Articles by Central Banking Newsdesk
BoE researchers unearth further evidence of electronic trading driving liquidity shocks
Study of market liquidity finds episodes of volatility have centred on fast, electronic markets, and says broad trend has been towards greater use of electronic platforms
European banks ‘lagging behind’ in re-thinking strategies, Bundesbank board member says
European commercial banks have been too slow in adapting to a changed regulatory environment and low interest rates, says Andreas Dombret of the Bundesbank
Central Bank of Iceland approves failed bank plans
Central Bank of Iceland approves ‘composition agreements’ by failed banks, offering them the opportunity to duck a heavy stability tax
Emerging markets risk ‘quantitative tightening’, Caruana says
Problems now affecting emerging markets are a continuation of global problems, head of BIS says; response by policy-makers is too reactive and based on domestic circumstances
Turkish central bank may act as inflation forecasts rise
Declining exchange rates and rising food prices have pushed inflation expectations upwards, monetary policy committee says; governor says he will raise interest rates if necessary
Tightening bank loans explains much of ‘Great Recession’ in eurozone
Tightening bank loans and increases in bond premia explain much of the recent contraction in the eurozone, paper argues
Riksbank unleashes further easing
Central bank hopes extended asset purchase programme and commitment to keep rates lower for even longer will help reinforce a gradual upward trend in growth and inflation
Adaptive learning models offer route out of liquidity traps, paper argues
An adaptive learning-based macro model shows monetary easing policies can end a liquidity trap under certain conditions; empirical studies of easing differ widely on its effects
RBA sees no ‘financial stability case’ for repo CCP
Central bank decides not to actively encourage the (re)creation of a repo-focused central counterparty, but says it will work with the industry if it wants to take the project further
Central Banking award winners to be revealed in January
Awards include Central Bank of the Year and Governor of the Year, and the prestigious Lifetime Achievement award
‘First empirical survey of European forbearance’ uses asset quality review data
Weak macroeconomic conditions, supervisory regimes and the weakness of individual banks drive the amount of forbearance on loans practised by European banks, working paper argues
BoE’s Shafik unconvinced regulation is main factor driving volatile liquidity
Deputy governor says regulation ‘only part of the story’ of why market liquidity has experienced bouts of dramatic volatility, and offers opinion on what policy-makers can do to help
National Bank of Kazakhstan plans overhaul of interbank card payment infrastructure
Central bank looks to create new infrastructure for interbank card payments with the aim of improving the efficiency with which banks plug into clearing systems
Asymmetric credit growth drove pre-crisis eurozone imbalances, paper argues
Credit growth and competitiveness major causes of current account deficits, researcher says
Kohn warns of 'serious shortcomings' in US macro-prudential framework
Former Fed vice-chair says inability to impose LTV and LTI ratios on mortgages may imperil US rate weapon at a time when central bank is failing to meet targets
Former Nigerian governor Sanusi attacks current central bank policy
Former governor of the Central Bank of Nigeria Sanusi Lamido Sanusi challenges monetary policy stance of Nigeria’s central bank and calls for a currency devaluation
External debt is Greece’s perennial Achilles heel, economists warn
Cycles of external debt and dependence are ‘perennial themes’ for Greek crises since 1829, and other countries may be similarly vulnerable, Carmen Reinhart and Christoph Trebesch argue
BIS statistics show sharp contraction in Q2
Cross-border claims fall significantly in advanced economies, led by euro-denominated transactions; credit to emerging markets is up quarter-on-quarter, but down year-on-year
BoJ lifts lid on new approach to macro stress testing
Tests designed to measure system-wide impact of a ‘tail event’ on financial and economic stability, allowing comparisons over time; BoJ reveals underlying variables for first time
Eurozone prices to rise in the long term, survey of forecasters says
The eurozone’s long-term inflation rate will rise, and GDP will grow ‘gradually’, professional forecasters tell ECB survey; falling energy prices expected to push short-term inflation down
China confirms launch of QDII2
Scheme allowing Shanghai-based individuals to invest overseas agreed in meeting chaired by Premier Li Keqiang this week
RBI advisers supported rate cut, minutes show
Minutes of technical advisory committee meeting show six of seven members recommended a cut as inflation in India had fallen ‘dramatically’ and growth proved elusive
Cycles in Korean unemployment explained ‘mostly’ by domestic shocks, paper finds
Working paper estimates a new Keynesian model with labour market frictions, designed to mirror the Korean economy, to study relationship between different shocks and dynamics
UK’s Osborne defends ‘middle way’ struck by BoE bill
Finance minister tells MPs the decision to drop the reverse burden of proof avoids creating a two-tier regime; talks up value of BoE independence in response to concerns over NAO role