Financial Stability
Credit crunch – phase two
The credit crisis that started in August last year has moved into a destabilising second phase, with equity markets and the real economy looking increasingly shaky. This section analyses central banks’ response to the long-running crisis
Who signs the banknotes?
Most banknotes bear signatures, but who are the signatories? Åke Lönnberg explains
Lessons of Northern Rock
British lawmakers are divided over how to fix a broken regulatory framework
Interview: Charles Goodhart
Claire Jones spoke with the former Bank of England policymaker about the co-ordinated liquidity interventions and the move towards aggressive policy easing by the Fed
News analysis: Forced into action
Claire Jones, the editor of Central Bank News, analyses how uncertainty threatened to cripple the interbank market and called for a unique response from the central banks
Bernanke spooks markets with bank failure warning
The dollar hit a record low against the euro after Ben Bernanke, the chairman of the Federal Reserve, warned that small banks could fail in the coming months.
EU building and consumer sectors most sensitive
The eurozone's construction and consumer sectors are typically the most sensitive to shocks in GDP and inflation variables, states a new European Central Bank paper.
Stability requires public-private coordination
The close cooperation of policymakers and market participants is essential for achieving sustainable growth and preserving stability, said Lucas Papademos, the vice president of the European Central Bank.
Progress masks greater threat of severe crisis
Financial innovation and greater macroeconomic stability may have made financial crises in developed countries less likely than in the past, but potentially more severe, research published by the Bank of England finds.
How the Fed is tackling turmoil
The Federal Reserve has acted in line with its dual mandate in taking the four measures made to rein in the recent bout of market turmoil, said Frederic Mishkin, a governor at the central bank.
Coin misuse trouble Bank of Korea
Korean ten-won coins have recently found favour as decorative pendants - a development that has the Bank of Korea worried.
Instability calls for a sharper eye on markets
Financial instability requires monetary-policy-makers to rely on different data and communication strategies, Christian Noyer, the governor of the Banque de France said.
Research has a role in stability: ECB's Papademos
Economic research can make an important contribution to strengthening the resilience of the financial system, said Lucas Papademos, the vice president of the European Central Bank.
Analysing debt sustainability: a fresh approach
Research published by the International Monetary Fund has developed a new framework for analysis of public sector debt sustainability.
Subprime writedowns could total $400 billion: G7
Central bankers and finance ministers from the group of seven most powerful economies now believe subprime-related writedowns could far exceed previous estimates, Peer Steinbruck, Germany's finance minister, revealed.
Liquidity pressures could return, says FSF report
Money-market tensions could yet re-emerge, a group of leading central bankers and policymakers warned on Monday.
More remittances lead to more corruption
An increase in remittance inflows can lead to a deterioration of institutional quality in the recipient country, research published by the International Monetary Fund finds.
Bernanke admits concern over monolines
The threat of a downgrade to some of the biggest monoline insurers impacting the banking industry is forcing the Federal Reserve to monitor developments closely, a letter from Ben Bernanke, the chairman of the Federal Reserve, reveals.
Kenya can rise again, says central bank governor
The violence precipitated by elections late last year is a setback from which the Kenyan economy can recover, said Njuguna Ndung'u, the governor of the central bank.
Noyer's lonely moment
Robert Pringle, the editor of Central Banking journal, speculates on what kind of questions went through the mind of Christian Noyer, governor of the Banque de France, when he first learned of the Societe Generale disaster.
Late-afternoon Fedwire surge explained
The New York Fed finds three reasons for why an increasing number of payments are processed through the Fedwire funds transfer system in late afternoon.
Inflation differences bother Fed's Lacker
Jeff Lacker, the president of the Richmond Federal Reserve, said he was troubled by the lengthy divergence between overall and core inflation in the United States.
Hong Kong banking industry stays in good health
The Hong Kong banking sector remains highly liquid, well capitalised and profitable said Y.K. Choi, a deputy chief executive of the Hong Kong Monetary Authority.