Central Banks
IMF paper warns against ‘overburdening’ LatAm central banks
Working paper studies evolution of central banks in Latin America, and warns against jeopardising the credibility they currently enjoy by handing them new mandates
Protestors clash with police as ECB opens new premises
Demonstrations organised to coincide with inauguration of new ECB building lead to outbreaks of violence; Draghi calls for economics and politics of integration to be ‘reconciled’
BoE’s Brazier sees room for improvement in stress testing
New executive director outlines enhancements including counter-cyclical testing and extending the regime to the non-bank sector
Finnish paper charts evolution of PBoC policy since 1999
Discussion paper asks whether China has shifted toward a ‘price-based policy’ and finds the PBoC has become more responsive to changes in economic conditions in recent years
Gradual rollout for China's payment system
The country’s cross-border interbank payment system will further contribute to the internationalisation of the renminbi
Paper examines role of capital in BHC lending decisions
Authors find an increase in capital requirements of bank holding companies is ‘likely’ to increase the interest rate charged on loans, resulting in a ‘significant’ reduction in lending
Bank of Israel studies economic damage from conflict
Latest hostilities between Israel and Palestine cost the Israeli economy around 0.3% of GDP, with effects stemming from falling tourism and lower consumption, annual report finds
Lagarde tells emerging markets to prepare for US rate hike
Emerging markets can expect trouble if the Fed raises rates this year, says IMF managing director; BIS research implies economies can harness the benefits of spillovers with the right policy mix
Draghi wants shared sovereignty over structural reforms
ECB president fleshes out vision for ‘common governance’ of product and labour market reforms in the eurozone; advocates adopting an ‘institution-based approach’ to common governance
BoJ sees inflation remaining at 0% for 'the time being'
Central bank to fall short of 2% inflation target in April as consumer prices stagnate on back of lower oil prices; more easing unlikely, says analyst
Spanish paper analyses impact of securitisation on bank capital structures
Securitising banks ‘increase their loan volumes and their ratios of loans over total assets,’ changing their business model, working paper finds
Vanoli says Argentina seeking alternatives on bonds
Argentina is looking for financial entities that are not affected by the New York judge rulings and can help the country issue new debt, central bank governor says
RBA’s Debelle tackles term premia puzzle
Guy Debelle says the most plausible explanation for the prevailing low level of term premia in global fixed income markets is the shortage of risk-free assets
Cyprus governor 'will not resign' despite political pressure
Chrystalla Georghadji will continue exercising her duties as governor despite the Cypriot president ordering an investigation into what he perceives as a ‘conflict of interest’
Bank of Spain administrators file for Banco de Madrid bankruptcy
Spanish central bank announced today Banco de Madrid has filed for bankruptcy after a large withdrawal of funds ‘affected its ability to meet its obligations in a timely manner’
Iceland expects ‘significant’ progress in lifting capital controls this year
Healthy economy and sturdy banking system pave way for lifting of capital controls, but risks are 'tilted to the downside', IMF report says; central bank at a ‘difficult juncture’
BoJ’s easing boosts inequality, warns IMF paper
Working paper finds attempts to meet Japan’s 2% inflation target are increasing income growth and inequality; calls for structural reform to make this growth more inclusive
Bank Negara Malaysia expands MPC
Two external members, Yeah Kim Leng and Noor Azlan Ghazali, to join policy committee for first time on April 1, taking total number of members from eight to 10
Norges Bank faces ‘ripple effects’ from oil price collapse
Norway heading in opposite direction to generally favourable global trend, central bank’s annual report warns; banking sector profitable and resilient nonetheless
Bank of Uganda explains currency dynamics
Central bank attributes depreciation of the shilling against the dollar to both the strengthening of the US currency and the increase in demand for the greenback to fund imports and pay dividends
Finnish paper: DSGE model with shadow banks sheds light on China
Bank of Finland discussion paper models Chinese monetary policy transmission using a DSGE model augmented with shadow banking and interest rate controls
IMF staff want ‘clear mandate’ for next Bulgarian governor
Statement at close of latest Article IV with Bulgaria outlines policies for restoring supervisory credibility in the wake of the failure of the country’s fourth-largest bank