European Central Bank (ECB)
Market and survey-based measures of expectations provide useful information, ECB paper says
Survey-based and market-based measures of inflation expectations provide useful information on future eurozone price increases, a European Central Bank paper argues
Cyprus must make NPLs ‘number one priority’, international agencies say
Authorities must properly implement proposed loan reforms, joint statement says
Mersch considers unintended consequences of regulation
Eurozone policy-makers must be careful that their efforts to reform the financial sector do not create ‘new externalities’ risks for banks, says Yves Mersch of the ECB’s executive board
ECB aims for single policy on ‘options and discretions’ with new proposals
Central bank publishes draft documents aiming to create a single policy for the exercise of options and discretions under banking law in financial systems it regulates
Decisions on ELA could be shifted to ECB
Mario Draghi says ‘intricate’ framework for providing emergency liquidity assistance could be reviewed in light of banking union; potential for decisions to become ‘more European’
Challenging crosscurrents from divergent monetary policy
Divergent monetary policies around the world and challenges linked to China’s economic rebalancing present central bankers with some opportunities as well as numerous threats
Christopher Pissarides on QE, the eurozone and economics
The Nobel economist tells Chris Jeffery why events in Europe have undermined neoclassical beliefs, QE is an optimal policy tool and Cyprus should not have joined the euro
The big data revolution and central banking
Central banks are increasingly turning their attention to the challenge of analysing very large datasets. But is ‘big data’ as revolutionary as some claim?
Harnessing network theory for more prudent bank supervision
Closer supervisory activities and data-sharing post-crisis offer the potential to harness network techniques to gain an improved understanding of financial risks
Low rates from QE poses risks to some pension and insurance firms in eurozone, Visco warns
Pension funds and insurance companies in some eurozone countries may need to adjust their practices to limit the risks arising from asset purchases, Italian governor says
ECB publishes first quarterly statistical report on households
The European Central Bank publishes its first quarterly statistical report on the eurozone’s household sector; underlying figures available online in data warehouse
Sarb’s Mminele fears a ‘lengthening drought’ in emerging market capital flows
Sarb deputy warns emerging market nations must maintain “utmost vigilance” as they are buffeted by the effects of divergent monetary policies and fears about the state of the Chinese economy
‘Closed’ nature of eurozone banks increases vulnerability, Portuguese paper says
Commercial banks in the eurozone are more likely to be hit by country-specific shocks compared to US given fewer foreign branches; greater use of asset-backed securities may be a solution
Europe lags US in leading global financial reform, economist says at ECB event
The European Union no longer leads global efforts at financial reform, argues French economist Nicolas Véron; eurozone nations have too many seats on global reform bodies, he adds
Asset purchases having ‘sizeable’ impact on prices in eurozone, ECB paper finds
Working paper says ostensibly puzzling result can be explained by low levels of ‘market distress’ weakening some transmission channels but bolstering others
EBA unveils plans for 2016 stress tests
European Banking Authority publishes draft guidelines for stress-testing systemically important banks; some 53 banks will be tested from February 2016
Europe would benefit from more centralised macro-prudential tools, says ECB vice-president
Macro-prudential regulation of housing sector successful in UK, and the SSM should be in a position to set similar policy in the eurozone, Constâncio says
Eurozone macro-prudential policy should be ‘streamlined’, says Belgian director
Mathias Dewatripont praises shared responsibility as a ‘clever idea’ at ECB forum, but acknowledges this ‘leads to some complex procedures’
Constâncio: ECB working to overcome stress test limitations
Current ECB stress tests have multiple limitations including some macro-prudential considerations, ECB vice-president says
ECB assessment finds capital shortfall at four largest Greek banks
European Central Bank banking supervision uncovered ‘adverse case’ capital shortfalls of €14.4 billion at Greece’s four largest banks; recapitalisation plans needed by November 6
ECB to log bank loans to firms above €25,000 from 2018
New system will log all loans by eurozone commercial banks to firms above a value of €25,000 starting in March 2018; ‘AnaCredit’ likely to expand coverage to natural persons
Eurozone banking sector less reliant on central bank funding, ECB report says
Commercial banks relied less on central bank financing in 2014 and only achieved ‘moderate’ extension of credit; shadow banking sector becomes increasingly important
Europe should adopt expansionary fiscal policy, Fed's Stanley Fischer says
The ECB must continue with its ‘courageous’ supervisory and monetary policies, but they would be stronger if backed by an expansionary fiscal policy, says Stanley Fischer