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Interbank rates plummet as year-end passes

Pressure on the banking industry eased on Wednesday with spreads between money market and central banks' benchmark interest rates narrowing as the end-of-year liquidity panic passed. The falls indicate that the central banks' efforts to alleviate some of…

Regulators can't ensure clarity, only encourage it

In the wake of the credit crisis, central bankers and other financial regulators should use their clout to back the standardisation of financial instruments rather than trying to legislate for transparency, says Claire Jones, the editor of Central Bank…

The blame game

The decision of many central banks, most notably the Federal Reserve, to lower rates in the wake of the dotcom crash, has drawn criticism from some quarters post-credit crunch. But, Claire Jones, editor of Central Bank News, argues blame for the crisis…

Journalist defends Old Lady's "low morale" claims

Irwin Stelzer, the journalist who wrote last week that a senior Bank of England official had said the British chancellor and prime minister were blocking changes to banking regulation because of low morale, has described it as "a pity" that Mervyn King,…

Time has proved us right, says Trichet

The European Central Bank's (ECB) decision to inject hundreds of billions of extra euros into the money markets to alleviate tensions looks to be the correct one, says Jean-Claude Trichet, the president of the central bank.

Basel II procyclicality concern must be mitigated

The elements of Basel II built into the framework to mitigate procyclicality must be properly used, especially in the current climate, said Jaime Caruana, the director of the International Monetary Fund's monetary and capital markets department.

Interbank rates edge down again

Money market tensions eased further on Friday, signalling that the joint action announced by five of the most powerful central banks last week is having some impact in narrowing spreads between interbank and central banks' benchmark rates.

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