Financial Stability
Senators table Volcker rule legislation
Bill would ban prop trading for large banks and impose limits for big non-banks
Buba’s Weber dismisses Volcker rule
Bundesbank president Axel Weber says Paul Volcker’s plan will have unanticipated effects and interfere with monetary policy transmission, says sticking with Basel II is best
Trichet keeps open mind on European Fund
European Central Bank president Jean-Claude Trichet says more details must emerge before making a firm decision for or against a European monetary fund
The US banking practices falling behind
Boston Fed study urges US to invest more in payments technology to cope with the demands of the digital age
SNB reveals Stabfund portfolio
Swiss National Bank says Stabilisation Fund holds about 4,800 positions in five currencies, bulk of assets backed by real estate
Kansas Fed heralds more stable banking sector
Stress indicator for financial sector shows further decline in February, moving it closer to its long run average
A welcome return to money
Central banks’ renewed in interest in the importance of money is to be applauded. But they must also consider the right money measure and how changes should impact policy, Gabriel Stein argues
China to drop dollar peg “sooner or later”: Zhou
Chinese central bank chief Zhou Xiaochuan hints the country will soon remove the dollar peg on its currency, analysts see a slow and steady revaluation rather than large one-off move
DSK on Africa’s economic transformation
International Monetary Fund managing director Dominique Strauss-Kahn describes the Road Ahead for Africa at the Kenya International Conference Centre in Nairobi
Brussels and Paris push for European monetary fund
Finance ministries of France and Germany begin devising proposals for Europe’s own Fund, body would be geared at removing bailout security net as well as providing help to euro countries
Gudmundsson confident of Icesave deal despite country’s ‘no’ vote
Icelandic central bank governor Már Gudmundsson says a resolution will be reached with British and Dutch governments soon despite massive wave of public opposition to the plan
Canada to switch to polymer
Bank of Canada to issue plastic notes in 2011
Hildebrand, Weber condemn calls for higher inflation targets
Swiss and German central bank heads label IMF chief economist’s argument “seriously flawed”; deem timing “highly unfortunate”
Bangladesh’s Rahman welcomes remittance improvements
Bangladesh Bank governor Atiur Rahman says banks, microfinance companies and IT specialists should continue working together to increase access to finance
Bank begins consultation on note circulation
Bank of England in talks with commercial cash industry on proposal to better distribute lowest denomination note
Longworth praises Canada’s astute liquidity management
Bank of Canada deputy governor David Longworth says central bank has been thoughtful and measured, assuring markets that support is available but ensuring that it is only used in dire circumstances
Banks’ profits plunged 40%: Greece deputy
Bank of Greece deputy governor Eleni Dendrinou-Louri says profits fell more than 40%, accompanied by a disconcerting rise in trading income
Swiss stabfund losses wipe out UBS equity
Revaluation wipes more than $5.6 billion off the value of SNB’s toxic-asset portfolio
Stimulus is not the bulk of debt: Fund’s Lipsky
International Money Fund first deputy John Lipsky says underlying increases in spending and lower taxes from financial sector underpin the debt burden, rather than stimulus
Risks influencing loan rates: Bank of England paper
Bank’s external monetary policy unit research shows loan size is not the only variable affecting rates, says higher income individuals are treated better by lenders
Fed’s Fisher: break up the big banks
Dallas Federal Reserve’s president gets tough on those deemed too big to fail
Greece not looking to bond markets for now: debt chief
Greece’s new head of public debt management says the country will not rush to tap sovereign debt markets; austerity package with extra cuts sends yields plummeting
BIS on the origins of macroprudential
Bank for International Settlements research traces the etymology of macroprudential, noting that it has become a buzzword in the aftermath of the crisis
Merge G20 and IMF: Norway’s Gjedrem
Norges Bank governor Svein Gjedrem calls for the two bodies to be combined, and underpinned by principles that mean all countries, irrespective of size, have their voices heard