Articles by Central Banking Newsdesk
Banks’ net worth impacts cost of credit, says ECB paper
Research published by the ECB finds a drop in banks’ net worth increases the cost of credit for companies; model shows subsequent decline in GDP and inflation
Business cycle mirrors stock market turning points, Israel study says
Research published by the Bank of Israel finds stock market turning points can be used to forecast economic activity; seven-month delay before impact becomes evident
Italy’s Visco promotes ‘deeper’ Europe
Bank of Italy governor says long-term solution to crisis is a more fully constructed Europe, although not all central bank tasks should be centralised
Ballooning balance sheet yields further ‘profit’ for SNB
Swiss National Bank’s profits show continued growth in third quarter with the largest contribution from foreign exchange holdings; balance sheet has increased 45% during the year
RBI pushes government to act on fiscal consolidation promises
Reserve Bank of India chief calls on government to make concrete progress on fiscal consolidation as central bank holds rates but cuts reserve requirements
BIS’s Cecchetti envisages world without G-Sifis
Stephen Cecchetti says the global financial system needs to reach a stage where no banks are globally systemically important; market discipline critical to stability but not sufficient
Dutch paper analyses impact of environmental policy on FDI
The Netherlands Bank research investigates how FDI can be motivated by environmental policy; preferences for stronger or looser regulation are sector-specific
Polish paper says euro would have destabilised economy during crisis
National Bank of Poland research examines how adopting the euro would have changed the impact of the financial crisis; fixed exchange rate would have exposed economy to greater shocks
Insurers must prepare for climate change, says Zeti
Bank Negara Malaysia’s Zeti says climate change presents a huge challenge to Asian insurance industry; risk management systems must adapt
Singapore review exposes plummeting growth rates
Biannual Monetary Authority of Singapore macroeconomic review details large drop in growth rates; inflation and unemployment steady
FSB task force proposes enhancements to risk disclosure
Private-sector task force organised by the Financial Stability Board outlines seven principles designed to improve banks’ risk disclosure, with implementation of some sections to begin immediately
Basel Committee reports slow progress ahead of G-20 meeting
Report submitted to G-20 leaders ahead of summit shows just six of 29 systemically important banks are likely to be subject to Basel III rules when deadline is passed
Draghi wants European veto over national budgets
ECB president Mario Draghi says he supports German proposal that would centralise European sovereignty; believes divide with Bundesbank president can be overcome
Dutch gold also unverified
Central banks with second, third and ninth largest gold holdings in the world admit to not physically verifying overseas gold; but some host central banks do not allow external auditors into vaults
Albanian governor seeks EU support for Balkan countries
Ardian Fullani says European Union support would help provide the tools for greater co-operation among Balkan countries
IMF paper analyses regional impact of deleveraging
Research published by the IMF considers why Asia’s domestic credit supply suffered less than that of other regions in response to banks deleveraging in 2008
Finland paper advocates partial commitment to inflation targeting
Bank of Finland study warns of dangers involved in ‘over-committing’ to interest rate adjustments in reaction to price changes; suggests short-term reactions may be appropriate
Bank of Russia reveals 2011 annual report
Russian economy grew while central bank battled inflation; exchange rate policy adjusted in transition to fully floating regime
Banking supervision gets leadership overhaul in Spain
Bank of Spain names new director-general and associate director-general at the top of its banking supervision department as initial IMF review of financial assistance programme is released
Structure of banks must change as they grow, says BoE’s Haldane
The Bank of England’s Andrew Haldane discusses ways to address the ‘too-big-to-fail problem’; considers impact on banks’ economies of scale
Thailand lowers growth and inflation forecasts
Bank of Thailand says export demand has softened in latest quarterly inflation report; inflationary pressures will decrease as a result
Troika praises Ireland for ‘steadfast’ adherence to programme
Conclusion of eighth programme review says Ireland likely to meet deficit target this year; Portugal by contrast facing ‘strong headwinds’ to fiscal adjustment with 2012 targets beyond reach
Fed’s QE2 will have ‘modest impact’, says San Francisco paper
Research by the Federal Reserve Bank of San Francisco estimates the second round of Fed quantitative easing will have only a small effect on GDP growth and inflation
Macedonian vice-governor assesses impact of European deleveraging
Maja Kadievska Vojnovik says Macedonia has been spared most of the direct effects from deleveraging by European banks largely due to the ‘prudent’ funding structure of local banks