Central Banks
IMF paper models sovereign and bank feedback loops
Working paper develops model of interdependence of bank and fiscal solvency; finds relationship can lead to a ‘self-fulfilling crisis’
Bank of Thailand governor warns of ‘known unknowns’
Governor of Bank of Thailand, Prasarn Trairatvorakul, weighs impact of global economic and regulatory developments on Asia; says changes represent a ‘paradigm shift’
Central Bank of Colombia paper analyses sovereign default risk
Working paper assesses main factors determining risk of Colombian government defaulting on its debt; finds different factors are important at different debt maturities
BoJ deputy governor urges EU to accelerate reform efforts
Bank of Japan deputy governor Hirohide Yamaguchi calls on EU to speed up efforts in tackling debt problems; says Asia must prepare for further shocks
Regulators set out margining proposals for OTC derivatives
Consultative report details planned margining requirements for non-centrally cleared derivatives; presents seven principles for determining margins
Lagarde calls for US to deal with ‘fiscal cliff’ and global co-operation
IMF chief puts concerns in the US on par with those in Europe and the slowdown in Brazil, China and India during speech in Tokyo; says G-20 co-operation could boost global GDP by 7%
ECB’s Asmussen stresses importance of central bank communication
ECB board member Jörg Asmussen underscores need for effective communication by central banks; says crisis has ‘shifted the goalposts’
Brazil and South Africa agree supervisory co-operation
Central Bank of Brazil and South African Reserve Bank sign MoU to promote banking supervision; clears the way for domestic banks to build businesses in both markets
McCafferty to replace Posen on BoE’s Monetary Policy Committee
UK Treasury names CBI economics adviser, Ian McCafferty, to replace Adam Posen on the Bank of England’s monetary policy board
Thailand unveils royal family commemorative banknotes
Bank of Thailand reveals two new banknotes to mark Queen’s 80th birthday and the Crown Prince’s 60th birthday; special security features are included
Fijian central bank reports on financial investigations
Reserve Bank of Fiji publishes annual report of its financial intelligence unit; says the unit investigated a large number of serious financial offences in 2011
RBI governor speaks on microfinance regulation challenges
Duvvuri Subbarao warns of risks posed by unregulated microfinance; sets out efforts by central bank and government to create 'comprehensive' regulation
IMF paper analyses US capital flows and debt
Fund working paper develops model of international capital flows and resulting impact on debt dynamics; finds equity and FDI returns allowed US to maintain high debt levels
Norway’s SWF adds $340m of property to portfolio
Norwegian sovereign wealth fund buys stakes in French property worth $340 million; aims to expand real estate investments into other European markets
Danish central bank acts to counter negative interest rate
National Bank of Denmark lowers certificates of deposit rate to -0.2%; raises banks' current account limits to help them keep funds away from negative rate
Hungarian central bank blasts government tax plan
National Bank of Hungary says government plans for financial transaction tax threatens central bank independence; levy is latest development in conflict between central bank and government
PBoC moves to bolster bank lending with asymmetric rates cut
Chinese central bank cuts interest rates and expands bank lending bands for the second time in a month to combat sluggish growth
Markets recoil as major central banks ease policies
Chinese, European and UK central banks take monetary policy action; moves leave no doubt about gloomy global economic picture as eurozone stock markets fail to rally
Bulgarian governor praises success of macro-prudential policy
Ivan Iskrov describes Bulgarian experience of macro-prudential policy; says Bulgarian National Bank was ahead of curve in regulating financial system
IMF paper assesses drivers of banking equity returns
Working paper studies factors behind movements in bank equity prices; finds that despite general 'dismal' performance, equities of better capitalised and less leveraged banks perform best
Bank of Canada reports payment system developments
Report reviews Bank of Canada’s activities in promoting clearing and settlement systems; says operations support 'stability and efficiency' of financial system
Mexican deputy governor weighs challenges facing economy
Bank of Mexico’s Manuel Sánchez examines effect of capital inflows and eurozone problems on Mexican economy; says growth expected to continue at a moderate rate
Bank of Mauritius to investigate fair banking practices
Bank of Mauritius promises to investigate terms and conditions of contracts consumers sign, including fees, commission and charges levied by banks; following rise in complaints
Slew of central banks hold rates amid economic uncertainty
Riksbank, National Bank of Poland, Reserve Bank of Australia and Central Bank of Colombia all keep policy rates unchanged; central banks offer mixed message on global economy