Central Banks
FSoC to take ‘flexible approach’ to identifying systemically important financial market infrastructures
US Financial Stability Oversight Council outlines criteria for what qualifies as systemically important financial market infrastructure
Bank’s Bailey stresses importance of forward-looking approach to regulation
Bank of England executive director of banking services, Andrew Bailey, says regulation should be more forward-looking
BoJ split over economic impact of rising commodity prices
Bank of Japan monetary policy minutes show divisions in policy board over seriousness of rising international commodity prices
Korea’s Kim on clash in balance of risks
Bank of Korea governor Choongsoo Kim says combination of strong upside and downside risks makes policy task increasingly challenging
Cyprus’s Orphanides on risk of activist approach to monetary policy
Central Bank of Cyprus governor Athanasios Orphanides warns use of monetary policy to attain objectives other than price stability may be harmful
EBA stress tests: adverse scenario toughened up
Stress tests underway for European banks use harsher adverse scenario and tighter capital rules than tests carried out last year
Norges Bank back in black; sovereign fund yields 9.6% return
Norway’s central bank makes a profit in 2010 following 2009 loss; sovereign wealth fund boosted by equity gains
S&P downgrades Bahrain
Standard and Poor’s downgrades Bahrain’s credit rating two notches to BBB amid continued political unrest
UK FSA’s Turner puts forth case for more discretion
Chairman of the Financial Services Authority Adair Turner argues discretion vital if regulators are to temper the excesses of credit cycles
Governor of Lesotho’s central bank dies
Governor of the Central Bank of Lesotho Moeketsi Pius Senaoana passes away
Norges Bank - Monetary Policy Report (March 2011)
Norges Bank’s March 2011 Monetary Policy Report says executive board expects earlier rate hike on growing inflationary pressures
Sovereign wealth fund would lessen risk of Dutch disease: Bank of Israel
Excerpt from Bank of Israel’s 2010 Annual Report says establishment of a sovereign wealth fund could mitigate exchange rate risks associated with exporting natural gas
RBI’s Chakrabarty calls for more refined approach to liquidity management
Reserve Bank of India deputy governor Kamalesh Chakrabarty says more sophisticated approach to liquidity management needed to avoid market contagion
Reserve Bank of Australia – Bulletin (March 2011)
Reserve Bank of Australia paper says growth in Australia’s resource sector reflected a sharp rise in global commodity prices
QE crystallised doubts surrounding dollar: US subcommittee speaker
US lawmakers and members of subcommittee on domestic monetary policy say Federal Reserve’s quantitative easing programme has reduced faith in dollar
It is the supervision of the banks, not their structure, that is most important
A separation between retail and investment banking would in itself do nothing to correct bad management practices and would quite possibly fail in its aim to protect the public purse, Roger Alford argues.
UK inflation expectations rise
Bank of England survey on public attitudes to inflation show rise in inflation expectations
ECB opines on how euro crisis facility should work
European Central Bank proposes IMF involvement in order to ensure facility does not promote moral hazard
An overemphasis on risk models was the key flaw in the regulatory architecture
Risk models are useful for banks’ risk managers, but regulators should beware, Brandon Davies notes
Moody’s Portugal downgrade sparks further speculation of bailout
Moody’s cuts Portugal’s credit rating by two notches to A3 on weaker growth prospects; analyst says bailout expected in coming months
Ireland unveils stress test scenarios
Central Bank of Ireland outlines macroeconomic scenarios for stress test exercise on four banks; results set to be published at end of month
S&P unconvinced by resolution regimes
Rating agency says sovereigns will continue to bail out banks
Ireland’s Honohan pledges to avoid fire sales
Central Bank of Ireland governor Patrick Honohan says country can no longer afford fire-sale losses on non-core bank assets