Financial Stability
EU central bankers decide against bail-out rules
Finance ministers and central bankers from the European Union decided at a weekend meeting in Portugal not to draw up fixed rules in advance on bailing out banks and other financial institutions with cross-border operations in the EU.
Rates tumble in Venezuela
Overnight lending rates in Venezuela fell sharply last Thursday, after the country's central bank resumed injecting cash into the financial system, a week after it had suspended the practice.
FSA pronounces on Northern Rock
The Financial Services Authority, the UK's financial watchdog, made an announcement today about Northern Rock.
Launch the lifeboats? Not likely!
The closest parallel to the rescue of Northern Rock is the secondary banking crisis which erupted at the end of 1973 and which brought down a whole string of so-called "secondary" banks. That financial crisis, like this one, was preceded by a long period…
Bank of England moves to aid mortgage lender
The Bank of England said on Friday that it would provide a liquidity support facility for Northern Rock, a UK mortgage lender.
Canada's Dodge repeats calls for transparency
David Dodge, the governor of the Bank of Canada, underlined his argument that a lack of transparency was behind the recent turmoil on Friday.
Links between ownership, market structure and risk
The relationship in developing countries between banks' risk of failure, market structure, their ownership, and screening and bankruptcy costs is investigated in an International Monetary Fund paper published on Wednesday.
King refuses to aid markets
Mervyn King, the governor of the Bank of England, said on Wednesday that he believed providing additional liquidity against a wider range of collateral and over longer periods "sows the seeds of a future financial crisis".
Opacity led to turmoil - Canada's Dodge
David Dodge, the governor of the Bank of Canada, believes a lack of transparency is partly to blame for the recent turmoil in the financial markets.
New payment system working well - Fiji's Narube
Savenaca Narube, the governor of the Reserve Bank of Fiji, announced that the country's new payment system was now up and running.
Japan safe from subprime threat
The Bank of Japan said on Tuesday that the country's financial institutions were unlikely to be drastically affected by the subprime crisis in the US.
Australian inter-bank rates hit 11-year high
Australian three-month bank bill rates reached 7.08% on Tuesday, 58 points above the central bank's benchmark rate and their highest level since July 1996.
Real economy under threat - Fed's Mishkin
Frederic Mishkin, a member of the Board of Governors at the Federal Reserve, reiterated his view, expressed earlier this month at Jackson Hole, that the subprime crisis will drive down real economic growth.
Deadlock in the inter-bank markets
The continuing difficulties in the global inter-bank markets, which started on 9 August, have already given rise to a mountain of speculation about the possible causes and what central banks should do about the problem.
Subprime reaction mirrors past crises - Greenspan
Alan Greenspan, a former chairman of the Federal Reserve, has said that the reaction of bankers to the subprime crisis is identical to their behaviour during the 1987 crash and the near-collapse of the Long Term Capital Management hedge fund in 1998.
Iran to consider redenomination
The Central Bank of the Islamic Republic of Iran will look into the possibility of knocking three zeros off its rial currency.
Venezuela set to publicise new currency
The Venezuelan Central Bank will launch a nationwide campaign to familiarise consumers with its new notes and coins, which will come into circulation at the start of next year.
Bahrain's payment system a success
The Central Bank of Bahrain said that its real time gross settlement (RTGS) payment system introduced on 9 August, has "dramatically speeded up the flow of money", leading to a more efficient financial sector.
Turmoil will impact global economy- IMF's de Rato
Rodrigo de Rato, the managing director of the International Monetary Fund, said the recent bout of money-market volatility will affect global growth.
Russia hit by market turbulence
The net capital inflow to Russia hit a record $67.1 billion in the first half of 2007, the Central Bank of Russia (CBR) has said.
Gulf may escape contagion
Rasheed Al Maraj, the governor of the Central Bank of Bahrain, said Gulf markets are unlikely to see a major fallout from the slump in USsubprime mortgages as most local companies have their core businesses in the area.
Credit crunch has "sown seeds of downturn"
Jon Moulton, a well-known private equity investor, said that the credit crunch had " sown the seeds of a major downturn," the Financial Times reported.
Israel launches same-day clearing system
The Bank of Israel launched its real-time gross settlement system (RTGS) for bank transfers on 3 September. This is part of the central bank's reforms of Israel's payment and clearing systems.
Thailand encourages e-payment
The Bank of Thailand plans to reduce cash payments and cheque payments by promoting e-payment with consumers and the public and private sectors.