Financial Stability
A credit risk model for all
Research from the Czech National Bank and the Bundesbank provides a template to investigate the credit risk environment of any economy.
Swiss step in to save biggest bank
The Swiss National Bank on Thursday agreed to buy up to $54 billion in troubled assets from UBS, after the country's government moved to re-capitalise the beleaguered bank.
ECB to loan Hungary up to €5 billion
The European Central Bank (ECB) on Thursday granted the National Bank of Hungary a €5 billion ($6.8 billion) credit line following sharp declines in the forint and local stocks the day before.
OTC derivatives central counterparty issue urgent
The Financial Stability Forum, a collection of central bankers and financial regulators, has urged market participants to swiftly establish a central counterparty for over-the-counter (OTC) credit derivatives, in its follow-up report on enhancing market…
Trichet: joint action sets precedent
Monday's decision to provide broad access to liquidity and unlimited dollar funding marked a "world premiere" in exceptionally-confident cooperation between central banks, Jean-Claude Trichet, the president of the European Central Bank (ECB), has noted.
SF Fed's Yellen: US in recession
The US economy appears to be in recession as every major part of the economy has been hit by the financial shock, said Janet Yellen, the president of the San Francisco Federal Reserve.
MPC's Sentance: downturn risks on the rise
Severe stresses in the financial system and the news from the real economy have certainly increased the risks of a bigger and more sustained downturn, said Andrew Sentance, a member of the Bank of England's Monetary Policy Committee.
ECB makes bold attempt to break credit logjam
The European Central Bank's (ECB) latest action to unblock money markets, announced Wednesday, looks likely to succeed, economists say.
India pledges more liquidity
The Reserve Bank of India on Wednesday took further steps to shore up liquidity, judging that the global turmoil warranted action.
Fed picks Pimco to run commercial paper facility
The Federal Reserve has picked Pimco, a bond fund, to manage the assets of its Commercial Paper Funding Facility, which accepts unsecured debt notes direct from the issuer.
ECB's Bini Smaghi calls for regulatory overhaul
It is not sustainable to run different financial regulation and supervision policies, said Lorenzo Bini Smaghi, a member of the executive board of the European Central Bank.
FSA's Turner: we learned from Great Depression
We have learned from the Great Depression that in the face financial collapse, governments and central banks must take exceptional measures, said Adair Turner, the chairman of the UK's Financial Services Authority.
Financial integration in Asia
A recent collection of eight papers from the Bank of International Settlements focuses on regional financial integration in Asia.
US offers $250bn in capital, markets shrug
Washington's unveiling of a $250 billion plan to recapitalise its banking sector did little to soothe equity-market sentiment on Tuesday, with gains at the opening bell proving short-lived.
Fannie, Freddie debt fears could have sparked run
Central bankers' fears over the collapse of Fannie Mae and Freddie Mac threatened to lead to sales of US agency debt, the scale of which could have sparked a run, the US regulator responsible for the two government-sponsored enterprises (GSEs) has said.
HKMA steps up stability efforts
The Hong Kong Monetary Authority (HKMA) on Tuesday stepped up its efforts to enhance financial stability, issuing a blanket guarantee for customer deposits and offering to re-capitalise its banks.
Asian central banks act on liquidity shortages
Signs of heightening liquidity tensions in Asia emerged on Tuesday, with the Reserve Bank of India adding Rs20,000 crore ($4.16 billion) to its banking system and Bank Indonesia implementing measures to ease stress in foreign-currency markets. Bank…
Canada, Japan outline responses to G7 plan
Canada and Japan, the industrialised countries least affected by the current turmoil, on Tuesday announced their responses to the G7 plan.
Valuation at the heart of crisis: Banque de France
Valuation issues lie at the heart of the financial turmoil, Banque de France stated in its latest Financial Stability Review.
RBI's Subbarao: don't overlook us in crisis
Policy makers from developed countries need to take emerging markets and developing countries into consideration in their responses to the current turmoil, noted Duvvuri Subbarao, the governor of the Reserve Bank of India.
US bailout to include "significant" equity stake
The US Treasury is likely to spend a very significant amount of the $700 billion at its disposal on recapitalising the US's battered banking sector, an official who will oversee the Troubled Asset Relief Plan (TARP) told an audience in London on Monday.
Markets rally on global bailout
Equity markets bounced on Monday on signs that coordinated action taken over the weekend had helped soothe investor sentiment.
Australia, NZ guarantee all deposits
Australia and New Zealand became the latest countries to guarantee all deposits over the weekend.
EU agrees to re-capitalise banks
European Union (EU) officials on Sunday agreed to follow Britain's lead in pledging to inject sufficient capital into the region's battered banks.