Central Banks
CNB paper formulates optimal policy for transition to euro
Working paper examines how Czech monetary policy should respond to uncertainty during the transition to the euro; finds exchange rate should be stabilised if transition is likely to be long
Former BoE deputy backs dual mandate for UK central bank
Former Bank of England deputy governor says central bank remit changes in UK budget yesterday were ‘disappointing’; advocates switch to a dual mandate targeting growth and inflation
CNB research finds exchange rate moves dampen shocks
Working paper finds exchange rate shocks are only minor contributors to the variance of output and inflation; says koruna-euro exchange rate is a shock absorber for the economy
Basel III insufficient for ‘huge’ Swedish banking system, says Ingves
Sveriges Riksbank governor says Sweden must go ‘over and above’ capital and liquidity standards in Basel III; identifies household debt and bank market-funding as core weaknesses
BIS finds Singapore compliant with Basel III
Consistency assessment finds Singapore compliant in 12 areas and ‘largely compliant’ in remaining two; report notes 46 deviations were initially identified, but many were addressed during the review
Dombret warns national banking systems are too-big-to-fail
Bundesbank’s Andreas Dombret says too-big-to-fail problem extends to whole banking systems; says some eurozone systems could have to be downsized
Major part of banking union set for mid-2014, says ECB official
National supervisors made 'gigantic mistakes', says ECB's financial stability head; outlines plans for SSM
RBNZ deputy defends bank resolution policy
Grant Spencer insists the Reserve Bank of New Zealand’s resolution policy differs from the controversial Cyprus proposals; says deposit insurance doesn’t prevent bank failures
RBA deputy governor says record low rates are beginning to work
Philip Lowe defends six rate cuts since November 2011, saying there are signs the Australian economy is beginning to respond to the stimulus; urges patience while effects feed through
People: FSB appoints new chairs; Pakistani board reaches full strength
Three central bankers appointed to head Financial Stability Board committees; Pakistan completes drive to fill governing board; and more
Bank of England handed new remit
UK budget embeds flexibility in MPC remit; suggests the committee adopts explicit forward guidance as a new policy tool; looks to expand funding for lending scheme
Higher Basel III pricing deters Asian banks from issuing new Tier II capital
Banks issued debt before the end-of-2012 deadline for Basel II capital, lessening their refinancing requirements for this year
Central Bank of Cyprus governor tells government to scrap small-depositor levy
Panicos Demetriades says government should apply heavier haircut to depositors above €100,000 threshold and spare those below; predicts run when banks re-open on Thursday
French paper quantifies cost of implicit bank insurance
Research examines the cost of implicit insurance given to systemically important financial institutions by EU countries; assesses costs in terms of increased taxes
RBI cuts benchmark rate as growth falters
Reserve Bank of India cuts interest rate for second time in 2013; struggling with falling growth rates but rising inflation
Korean paper says welfare cost of inflation is ‘underestimated’
Study contends that treating assets within M1 – the measure of cash and liquid assets in the economy – as non-interest-bearing in models fails to take into account full cost of inflation
BoJ researcher finds need for heterogeneous response to credit flows
Working paper shows global common factors account for a ‘quantitatively important’ portion of cross-border credit, but vary between regions; suggests need for tailored policy responses
RBI paper develops method for estimating counterfeit volumes
Researchers redesign inverse sampling statistical method, aiming to measure extent of counterfeiting in India with ‘credible precision’
T2S chief warns regulatory inaction could damage harmonisation process
Jean-Michel Godeffroy says CSD regulation must be passed this year to avoid harmonisation delays; conference panellists raise concerns over costs, limited participation and financial transaction tax
Largest banks $270bn below Basel III core capital limits
Basel Committee finds banks would have missed CET1 requirement under Basel III by $270 billion in June 2012; IMF’s Lagarde condemns ‘uneven implementation’ of rules
Robert Pringle’s Viewpoint: Wider lessons of the Cyprus bail-out
The clumsy attempts to resolve a banking crisis in Cyprus underline the need to make more rapid progress on wider issues afflicting much larger financial markets in Europe
Eurozone rocked by Cypriot depositor haircut plan
Markets take a hit, peripheral bond yields rise and commentators raise fears of contagious bank runs as Cypriot parliament debates plans to take 6.75% haircut from ‘insured’ depositors
Zhou Xiaochuan stays on as PBoC governor
People’s Bank of China governor Zhou Xiaochuan staves off retirement for another term at the top of the central bank; will target rising inflation and capital reforms