Financial Stability
RBI’s Chakrabarty calls for more refined approach to liquidity management
Reserve Bank of India deputy governor Kamalesh Chakrabarty says more sophisticated approach to liquidity management needed to avoid market contagion
Reserve Bank of Australia – Bulletin (March 2011)
Reserve Bank of Australia paper says growth in Australia’s resource sector reflected a sharp rise in global commodity prices
It is the supervision of the banks, not their structure, that is most important
A separation between retail and investment banking would in itself do nothing to correct bad management practices and would quite possibly fail in its aim to protect the public purse, Roger Alford argues.
ECB opines on how euro crisis facility should work
European Central Bank proposes IMF involvement in order to ensure facility does not promote moral hazard
An overemphasis on risk models was the key flaw in the regulatory architecture
Risk models are useful for banks’ risk managers, but regulators should beware, Brandon Davies notes
Ireland unveils stress test scenarios
Central Bank of Ireland outlines macroeconomic scenarios for stress test exercise on four banks; results set to be published at end of month
S&P unconvinced by resolution regimes
Rating agency says sovereigns will continue to bail out banks
Ireland’s Honohan pledges to avoid fire sales
Central Bank of Ireland governor Patrick Honohan says country can no longer afford fire-sale losses on non-core bank assets
Fiji’s Whiteside on microfinance challenges
Reserve Bank of Fiji governor Barry Whiteside says poor infrastructure presented challenges in extending financial services into the rural areas
Turkey’s Yilmaz on central banks’ enhanced stability mandates
Central Bank of Turkey governor Durmuş Yilmaz says centralising power for safeguarding stability at central banks places too great a burden on unelected officials
Creditless recoveries not uncommon: IMF paper
Fund study finds creditless recoveries are common and may result from impaired financial intermediation
Zimbabwe told to look to commercial banks for US coin supplies
Contrary to local media reports, Federal Reserve has not made formal arrangement with Harare
BoJ forecasts widespread production declines following earthquake
Report of Recent Economic and Financial Developments says domestic production expected to decline in earthquake aftermath
Crisis reshaping Australian bond market: RBA’s Debelle
Reserve Bank of Australia assistant governor Guy Debelle says regulatory reforms to change Australia’s bond market structure
Buba’s Weber says negative growth effects of Basel III unfounded
Bundesbank president Axel Weber says higher Basel III capital requirements will have positive long-term implications on growth
Japan injects ¥7 trillion; expands asset purchase programme by ¥5 trillion
Bank of Japan makes largest-ever same-day funds operation in bid to subdue market panic following Tohoku earthquake
EU agrees to more generous terms for Greece
Heads of state agree to lower rate of interest and extend maturity on Greek loan; no word on Ireland
Bank’s King calls for grand bargain to tackle global imbalances
Bank of England governor Mervyn King says G-20 countries must reach agreement on path to rebalance global economy; says G-20 could metamorphose into IMF governing body
BIS economists identify indicators of systemic risk
Bank for International Settlements research points to size as most reliable indicator of systemic importance, ahead of interbank lending and borrowing
BoJ leaps to action to soothe quake fears
Bank of Japan moves to assure investors that financial infrastructures are still working; central bank will work to maintain smooth liquidity, settlement conditions
IMF paper on foreign credit expansion in European EMEs
Fund study finds evidence of significant increase in level of foreign credit growth in emerging European countries
Foreign currency loans in EMEs supply driven: SNB paper
Swiss National Bank study finds evidence that the level of pre-crisis foreign currency loans in Bulgaria was partly supply driven
Wealth main determinant of bank service distribution: SNB paper
Swiss National Bank study says amount of bank account holders is directly correlated to wealth
RBA’s Lowe on policy implications of Australia’s higher terms of trade
Reserve Bank of Australia assistant governor Philip Lowe warns against changing the structure of the economy to reflect rise in terms of trade