Financial Stability
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.
Economic outlook is worsening: Fed's Yellen
The United States economic growth outlook has weakened further since the Federal Reserve said that the risks to inflation and growth were balanced in late October, says Janet Yellen, the president of the San Francisco Federal Reserve.
We were transparent enough, say bankers
Investors were given all the information they required on structured products, a group of senior figures at top investment and commercial banks told UK lawmakers on Tuesday.
Banks cannot shun subprime borrowers: Rosengren
Eric Rosengren, the president of the Boston Federal Reserve, stressed on Monday the importance of continued availability of loans to subprime borrowers.
Norges Bank - Financial Stability Report 2/2007
The Norwegian economy is expected to remain stable even though the turmoil in the money and credit markets will continue to hamper banks, the Bank of Norway's latest financial stability report says.
Central banks failing to calm interbank markets
Interbank borrowing costs in the sterling, euro and dollar money markets shot up on Monday in spite of attempts by central bankers last week to alleviate end-of-year jitters.
Injections pose no moral hazard risk: ECB member
In spite of the Bank of England's claims to the contrary, moral hazard should not be an issue in deciding whether or not to inject extra funds into the money markets, a member of the European Central Bank's (ECB) executive board said on Monday.
Boston Fed blames subprime on house price decline
In conducting what it calls "the first rigorous assessment of the homeownership experiences of subprime borrowers", the Boston Federal Reserve has found that the decline in house prices that began in the summer of 2005 is the factor most responsible for…
Subprime standardisation can help: Fed's Kroszner
Randall Kroszner, a Federal Reserve governor, said last Friday that he is hopeful efforts to standardise loan-modification options and processes for subprime loans will help lenders, investors, homeowners, and communities faced with potential mortgage…
ECB makes new bid to calm end-of-year fears
The European Central Bank (ECB) responded to panic in the interbank markets on Friday by pledging to lend over longer periods.
HK's Yam on ominous central bank injections
Joseph Yam, the chief executive of the Hong Kong Monetary Authority, said on Tuesday that the continued need for central banks to inject extra funds was "not a good sign."
Old Lady changes tack and steps in with £10bn
The Bank of England said on Thursday that it would lend an extra £10 billion ($20.7 billion) at its benchmark bank rate to allay fears that interbank borrowing costs will shoot up over December.
Subprime crash has tarred all structured products
The subprime crisis has led to all securitised products being sold at a discount, regardless of whether they hold bad debt, says Guy Debelle, the assistant governor responsible for financial markets at the Reserve Bank of Australia.
There's a riot goin' on
By analysing so-called "riot points", we can see that the current crisis is spreading and deepening, says Avinash Persaud, the chairman of Intelligence Capital, a financial advisory firm.
ECB lends extra €30 billion
The European Central Bank injected an additional €30 billion ($44 billion) into eurozone money markets in a bid to ease recurring tensions in interbank lending.
Britain asks EU to back Rock aid
United Kingdom authorities have requested European Commission approval of their decision to give Northern Rock more than £20 billion-worth ($41 billion) of Bank of England money under the Union's state aid rules.
Unanimity required in subprime response: Noyer
Central banks needed to act unanimously to provide liquidity in the wake of the subprime turmoil because of the globalisation of interbank markets, Christian Noyer, the governor of Banque de France said on Tuesday.
Hurley confident on Irish performance
The Irish economy has performed well in 2007 compared to others, a trend that is set to continue into 2008, says John Hurley, the governor of the Central Bank and Financial Services Authority of Ireland.
Trichet warns on adverse impact of globalisation
Interlinkages in the global economy mean no country can insulate itself from events, says Jean-Claude Trichet, the president of the European Central Bank.