Balance sheet
Balance sheet lessons from the Bank of Japan
The Bank of Japan has expanded its balance sheet in more ways than any of its developed world peers. Hisashi Harui reviews the unconventional approaches it has used to ensure financial stability
Treasury bills are superior liquidity instruments, says IMF paper
Fund study says Treasury bills are more secure than central bank bills in performing debt and liquidity management functions
Quasi-fiscal policies pose inflationary risks, warns IMF paper
Fund study says quantitative easing can lead to excessive inflation if fiscal authorities do not fully back operations to expand central banks' balance sheets
Kansas City Fed’s George discusses the mis-pricing of risk
Kansas City Federal Reserve president Esther George says policy-makers face difficult balancing act to boost the housing market and prevent misallocation of capital
ECB paper tests eurozone balance sheet transmission mechanism
European Central Bank study shows central bank balance sheet operations can stimulate economic activity and inflation, but has its limitations
The gathering storm
Solving the financial crisis increasingly looks beyond the reach of monetary and financial policies, writes Ludek Niedermayer. Worse could follow in 2012 for central bank balance sheets, he warns.
BIS paper identifies lending threshold to bank recapitalisation efforts
Bank for International Settlements study shows recapitalisation of banks will only boost lending once balance sheets are sufficiently strengthened
Systemic capital requirements are often underestimated: BoE paper
Bank of England study examines level of potential losses on bank balance sheets in event of systemic crises
Distinguishing between signs of illiquidity and insolvency: BoJ paper
Bank of Japan study examines how central banks can use lending signals to determine the solvency of firms
RBA’s Debelle calls for greater focus on banks’ asset quality
Reserve Bank of Australia assistant governor Guy Debelle says greater weight should be placed on asset quality rather than funding structure of banks
Unconventional policies warrant inclusion in central banks' toolkits: IMF paper
Fund study says unconventional balance sheet policies in some cases warrant inclusion in central banks' toolkits
NY Fed paper proposes two-tier capital model
New York Federal Reserve study suggests creating a two-tier capital model to solve leverage conflicts
FSB criticises industry for lack of progress on risk disclosure
Financial Stability Board says more action needed on liquidity, counterparty, structured credit disclosure practices
Ireland’s Honohan pledges to avoid fire sales
Central Bank of Ireland governor Patrick Honohan says country can no longer afford fire-sale losses on non-core bank assets
FX flexibility can act as buffer to hot money: IMF’s Shinohara
IMF deputy managing director Naoyuki Shinohara encourages emerging markets to adopt more flexible exchange rates to help curb flow hot money
Fed’s Yellen: managing market expectations key to QE
Federal Reserve vice-chair Janet Yellen stresses importance of market expectations to success of asset purchase programme
Household attitudes are changing: RBA’s Lowe
Reserve Bank of Australia assistant governor Philip Lowe says restraint in household consumption may be a long-term trend
Basel surveys literature on links between finance and real economy
Basel Committee on Banking Supervision’s Research Task Force identifies three transmission channels between financial sector and real economy
ECB - Monthly Bulletin (December)
European Central Bank’s December 2010 bulletin shows recovery of Central and Eastern Europe has been hampered by macroeconomic imbalances
Zimbabwe to axe 74% of staff: reports
Reserve Bank of Zimbabwe governor Gideon Gono says central bank will axe 1,600 jobs as part of measure to downsize institution, according to leading media
BoE: seniority claims good indicator of default
Bank of England study shows claims by senior debt holders a good measure of future default risk
ECB's emergency liquidity measures eased credit crunch, says CEPR
Centre for Economic Policy Research study shows European Central Bank's response to financial crisis helped ease liquidity strains in wholesale markets
RBNZ’s Bollard: external shocks and internal rebalancing will prolong recovery
Reserve Bank of New Zealand governor Alan Bollard says Western countries have to contend with both external shocks and internal rebalancing
White emphasises use of Austrian school in policymaking
Bank for International Settlements former economic adviser William White says use of Austrian school assumptions about the financial system could help prevent further crises