Investment
Low rates can encourage risk-taking – BoE paper
Author models the risk-taking channel of monetary policy alongside a “bankruptcy channel”
The PBoC’s efforts to solve the ‘impossible trinity’
Chinese central bank intervenes to manage offshore renminbi rate; uses swaps, rather than selling reserves in latest currency interventions
The ‘great fintech wall of China’?
Deploying fintech wrappers could help to solve part of the People’s Bank of China’s capital control dilemma; trials possible in Greater Bay Area
Trade tensions may reflect international system design flaws
Former PBoC governor Zhou says global system faces “grave challenges” while former EC president Barroso says current framework “is not working”
China remains “committed” to globalisation, says Zhou Xiaochuan
Debt sustainability to be discussed at second Belt and Road Initiative summit next year; WTO deal still needed
Sponsored interview: Henri Fouda, Wellington Management
Central Banking met with Henri Fouda, portfolio manager at Wellington Management at the National Asset-Liability Management Africa 2018 conference to discuss the current outlook for fixed income investment on a global and regional basis. Fouda shares his…
Brexit vote has hurt UK investment – IMF paper
Researcher presents proxy term for UK firms’ exposure to Brexit costs
Information can substitute for collateral, BoE paper finds
Strong lending relationships can insulate a firm during booms and busts
Singapore central bank to put $5 billion into venture capital sector
Move will complement “curated deal-making programme” for Asean investment, says senior official
Fed holds rates steady
FOMC points to slowdown in pace of fixed investment
Kganyago highlights the dangers of ‘state capture’
Sarb governor says country still suffering from twin deficits
Book notes: The bank that lived a little, by Philip Augar
History of British commercial bank Barclays fails to address key questions, writes Michael Taylor
Turkey reinforces monetary tightening with fiscal caution
New economic plan considered appropriate by analysts, but currency instability remains
Market power, intangibles and risk premia behind low risk-free rates – paper
Brookings paper questions savings glut and technological slowdown hypotheses
IMF warns low-income countries about higher debt risks
Increased exposure to non-traditional lenders could increase rates and shorten maturities
An informed approach to banknote security and durability
De La Rue explains how its data consultancy service, DLR Analytics, allows central banks to ensure notes in circulation are secure and durable, and offers value for money in spite of increasingly prominent alternative payment solutions. By facilitating…
ECB calls for changes to draft investment firm regulations
EU proposals omit macro-prudential measures and could cause statistical problems, ECB says
Global crisis uncertainty harmed investment – BoE paper
Authors say their results offer a benchmark for possible Brexit-related uncertainty
Passive investing boosts some risks and cuts others – Fed paper
Authors assess four ways the surge in passive investing might impact stability
Saudi SWF seeks massive bank loan as Aramco’s IPO is delayed
PIF intends to increase its assets to $400 billion in 2020 from $224 billion in 2017
Book notes: Capitalism without capital, by Jonathan Haskel and Stian Westlake
The authors have created a compelling framework to characterise and explain the nature of intangible investments in our economies, writes Michael Reddell, but their conclusions are lacking in analysis and data
Denmark’s exchange rate stable despite greater FDI inflows
Large international investments absorbed by krone market, central bank says
Saudi investment fund boosts technology portfolio
The fund has reportedly acquired 3-5% of US electric car maker Tesla
Big data in central banks: 2018 survey results
As work in big data enters the mainstream for central banks, its policymaking and supervisory influence is expanding, prompting significant investment in new technologies.