Central Banks
IMF plans to raise $500 billion in new funds
Fund executive directors say doubling of lending resources will shore up emergency facility and aid indebted nations
Quasi-fiscal policies pose inflationary risks, warns IMF paper
Fund study says quantitative easing can lead to excessive inflation if fiscal authorities do not fully back operations to expand central banks' balance sheets
Deflationary risks could be a long-term trend, says BoE’s Posen
Bank of England Monetary Policy Committee external member Adam Posen warns deflation is likely to be a more frequent problem for policy-makers moving forward
BoK to invest reserves into onshore renminbi assets
Inter-bank bond market quota and QFII qualification pave the way for Bank of Korea to place more of its reserve in mainland China
European Commission begins legal action against Hungary
European lawmakers launch accelerated infringement proceedings against Hungary regarding the independence of its central bank; Budapest has one month to respond or risks financial penalties
BoE rejects proposals to revamp court
Bank of England dismisses Treasury Select Committee’s recommendations to replace its court with a new supervisory board; proposes establishment of new Oversight Committee for financial stability
Japan to support EFSF bonds as S&P strips AAA rating
The Japanese government will continue to support bonds issued by the EFSF despite Standard & Poor’s stripping them of their AAA rating; Junker says no indication other rating agencies will follow
IMF’s Lipton: credit easing policy in Asia may be warranted
Fund first deputy managing director David Lipton says policy-makers in Asia may need to introduce unconventional monetary policy measures in the event of a global recession
Fed paper models financial stress index
US Federal Reserve study discusses several factors that should be considered when building financial stress indexes
RBI’s Chakrabarty discusses limitations of crisis management frameworks
Reserve Bank of India deputy governor KC Chakrabarty says policy-makers will need to anticipate future crises by taking pre-emptive action
European banks still exposed to US dollar funding risks, ESRB warns
European Systemic Risk Board issues recommendations to prevent build up in US dollar funding and liquidity risk; calls for single entity to be responsible for national macro-prudential policy
Eulex drops corruption charges against former Kosovo governor
Central Bank of the Republic of Kosovo former governor Hashim Rexhepi freed after European Union prosecutors end case
IMF paper proposes new toolkit to monitor fiscal vulnerabilities
Fund study builds new toolkit to assess fiscal risks in advanced economies; framework contributes to IMF-Financial Stability Board Early Warning Exercise
Libya begins phasing out old banknotes
Banknotes depicting the late colonel Muammar Gaddafi being removed from circulation; new currency series on the way
Euro counterfeit banknote figure creeps up
Number of known fake euro banknotes hit 310,000 during in the second half of 2011, up 5% on the first half of the year
Pakistan forges ahead with mobile banking promotion
State Bank of Pakistan signs agreement with national telecommunication authority to further the development of mobile banking in the country
BoJ report warns of pause in economic activity
Bank of Japan’s Regional Economic Report for January 2012 shows signs that pace of economic growth is moderating
Duke favours more simple stress tests for smaller banks
Federal Reserve’s Elizabeth Duke says community banks can conduct general tests on bank loan portfolios to reduce cost burdens
CNB paper models domestic bank liquidity stress tests
Czech National Bank study shows the Czech banking system is resilient to stressed scenarios mimicking the 2008 and 2009 international liquidity crisis
Thailand’s Trairatvorakul calls for commitment to Asean community goals
Bank of Thailand governor Prasarn Trairatvorakul says success of Asean Economic Community will depend on members’ willingness to promote free flow of trade
EFSF rating in spotlight as speculation on eurozone downgrades emerges
Rumours that France and other eurozone sovereigns will lose AAA ratings spooks markets; move will place a question mark over European Financial Stability Facility's rating, say analysts
Chile lowers rates for first time since 2009
Central Bank of Chile announces 25-basis-point cut to benchmark rate; stresses commitment to maintaining 3% inflation target
IMF paper: High international reserves are not panacea for low-income countries
International Monetary Fund study measures economic impact of external shocks on low-income countries with different levels of international reserves; says reserves provide cushion not remedy
New chair for Basel Joint Forum
Basel-based Joint Forum on issues common to the banking, securities and insurance sectors selects new head