Financial Stability
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.
Deputy discusses Australian reaction to turmoil
Ric Battellino, deputy governor of the Reserve Bank of Australia, spoke about the central bank's handling of the recent bout of market turmoil at the Retail Financial Services Forum on Central Bank Market Operations in Sydney on 28 August.
Cost of UK borrowing hits ten-year high
Banks borrowing sterling over a three-month period yesterday found the cost at a near-ten-year high as the major UK financial institutions sought medium-term funding to help them survive the financial volatility in the credit markets.
EU's Almunia expects rates to tighten
Speaking at a conference organised by Nueva Economia, Joaquin Almunia, the EU economic and monetary affairs commissioner, intimated that he expects Eurozone interest rates to tighten further. He also warned that financial market volatility might carry…
Bank-run claims "partially misleading": Bundesbank
The Bundesbank has said newspaper claims that Axel Weber, the president of the central bank, compared the current market turmoil to a classic bank run were "partially misleading".
Fed Board's Mishkin writes on housing crisis
In a timely paper, Frederic Mishkin, one of five current members of the Federal Reserve's Board of Governors, has emphasised the importance of the housing industry on the US economy. Mishkin said: "The housing market is of central concern to monetary…
Australia announces ATM reforms
The Reserve Bank of Australia said it will introduce reforms that will give the public more information on the cost of using ATMs.
Barclays revealed as BofE borrower
Barclays, a commercial bank, said Thursday that it was the bank that borrowed £1.6 billion ($3.2 billion) from the Bank of England's standing facility.
Banknotes remain important - SA chief economist
Monde Mnyande, the chief economist of the South African Reserve Bank said that the ratio of coins and notes in circulation to gross domestic product has risen since 2004, after the ratio had declined steadily since the mid seventies.
BofE lends £1.6 billion from standing facility
The Bank of England said that a commercial bank borrowed £1.6 billion on Wednesday through the Bank's standing facility, which charges 100 basis points more than the base rate.
ECB tender reveals illiquidity
The results of the European Central Bank's latest tender indicate conditions in the market for inter-bank lending are still far from normal.
Nigeria halts currency redenomination
The Central Bank of Nigeria has suspended its redenomination of the Naira at the request of the country's president, Alhaji Umaru Musa Yar'Adua.
Notes on surviving illiquidity
The Cleveland Federal Reserve Board has published a paper that examines crashes and recoveries in illiquid markets.
Government bond liquidity key - Swiss banker
"A liquid market for government bonds is a great advantage for the functioning of financial markets and for an efficient monetary policy," Swiss National Bank board member Thomas Jordan argued on Tuesday.