Central Banking
Balance sheet normalisation has put upward pressure on borrowing costs – Kansas Fed
Levels of reserves still influences borrowing costs despite post-crisis monetary policy framework
Quarles says FSB ‘must evolve’
New chair calls for changes in the way the organisation assesses financial sector threats
CBDC is mixed bag for financial stability – Bank of Korea
Central bank paper highlights stability concerns but says there are instances within which a CBDC could strengthen stability
Interview: Jussi Kangas on the future of cash
Bank of Finland adviser says it’s challenging to keep the cash cycle efficient as usage falls
UK economy stumbles as Brexit looms
Quarterly growth slips to 0.2% in final quarter of 2018, and monthly growth turns negative in December; business investment also down
Riksbank faces changed circumstances in first meeting since December hike
Dissenting deputy governor Per Jansson won’t attend due to personal reasons
Latest restructuring boosts the PBoC’s regulatory clout
Hui Feng says the restructuring of the PBoC carries “profound implications” for the central bank’s role in policy-making
Russian authorities start criminal investigation of failed bank owner
Private lender Otkritie was nationalised by central bank in 2017
Romanian central bank holds talks with government over tax dispute
National Bank of Romania rejects calls to abolish interbank rate
People: Ghana’s Addison to chair Ecowas governors
Thailand appoints assistant governor; Vietnam announces deputy payments director
BoE’s Taylor says external members are now better prepared
External members are now better briefed by BoE staff, but still avoid “group think”
Monetary policy must respond aggressively to persistent shocks – BoI paper
Researchers model economy where central bank has less information than private firms
Israeli reserves increase sharply in January
Higher equity prices contributed to improved performance of investment portfolio
Rwanda to issue new banknotes
New 500 and 1,000 franc notes will have new security features and design elements
Negative rates could have sped up US recovery – San Fran Fed paper
Output gap could have been reduced by as much as half compared to actual figures, researcher says
ECB stress tests to focus on liquidity risk
Tests will measure systemic European banks’ “survival period” without access to funding markets
Lack of diversity signals risks, Irish regulator says
Diversity matters to performance, Rowland says, adding the issue is not restricted to gender
Canadian deputy governor explains reserves regime
Floating exchange rate, asset-liability matching and liquidity focus do not demand bigger portfolio
BoE offers bleak forecasts as Brexit 'fog' deepens further
Rates stay on hold as central bank eyes growing damage from Brexit uncertainty
Irish central bank makes lenders pay €647 million over mortgage scandal
Regulator moves on to enforcement actions after securing compensation for 40,000 customers
Unconventional policy should be used rapidly – Fed paper
Researchers find 20–50% chance that US will face zero lower bound in next decade
RBI unexpectedly cuts rates as elections loom
Inflation lowest for 18 months, but cut will be welcome to Modi administration; governor refuses to answer political influence question
Thai central bank warns of housing and debt risks
Central bank says macro-prudential policy should curb build-up of weaknesses
Low rates can harm productivity, say Liu, Mian and Sufi
Low rates may end up discouraging investment across the economy, authors say