Articles by Central Banking Newsdesk
Central bankers split over whether 3% leverage ratio is enough
Majority of participants in CentralBanking.com poll support implementation of Basel III; readers divided over questions of raising leverage ratio
RBNZ’s McDermott backs simple forecasts over fan charts
Reserve Bank of New Zealand assistant governor says a simple policy projection can provide clarity to overall ‘forecast story’ and the relationships between different macroeconomic variables
BoE chief economist warns against inflation complacency
Bank of England’s Spencer Dale says he is concerned by ‘dangerous talk’ suggesting MPC should focus more on growth
Shirakawa examines ways for Japan to hit 2% inflation target
Bank of Japan governor says inflation will only be beneficial if it is driven by the right factors; says improved expectations are key to restoring Japan’s growth potential
IMF report issues call to action on worsening Palestinian economy
Palestinian, Israeli and international authorities must move fast to tackle liquidity crisis, unsustainable public finances and political uncertainty in the West Bank and Gaza, staff report warns
Nalm 2013: Delegates debate reigniting European ABS market
Participants at Central Banking event discuss mechanisms to get European financial markets off life support; particular focus on asset-backed securities
MAS’s Menon says Singapore is ready for shifting financial ‘centre of gravity’
Managing director says Singapore is well prepared to take advantage of a shift in finance towards Asia, with strong regulation and close links to the rest of the region
BoE research warns of coming financing problems for private equity firms
Quarterly bulletin article highlights problems on the horizon for private equity firms that over-leveraged before the financial crisis, as their debt comes to maturity under much tighter conditions
IMF attempts to sculpt better stress tests
Stress tests are ‘more art than science’ but can be improved and expanded, according to IMF study; cannot be standardised across countries
ECB’s Cœuré says financial fragmentation ‘remains high’
Executive board member Benoît Cœuré highlights evidence of receding fragmentation in the eurozone but warns overall level still too high
IMF research warns short-term fiscal consolidation pain could become more serious
Paper says short-term growth impact from fiscal tightening could be worsened if markets or policy-makers overreact; emphasises this does not mean budget cuts should be scrapped
Basel Committee will assess whether capital rules need simplifying
Stefan Ingves, chairman of the Basel Committee, says simplicity is "desirable" but it is too soon to judge whether capital rules are overly complex
Dutch central bank paper examines impact of capital controls on currency crises
Study finds lower capital controls reduce the probability of a currency crisis, particularly in advanced economies where there is greater institutional development
Bundesbank paper raises concerns over accuracy of systemic risk measures
Researchers find market-based systemic risk measures may give a façade of safety even as banks enter ‘major tail risks’
Bundesbank turns €664 million profit in 2012
Deutsche Bundesbank profit increases by €21 million from 2011; Jens Weidmann says increase in the central bank’s risk provisions limited return
BoJ unveils policy for oversight of market infrastructure
The Bank of Japan reveals new policy for its oversight of payment and settlement systems and CCPs; mainly concerned with mitigating systemic risk
Italy’s Visco concerned by ‘blind backlash’ against financial firms
Bank of Italy governor issues reminder that finance does bring some benefits, but says pre-crisis ‘benign neglect’ by regulators was foolish
Bank of Finland highlights ‘astonishing’ lack of information on Chinese government debt
Researcher warns opaque debt statistics are to China’s detriment and could threaten renminbi internationalisation; urges government to begin politically difficult process of improving transparency
Constâncio identifies benefits of banking union to non-members
ECB vice-president says European countries outside the new SSM will benefit from an enhanced banking union; stresses value of increased financing to real economies
ECB’s LTROs contribute to 12% drop in repo transactions
Icma report warns ‘abundant’ liquidity provided by ECB’s long-term refinancing operations is undermining the repo market in Europe; notes signs of increased risk appetite
Irish paper finds more spending could help government’s ‘precarious’ finances
Central Bank of Ireland research technical paper suggests country’s close sovereign-bank link means government spending to reduce mortgage arrears will have a greater effect than previously thought
IMF paper advocates hybrid discretion and rules-based macro-prudential policy
Researchers say discretionary systems can be gamed but rules struggle to properly account for risk; combination of ‘strong baseline’ and time-varying component gives best results
RBI governor defends 3% inflation target
Duvvuri Subbarao says India’s high inflation in recent years does not represent a ‘new normal’; rejects upping the central bank’s 3% target
National Bank of Poland says rate cuts will bring inflation up to target
Polish inflation projected to fall to 1.3% in 2013 before rising to 2.6% in 2014, after benchmark rate slashed by 150 basis points in five months