Central Banks
Zeti: Sukuk market has potential to fund infrastructure projects
Bank Negara Malaysia governor argues infrastructure projects need broader funding with sukuk markets an ‘important new source’
FSB warns of spillovers from new bank structures
Regulators in other jurisdictions fear potential knock-on impact from Liikanen, Vickers and Volcker reforms to bank structure
Norway SWF suffers weakest quarter in two years
Government Pension Fund Global returns 0.1% in third quarter following losses on European stocks; acquired several properties in EU and US
BoE’s Cunliffe says odd behaviour of labour supply demands caution
Deputy governor points to possible ‘shift in the psychology’ of workers who have come to accept low pay, which he says calls for the central bank to be cautious about raising rates too soon
Productivity gains in the banking industry affect interest rates, study finds
More productive banks set lower interest rates on loans and higher rates on deposits, increasing their market share, according to a study by the Bank of Spain
RBA paper aims to reduce noise in GDP calculation
Researchers combine three measures of Australian GDP to produce a measure they say is less volatile and easier to calculate
European Commission approves Portuguese institution designed to finance SMEs
New development bank to finance SMEs until 2020, at which point the Commission will assess how the market has evolved; will have starting capital of €100 million
Ingves mulls asset purchases as Riksbank cuts repo rate to zero
Asset purchases could be on the cards if historic cut fails to boost inflation, says governor; rates expected to stay at zero until mid-2016
French paper considers impact of TLTROs on funding costs
Banque de France economist examines the funding conditions attached to the ECB’s targeted long-term refinancing operations; sees potential benefits for banks
Singular spectrum analysis helpful when assessing output gaps, study finds
Bank of Portugal paper analyses the ‘added value of singular spectrum analysis-based nowcasts in a real-life, policy-making scenario’
Bank of England seeks global consensus on ‘fair and effective’ markets
Review aims to fix outstanding issues with market structure and conduct; Minouche Shafik says the central bank is working with others globally to build a consensus
Banque de France and HKMA ink renminbi deal
Central banks seek closer ties to help develop renminbi business in Hong Kong and Paris; Christian Noyer hails the two cities as ‘among the most important’ for offshore renminbi trade
Serbian central bank dismisses losses as ‘accounting measure’
National Bank of Serbia loses $462 million in 2013; attributes it to range of factors including falling gold prices and a new ‘corporate profit tax’ on non-profit organisations
People: Poland names new vice-president; Riksbank general council appoints new chair
Anna Trzecińska returns to National Bank of Poland as vice-president; Riksbank general council elects Susanne Eberstein as chairman; and more
IMF paper suggests solutions to collective action problems
Working paper says difficulties in achieving cooperation when tackling global risks are surmountable; suggests taking ‘incremental steps’ and ‘realigning incentives’
Bank of Mauritius governor hails ‘rejuvenated’ staff
Rundheersing Bheenick says new hires and the creation of ‘director of technology’ position help the central bank keep abreast of rapid technological progress in the banking sector
BoE paper tests optimal policy when workers lose skills
Working paper asks how optimal monetary policy is affected by ‘human capital depreciation’; finds strict inflation targeting can be improved upon
Sarb launches investigation into forex traders
Central bank joins growing list of regulators concerned by potential for misconduct among foreign exchange market practitioners
Buba’s Dombret leads calls to focus on bank profitability
Andreas Dombret says German banks may be resilient, but they are not competitive; commentators at leading accountancies stress the need to focus on profitability
Monte dei Paschi’s shares plummet in wake of ECB results
Shares in Italy’s third-largest bank drop by 20% as the market reacts to stress-test results; MPS claims it was ‘penalised’ by methodology
Bank Indonesia sets out reform agenda for next 10 years
Improving control over inflation and support for financial system stability are the main goals of the ’transformation program’
ECB health check leaves 13 banks to raise €9.5 billion
Results of comprehensive assessment show 25 banks with capital shortfalls, but remedial actions taken throughout year leave just 13 banks short of targets