Central Banks
UBS prepares to buy ‘bad bank' assets back from SNB
StabFund effectively cut UBS's exposure to troubled credit markets in the US and Europe by buying up the bank's illiquid securities for $38.7 billion using funds largely borrowed from the central bank
RBA to provide A$300 billion for committed liquidity facility
RBA contribution will ‘not materially impact' its balance sheet, says deputy Debelle; banks will pay a penalty rate to access the CLF, which will help them meet Basel III liquidity requirements
Canadian quarterly review outlines toolkit for analysing current economic performance
Summer 2013 edition of the BoC's review contains four articles outlining the bank's latest thinking and methods of analysing current economic trends at home and abroad
ECB paper finds capital controls can increase stock price volatility
Research paper finds that a tax on capital inflows can stabilise currency markets, but amplify shocks in single-country stock markets
Norwegian SWF far too exposed to OECD nations, report finds
NCA/Re-Define report calls for 20% of Norway's GPF foreign assets to be allocated to development finance, as Peterson Institute again gives fund top marks for transparency and accountability
Bullard warns weak inflation may put brakes on QE tapering
Inflation may be pushed even lower by a decision to taper, raising risks of deflation, the St Louis Fed president notes; calls for press conference after each FOMC meeting
SNB currency action leaves big imprint on Swiss balance of payments
Reserve assets at the SNB increased by Sfr175 billion in 2012 – nearly a fourfold increase from 2011 – reflecting efforts to keep the franc at a sustainable level
Bank Negara Malaysia looks to co-operatives to boost financial inclusion
Central bank sets out framework for assessing whether a co-operative is governed well enough to accept deposits from non-members and extend finance to the ‘underserved’
Georgian and Armenian central banks face different sides of inflation coin
National Bank of Georgia continues easing cycle as deflation returns; Central Bank of Armenia raises rates to combat sharp increase in inflation
Fed researchers find effects of QE ‘minimal' without guidance on rates
Paper by senior economists from the New York and San Francisco Feds argues that signalling a rate rise will be far more meaningful than communication on when asset purchases might come to an end
RBI cuts overseas investment limit by three quarters
Reserve Bank of India unveils latest measure to halt the fall in the rupee's value - only days after announcing ‘open-ended' sales of short-term debt; issues clarifications on gold import restrictions
BIS paper weighs up early-warning indicators
Working paper examines which indicators are most effective at foreshadowing banking crises; uses a new statistical method based on particular policy requirements
Kenyan governor urges bond market reform
Njuguna Ndung’u calls for a wider trading platform in the secondary market to incorporate OTC products; criticises the ‘slow pace’ of reforms so far
Volcker rule in its ‘purest form' necessary to curb derivatives speculation
Under pressure from banks and hedge funds, the definition of ‘hedging' in the final Volcker rule could be so broad as to allow unchecked speculation dressed up as hedging, Vembar Ranganathan argues
Eastern Caribbean Central Bank takes over Anguilla’s largest two banks
ECCB steps in as banks’ capital positions deteriorate; Anguilla’s chief minister looks to the UK government for public and private investment in wider economy
Venezuela central bank head replaced amid corruption claims
President Maduro appoints head of the currency exchange board, Eudomar Tovar, to lead the CBV; Edmée Betancourt is sacked three months after moving from the scandal-plagued development bank
Atlanta Fed president calls for QE caution
Dennis Lockhart urges the FOMC to scale back the Fed’s asset purchases in a flexible manner; believes any initial reduction should be seen as a ‘cautious first step’
Bofit paper says depositor sensitivity to market rumours increased in crisis
Bank of Finland discussion paper analyses market discipline in Central European countries; finds depositors were increasingly influenced by market rumours during the financial crisis
BoE’s Weale votes against forward guidance
Martin Weale votes against guidance out of concern for medium-term inflation expectations, while MPC members remain divided over the prospect of more QE
Monetary policy and macro-prudential measures can make a ‘vicious circle'
Central banks must assess the risks of monetary and macro-prudential policies pulling in opposite directions and creating adverse outcomes, says former BoJ deputy director-general
RBA expects co-ordination over international clearing mandates
The Reserve Bank of Australia’s Jenny Hancock says move to mandate clearing of G-4 currencies still allows market participant flexibility; stresses importance of international co-ordination