Financial Stability
ECB to counter new tensions with extra funds
The European Central Bank (ECB) said on Friday that it will inject more liquidity into the eurozone money market in a bid to allay "the re-emerging risk of volatility."
Trichet blames complexity for ratings reliance
Jean-Claude Trichet, the president of the European Central Bank, said on Friday that the complicated nature of many structured products had led to an over-reliance on credit ratings.
Canada's Duguay raises chances of liquidity shift
Fresh suspicions that the Bank of Canada may alter its liquidity provisions by lending for longer periods arose on Tuesday after a speech by Pierre Duguay, a deputy governor of the central bank.
ECB loans show illiquidity in longer-term lending
The results of this month's European Central Bank (ECB) three-month open market operation reveal liquidity tensions remain for longer-term interbank lending.
Zimbabwe set for new currency
Gideon Gono, the governor of the Reserve Bank of Zimbabwe, said on Wednesday that the issue of a new currency was imminent, after announcing just over a fortnight ago that it would be delayed until 2008.
BlackRock to manage superfund
BlackRock, an asset manager, is expected to look after the planned $75 billion structured products superfund, set up to ease money market illiquidity.
Canada virtually unscathed by credit crisis
Canada, has, so far, come through the recent bout of market turmoil reasonably well, says Pierre Duguay, the deputy governor of the Bank of Canada.
A troubling lesson of Northern Rock
The Northern Rock crisis has revealed a fundamental change in the nature of bank runs, says Robert Pringle, the editor of Central Banking journal.
Further fall in Northern Rock shares
Northern Rock shares dropped further on Tuesday from 104p ($2.14) to 95p at the close after losing almost a fifth of their value on Monday. The drop follows comments by the British chancellor and rumours that one of the bids tabled for the troubled…
G20 predicts "modest" global slowdown
Central bank governors and finance ministers from the G20 economies said that the credit turmoil would likely have a "modest" effect on global growth, but added that it remained difficult to judge the eventual impact.
Northern Rock stock falls on bid comments
Shares in Northern Rock, the mortgage lender, plummeted 19% on Monday after it revealed takeover bids were worth less than the company's stock market value at the Friday close.
US subprime conditions set to worsen - Kroszner
Randall Kroszner, a governor of the Federal Reserve, warned on Friday that conditions in the US mortgage market had yet to reach rock bottom. Speaking in New York, Kroszner said that there were two reasons why he believed market conditions would worsen:…
Fed makes biggest injection since 9/11
The New York Federal Reserve injected $47.25bn on Thursday, the biggest daily amount since 19 September 2001, but got most of it back as previous repos matured.
Australia in good shape to weather subprime
Warwick McKibbin, a board member of the Reserve Bank of Australia, expects the country's economy to remain buoyant in spite of the recent market turmoil.
Italy's Visco pushes for global cooperation
Global cooperation and coordination are the only ways to deal with systemic events that have the potential to wreck the global financial system, says Ignazio Visco, the chief economist at the Bank of Italy.
Growth slowdown to follow crunch: Japan's Fukui
Toshihiko Fukui, the governor of the Bank of Japan, said he expected global growth to fall to 5% this year as a result of the financial turmoil.
Model predicting instability in development
Charles Goodhart, a former member of the Bank of England's Monetary Policy Committee, and Dimitrios Tsomocos, a lecturer in financial economics at Oxford University's Said Business School, are working on a model aimed at alleviating financial fragility.
Strong capital base counters illiquidity: Landau
A strong capital base in the financial system is likely to limit future liquidity shocks, says Jean-Pierre Landau, a deputy governor at Banque de France.
Central banks criticised for communication failure
The world's most powerful central banks were inconsistent in their communication and lacked coordination during the summer's market turmoil, Richard Portes, one of the authors of an influential report on international financial stability, said on Monday.
We will survive US snub: Iran's Mazaheri
Tahmasb Mazaheri, the governor of the Central Bank of Iran, has said the country's banks can weather the impact of United States-imposed sanctions. Mazaheri's comments come as Angela Merkel, Germany's chancellor, said she would back more sanctions on the…
Stability needs reliable systems: BoE's Jenkinson
The resilience of wholesale payment, clearing and settlement systems to both operational and financial shocks remains a key requirement of financial and monetary stability, says Nigel Jenkinson, the executive director responsible for financial stability…
Ghana's new banking system up-and-running
The Bank of Ghana has gone live with a new banking system that will integrate all of the central bank's core operations.
Small business success vital for US: Mishkin
The health of the United States economy is partly reliant on small businesses still having access to credit on competitive terms, according to Frederic Mishkin, a governor at the Federal Reserve.
We can escape capital flight loop: Kenya's Ndung'u
Sub-Saharan African countries can escape the "infinite loop" of external indebtedness, corruption and capital flight, according to Njuguna Ndung'u, the governor of the Central Bank of Kenya.