Articles by Central Banking Newsdesk
HKMA's Chan identifies inherent flaws in risk models
HKMA chief questions the use of financial models in risk management; argues the inability of models to account for irrationality is a major defect
Pressure builds on ECB as figures show no lending growth
OECD and the European Commission call on the European Central Bank to do more, as ECB figures show lending to the eurozone's productive economy continues to shrink
BoJ’s Kuroda highlights 'increasing attention' on capital controls
Bank of Japan governor notes greater understanding of volatile capital flows as a channel for financial shock transmission; says banking union may be plagued by 'financial trilemma'
Bank of Mexico paper backs credit multiplier as amplification mechanism in DSGE
Working paper finds that credit multipliers do produce the amplification effects expected of them in a DSGE model and are not failing as some suggest
BoE deputies warn of slow policy coordination
Charlie Bean says eurozone periphery will weigh on demand for ‘some time’ as wage and price adjustments are needed; Tucker highlights trade-off between speed and balance in global regulation
Latvian annual report reveals reserves diversification
Bank of Latvia publishes annual report for 2012; reveals 15% increase in foreign reserves and diversification into Canadian and Singapore dollar-denominated assets
Belize annual report details financial stability measures
Central Bank of Belize publishes annual report for 2012; establishes financial stability unit to explore macro-prudential surveillance and introduces measures to reduce share of NPLs
BIS finds ‘no evidence' of persistent collateral scarcity
Report says increased reliance on collateralised funding and demands of regulatory reforms have not led to any 'lasting or widespread scarcity' of high quality assets
Colombian paper trumpets transparent forex intervention
Research says ‘pre-announced and transparent’ interventions had a greater impact on the Colombian exchange rate than more discretionary or ‘dirty’ purchases
Israel cuts rate for second time in two weeks
Bank of Israel cuts benchmark interest rate by 25 basis points for second time this month as global monetary easing ‘accelerates’
Danish governor rejects financial transaction tax
Per Callesen says tax will restrict market liquidity and banks are ‘right to complain’ about it; says the central bank’s experience with negative interest rates has been a success
IMF researcher argues bank competition policy should take aim at TBTF
Developments in advanced economy bank sectors over the last 20 years mean competition policy should concentrate less on increasing competition and more on reducing too-big-to-fail
UAE central bank annual report shows sharp balance sheet expansion
Annual report for 2012 sees balance sheet growth driven largely by higher foreign exchange purchases; prudential measures implemented to shore up banking system
Discontent on BoJ board over monetary policy outlook
Three board members suggest changes to the wording of the outlook for economic activity and prices as fears emerge over effects of continued QE; Kuroda and Miyao upbeat in separate speeches
Fed paper analyses impact of public views on FOMC forecasts
Working paper says FOMC forecasts are influenced by both internal and external views; analyses the weighting given by committee members to each
Draghi looks to FDIC model for European single resolution mechanism
ECB President tells City of London audience that completing banking union can sever the bank-sovereign link and provide markets with certainty
RBI targeting 'greater internationalisation' of rupee
Reserve Bank of India executive director Padmanabhan says currency is a ‘natural candidate’ for internationalisation; aims for ‘careful and gradual’ progress
Weidmann hits out at 'austerity backlash'
Bundesbank president challenges Blanchard study, says no conflict between fiscal consolidation and growth; Banque de France governor Noyer throws weight behind European banking union
Central bank operations push up Target2 turnover
ECB annual report says central banks helped push the value of payments in Target2 system to €634 trillion in 2012; balances diverged as German claims and Spanish liabilities increased
Danish paper uses three centuries of data to show tail risks underestimated
Research says severe stress cannot be properly understood with short time horizons; suggests results could be used to design tougher stress tests
Cyprus challenges accusations of weak anti-money laundering controls
Central bank and finance ministry say summary of two reports into anti-money laundering controls in Cyprus gives a biased view of the results
New York Fed forecasts support continued easing
Staff forecasts predict inflation and unemployment are unlikely to make significant progress toward their target levels in 2013
Sarb and Nigeria hold steady as Ghana hikes rates 100bp
Bank of Ghana responds to inflationary threat with one percentage point rate rise, in addition to changes to affect policy transmission; Sarb and Central Bank of Nigeria see threats but hold steady
DNB working paper puts forward Eurobonds solution
Proposal would see Eurobonds distributed by an ‘independent budgetary authority' and would be made available depending on a member state's fiscal responsibility as per the Maastricht Treaty