Financial Stability
RBA reports to parliament on SME lending
Reserve Bank of Australia business report says slowdown in small business credit growth reflected both demand and supply factors
Israel’s Fischer calls for international FX rules
Bank of Israel governor Stanley Fischer calls on IMF to draw up set of international rules on foreign exchange intervention
Bank’s inflation argument ‘fanciful’: ex-MPC’s Julius
Former Bank of England rate-setter DeAnne Julius says inflation expectations risk becoming unmoored; monetary policy acting for financial stability, ex rate-setter Tim Besley adds
Southern Sudan should adopt currency board: IMF mission chief
Fund’s Sudan mission chief Edward Gemayel says simplicity of currency board system advantageous for soon-to-be country; South preparing to adopt new currency
Trichet on ESRB mandate
European Central Bank president Jean-Claude Trichet outlines vision for European Systemic Risk Board
Fed wants right to choose which nonbanks pose systemic threat
Federal Reserve rule proposes that it will have discretion to determine whether nonbank financial firms come under Financial Stability Oversight Council’s watch on case-by-case basis
Spain should consider regulatory overhaul: FSB peer review
Financial Stability Board peer review calls for Spanish authorities to consider new regulatory structure once market turmoil has subsided; separate review of Italy also published
Tackling fiscal deficit a priority: Shirakawa
Bank of Japan governor Masaaki Shirakawa says Tokyo must not allow fiscal deficit imbalance to persist just because it has not yet been punished in bond markets
Bank of Canada paper on mortgage discount rates
Bank of Canada study shows mortgage lenders discriminate against those with less favourable spending patterns
Screening distant borrowers presents challenges: Netherlands Bank paper
Netherlands Bank study examines effectiveness of lending to distant borrowers during crises
Securitisation limits debt renegotiations: Chicago Fed paper
Chicago Federal Reserve study says mortgage securitisation reduces likelihood of renegotiating debt and raises probability of foreclosures
No new deal on bailout: Trichet to Dublin
European Central Bank president Jean-Claude Trichet says Irish politicians should not attempt to renegotiate terms of the EU-IMF bailout; opposition leaders critical of ECB’s role
Sri Lanka launches new banknote series
Central Bank of Sri Lanka series in 20 years; new edition contains several new advanced security features and first SLRs5000 denomination
Commercial real-estate levelling off: Fed director
Federal Reserve’s director of banking supervision and regulation Patrick Parkinson strikes cautiously optimistic note on health of commercial real estate sector
Cut Bank’s vote on macroprudential body, say lawmakers
Influential parliamentary committee calls for Bank of England executive directors’ votes to be transferred to external members, citing amount of power vested in central bank
Duke defends Fed’s liquidity measures
Federal Reserve board member Elizabeth Duke says Fed bail-out was necessary for welfare of entire economy, not just banks
ECB provides liquidity bridge, not bailout: Papadia
European Central Bank’s director-general for market operations Francesco Papadia stresses central bank’s liquidity assistance only short-term, says new European rescue vehicles will ease market concerns
SNB’s Jordan: Switzerland can overcome economic challenges
Swiss National Bank governing board vice-chairman Thomas Jordan says Switzerland can master challenges brought on from economic crisis
Global recovery unbalanced, says IMF’s Strauss-Kahn
IMF managing director Dominique Strauss-Kahn concerned with unbalanced nature of global recovery
BIS reviews macroprudential literature
Literature review published by the Bank for International Settlements finds gaps in assessing the effectiveness of macroprudential tools, studying interaction with monetary policy
Estonia euro information campaign a success
Survey on euro adoption information campaign shows 97% of respondents were made aware of switch to single currency
ECB launches new statistics book
European Central Bank volume covers future of central bank statistics
Carry-trade inflows open to vicious circles, say Shin, Plantin
Centre for Economic Policy Research study shows interaction between capital inflows and monetary policy might destabilise carry trade
IMF paper identifies Brazilian interest rate regime switch
Fund study says Brazil’s relatively low interest rate level and lack of volatility are owing to regime changes