Financial Stability
Chan says Hong Kong has nothing to fear from further mainland liberalisation
Competition from Shanghai 'not a zero sum game' says HKMA head; rather, further internationalisation of the renminbi will create a 'bigger pie'
Banque de France's Le Lorier says good communication can ‘substitute' for rate decisions
First deputy says comms can complement decisions in non-crisis times by revealing variables that inform monetary policy; argues monetary and macro-pru mandates can be reconciled
Bank of Portugal splits failed bank BES in 'clean’ resolution
Portuguese central bank splits troubled lender Banco Espírito Santo into good and bad bank as part of a €4.9 billion rescue
ECB economists find ‘considerable heterogeneity’ in impact of crisis
Researchers say that while borrowers ‘benefited’ from low interest rates, debt burdens increased for poor households as their incomes fell
Better budgeting tools could encourage low earners to switch from cash to card
Researchers find that low earners prefer to use cash over the debit card because they find it more effective as a monitoring and budgeting tool
Opinion: Sepa opens borders for European money
ECB’s director-general of market infrastructure and payments reflects on the successful creation of the single euro payments area, its beneficial impacts and the payment cards challenge to come
BoE working group finds ‘striking' changes in investment behaviour by insurers and pension funds
Nature of investments has changed markedly over the past 15 years, says Andrew Haldane-led group, which also includes Oxford professor Ian Goldin and Jim O'Neill
Central Bank of Nigeria inks deal to set up credit fund for small businesses
Governor Godwin Emefiele signs MoU with state governments on $1.4 billion fund to lower lending rates for SMEs, but critics call for speedier remedies
Bank of Russia ready to act to cushion bank sanctions blow
US and EU sanctions are aimed at state-owned banks and could cover central bank-owned Sberbank - but sanctioning the Bank of Russia itself remains unthinkable
HKMA chief rejects use of $400bn fund for social purposes
Norman Chan says the HKMA’s exchange fund is the ‘last line of defence’ for financial stability and should be maintained as a buffer against ‘unforeseeable shocks and crises’
Bank of England unveils plans to lock up bankers' bonuses for seven years
New rule will mean financial sector bonuses can be 'clawed back' for up to seven years, but the BoE is also proposing bonuses are locked up until that period expires
Hong Kong and Thailand link settlement systems
New link will ensure the simultaneous delivery of US Dollars in Hong Kong and Thai Baht in Thailand; HKMA’s Peter Pang says it creates a ‘safer’ environment for settling forex transactions
Cross-border vulnerabilities should be taken more seriously, IMF paper says
Working paper says funding vulnerabilities ‘have real effects', although they have declined since the crisis due to lower exposures and increased capital levels
Credit cards account for more than half of all payment cards in the US, report shows
Credit cards accounted for 334 million of the 776 million ‘general purpose cards' used in 2012; Over 250 million mobile payments made using mobile wallet application, Fed study finds
RBI executive director says ‘multiple instruments' needed to stem EM capital outflows
Deepak Mohanty says drawdown of forex reserves, monetary tightening, and augmentation of reserves needed to dampen speculative flows
Herding tendencies mean smaller banks won't solve moral hazard issue
Anticipation of bailouts encourages banks to invest alike, making bailouts more probable and crises more severe, Minneapolis Fed paper argues
BoE exec calls for enough GLAC to restore capital level above minimum
Banks that have undergone resolution ‘likely to need at least as much capital as other banks in the market' to command market confidence
Banxico deputy says capital controls 'multilaterally detrimental'
Manuel Ramos-Francia says EMs that have implemented capital controls to stem capital flows have ‘deflected' them towards other economies, creating political tension
ECB data stolen in blackmail attempt
Hackers raid ECB database that contains around 20,000 email addresses of people who have registered for its events; security breach did not impact internal systems
Menon: ‘Too early’ to ease macro-prudential policies
Managing director says there are ‘some indications’ the property market is cooling down, but remains concerned by high prices and household debt
Bulgarian governor offers to step down
Ivan Iskrov says he will resign ‘immediately’ if parliament sets a date for picking his successor; attacks politicians for using the central bank as a ‘plaything’ in their election campaigns
RBA deputy hints at renminbi clearing bank and RQFII quota
Philip Lowe reveals that Australia should get a designated clearing bank ‘in the coming months’ and hopes to obtain a quota for investment in mainland China shortly after
IMF staff note: Structural reforms 'more desirable' than nominal wage cuts in Europe
International Monetary Fund staff note says ‘many reforms’ are still needed in deficit countries; highlights benefits of greater fiscal integration in longer term
IMF paper finds macro-prudential polices can help prevent liquidity traps
Researchers find that debt limits and insurance requirements can help prevent economic agents from accumulating excessive leverage and triggering liquidity traps