Central Banks
G20 governors and governments put employment and growth centre stage
Meeting of G20 central bank governors and finance ministers make growth and jobs their top priority; monetary policy should ensure price stability and support economic recover within mandates
Gilt yields rose by 50bps across the yield curve in Q2, BoE report shows
The increase reflected in part a rise in sovereign bond yields across a number of developed countries
BoE publishes code of conduct for ‘local recycling' of cash
Code sets out banknote authentication standards for businesses that self-fill their ATMs or self-service check-outs using banknotes tended by members of the public
Irish central bank waives €5 million penalty but faces legal action of its own
Central Bank of Ireland hands failed insurance company a reprieve ‘in public interest’; now being taken to court by family of the company’s former owner
Czech paper examines interbank risk premium
Research finds counterparty and liquidity risk are ‘potentially significant determinants’ in the departure of interbank rates from key policy rates in Czech Republic
BoJ policy board member signals possibility of further measures
Takehiro Sato says the Bank of Japan could employ additional policy tools in its bid to double the monetary base; Abenomics gets public backing in parliamentary election
Eurozone core ‘regain net influence’ over bond markets, finds Irish paper
Technical paper examines spillovers in the eurozone’s sovereign debt markets; finds the impact of stressed countries on the wider region has diminished
PBoC removes lending rate floor
From tomorrow, Chinese banks will be able to price loans as low as they like - but in the short term the effect is unlikely to be felt as loans are generally priced above benchmark rate
‘Surplus' countries must act to help limit external imbalances, says BIS paper
BIS economist Philip Turner says external imbalances can threaten financial stability in creditor countries as well as in debtor countries; calls it ‘an important but unresolved issue of international monetary reform'
Counterfeit banknotes up in Eurosystem
ECB reveals 317,000 counterfeits discovered in first half of 2013; says this remains a ‘very low’ proportion of overall notes in circulation
NY Fed study says shadow banks are here to stay
Study says shadow banks will play a significant part in the future of the United States’ financial system; higher capital standards on banks will lead to increase in shadow activity
IMF user guide takes stock of current toolkit for systemic risk monitoring
Paper provides guidance on selecting and interpreting monitoring tools; a continuously updated inventory of key categories of tools; and suggestions on how to carry out systemic risk monitoring
ECB collateral move aims to cut ‘wrong-way risk' while boosting SME lending
Observers think incentivising of SME loan ABS could be precursor for an SME-targeted long-term refinancing operation
Robert Pringle's Viewpoint: Let the Fed lead
Implicit coordination of monetary policies under Fed leadership is better than none at all
EM central banks should take cue from ‘the best in the world', says RBI governor
Duvvuri Subbarao also highlights the historical differences in mandates between EM and advanced economy central banks
Bernanke dismisses talk of tightening
The Federal Reserve will continue to support the economy ‘for the foreseeable future’ regardless of when it slows the pace of asset purchases
IMF ‘cookbook' paper outlines basic recipe for macro-pru policy
The paper provide new evidence on the effectiveness of different policy instruments using survey data
ECB relaxes collateral rules to include more ABS
ECB changes rules on acceptable collateral to include asset-backed securities with two single A ratings; haircuts on ABS are also cut
People: NY Fed communications head resigns; Riksbank names acting financial stability chief
NY Fed's Krishna Guha leaves his position with immediate effect but will stay on as senior adviser until September; Martin Johansson will lead the Riksbank's financial stability department; and more
FSB issues guidance on resolution of ‘too big to fail' lenders
Recommendations include the availability of sufficient loss-absorbing capacity and enforcement of ‘bail-in' rules
US construction slides, despite good accounts in Fed’s Beige Book
The number of new housing projects started fell unexpectedly by almost 10% in June; Federal Reserve districts reported an increase in construction and real estate activity during period