Bank of England (BoE)
Higher liquidity levels can reduce banks’ funding costs, research finds
Doubling the liquid asset ratio is found to reduce the costs of insurance against default by 24.4%
BoE commits to improving liquidity facilities
Report says central bank could do more to ensure smooth operations
BoE economists challenge conventional wisdom on yield curve
Steeper curve may not be as good for bank profitability as widely believed
BoE’s Tenreyro sees hopeful signs for UK productivity
Many factors dragging on productivity may soon start to fade, MPC member says, though the UK seems to be missing out on a global investment boom
BoE’s Woods warns of ‘point of tension’ in Brexit negotiations
PRA chief fears EU supervisors may adopt a local mindset when dealing with cross-border firms
Macroeconomists should integrate climate change data into their models, research finds
Paper calls for the use of scientific data on weather and the prediction of extreme climate events
People: Peru’s Velarde bags BIS job; Belsham gets second term on BoE committee
People: Peruvian governor succeeds Poloz as Council for the America’s chair; David Belsham gets second term at Prudential Regulation Committee; and more
Veteran economists weigh in on ‘rebuilding’ macro theory
Economists including Olivier Blanchard, Andy Haldane and Simon Wren-Lewis tackle the question of how – and whether – to save the DSGE model
BoE paper outlines big-data-based early warning indicator
Text mining approach seeks to capture how narratives can drive action in financial markets
People: Bank of England official to become FCA chair
Charles Randell to take over as FCA chair in April; BoE appoints its first job sharers at executive director level; Vietnam names deputy governor; Mark Mullinix to leave Fed; and more
BoE exploring ways to improve gender balance
Deputy governor wants HR department to investigate movement from manager to senior manager; senior group looks into how to support women preparing for heads of division roles
BoE sets out post-Brexit supervision plans
Central bank says UK will aim to stay open as banks, insurers and CCPs are brought under the PRA’s oversight; changes imply heavy workload for the supervisor
GFXC publishes final word on last look
The Global Foreign Exchange Committee releases the new and final version of Principle 17, and adds two examples to illustrate best practice
UK households pessimistic about fortunes in 2018
Survey published by BoE reveals UK households do not expect an improvement in their financial positions in the coming year
BoE expects UK inflation slowdown
Bank of England keeps rates on hold at 0.5%; disinflationary base effects likely to outweigh tightening labour market in near term
People: Fed appoints new payments security strategy chief
Boston Fed vice-president to lead payments security; director of prudential regulation of UK banks to stand down; Kuwaiti governor to chair Council of the Islamic International Board in 2018; and more
Central banks and supervisors launch green finance group
Seven central banks and two supervisory authorities found network to tackle climate risks and promote green finance
UK inflation breaks out of target band
Inflation now above the BoE’s 3% upper limit, though breach may prove temporary
BoE paper lays out ‘financial conditions index’ for UK
Index proves valuable as a summary measure and also as an input to forecasting
Bank of England operations could leave London under Labour government
Report envisages BoE’s regional offices becoming part of national investment strategy; inflation mandate could also be changed
Loss absorbency is a challenge to implement – BoE’s Gracie
Delays in other jurisdictions are making it hard to roll out final rules for total loss-absorbing capacity, says executive director
BoE seeks to enhance stress-test model oversight
Prudential Regulatory Authority to enforce new stress-test model principles in 2018; smaller banks asked to tailor them to their operations
Change in fees could lead to ATM ‘deserts’ – MP Nicky Morgan
Chair of UK Treasury committee concerned that changes to ATM networks could threaten financial inclusion as cash continues to be important to 2.7 million people
BoE warns high court of insurance Brexit fallout
UK central bank expects number of insurers filing court claims to be three to five times the “normal level” following Brexit