Financial Stability
IMF paper studies bank asset quality in emerging markets
IMF research paper finds significant links between banks' asset quality, credit and macroeconomic aggregates
Governor Zeti encourages use of Islamic financing
Zeti Akhtar Aziz says Islamic finance presents new opportunities to support the economy and overall financial stability
SNB spent $19.6 billion maintaining minimum exchange rate
SNB purchased foreign currency to a value of $19.6 billion in 2011; central bank also reveals larger than expected profit
UK payment card fraud falls to 10-year low
UK card fraud has fallen sharply due to ‘chip and pin’ and new online payment services, reaching a 10-year low in 2011. Online banking fraud has also fallen but bogus mortgages remain a concern
Philippines economic newsletter looks at roots of financial crisis
Central Bank of the Philippines investigates international claims and cross-border lending during the global financial crisis
IMF paper analyses corporate investment in India
International Monetary Fund research paper looks into how the business environment affects corporate investment in India, which has been sluggish since the financial crisis
Fed paper studies the effect of Tarp on bank risk-taking
Discussion paper says the increase in risk-taking without an increase in lending following Tarp capital injections “is suggestive of moral hazard due to government ownership”
European Commission pursues Hungarian central bank independence issue
European Commission welcomes Hungarian promise to change legislation affecting the independence of the central bank, but wants to see more details
Bank of Estonia to reveal travel statistics gleaned from mobile positioning data
Estonian central bank has been using data from mobile phone usage for more than three years to assist with balance of payments calculation; only two other European central banks operate similar systems
IMF’s Shinohara highlights Ethiopia’s economic challenges
Naoyuki Shinohara, deputy managing director of the IMF, says Ethiopia still has work to do on containing high inflation and raising savings, among other issues
Deputy governor renews Bank of Japan attack on Volcker rule
Kiyohiko Nishimura reiterates Bank of Japan’s concerns over unintended consequences of Volcker rule; says “prudent assessment” of potential impact of the rule on other countries is “crucial”
BIS working paper studies collateral requirements
Research estimates collateral requirements for mandatory central clearing of over-the-counter derivatives; finds major dealers already have ample assets to meet initial margin requirements
Czech National Bank unveils stress-test results
Czech banking sector prepared to withstand “significantly adverse stress scenario", says central bank
Draghi defends high-value euro banknotes
Letter to MEP Nikolaos Salavrakos outlines reasons for having €200 and €500 banknotes
Boston Fed continues research into payments
Researcher Scott Schuh adds to 2010 research into payments; finds rising cost of debit cards reduces their use
RBI’s Khan discusses outward Indian FDI
Reserve Bank of India deputy governor speaks about globalisation and growing Indian outward foreign direct investment
Tucker replaces Dudley as chairman of CPSS
Bank of England’s Paul Tucker to replace New York Fed’s William Dudley as head of international committee responsible for payments, clearing and settlements infrastructure
Dutch central bank warns on budget deficit
Netherlands Bank says “highest priority” is required for restructuring of Dutch public finances
South Africa must tackle capital flows ‘challenge’, says deputy governor
Sarb deputy governor says problems with capital flows in South Africa require “fresh thinking”; rand exchange rate fluctuations causing problems
China expands yuan cross-border settlement option to all exporters
People’s Bank of China permits all companies qualified for foreign trade activities to conduct international settlements in yuan, reports official Xinhua news agency
Dutch working paper investigates risk preferences
Netherlands Bank working paper provides new field of evidence on risk preferences over small stakes
Bank of Japan paper studies currencies and commodities
New research paper from the financial markets department at the Bank of Japan examines the relationship between so-called commodity currencies and commodity prices
Irish governor discusses credit conditions
Patrick Honohan, governor of the Central Bank of Ireland, says credit conditions for SMEs are "tougher in Ireland than anywhere elsewhere in the euro area"
IMF research analyses Brazil's high interest rates
IMF research paper assesses high interest rates in Brazil; suggests country could move towards lower rates if domestic savings increase to levels found in other emerging markets