Financial Stability
BofE lends £1.6 billion from standing facility
The Bank of England said that a commercial bank borrowed £1.6 billion on Wednesday through the Bank's standing facility, which charges 100 basis points more than the base rate.
ECB tender reveals illiquidity
The results of the European Central Bank's latest tender indicate conditions in the market for inter-bank lending are still far from normal.
Nigeria halts currency redenomination
The Central Bank of Nigeria has suspended its redenomination of the Naira at the request of the country's president, Alhaji Umaru Musa Yar'Adua.
Notes on surviving illiquidity
The Cleveland Federal Reserve Board has published a paper that examines crashes and recoveries in illiquid markets.
Government bond liquidity key - Swiss banker
"A liquid market for government bonds is a great advantage for the functioning of financial markets and for an efficient monetary policy," Swiss National Bank board member Thomas Jordan argued on Tuesday.
Borrowing from Fed at highest level since 9/11
Banks have borrowed an average of $1.2 billion a day from the Federal Reserve's discount window for the week ending 22 August. This is the third highest weekly amount of borrowing ever.
Ford chief joins Wall Street's calls for Fed cut
Alan Mulally, the chief executive of motor company Ford, voiced his support for a cut to the federal funds rate on Friday.
Securitisation led to subprime growth
The introduction of automated underwriting and securitisation caused the US subprime loans market to expand, according to two International Monetary Fund (IMF) researchers.
IMF head plays down market volatility
Rodrigo de Rato, the managing director of the International Monetary Fund (IMF), expects both US and global economic growth to continue in spite of financial turmoil.
RBNZ boosts liquidity with bill buyback
The Reserve Bank of New Zealand said that it will accept New Zealand bank bills in its overnight reverse repurchase facility from 24 August.
Pressure moves to money market funds
In a classic example of how financial strains can have repercussions in areas of finance far away from the original epicentre of the crisis, asset management companies such as Vanguard Group and Fidelity Investments have been flooded with calls from…
The impact of contagion on interbank markets
The Bank for International Settlements has published a paper on using counterfactual simulations to assess the danger of contagion in interbank markets.
US Senator hints at cut after high level meeting
Christopher Dodd, a US senator, said Ben Bernanke, the chairman of the Federal Reserve, would use "all the available tools" to ensure markets remained liquid.
Action only if "real" impact - Fed's Lacker
Jeff Lacker, the president of the Richmond Federal Reserve, said on Tuesday that the Fed's reaction to the current bout of market volatility should depend on the effect it has on "real activity."
San Francisco Fed conference on Asian Crisis
The Federal Reserve of San Francisco will hold a conference and seminar series discussing the impact of the 1997 Asian financial crisis.
Bank of England joins the fray with emergency loan
In what represents its first unusual market intervention during the current spell of market volatility, the Bank of England lent £314 million ($622 million) today to an unnamed financial institution through its standing facility.
Swiss chairman criticises US subprime
Jean-Pierre Roth, the chairman of the Swiss National Bank described the US subprime crisis as "unbelievable" and said that reality was "striking back"
Australia investigates resilience
The Reserve Bank of Australia has published a series of draft papers presented at its conference on the structure and resilience of the financial system, which took place on 20 and 21 August.
ECB publishes "Blue Book"
The 2007 edition of the Blue Book, which describes the main payment and securities settlement systems in the EU, comes in two volumes: one on countries in the euro area, the other for non-euro area countries.
Nigeria's strategy for the new naira
Charles Soludo, the governor of the Central bank of Nigeria, sets out plans for the currency redenomination.
Market optimism fades after Fed action
After the rally in US equity market of Friday continued in Asian and European markets after the weekend, Wall Street indexes were firmly back in the red by mid-day on Monday.
Japan injects 1.2 trillion as Nikkei falls 5.4%
The Bank of Japan lent 1.2 trillion ($10.5 billion) to the markets Friday after draining 2 trillion Wednesday. The central bank's injection was made as market concerns over liquidity took the overnight lending rate above the central bank's 0.5% target.
Canada extends collateral list to aid market
In a move to shore up liquidity, the Bank of Canada said Wednesday that it will expand the list of collateral eligible for use in special purchase and resale agreements.
RBNZ comments on liquidity provisions
Grant Spencer, the acting governor of the Reserve Bank of New Zealand, says the central bank would act if market conditions worsened, saying that the bank "stands ready to provide additional liquidity" if required.