United Kingdom
Currency services: De La Rue
2018 was a busy year for the UK-based banknote provider as it secured new clients and transformed its focus towards technology
BoE paper studies CoCo effects in ‘one-shot game’
Game theoretic approach suggests CoCos cut risk-taking in certain circumstances
Brexit might allow simpler regulation for small UK firms – PRA chief
Sam Woods says “simpler, not weaker” regulation might boost both competition and safety
Ireland ready to shield insurance policy-holders in ‘hard Brexit’ – deputy governor
Irish financial system should prove resilient if UK quits EU without a deal, Ed Sibley says
UK lawmakers demand fix for RPI miscalculation
House of Lords says Statistics Authority’s failure to fix error has left many members of public poorer
BoE’s leveraged loan research draws interest from overseas
UK exposures are modest but firms in US and Japan have bigger holdings of CLOs, which carry echoes of the subprime mortgage crisis
Private mints to help with £1 overseas distribution
Royal Mint will provide blanks for overseas territories but design and distribution is responsibility of individual regions
Key Brexit vote complicates outlook for UK economy
Vote this evening leaves UK’s political and economic future uncertain; analysts optimistic on outlook for sterling
BoE keeping ‘open mind’ on central bank digital currency – Carney
But “it could be some time” before private accounts are available at BoE, if they are ever offered, governor says during online Q&A
People: Nellie Liang withdraws from Fed nomination; World Bank chief resigns
Trump nominee had played a key role in setting up the Fed’s stress tests; Kim was due to leave World Bank presidency in July 2022; further appointments in UK, Vietnam and Ghana
FCA opens temporary permissions regime application window
Firms have until March 28 to notify the UK regulator
Staff cuts made at majority of central banks since 2013
But staff numbers grow at several banks, including ECB and Bank of England
Lower interest rates make risky investments more likely – BoE paper
Gains from gambling increase when rates are low, researcher argues
Two women will join Bank of England’s financial policy committee
Colette Bowe and Jayne-Anne Gadhia to join FPC later this year
Low rates can encourage risk-taking – BoE paper
Author models the risk-taking channel of monetary policy alongside a “bankruptcy channel”
Minority representation at BoE requires ‘step change’ – Carney
Minority groups are underrepresented, report lower satisfaction and suffer higher staff turnover
Europe approves post-Brexit CCP and CSD framework
EC adopts temporary regime to allow UK CCPs and CSDs to continue operating for 12 months after Brexit; BoE and Esma in talks to ensure efficient supervision
BoE warns Brexit uncertainties have ‘intensified’ as rates stay on hold
Brexit “weighing” on UK markets; committee votes unanimously to keep rates on hold
BoE unveils ‘final major piece’ of UK resolution regime
Consultations outline how the BoE will assess banks’ “resolvability”; banks will be expected to submit self-assessments every two years
FCA cracks down on ‘dysfunctional’ UK market for overdrafts
Regulator fears vulnerable people are being exploited while banks claim lucrative fees
People: RBNZ names new assistant governor
NZ chief economist to step down; Vanuatu governor gets new term; Swift CEO to depart; Don Robert to step down from Bank of England Court
BoE revamps expenses rules after criticism from MPs
MP says some officials’ expenses claims are “staggeringly high”
Book notes: Macroprudential policy and practice, edited by Paul Mizen, Margarita Rubio and Philip Turner
An important overview of the current state of thinking about macro-prudential policy, but uncertainties remain about the current allocation of financial stability responsibilities
BoE paper outlines DSGE model of financial and real frictions
“Channels of effect” run between financial markets and labour markets, authors find