Central Banks
ECB’s Coeuré shifts focus to the quality of credit
European Central Bank executive board member Benoit Coeuré outlines policy mix needed to channel credit towards productive investment; expects more demand for TLTROs
Wheeler says NZ dollar strength is ‘unjustified and unsustainable’
Central bank governor outlines cost of high exchange rate but says NZ dollar is ‘susceptible to a significant downward adjustment over the coming six to nine months’
Fed normalisation could have ‘significant impact' north of the border, Canada deputy warns
Speeches by leading central bankers in Ottawa, Tokyo and St Louis highlight the stakes of looming Fed normalisation both within and outside the US
People: Greek PM’s adviser moves to central bank; Kyrgyz central bank appoints new deputy
Iannis Mourmouras sworn in as deputy governor of the Bank of Greece; new deputy governor and board member at the Kyrgyz central bank
Boston Fed paper examines stock price sensitivity to monetary policy
Research presents evidence from the Enron scandal that stock prices of financially constrained companies become less responsive to monetary policy shocks if financial frictions are present
Ingves outlines Basel Committee response to ‘excessive variation’ in risk-weighted assets
Basel Committee 'endorses' final details of NSFR and turns attention to comparability of risk-based ratios; expands membership to include ECB’s single supervisory mechanism
Central Bank of Hungary digs into reserves to supply banks with foreign currency
Measure aims to cover balance sheet mismatch prompted by government plan to convert forex loans into local currency; central bank will allocate €3 billion for the purpose
Sama’s Almubarak praises resilient banking system
Fahad Almubarak says central bank has helped create a healthy banking system in Saudi Arabia; banks well capitalised and implementing improved security technology
Cecchetti calls on Fed to become international lender of last resort
Stephen Cecchetti says Fed should extend swap lines internationally if the dollar is to continue in its privileged position as reserve currency; Paul Tucker outlines ideal lender of last resort
Financial Stability Board prepares to publish FX benchmark reforms
Recommendations due to be published within days; broad consensus among market participants, but questions hang over certain elements
Zhou may be replaced as PBoC governor, says WSJ
Wall Street Journal suggests the Chinese leadership is considering replacing Zhou Xiaochuan, who was only reappointed last year, with Guo Shuqing
Kocherlakota suggests two-year timetable on 2% target
Minneapolis Fed President says lack of a time frame suggests 'appropriate monetary policy might engender inflation that is far from the 2% target for years at a time'
RBA discussing steps to cool ‘unbalanced’ housing market
Australia’s financial regulators are discussing whether ‘additional steps’ are necessary to address the disproportionate increase in credit to investors in the housing market
Finland paper: German minimum wage could be ‘too high’
Germany’s forthcoming minimum wage ‘could potentially be too high’ and lead to employment losses, especially in the east of the country, research finds
Visco echoes Draghi with call for more private investment
Bank of Italy’s governor argues the main challenge in the legacy of the great recession is ‘posed by the developments in the real economy’
World Bank says the PMA is ‘steadily building the capabilities’ of a central bank
World Bank report says the banking sector in Palestine ‘remains healthy thanks to the efforts of the Palestine Monetary Authority’
Central Bank of Morocco cuts rates for first time since March 2012
North African economy has seen growth slow and unemployment increase in 2014 as its main export markets in Europe continue to struggle
Sri Lankan governor in ‘140-character battle’ with public on Twitter
Ajith Cabraal takes part in a 60-minute Q&A through social media; faces questions on public debt, monetary policy and the central bank’s public relations campaign in the US
EBA zeroes in on recovery and resolution trigger conditions
European Banking Authority publishes final guidelines on testing for bank failure and launches consultation on what conditions could trigger a resolution process
EM East Asian bond success could be undermined by ‘tighter liquidity’
ADB says US interest rates, geopolitical tensions and a ‘slowing property market’ in China could undermine the performance of East Asian bonds
UAE governor replaced after 23 years in job
Sultan Bin Nasser Al-Suwaidi will be replaced as governor by Mubarak Rashid Al-Mansouri, who is currently CEO of the Emirates Investment Authority