Financial Stability
G10 reassured by impact of joint injections
Central bank governors and finance ministers from the G10 economies were "very satisfied" with the effect of the coordinated action to ease interbank tensions, said Jean-Claude Trichet, the president of the European Central Bank (ECB).
Fed pledges more cash to combat interbank woe
In a bid to further ease money market tensions, the Federal Reserve said on Friday that it will increase the amount of extra funds on offer through its additional open market operations after both of its December auctions were heavily oversubscribed.
Differences are a strength of Fed strategy: Kohn
Recent disparities in speeches by FOMC members on the economic outlook in the United States reflect the pace of change rather than any failure in the Fed's communication strategy, says Donald Kohn, the vice-chairman of the Federal Reserve board.
Gono explains decision to renege on note change
Gideon Gono, the governor of the Reserve Bank of Zimbabwe, has blamed the weather for backtracking on plans to take the Z$200,000 ($6.67) note out of circulation.
Euro makes rapid progress in Cyprus and Malta
Euro banknotes already account for 50% of the total in circulation in both Malta and Cyprus, the two Mediterranean islands that adopted the single currency on Tuesday.
Northern Rock shows fallibility of communication
The run on Northern Rock, a British mortgage lender, illustrates the potential downside of central bank communication around stability issues, says Gary Stern, the president of the Minneapolis Federal Reserve.
Venezuela lops zeros off bolivar to curb inflation
Venezuela revamped the bolivar on Tuesday by slashing three zeros from the currency in a bid to dampen rampant inflation, which hit 20.7% in the 12 months to November.
Interbank rates plummet as year-end passes
Pressure on the banking industry eased on Wednesday with spreads between money market and central banks' benchmark interest rates narrowing as the end-of-year liquidity panic passed. The falls indicate that the central banks' efforts to alleviate some of…
Cyprus and Malta join eurozone
The eurozone became a little larger on Tuesday as Cyprus and Malta, two Mediterranean islands, adopted the single currency.
The blame game
The decision of many central banks, most notably the Federal Reserve, to lower rates in the wake of the dotcom crash, has drawn criticism from some quarters post-credit crunch. But, Claire Jones, editor of Central Bank News, argues blame for the crisis…
Time has proved us right, says Trichet
The European Central Bank's (ECB) decision to inject hundreds of billions of extra euros into the money markets to alleviate tensions looks to be the correct one, says Jean-Claude Trichet, the president of the central bank.
Fed to conduct auctions for "as long as necessary"
The Federal Reserve said on Friday it will continue to run Term Auction Facility auctions twice a month "for as long as necessary to address elevated pressures in short-term funding markets."
Interbank rates edge down again
Money market tensions eased further on Friday, signalling that the joint action announced by five of the most powerful central banks last week is having some impact in narrowing spreads between interbank and central banks' benchmark rates.
Bank of Finland - Financial Stability Report 2007
The Finnish financial system is stable and would likely withstand even considerable disruptions in the operating environment, the 2007 edition of the Bank of Finland's financial stability report says.
Joint action lessening interbank spreads
In a sign that central banks' concerted action aimed at easing money market tension is doing just that, banks' borrowing costs fell further on Thursday.
Central bank injections reduce borrowing costs
Central banks' attempts to narrow the spread between their benchmark and money market rates by offering funds at attractive costs have met with some success.
ECB adds an extra €170 billion
The European Central Bank (ECB) on Tuesday injected about €170 billion-worth ($245 billion) of extra funds into eurozone money markets after saying on Monday night that it would offer eurozone banks an unlimited amount of two-week loans at below…
Banks take Old Lady's money
The Bank of England's adoption of a new auction method for open market operations met with success on Tuesday as all of the available funds were allocated.
China's Zhou speaks on financial stability
Flexibility and adaptability must be improved if central banks are to successfully deal with financial instability, says Zhou Xiaochuan, the governor of the People's Bank of China.
Only banks can fully solve lending problem: King
No amount of central bank liquidity can bring interbank rates back down to normal levels, Mervyn King, the governor of the Bank of England, said on Tuesday.
IMF's Kato adds voice to calls for transparency
Investors need greater transparency of the on- and off- balance sheet exposures of financial institutions, as well as of the interrelationships between asset managers, and special purpose vehicles, said Takatoshi Kato, a deputy managing director of the…
Financial crisis has affected eurozone stability
Uncertainty surrounding financial stability in the euro area has heightened as a result of the recent financial turmoil, Lucas Papademos, the vice president of the European Central Bank, confirmed on Thursday.
Officials praise central bankers' collaboration
Central bankers and politicians across the globe offered swift and unanimous approval for Wednesday's concerted effort to inject liquidity in a bid to counter dogged interbank tensions.
Joint effort failing to counter interbank tension
Interbank rates stayed high and markets plummeted on Thursday in spite of the collective action launched by five of the most powerful central banks on Wednesday.