Financial Stability
Tajikistan announces enhanced payments systems
National Bank of Tajikistan launches national processing centre' striving to bring banking services up to date
CNB’s Singer condemns approach towards EFSF
Czech National Bank governor Miroslav Singer calls on policy-makers to eliminate uncertainties relating to the European Financial Stability Facility
Debt ceiling acts as fiscal stabiliser, says IMF paper
Fund study shows the introduction of a debt ceiling may reduce the pro-cyclicality of fiscal policy and consumption volatility
IMF criticises Hungary over policy 'missteps'
International Monetary Fund Article IV consultations says Hungarian economy is in perilous state; country must push ahead with structural reforms and reverse a central bank law to receive funding
Financial taxes can bolster macro-prudential policy, says IMF paper
Fund study shows counter-cyclical tools should be incorporated to enrich the broader macro-prudential policy framework in Korea
Capital shortfalls explain sharp fall in bank lending, says Bank of Spain paper
Bank of Spain study finds evidence that supply-side factors are restraining loan growth to non-financial private sector in Spain
Macro-prudential policies address root of stability problems, says SNB’s Danthine
SNB governing board member Jean-Pierre Danthine says policies that lean against asset bubbles can create large shortfall in economic growth; prefers forward-looking macro-prudential tools
Thailand blames floods and ‘likely’ eurozone recession for rate cut
Bank of Thailand drops benchmark interest rate by 25 basis points to 3%; says recession now "likely" in the eurozone
IMF fears eurozone crisis will stall global recovery
World Economic Outlook slashes growth projections for 2012 as downside risks to eurozone economy intensify; IMF warns spill-over effects could slow economic activity globally
King sees ‘no reason to despair’ over world economy
Governor of the Bank of England acknowledges ‘serious’ situation global economy is in, but says there is a way forward; despite fall in inflation the year ahead will not be easy, King says
Zambia raises capital ratio for banks and rebases currency
Bank of Zambia reveals government decision to hike capital requirements for banks operating in the country; three zeros also to be slashed from value of banknotes
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
ECB in talks with dealers on buying inflation-linked bonds
Dealers will present their case as to why the ECB should buy linkers as well as nominal bonds in a conference call today
Fiscal stabilisation policy is redundant, says Bullard
St Louis Federal Reserve study says fiscal policy is ill-suited as a stabilisation policy and that monetary policy, even at the zero bound, is a more effective tool
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
US housing prices strongly influenced by news, says Bank of Portugal paper
Bank of Portugal study says news shocks explain sizable fraction of variation in house prices and housing investment in the US over the past four decades
BoE and Treasury Committee clash over accountability
Treasury Select Committee rebuffs Bank of England proposal on accountability reforms; chair Andrew Tyrie sets out three main areas of disagreement between the two bodies
EU freezes assets of Iranian central bank
EU follows US lead by announcing strict new sanctions on Iranian central bank; heart of action is to limit the country’s nuclear programme
Lagarde calls for larger firewall to ease funding costs
Fund managing director Christine Lagarde says $500 billion boost in lending capacity will improve growth and allow for deeper integration in Europe; says larger firewall is also needed
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
Interview: Gerard Hartsink
European Payments Council chairman Gerard Hartsink tells Yusuf Yassin he welcomes the decision to set end-dates for Sepa migration, but says concerns about the regulation, raised in October, remain
Swedish authorities improve macroprudential policy co-operation
The Riksbank and Finansinspektionen form a new council for co-operation on macroprudential policy; group will not infringe on two authorities' independence in decision-making
FSB Regional Consultative Group meetings continue
Middle East and North Africa consultative group is latest regional FSB body to meet; discussed financial vulnerabilities of the region