China
Hong Kong and Australia see risks in low interest rates and Chinese NPLs
Impact of any shift in the yield curve on banks' balance sheets ‘may not be small', according to HKMA; RBA urges lenders to maintain prudent risk appetite as rates remain low
China sees accelerating interest rate reform, starting with deposits
China expected to follow lending rate liberalisation with removal of the deposit rate cap; new agency created to co-ordinate financial regulatory bodies
Hungary signs RMB swap line with PBoC
Agreement is the People's Bank of China's second with an EU member state following deal with the UK; equals the size of swap line China has with its neighbour Mongolia
Surpluses of Germany and China feed global imbalances, BIS research finds
Bank for International Settlements paper compares current account and creditor positions of Germany and China, finding Germany’s surpluses to be more resilient in the face of the global financial crisis
IMF paper considers impact of China’s capital account liberalisation
Researchers suggest that reduced capital control will likely lead to net outflows from equity and bond markets as domestic investors look to diversify
BIS researchers use profit-elasticity method to measure China bank competition
Working paper finds competition has increased among China's banks; new PE indicator produces result consistent with financial sector reform
Getting to grips with monetary policy?
Global co-operation on monetary policy remains out of reach
The PBoC, the liquidity squeeze and market liberalisation
The PBoC was accused of poor communication and inaction when interbank rates spiked in June. But Hui Feng believes the central bank wanted to give regulated financial institutions a warning
IMF spillover report highlights tough balancing act for leading economies
Report examining international effects of policies in China, the eurozone, Japan, the UK and US, says easy monetary conditions essential but warns of future side-effects
PBoC injects 17 billion yuan to ease liquidity
Move to pump funds into the system has divided opinion over whether the People's Bank of China is setting a course for further easing
Corporates remain lukewarm on offshore RMB, despite reported growth
Data released from Swift this week suggests international trade settlement in RMB continues to grow, but corporates aren't so sure
IMF says China needs new tools to get a grip on credit growth
Staff report on China highlights need for a new growth model centred on private consumption; calls for the PBoC to adopt interest rates as its key policy instrument
China unveils raft of reforms to liberalise the renminbi
Series of reforms will facilitate cross-border renminbi settlement; RQFII programme has also been extended to Singapore and London
Euro's international role hampered by continued fragmentation
ECB study finds reserve manager confidence in the euro is recovering, but a leading fund manager says the euro cannot challenge the pre-eminence of the dollar without issuing federal bonds
Asian central bank FX reserves not properly recognised by rating agencies, says Sheng
CBRC adviser and former Hong Kong SFC chief Andrew Sheng points to inconsistent approach in sovereign debt ratings; doubts international crisis co-ordination is possible
Bundesbank’s Nagel says internationalisation of renminbi is ‘long overdue’
Executive board member says that renminbi is now established as a trading currency – the first step towards becoming a global reserve currency
Chinese financiers hit out at 'blind' PBoC
China central bank accused of being blind to potential capital market reaction in its attempts to clamp down on the shadow banking sector
BoE and PBoC open ‘very important’ renminbi swap line
Bank of England and People’s Bank of China establish three-year 200 billion yuan swap line; fourth largest of its kind and first in European Union
PBoC maintains hard line on liquidity
People’s Bank of China insists there is a ‘reasonable’ level of liquidity in financial sector and says commercial banks are responsible for their own levels of reserves
PBoC leaves banking sector sweating over liquidity squeeze
Tight credit conditions persist as the People’s Bank of China remains silent about liquidity injections into increasingly strained banking sector
Central banks showing interest in renminbi assets, RBA article says
Article highlights continuing gradual move to liberalise trade in renminbi; notes many central banks have made Chinese investments, but says renminbi not yet an official reserve asset
IMF warns China on rapid growth of social financing
Article IV consultation urges China to tighten prudential standards to rein in fast credit growth and rebalance economy away from investment; growth forecast trimmed again
HKMA deputy looks to eurodollar model for offshore RMB development
Eddie Yue says offshore RMB market is facing ‘historic transition'; calls for more offshore intermediation and ‘continued relaxation' of RMB flows in and out of China