central bank has moved closer to a flexible inflation targeting framework through a series of steps taken to improving the communication of its policy objectives
BoE and FDIC campaign for end to ‘early termination’ of derivatives contracts
International authorities want a ‘short-term suspension’ of the rights that allow derivatives contracts to be terminated ahead of schedule when a major financial institution is being resolved
Dollarisation and institutional weakness hamper Congolese monetary policy
IMF paper highlights 'fiscal dominance' and 'lack of authority' as among reasons for central bank's ineffectiveness; strengthening current policy framework remains 'first-best option'
Russians vote to choose new rouble symbol
Central Bank of Russia says more than 102,000 people voted in the first day of its online poll to choose a symbol to represent the nation's currency; voting is open until December 5
Constâncio insists private sector will play ‘major’ role in filling capital shortfalls
The ECB’s vice-president says banks will be able to fill any capital holes turned up in the central bank’s comprehensive assessment at least partly through private funds
ECB paper finds value in high-frequency trading
Working paper suggests high-frequency trading aids price discovery, such that regulatory restrictions could damage market efficiency
Fed reaction function shift helped support recovery, research finds
NY Fed research finds markets viewed ‘calendar’ forward guidance as a more dovish approach to policy, supported by comments from FOMC members; ECB and BoE both denied such a move in own guidance
Bank of England waging payment system war on three fronts
Chief cashier Chris Salmon says the central bank must contend with issues relating to cyber security, user access and new regulation within the UK payments infrastructure
Kuroda sets out evidence that Japan’s recovery will persist
Bank of Japan governor highlights a range of factors that suggest Japan may be bringing 15 years of stagnation to a close – supported by the central bank’s aggressive monetary policy