Financial Stability
Nyberg on monetary and financial stability
The interaction of monetary and financial stability is one of the most discussed issues in central banks and academia today, and is likely to remain high on the agenda for the foreseeable future, said Lars Nyberg, a deputy governor at Sweden's central…
Bank funding: gone in 15 seconds?
Bank runs, once triggered, are set to become much quicker and less controllable in future.
Bank of England fights to restore financial order
The Bank of England has today lent £4.4bn ($8.8bn) of "exceptional" funds at its benchmark interest rate of 5.75% and says that it will offer the same amount on September 20 in seven-day debt.
Central banks are "just doing their job": Noyer
Christian Noyer, the governor of the Bank of France and a member of the governing council of the European Central Bank (ECB), made a strong defence of recent actions by central banks.
RBA's Stevens on Australia and financial markets
Recent events are putting financial systems to the test around the world, observed the governor of the Reserve Bnak of Australia at a speech in Sydney on Tuesday.
Bank of England bails out Northern Rock
The governor of the Bank of England, Mervyn King, is coming under increasing criticism over his handling of the crisis.
Bank funding for buyer of Northern Rock?
The Bank of England's emergency facility to Northern Rock will still be available to any buyer of the ailing bank, it was confirmed today.
Overnight UK rates jump
On Monday, overnight sterling lending rates briefly hit levels not seen in over six years,reported Reuters, as the deepening crisis surrounding Northern Rock sparked a scramble among banks for immediate access to cash.
EU central bankers decide against bail-out rules
Finance ministers and central bankers from the European Union decided at a weekend meeting in Portugal not to draw up fixed rules in advance on bailing out banks and other financial institutions with cross-border operations in the EU.
Rates tumble in Venezuela
Overnight lending rates in Venezuela fell sharply last Thursday, after the country's central bank resumed injecting cash into the financial system, a week after it had suspended the practice.
FSA pronounces on Northern Rock
The Financial Services Authority, the UK's financial watchdog, made an announcement today about Northern Rock.
Launch the lifeboats? Not likely!
The closest parallel to the rescue of Northern Rock is the secondary banking crisis which erupted at the end of 1973 and which brought down a whole string of so-called "secondary" banks. That financial crisis, like this one, was preceded by a long period…
Bank of England moves to aid mortgage lender
The Bank of England said on Friday that it would provide a liquidity support facility for Northern Rock, a UK mortgage lender.
Canada's Dodge repeats calls for transparency
David Dodge, the governor of the Bank of Canada, underlined his argument that a lack of transparency was behind the recent turmoil on Friday.
Links between ownership, market structure and risk
The relationship in developing countries between banks' risk of failure, market structure, their ownership, and screening and bankruptcy costs is investigated in an International Monetary Fund paper published on Wednesday.
King refuses to aid markets
Mervyn King, the governor of the Bank of England, said on Wednesday that he believed providing additional liquidity against a wider range of collateral and over longer periods "sows the seeds of a future financial crisis".
Opacity led to turmoil - Canada's Dodge
David Dodge, the governor of the Bank of Canada, believes a lack of transparency is partly to blame for the recent turmoil in the financial markets.
New payment system working well - Fiji's Narube
Savenaca Narube, the governor of the Reserve Bank of Fiji, announced that the country's new payment system was now up and running.
Japan safe from subprime threat
The Bank of Japan said on Tuesday that the country's financial institutions were unlikely to be drastically affected by the subprime crisis in the US.
Australian inter-bank rates hit 11-year high
Australian three-month bank bill rates reached 7.08% on Tuesday, 58 points above the central bank's benchmark rate and their highest level since July 1996.
Real economy under threat - Fed's Mishkin
Frederic Mishkin, a member of the Board of Governors at the Federal Reserve, reiterated his view, expressed earlier this month at Jackson Hole, that the subprime crisis will drive down real economic growth.
Deadlock in the inter-bank markets
The continuing difficulties in the global inter-bank markets, which started on 9 August, have already given rise to a mountain of speculation about the possible causes and what central banks should do about the problem.
Subprime reaction mirrors past crises - Greenspan
Alan Greenspan, a former chairman of the Federal Reserve, has said that the reaction of bankers to the subprime crisis is identical to their behaviour during the 1987 crash and the near-collapse of the Long Term Capital Management hedge fund in 1998.
Iran to consider redenomination
The Central Bank of the Islamic Republic of Iran will look into the possibility of knocking three zeros off its rial currency.