Europe
Effects of Irish and Dutch macro-pru differ strongly – DNB paper
Researchers look at interaction of monetary and macro-prudential policy in two eurozone economies
Brexit opens opportunity for EU’s capital markets union – research
Future EU-UK relations limited by Brussels’ focus on preserving integrity of internal market
Central banks should collaborate on multicurrency CBDC – research
Lithuania’s central bank notes national CBDC projects will not solve global payment inefficiencies
Banks’ repo muscles may have ‘atrophied’ – Borio
BIS report highlights impact on market functioning from Fed and ECB easing action
Eurozone banks sharply increase voluntary TLTRO II repayments
Firms appear to be preparing for second series of TLTRO III later in December, analysts say
Eurozone bond purchases work as stabilisation tool – BoI paper
Researchers simulate effectiveness of sovereign bond purchases against both real and financial shocks
Banque de France to launch CBDC experiments in 2020
De Galhau says new directorate will look at using wholesale CBDC in transactions for tokenised assets
ECB’s QE boosts equity prices beyond fundamentals – DNB research
Negative sovereign bond yields encourage investors to increase exposure to riskier assets
Latvian coalition nominates new central bank governor
Nominee has publicly disavowed current governor as authorities try to deal with serious allegations
Slovakian government extends bank tax despite ECB warnings
ECB and Slovak central bank warn increased bank levy could endanger financial stability
Book notes: The Japanese central banking system compared with its European and American counterparts, by Yoshiharu Oritani
The book has “no equal” in reviewing new microeconomic theory for central banking
Negative rates not to blame for low eurozone bank profitability – Fed paper
Rates and macroeconomic environment only make up third of shortfall, researchers find
Will the ECB make climate change a policy goal?
Weidmann declared strong opposition to “green QE” as climate groups call on Lagarde to shift policy
Facing up to the tech challenge
Central banks get a wake-up call from libra
Enria proposes more change for eurozone stress tests
New framework would include macro view, but will not be ready until 2022, says chief ECB supervisor
Cœuré flags risks to ‘autonomy and resilience’ of European payments
Central banks need to resist payment market fragmentation, says ECB official; Banque de France’s Beau calls for experimentation with wholesale CBDC
EU could take legal action against Slovene central bank law
Commission could act over lawmakers’ bid to force central bank repayments
Focus on cross-border payment systems, not CBDC – Bundesbank official
German central bank board member says “fast and efficient” payment network should take priority over digital currency development
Lagarde says eurozone must end export dependence
Call to boost demand is likely to be seen as aimed at German policy-makers
Regulators and firms confront problems of ‘open banking’
Basel Committee report says challenging trade-off exists between privacy, security and efficiency
Eurozone should look at raising capital buffers – ECB paper
Impact on growth of 50-basis point rise in counter-cyclical buffers would be limited, researchers say
European pension fund liquidity may need to rise – Danish central bank
Central clearing exemption to expire in 2023 under market infrastructure regulation
People: French official becomes ECB’s market operations director
RBNZ replaces assistant governor role in main office with Auckland post; World Bank’s investment arm gets new managing executive officer
The challenges facing Christine Lagarde
The new ECB president will need to focus on a successful review of the ECB’s monetary and communications policy, while encouraging fiscal stimulus and structural reform