Financial Stability
Coordination was unprecedented, says Goodhart
The joint action by five of the world's leading monetary authorities was a move unprecedented in central banking, said Charles Goodhart, a former member of the Bank of England's monetary policy committee.
Securitisation trend impacted borrowing standards
A greater ability to securitise mortgages appears to have affected lenders' behaviour, a paper published by the Centre for Economic Policy Research finds.
Six lessons from the recent turbulence
Hermann Remsperger, a member of the executive board at the Bundesbank, outlined the lessons that have emerged so far from the turmoil that has plagued financial markets since August.
Fed to add another $60 billion in February
The Federal Reserve said on Friday that it will inject an extra $60 billion into the money markets through two term-auction facility operations.
Finland appoints new financial markets head
The Bank of Finland has promoted Kimmo Virolainen to the position of head of financial markets and statistics.
Basel II's procyclical costs
By increasing capital requirements during economic downturns, Basel II will offset improvements in monetary policy trade-offs caused by countercyclical variations, research published by the Bank of Finland finds.
Fed auction reveals relative interbank calm
Money market tensions in the United States showed further signs of abating on Tuesday as the Federal Reserve published the results of its latest Term Auction Facility operation.
More banking competition produces mixed results
A u-shaped relationship exists between competition and the risk of bank failure, research published by the Centre for Economic Policy and Research (CEPR) finds.
Europe's single payments area goes live
Eurozone banks and customers received a boost on Monday as the Single Euro Payments Area (SEPA) went live.
France's Noyer backs SocGen despite €5bn fraud
Christian Noyer, the governor of the Banque de France, said on Thursday that he was "not at all worried" about Societe Generale, the second largest French bank, despite it falling victim to the biggest fraud in banking history.
European and US markets fall despite Fed cut
Stocks listed on European and US bourses continued to slide on Wednesday, following the Federal Reserve's emergency 75 basis point cut on Tuesday.
Deputy confident Russia will withstand turmoil
The Russian finance industry will escape largely unscathed from the credit crunch, though lending conditions may get tighter, said Gennady Melikyan, a first deputy chairman at the Central Bank of Russia.
Rock-bond plan could pay off Bank loan
The British Treasury underlined its commitment to finding a private sector bidder for Northern Rock on Monday, publishing details of a strategy that would require no upfront repayment of the £26 billion ($50.6 billion) owed by the beleaguered mortgage…
Banking risks must be considered together
The impact of credit and interest rate risk, the two most important dangers faced by commercial banks, must be measured jointly, research published by the Bank of England finds.
Merrill reports $8.6 billion loss for 2007
Merrill Lynch, an investment bank, on Thursday reported $11.5 billion-worth of subprime-related writedowns for the fourth quarter of 2007, taking its losses for last year to $8.6 billion. The bank recorded losses for the fourth quarter alone of 2007 was …
IMF to review central bank response to turmoil
The International Monetary Fund (IMF) is set to investigate the reaction of leading central banks to the interbank turmoil that hit markets in the wake of the subprime crisis.
Interbank borrowing reduces bank risk
Long-term interbank exposures result in lower risk for the borrowing banks, research published by the Centre for Economic Policy and Research finds.
Fed and BoE auction results show interbank easing
Tensions in money markets showed further signs of abating on Tuesday after the Federal Reserve and the Bank of England revealed the results of their latest open-market operations.
Fund manager knocks Bank's role in Rock saga
Philip Richards, the chief executive of RAB Capital, one of two hedge funds that are the biggest shareholders in Northern Rock, the beleaguered mortgage lender, attacked the Bank of England and its governor, Mervyn King, for its handling of the credit…
Injections were vital: Deutsche Bank's Ackermann
Central banks' liquidity injections were crucial in averting the collapse of financial institutions, said Josef Ackermann, the chairman of Deutsche Bank.
Rock repays Bank debt with JPMorgan sale
Northern Rock, the beleaguered British mortgage lender, is to pay back some of its Bank of England debt through the sale of a mortgage portfolio worth £2.2 billion to JPMorgan, the- American investment bank.
Complex rules pose a threat to stability
Opaque regulations not only deepen financial instability but also raise the likelihood of banking crises, research published by the Bank of Korea finds.
Japanese business prepares for e-money surge
The number of payment devices for processing e-money transactions in Japan is set to almost double by 2010 as the payment method gains popularity with consumers.
Central banks get cheaper cash from companies
Private-sector involvement in the printing of banknotes substantially lowers costs, research published by Colombia's Banco de la Republica finds.