Central Banks
Euro area economic governance reform package inadequate: ECB’s Stark
European Central Bank executive board member Jürgen Stark says euro area economic governance reform package falls short of quantum leap
RBA’s Debelle highlights risks attached to high-frequency trading
Reserve Bank of Australia assistant governor Guy Debelle says prime brokers may not be monitoring high-frequency trading risks properly
RBI paper denies large gold purchase drove up market prices
Reserve Bank of India study says 200-tonne purchase of gold from IMF did not have sizable impact on gold price trend
FSB warns members not to misinterpret G-20 commitments
The FSB warns that some regulations appear to be contrary to the spirit of the OTC derivatives reforms agreed by G-20 members – a statement some believe was prompted by a disagreement over the scope of European derivatives regulation
Hansson pips Sutt to Estonia governor seat
World Bank economics chief Ardo Hansson narrowly beats rival Andres Sutt in race to become Bank of Estonia governor
BoE’s Miles explains resumption of QE
Bank of England external Monetary Policy Committee member David Miles says reemergence of financial market stress and lower-than-expected inflationary pressures prompted further asset purchases
ECB paper reviews euro area credit card interchange fees
European Central Bank study calls for fresh look at credit card interchange fees in euro area
RBI paper measures optimum inflation threshold
Reserve Bank of India study makes case for adoption of lower inflation target than current threshold level
Video: Banks can arbitrage central bank liquidity provision
A conflict between new liquidity regulations under Basel III and existing central bank operations leaves a gap that banks may be able to exploit, warns financial stability expert
Ex-UK chancellor calls for disbandment of Bank's Court
UK former chancellor of the exchequer Alistair Darling launches scathing attack on Bank of England's governance framework; says the Bank's Court should be broken up
ESRB publishes foreign currency lending recommendations
European Systemic Risk Board releases recommendations on lending in foreign currencies; new measures addressed to member states, national supervisory authorities and European Banking Authority
Kuwait and China agree on deeper cooperation
Kuwaiti finance minister holds talks with Chinese representatives of central bank and sovereign wealth fund; agree on heightened cooperation
Dexia bailout spells trouble for Belgium and France, say analysts
Nationalisation of banking group Dexia threatens downgrades to sovereign credit rating of Belgian and French governments
IMF paper identifies source of inflation in Cemac nations
Fund study says inflation in Central African Economic and Monetary Community countries largely driven by global food and fuel prices
ECB’s Constâncio highlights challenges in measuring contagion risk
European Central Bank vice-president Vítor Constâncio says difficulties in identifying contagion risks requires policymakers to be more vigilant of spillover risks
Liquidity risks raised crisis funding costs: Bank of Italy paper
Bank of Italy study shows heightened liquidity risk caused interbank market spreads to widen during the financial crisis
Israel completes appointments to new rate-setting body
Israeli government confirms appointment of three external members to Bank of Israel’s new Monetary Committee; rate-setting body due to vote in October
Central banks shy away from euro reserves
New data from the IMF’s currency reserves database suggests reserves accumulation has slowed during 2011 and the appetite to hold euro reserves has also waned, particularly in emerging markets
IMF modelling work on liquidity risk points to capital hike, says Jobst
Recent analysis by the International Monetary Fund indicates that banks in the US need to raise capital to cover systemic liquidity risk threats
Japan extends emergency relief measures
Emergency loan facility and relaxation of collateral eligibility standards extended; sign of Japan’s continued economic struggle
Oil reserves eclipse Norway SWF assets
Norway budget confirms sovereign wealth fund assets still smaller than oil left in seabed
ECB’s Constâncio favours single prudential rulebook for euro area
European Central Bank vice-president Vítor Constâncio says maximum harmonisation of prudential requirements will support financial integration and reduce costs
Mortgage securitisation fuelled housing bubble: Bank of Spain paper
Bank of Spain study says increased mortgage securitisation in Spain had strong impact on new borrowers' access to credit during recent housing boom
Sri Lanka releases customer protection charter for banks
Central Bank of Sri Lanka issues direction on customer protection in licensed banks; covers banks' commitments to customers and ways customers must also behave to ensure safe banking practices