Central Banks
Volcker rule in its ‘purest form' necessary to curb derivatives speculation
Under pressure from banks and hedge funds, the definition of ‘hedging' in the final Volcker rule could be so broad as to allow unchecked speculation dressed up as hedging, Vembar Ranganathan argues
Eastern Caribbean Central Bank takes over Anguilla’s largest two banks
ECCB steps in as banks’ capital positions deteriorate; Anguilla’s chief minister looks to the UK government for public and private investment in wider economy
Venezuela central bank head replaced amid corruption claims
President Maduro appoints head of the currency exchange board, Eudomar Tovar, to lead the CBV; Edmée Betancourt is sacked three months after moving from the scandal-plagued development bank
Atlanta Fed president calls for QE caution
Dennis Lockhart urges the FOMC to scale back the Fed’s asset purchases in a flexible manner; believes any initial reduction should be seen as a ‘cautious first step’
Bofit paper says depositor sensitivity to market rumours increased in crisis
Bank of Finland discussion paper analyses market discipline in Central European countries; finds depositors were increasingly influenced by market rumours during the financial crisis
BoE’s Weale votes against forward guidance
Martin Weale votes against guidance out of concern for medium-term inflation expectations, while MPC members remain divided over the prospect of more QE
Monetary policy and macro-prudential measures can make a ‘vicious circle'
Central banks must assess the risks of monetary and macro-prudential policies pulling in opposite directions and creating adverse outcomes, says former BoJ deputy director-general
RBA expects co-ordination over international clearing mandates
The Reserve Bank of Australia’s Jenny Hancock says move to mandate clearing of G-4 currencies still allows market participant flexibility; stresses importance of international co-ordination
Bank of Russia overhauls organisation as it prepares for expanded remit
Responsibility for financial regulation will shift from a government body to the central bank in September; the bank has also created new departments of monetary policy and statistics
Mozambique cuts rates again as inflation undershoots target range
Inflation in Mozambique has fallen below the central bank's target range despite IMF predictions to the contrary; measures in place to improve monetary policy transmission
RBNZ plumps for ‘speed limit’ on lending restrictions
Reserve Bank of New Zealand says any restrictions on banks' high loan-to-value mortgage lending will take the form of a quota over time, as opposed to an outright ban
Moroccan central bank aims to boost SMEs while implementing Basel III
Central Bank of Morocco annual report for 2012 shows the economy continuing to stagnate, despite the best efforts of an expansionary monetary policy
Meeting Basel III requirements ‘the critical question' for India's public banks
'Fiscally squeezed' Indian government may struggle to meet the enhanced capital needs of public sector banks under Basel III, warns Duvvuri Subbarao
Fall in equities most significant global impact of euro crisis, says ECB paper
Working paper measures impact of euro debt crisis on global financial markets; says the transmission ‘hinges more on trade than on finance’
Bundesbank paper says EU convergence is a myth
Researchers identify a split between old and new, western and eastern member states; incomes are converging between smaller groups of countries rather than the EU collective
CPSS, Iosco and FSB publish reports on FMIs
CPSS and Iosco says member states are making ‘substantial progress’ towards establishing their principles for financial market infrastructures; FSB offers new guidance for resolution
RBI launches ‘open-ended' measure to bolster weakening rupee
Weekly sales of short-term debt to absorb liquidity is the latest in a string of attempts to rein in Indian foreign exchange volatility
Fed's Fisher reshuffles senior team; RBNZ gets new directors
Harvey Rosenblum, who has attended more FOMC meetings than any other active participant, retires from Dallas Fed, causing a senior re-shuffle; New Zealand appoints two directors to Reserve Bank board
Blejer heads up new Bank of Israel shortlist
Former Central Bank of Argentina governor is new front-runner for the Bank of Israel top job; former Israeli deputy Zvi Eckstein also submits application
Opinion: The ECB should not hold back from eurozone bond purchases
There is no danger in the ECB buying large amounts of eurozone government bonds to bolster market confidence – so long as the right conditions are met – says Natixis chief economist Patrick Artus