Financial Stability
Triple shock leaves Wall Street in disarray
News of the Lehman Brothers' demise, the sale of Merrill Lynch and major concerns over the health of a range of other financial institutions has put the risk of rapid contagion and a systemic meltdown of the financial sector back at the top of central…
A mix of the old and new for central banks
While leading central banks around the world on Monday took similar steps to those seen in recent months to inject liquidity into fear-ridden money markets, the American authorities' response to the latest shocks signals a distinct shift in policy.
Banks step in with superfund
Ten of the world's biggest banks have joined forces to create a $70 billion liquidity fund intended to mitigate the impact of the latest round of financial turmoil.
Mistakes made on liquidity - Tumpel-Gugerell
The current crisis shows central bankers and regulators underestimated liquidity risk, admitted the European Central Bank's Gertrude Tumpel-Gugerell.
Interdependence requires payment overhaul
Central banks need to adjust their oversight of payment and settlement systems to the new reality of heightened interdependence in financial markets, said Haruyuki Toyama, a deputy director general at the Bank of Japan at SIBOS, an industry forum…
We saw crunch looming, says Canada's Dodge
David Dodge, a former governor of the Bank of Canada, has said that central bankers knew that "ridiculous" mortgage-backed securities would precipitate a credit crunch.
Zimbabwe permits shops to deal in foreign money
The Reserve Bank of Zimbabwe on Thursday authorised a small number of the country's businesses to sell goods for foreign currency.
Stability role necessitates new policy instruments
Central bankers should be given an additional policy instrument if they are asked to ensure financial stability, said Hans Genberg, the executive director responsible for research at the Hong Kong Monetary Authority.
Come together, says ECB's Gonzalez-Paramo
Jose Manuel Gonzalez-Paramo, a member of the ECB's executive board, on Tuesday urged central banks to collaborate more closely in providing liquidity and stability to global financial markets.
Central banks must abandon finance sector: Rogoff
Kenneth Rogoff, a former chief economist at the International Monetary Fund, has urged central banks to stop supporting their beleaguered finance industries.
Philadelphia Fed offers virtual help to homeowners
The Philadelphia Federal Reserve has launched an online resource centre in a bid to help prevent foreclosures and lessen their negative influence on neighbourhoods.
Multilateral agencies begin Georgia mission
Officials from multilateral agencies landed in Georgia on Monday to begin a 13-day needs-assessment mission.
Central bankers back Fannie and Freddie takeover
Central bankers worldwide have endorsed the US Treasury's de-facto nationalisation of Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSE) that insure about half of the US's mortgage stock.
We may not meet 2009 SEPA deadline, say banks
European Union banks have said that the introduction of a single euro payments system (SEPA) could face delays after the European Commission ruled they would not be able to charge for facilitating cross-border direct-debit payments.
Fannie, Freddie to cost US $300bn: ex-Fed's Poole
William Poole, a former president of the St Louis Federal Reserve, has said that saving Fannie Mae and Freddie Mac will cost the taxpayer $300 billion.
IMF to loan Georgia $750m
The International Monetary Fund (IMF) looks set to lend Georgia $750m to help rebuild the country in the aftermath of its conflict with Russia.
Developments a mixed bag for Bank: Goodhart
The growth outlook has deteriorated, but there is room for optimism for the Bank of England in other areas, says Charles Goodhart, a former member of the Monetary Policy Committee
Denmark's Bernstein justifies Roskilde takeover
The National Bank of Denmark opted to bail out Roskilde Bank, the country's eighth largest retail bank, on financial stability fears, Nils Bernstein, the governor of the central bank, said.
De La Rue's cash-systems arm renamed Talaris
Banknote printer De La Rue's cash-systems operations will be renamed Talaris following completion of the sale of the division to Carlyle, a private equity group.
World Bank's Cirasino says focus is on retail payments
Central banks must shift their focus to improving retail payments, says the head of the payment systems development group at the World Bank
Rate cuts alone can't combat crunch: Draghi
Monetary policy cannot be the only, or even the main tool, for reflating the economy and the financial system, said Mario Draghi, the governor of the Bank of Italy.
An agent-based model of payment systems
A new research paper by the Bank of England lays out a multi-agent, multi-period model of a Real-Time-Gross-Settlement system.
T&T's Williams: Caribbean proving resilient
Enhancements to the Caribbean's financial sector have insulated the region from the fallout of the credit crisis, said Ewart Williams, the governor of the Central Bank of Trinidad and Tobago.
ECB's Weber: don't talk up recession threat
There is no reason to talk recession dangers into happening, said Axel Weber, the president of the Bundesbank.