Central Banks
Buba’s Weidmann on the virtues of sound finances
Bundesbank president stresses the need for fiscal rectitude in monetary union
World Bank weighs impact of QE on capital flows
East Asia and Pacific economic update notes large capital inflows into some countries following easing by Fed, ECB and BoJ; Thailand and Indonesia experience most significant flows
Fed’s Stein highlights transatlantic risks
Jeremy Stein discusses situations that may lead to a spike in dollar funding costs for European banks operating in the US; says renewed swap lines and new regulation will help
RBNZ bulletin reports growth in currency, fall in counterfeits
Amount of currency in circulation rises 5% in the year to June 2012 as counterfeits fall to one part per million
Carney salary doubles to $1m with BoE move
Mark Carney will receive total remuneration worth over $1 million a year when he joins the Bank of England next year, making him one of the highest paid central bankers in the world
BBA delays phase-out of some Libor rates after complaints
Less-used rates will be produced until May 2013
BoE to get new FMI supervision department
Bank of England will gain new powers of oversight over financial market infrastructures after transition from Financial Services Authority in April next year
SNB to open branch in Singapore
Swiss central bank will transfer Asian portfolio managers to new office in Singapore as it looks to diversify reserves further
Peru annual report shows declining dollar share of reserves
Greenback’s share of central bank’s reserves declined from 64% to 57% of portfolio in 2011 as a result of diversification strategy
Study highlights Ireland’s ‘high’ external debt
Central Bank of Ireland economic letter shows that Ireland’s gross external debt is high by international standards, but lower than headline figures
NY Fed research links exchange rate pass-through and mark-ups
NY Fed paper finds evidence that exchange rate movements are associated with movements in mark-ups on goods
RBI’s Padmanabhan on technology in the financial sector
Reserve Bank of India executive director sets out where technological change has improved financial services and where it still can
Target2’s missing settlement mechanism creates systemic risk
In the latest edition of the Central Banking Journal, Hans-Werner Sinn argues the lack of yearly ‘settling up’ in the European Target2 payments system is fuelling major imbalances within Europe
Riksbank cuts rates in face of slowdown
Executive board votes to cut benchmark interest rate by 25 basis points to 1% and revise down forward guidance on rates; some members say actions should have gone further
Draghi says resolution framework is priority for 2013
ECB chief tells European Parliament single resolution mechanism and reforms to restore competitiveness are ‘key priorities’ for 2013; gives assurances monetary policy will not be impaired
Asic to consult on trade repositories in first quarter 2013
The Australian securities regulator is looking to consult on its trade repository plans at the end of the first quarter, with an eye to implementing the regime later in the year
Committee admits 40% of countries will miss Basel III deadline
Eight out of 19 jurisdictions will miss January 1 deadline for Basel III capital requirements; Stefan Ingves concedes some jurisdictions may still be behind at end of 2013
HKMA’s Yue on consumer education and protection
Market players, regulator and consumers all have roles to play to ensure that trust remains in financial services, says Hong Kong deputy chief executive
Banque de France paper tests policy interactions
Researchers examine optimal configurations of monetary and macro-prudential policy under different conditions; find monetary policy cannot affect financial stability in some cases
Pakistani minutes show weak economy but low inflation
State Bank of Pakistan minutes show low level of private-sector credit and declining foreign investment behind stagnant economy; inflation lower than expected
Ghana annual report details payments upgrades
Bank of Ghana notes projects implemented in 2011 to improve financial market infrastructure
CB.com poll reveals concerns over inflationary impact of QE
Majority of participants believe extraordinary monetary policy measures will cause central banks to overshoot inflation targets
BoE’s Weale urges use of more nuanced economic models
Basing models on a single representative agent risks obscuring important results, says Bank of England’s Martin Weale; alternative is greater emphasis on behavioural economics
Central Bank of Curacao and Sint Maarten could split
The two Caribbean islands are contemplating dividing their shared central bank; Saint Martin minister of finance keen to avoid new currency