Financial crisis
CNB ramps up financial stability department role
Central bank “elevates” the department in its governance structure to reflect its growing importance; hikes countercyclical buffer amid lending boom
Public spending cuts have bigger multiplier than fiscal stimulus – paper
Research weakens case for expansionary policies, say authors
EBA publishes NPL standards in bid to foster market
Reporting templates ask for granular data in bid to establish EU dataset
Quick action needed to tackle housing busts – RBNZ paper
Paper studies housing busts around the world and how best to respond to them
Policymakers need wider range of systemic risk models – paper
Researchers attempt to combine systemic importance and systemic risk approaches
Fed proposes sharing more information about stress tests
Proposal includes insights about how the regulator estimates hypothetical losses
Loose policy supported equality in Sweden – Skingsley
Deputy governor of Sveriges Riksbank reflects on how monetary policy promotes inclusive growth
Portuguese finance minister named new head of Eurogroup
ESM manager praises Mário Centeno as a “passionate economist”
BoE paper sets out financial stress index
Index aims to capture systemic risk by aggregating market-based indicators of stress
Income convergence in eurozone faltered before euro, research finds
Strong financial cycle concealed lack of productivity growth since 1990s in Spain and Italy, implying euro may not be to blame
UK debt could be a stability risk, says BoE’s Sharp
FPC member goes against advice for central bankers to “stick to their knitting” and discusses how fiscal policy could impact BoE’s financial stability work
Carney proposes public-private co-operation in markets regulation
Supervisors cannot regulate every circumstance and anticipate all market innovations, Bank of England governor says
Goodfriend nominated to Fed board
Central bank veteran to fill one of the four vacant spots on the board of governors
Implementation of new ECB rules on NPLs may be delayed
Daniele Nouy dismisses criticisms as “myths and misinterpretations”
Slower health care price rises limiting US inflation, San Francisco Fed paper says
Medicare prices rise by 1.1% annually since 2012, compared with 3.5% in mid-2000s
Powell to explain policy outlook before US Senate
Nominee set to defend loose policy stance and independence of central bank as new chair
Most UK banks withstand ‘disorderly Brexit’ stress tests – BoE
Majority of banks unfazed by tests “more severe than the financial crisis”, but a few struggle with lingering issues
More work needed on supply channel of finance – BIS paper
Demand-side links between the financial and real sectors are better understood, say authors
European recovery may be stronger than previously thought
If the great recession and sovereign debt crisis are considered a single shock, “recovery is in line with – or better than – historical patterns”
Do not assume history will repeat itself – Yellen
In conversation with Mervyn King, Janet Yellen reflects on her four years in office as Fed chair, saying there was not time for champagne on her first day
Swiss bond market contracts despite negative rates – SNB’s Maechler
Shift driven by lower issuance by Swiss government and reduced financing needs of banks
Fernando Restoy looks to realign Basel’s FSI
The Financial Stability Institute chair discusses the prospects for implementing Basel III, the challenging political context and the FSI’s role in it all
FCA to publicly recognise selected codes of conduct
Regulator says the public recognition of good practice will encourage adherence
Bank of Spain inspector denounces supervision interference
Supervisors consider essential the creation of a body to safeguard their independence