Financial Stability
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.
Cooperation can't get to root cause of crunch
The central banks' coordinated attempt to bring interbank rates down may alleviate liquidity pressures, but not the mistrust the lies at the core of the crunch, says Avinash Persaud, the chairman of Intelligence Capital, a financial advisory firm.
BoE's Paul Tucker on global credit crunch
Paul Tucker, executive director for markets at the Bank of England and a member of the monetary policy committee, at a speech on Thursday, analysed the difficulties facing central banks in correctly diagnosing changes in credit conditions and asset…
ECB Financial Stability Review - December 2007
The European Central Bank (ECB) noted that with financial systems undergoing a process of de-leveraging and re-intermediation, the uncertainty surrounding the financial stability outlook for the euro area has heightened and could persist for a…
Central banks collaborate to ease interbank woe
In one of the most significant co-operative central banking efforts of modern times, five of the world's most powerful monetary authorities joined forces in a bid to restore order in the interbank markets.
Riksbank appoints new financial stability deputy
Lars Frisell is set to become the new deputy head of the financial stability department at the Riksbank in mid-December.
Rock raises lender of last resort issue for EU
One important aspect of the Northern Rock crisis in the UK has been to make market participants wonder what would happen if a similar-sized institution got into difficulties in a small or medium-sized EU member state.
UBS reveals $10 billion subprime loss
UBS, a bank, said on Monday that it would write down $10 billion-worth of subprime losses, the second largest amount revealed so far. The bank also said it could make a loss for the financial year because of its subprime liabilities.
Finland's Liikanen warns of dual threat
Erkki Liikanen, the governor of the Bank of Finland, said on Monday that the downside risks to growth have risen and inflation was set to accelerate.
Price fall the main cause of subprime delinquency
A fall in house prices has been the single biggest contributor to the rise in subprime delinquency levels, research published by the San Francisco Federal Reserve finds.