Central Banks
Central Bank of Ireland diverges from Basel III on AFS bonds
Irish bank capital numbers would filter out unrealised gains and losses on government bonds
Bank of Mongolia should brace for impact of runaway growth, says IMF
Article IV consultation concludes central bank has negotiated a number of hazards successfully, but says it must shore up its defences as the economy shows signs of overheating
NPLs hold back Serbian banks as economic imbalances remain, says central bank
National Bank of Serbia financial stability report warns change in the behavioural pattern of European banks; says Fed taper could bridle domestic credit and economic growth in the medium term
IMF’s Blanchard flags ‘yet another transition’ as emerging markets struggle
IMF chief economist admits emerging market economies have performed worse than expected; calls for central banks to focus on credibility and dismisses US default as a ‘tail risk’ event
BBA chair says European deposit guarantee scheme raises concerns about moral hazard
Nigel Wicks says single resolution mechanism ‘immensely complicated' and in need of treaty change while European deposit protection raises moral hazard issues; argues healthy eurozone is in UK's interest to maintain financial sector's 'critical mass'
Netherlands Bank says ECB’s asset quality review necessary to restore market confidence
Dutch central bank says lack of market confidence is making it difficult for European banks to build stronger balance sheets, and that the ECB’s asset quality review will help address this
Bundesbank paper presents redesigned DSGE model to tackle unconventional policies
Researchers develop DSGE model using two types of banks, repos and haircuts to yield a better understanding of unconventional monetary policy
BoE's Tucker wants more robust CCP governance
Bank of England deputy governor Paul Tucker raises concerns over the size and for-profit nature of CCPs; says stress tests not possible until loss allocation work is finalised
Malaysia’s Ibrahim tells Asian banks to be more data-savvy
Bank Negara deputy governor outlines changes that are sweeping the region’s financial markets; says banks need to do a better job of embracing technology if they are to keep up
Japan’s ministry of finance issues inflation-indexed JGBs after five-year absence
First linker issuance in Japan since 2009 is 3.7 times oversubscribed but success of future auctions will depend on the Bank of Japan’s ability to deliver 2% inflation
Robert Pringle’s Viewpoint: ECB needs to play ‘chicken’ to force reform of Europe’s banks
The ECB won a game of brinkmanship with governments to secure the establishment of the bail-out fund. It needs to use the same tactic with three clear elements to force through bank reform
European finance sector needs complete overhaul, says ECB's Praet
Executive board member says Europe's financial sector must be overhauled in 'its entirety' not through ‘selective mending'; warns of Japanese-style zombie banks undercutting return to growth
Norges Bank handed advisory role on macro-prudential policy
Norwegian central bank will advise the ministry of finance on whether it should impose a countercyclical capital buffer and, if so, what size it should be
BoE prepares to implement Banking Standards recommendations
Response to final report of the UK’s Parliamentary Commission on Banking Standards endorses the majority of the findings, although many points require further consultation
Fed's Stein seeks right regulatory mix on fire-sales for SFTs
Fed governor Jeremy Stein calls for new mix of rules to ensure ‘fire sale’ of securities financing transactions work at the system-wide level
IMF paper says ECB can do more to fix broken transmission mechanism
Working paper identifies credit channel as a major malfunctioning component of the eurozone monetary transmission mechanism and suggests possibilities for fixing it - including asset purchases
Canadian bonds more normal than US and UK equivalents at ZLB
Canadian sovereign debt yields are more responsive to shocks than UK and US equivalents at zero lower bound; differences diminish at shorter maturities
IMF tells Turkey to fix flawed monetary policy framework
Article IV mission calls on central bank to ‘re-consider’ its policy framework, accusing policy-makers of targeting too many objectives and consequently failing to control inflation
Kocherlakota urges Fed to do ‘whatever it takes’ to boost labour market
Persistently low inflation means the Federal Reserve can throw all its resources behind the fledgling labour market recovery, according to the Minneapolis Fed president
ECB's Cœuré backs committed liquidity facility
European Central Bank executive board member suggests a committed liquidity facility could help remove incentives for regulatory arbitrage in the Eurosystem
Dollar lending in East Asia can override local monetary policy, says BIS' McCauley
Paper by Robert McCauley and Dong He of the HKMA argues the growth of credit in foreign currencies, especially the dollar, transmits global monetary easing to East Asia