Financial crisis
New fault lines in financial regulation
Deleveraging could trigger another crippling credit crunch in Europe at a time when the recovery is still fragile. By Jacques de Larosière
Inflation targeting: a child of our time?
Starting in 1989 inflation targeting has come of age. But does it have the durability to withstand severe economic and financial shocks, or was it simply a child of its time that cannot mature?
Asia to develop emergency financial stability safety net
Charles Adams and Lei Lei Song chart the development of the Chiang Mai Initiative Multilateralization and explain three ways to develop Asia’s liquidity support mechanism
Brendan Brown on life after death for the Emu
Brendan Brown puts forward a proposal for how a functioning monetary union in Europe could operate if the current system was to fail
African central bankers embrace a new world order
Africa’s central bankers are adopting new approaches to managing their reserves as trade with Brics rises and the influence of developed nations wanes
EU leaders present plan for growth
EU member state leaders issue joint statement on restoring growth to the economy; all eyes on finance ministers’ meeting in Brussels
BIS deputy general manager highlights pressure on monetary policy
Hervé Hannoun, deputy general manager of the Bank for International Settlements, says monetary policy frameworks are under “enormous pressure”
Fed official reports on success of dollar swap lines
Steven Kamin, director of the Division of International Finance at the Fed, tells Senate committee currency swap lines have helped ease dollar funding market; stresses agreements are risk-free
China prepares for an ‘arduous’ year
Task of maintaining financial stability will be ‘arduous’ in 2012, says People’s Bank of China deputy governor; focus will be on risks from regional banks and non-banking institutions
RBI’s Khan on curbing irresponsible behaviour in financial markets
Reserve Bank of India deputy governor Harun Khan says financial professionals should be better educated about the social costs of financial crises
Heightened uncertainty promoted precautionary savings post-crisis, says IMF paper
Fund study says precautionary motives promoted households in advanced economies to significantly increase savings following the global financial crisis
BoE's Posen continues crusade for SME credit
Posen laments decline of political interest in plans for credit easing for SMEs in the UK; reaffirms his drive to improve the provision of finance for smaller non-financial corporations
Governor of the Central Bank of the Philippines talks Basel III
Amando Tetangco explains how Basel III has a “perverse” impact on countries with strong fiscal discipline and why the Sifi designation is less important than rigorous regulation
FSB regional group discusses policy responses to eurozone crisis
Commonwealth of Independent States hold first regional FSB consultative group meeting; members including Russia and Ukraine discuss possible policy actions to counter eurozone crisis
Central bankers gather in Davos for World Economic Forum
Central banking is a hot topic at this year's World Economic Forum; attendees of the event discuss issues in Russia, Poland, China and more
BoE’s Salmon expects tighter regulation of payment operations
Bank of England executive director of banking services says authorities will pay more attention to network of payment operations and question the internal organisation of firms’ operations
World Gold Council predicts ‘record year’ for central bank gold purchases
Trend of central banks being net purchasers to continue; latest update from World Gold Council predicts ‘record year’ of buying
RBI’s Subbarao says eurozone situation better than expected
Governor of the Reserve Bank of India says Indian corporates report better conditions in Europe than feared; central bank lowers cash reserve ratio for banks to ease liquidity situation
Fiscal sustainability indicators have limited effect on CDS spreads, says IMF paper
Fund study shows sovereign credit default swap spreads are driven largely by short-term liquidity conditions and large-scale long-term bond purchases by major central banks
Credit rating agencies pose stability risks, says IMF paper
Fund study shows opinions of rating agencies can influence financial stability through impact on sovereign funding costs
Governments can safeguard economy against supply shocks, says National Bank of Denmark paper
National Bank of Denmark study says financial system structures and government support are important factors in shielding the economy from supply shocks
RBI’s Mahapatra seeks greater surveillance of corporate governance
Reserve Bank of India executive director Shri Mahapatra calls for greater vigilance in corporate governance at financial institutions to avoid further crises
IMF paper: High international reserves are not panacea for low-income countries
International Monetary Fund study measures economic impact of external shocks on low-income countries with different levels of international reserves; says reserves provide cushion not remedy
ECB says financial stability in Europe faced ‘strong headwinds’ in 2011
European Central Bank releases Financial Stability Report; says weakening macroeconomic growth prospects and “unprecedented” loss of confidence to blame for rise of key risks in the region