Bank of England (BoE)
King says independence is a tricky course to steer
BoE governor says central banks are expected to be partially, fully and non-independent in different parts of mandate, which is almost impossible; outvoted again at latest MPC meet
BoE’s Bailey questions why top managers not punished for failure
Head of prudential regulator says it is ‘more than odd’ that people lower down the ranks in financial institutions were punished for failures but not top managers; warns EU remuneration plans undermine UK efforts
Central bank remits have little impact on policy
Bank of England MPC member says the weight central banks ascribe to output and employment makes little difference to the monetary policy they follow
Haldane issues call to arms in fight against regulatory complexity
Bank of England executive director warns incremental approach to regulation papers over cracks and leads to a burdensome, ineffectual patchwork of rules
BoE chief economist says QE impact will vary, but not diminish, over time
Spencer Dale says effects of asset purchases depend on the time and place they are conducted; Bank of Japan’s shocking policy announcement may have been necessary to correct misperceptions
Draghi promises Cyprus bail-out is ‘no template’
Mario Draghi says an established pecking order of ‘bail-inable’ debt will avoid repeating the chaotic resolution in Cyprus; ECB and BoE both hold rates
BoE economist warns of tendency to ‘overstate’ fiscal multipliers
Matthias Paustian says simple Keynesian models can produce unrealistically high fiscal multiplier when examining fiscal policy at the zero lower bound
UK enters new regulatory landscape
UK’s new conduct and prudential regulators take over from the FSA and aim to avoid the failings of their predecessor
BoE’s FPC calls on banks to raise more capital despite drop in lending
Financial Policy Committee says banks must correct a £25 billion shortfall by the end of the year, but should not cut lending; loans to private sector continue downward slide
Osborne defends new Bank of England remit
George Osborne defends changes to Bank of England’s remit; UK economists say the finance minister has shifted the burden for stimulating growth on to the central bank
BoE Financial Policy Committee gets three new members
Former LSE head Clara Furse among the new external members named to Bank of England’s FPC; Donald Kohn re-appointed to his post
BoE survey sees signs of easing in UK financial markets
Funding costs fall and investor demand rises ‘significantly’, although total volumes remain roughly flat, Bank of England liabilities survey finds
BoE urges banks to use payments systems directly
Bank of England identifies need to clamp down on banks accessing high-value payment systems through other banks as it creates credit and liquidity risks
Nominal GDP dismissed as viable policy target in Central Banking debate
Former Bank of England officials argue against adopting a nominal GDP target for monetary policy; economist Gabriel Stein brands it ‘absolute madness’
Former BoE deputy backs dual mandate for UK central bank
Former Bank of England deputy governor says central bank remit changes in UK budget yesterday were ‘disappointing’; advocates switch to a dual mandate targeting growth and inflation
Bank of England handed new remit
UK budget embeds flexibility in MPC remit; suggests the committee adopts explicit forward guidance as a new policy tool; looks to expand funding for lending scheme
BoE chief economist warns against inflation complacency
Bank of England’s Spencer Dale says he is concerned by ‘dangerous talk’ suggesting MPC should focus more on growth
BoE research warns of coming financing problems for private equity firms
Quarterly bulletin article highlights problems on the horizon for private equity firms that over-leveraged before the financial crisis, as their debt comes to maturity under much tighter conditions
UK gears up to new era of prudential regulation
The UK will adopt ‘twin peaks’ supervision in April in a bid to restore integrity to its financial system. Chris Jeffery talks to the Bank of England’s Sarah Breeden about the challenges ahead
UK Banking Commission urges higher leverage ratio
Parliamentary Commission on Banking Standards says 3% leverage ratio prescribed by Basel III and planned UK rules is insufficient for banks; also advocates power to impose full separation of banking sector
People: Bank of England names PRA board; Rwanda’s finance ministry and central bank swap chiefs
Bank of England names three board members for new prudential regulator; Claver Gatete switches National Bank of Rwanda governorship with finance minister John Rwangombwa; and more
BoE asset purchases sit on knife-edge
Bank of England rejects further asset purchases in what is assumed to be a ‘close call’; UK finance minister could alter MPC remit in upcoming budget
ECB and BoE edge closer to more easing
Commentators home in on signs the ECB is shifting towards a more dovish stance; BoE could sanction more QE after three members voted in favour last time
BoE's King urges RBS break-up
Mervyn King says too-big-to-fail remains the ‘single biggest regulatory challenge'; suggests RBS is broken up and calls government handling of the bank ‘a nonsense'