Financial Stability
New dawn of cooperation in Cyprus
Relationship between finance ministry and central bank set to be much closer after government reshuffle; working together to consolidate fiscal situation in Cyprus
European ABS purchases pushed yield curve lower: Fed paper
Federal Reserve study says European acquisitions of asset-backed securities contributed to decline in US bond yields pre-crisis
Limitations of credit default swaps as predictor of default: BoC paper
Bank of Canada study says credit default swaps are unable to encompass all bank transactions when assessing default probability during crises
Fitch reports bright future for Sub-Saharan Africa
Rating agency investigations says outlook for the region is brighter than it has been for decades
King sees severe threat to UK financial markets
Bank of England governor Mervyn King says fiscal sustainability of European sovereigns continues to pose severe threat to UK financial system
Fitch issues stern warning to the US
Affirms AAA rating but says failure to agree on deficit-reduction measures would ‘likely result in negative rating action’
International asset markets remain largely segmented: Dallas Fed paper
Dallas Federal Reserve study finds evidence that asset markets are still heavily dependent upon local risk factors
Current account imbalances reversed sharply post-crisis: IMF paper
Fund study says deficit countries experienced significant contraction in current account post-crisis
Kazakhstan reports large decline in credit card fraud
National Bank of Kazakhstan says there was a 25.4% decline in credit card fraud cases in 2010
Bank of Korea paper addresses growth implications of rising capital inflows
Bank of Korea study says improved institutional frameworks should be designed to monitor risks from capital inflows
Swiss franc falls on euro peg talk
Swiss franc loses 6.7% against the euro and 6.1% against the dollar as markets digest comments by Swiss National Bank vice chairman Thomas Jordan
Chancellor calls UK bond market a ‘safe haven’
Chancellor of the exchequer George Osborne says decline in gilt yields and credit default swaps signal flight to safety of UK bonds
Cyprus edges closer to ‘junk’ rating
Fitch Ratings lowers Cyprus rating to BBB; outlook negative
Riksbank increases outreach efforts
The Riksbank is increasing surveillance of funding markets and interbank markets; talks intensify with domestic banks and other central banks
IMF bailouts can raise risk of default: Buba paper
Bundesbank study says IMF loans, on average, increase the probability of default in developing countries
Philly Fed paper on ratings agency failures in subprime market
Philadelphia Federal Reserve study says ratings agencies' AAA-rating of mortgage-backed securities helped spur the subprime mortgage crisis
Financial interlinkages are uniform across Asia region: BoJ paper
Bank of Japan study shows links between Asian nations and global stock markets appear to be homogeneous across countries
Lithuania bucks trend to instead predict higher economic growth
Bank of Lithuania predicts higher economic growth in 2011; Mexico joins UK in lowering forecast
Bank of Israel looks at post-crisis pension market dynamics
Bank of Israel study says the outlook for investments in Israel’s pension market have become increasingly short-term
Cleveland Fed on merits to indexing loans
A Cleveland Federal Reserve study says indexing loans to aggregate variables can adjust business cycles to more optimal levels
Distinguishing between signs of illiquidity and insolvency: BoJ paper
Bank of Japan study examines how central banks can use lending signals to determine the solvency of firms
Macroprudential measures complement monetary policy: IMF paper
An IMF study says macroprudential policy can work in unison with monetary policy but it is not a direct substitute
Nigeria unveils payments system overhaul
Payments system faces complete overhaul in 2012; aim is to reduce reliance on cash
Bond markets rally as ECB moves on Italian and Spanish debt
Yields on Italian and Spanish debt fall as European Central Bank signals it will actively implement its bond purchase programme