Research
State-owned banks played counter-cyclical role in EMs following financial crisis
Credit growth by foreign banks lagged behind that of domestic banks in Asia, Latin America and ‘emerging Europe', IMF working paper finds
IMF paper: Colombia needs to lower collateral constraints to boost growth
Measures to increase financial inclusion in Colombia should be ‘monitored closely’, since some of them ‘may imply trade-offs’; collateral constraints viewed as impediment to growth
Perceptions of monetary policy determine long-term bond yields, IMF paper finds
Rise in yields following Federal Reserve ‘taper talk' in 2013 is due to monetary policy shock; communications should place less focus on explaining adjustment triggers
Bank of England QE led institutional investors into corporate debt
Portfolio rebalancing into riskier assets triggered by monetary easing did not extend to equities, BoE paper finds
IMF paper says long-term debt creates ‘incentive to default’
Research examines relationship between maturity structure of sovereign debt portfolios and the probability of default; considers impact of uncertainty around future fundamentals
China could learn from Australia's financial reform, RBA paper finds
Discussion paper published by the Reserve Bank of Australia examines the country’s capital account liberalisation in the 19070s and 1908s, and considers its relevance for China
Euro adoption linked to ‘modest’ increase in Estonian inflation
Bank of Estonia economists say the strongest inflationary effects were on food products, six months before the changeover
Debt accumulation in advanced countries historically absorbed by increases in short-term foreign debt
IMF paper examines how composition of public debt answered to consolidation periods between 1900-2011; common pattern was broken during 1980s and 1990s
New York Fed report reviews risk-return trade-off between financial conditions and financial stability
Paper focuses on vulnerabilities affecting trade-off, including pricing of risk and leverage; discusses how macro-pru policies can counteract vulnerabilities
Rwandan paper maps out path to financial inclusion
National Bank of Rwanda vice-governor says ‘meaningful’ financial inclusion is measured by constant usage, which ‘lags behind access in most of the cases'
Colombian working paper examines credit cycles in EMs
Researchers argue that central banks in emerging markets should focus on medium-term credit cycles when designing macro-prudential policy
US monetary tightening could have ‘long-lasting impact' in Peru, says IMF paper
Investment slowdown in China and US policy ‘normalisation' would leave dents in country's dollarised economy, study finds
ECB paper finds the Fed ‘well-served’ by its stress index
Researchers from ECB and Fed examine whether the economy behaves differently during periods of high stress, and the implications this has for policy-makers' models
RBI economist proposes financial conditions index for India
Index aims to provide a snapshot of financial conditions in the country in a bid to provide an early warning of crises and overcome information asymmetry
Counter-cyclical liquidity hoarding could ‘strongly amplify' business cycles, according to ECB paper
Paper develops a ‘new balance sheet channel of shock transmission' that works through the composition of banks' asset portfolios
Fin paper examines SME lending in post-transition economies
Researchers find that SMEs perform better in countries with a large number of cooperative banks, rather than those dominated by banks
Dealing with ‘insidious' crises a ‘difficult proposition' for policy-makers, argues IMF paper
Conventional balance-sheet crises, however, are more effectively detected and contained than before the financial crisis, paper adds
Norges Bank paper finds ‘booming' resource sector has ‘significant' productivity spillovers
Working paper also finds evidence of two-speed economies, with non-traded industries growing at a faster pace than traded
Colombian economist extends Bernanke-Gertler model for open economies
Model holds for open as well as closed economies, Central Bank of Colombia paper finds, concluding that they are even more vulnerable to asset price bubbles
Bundesbank paper explores liquidity shock transmission
Claudia Buch and Linda Goldberg summarise the findings of empirical studies conducted across 11 countries to explore liquidity risk transmission
Small eurozone countries can use government spending to combat imbalances
ECB-published working paper examines small open economies in a monetary union, whose options for dealing with shocks are limited
ECB prize winners size up shadow banking
Working paper published by the ECB considers how regulatory arbitrage and the shadow banking sector can undermine commercial bank safety nets
Finnish paper says Sepa 'not enough’ on its own
Researchers argue that Sepa is an ‘important’ initiative but further measures will be needed to create an efficient payments system; call for ‘vigorous’ competition policies
BoE paper finds QE did boost bank lending - slightly
New data set shows effect of increased deposits did feed through to lending, though the effect was dampened by lower levels of capital during the crisis