Central Banks
ECB paper proposes model for assessing European sovereign and bank spillovers
Working paper uses VAR model to quantify interdependencies between bank and sovereign CDS spreads
PBoC leaves banking sector sweating over liquidity squeeze
Tight credit conditions persist as the People’s Bank of China remains silent about liquidity injections into increasingly strained banking sector
ESRB issues macro-pru advice, as IMF warns over possible conflicts
European Systemic Risk Board recommends five ‘intermediate objectives' for macro-prudential policies in the EU; IMF paper warns of potential conflicts with micro-prudential measures
Central banks showing interest in renminbi assets, RBA article says
Article highlights continuing gradual move to liberalise trade in renminbi; notes many central banks have made Chinese investments, but says renminbi not yet an official reserve asset
Bangladesh governor targets stronger debt market
Atiur Rahman concerned by public and private sector reliance on bank funding, but says government should wait until after elections to issue first sovereign bond denominated in US dollars
UK's Royal Mint brings back golden guinea to mark 350th anniversary
New £2 coin designed in the style of the now disused guinea, featuring the crest of King George III; coin will enter circulation later this year
Fed's monetary policy deviates from best practice, says Bullard
Fed monetary policy has deviated from central bank best practice and should be used ‘to meet policy objectives, not calendar objectives', says St Louis Fed president
BoE's King says expectations less important than economic conditions
Bank of England governor says focus should be on creating the right economic conditions for normalising monetary policy rather than talking people through it
Bernanke plays down Jackson Hole importance
Kansas Fed's renowned symposium is a conference sponsored by just ‘one of the 12 reserve banks' says Bernanke, who declined to comment on his future following FOMC meeting
Hong Kong launches renminbi Hibor fixing
New offshore benchmark rates to be produced starting next week; HKMA to provide oversight and surveillance of contributing banks' internal systems to ensure 'integrity' of submissions
SNB reaffirms commitment to exchange rate limit
Thomas Jordan says Swiss economy continues to face 'major challenges'; Fritz Zurbrügg outlines efforts to control risks arising from the central bank's $475 billion foreign currency investments
Hungarian paper backs sticky price inflation indexes
Working paper analyses forecasting ability of different indicators of underlying inflation; finds sticky price indexes outperform more traditional core inflation measure
UK banks told to find £13.4 billion in extra capital
Bank of England’s PRA says Lloyds and RBS need to raise extra £10.2 billion; Osborne says government will ‘do what it can’ to return both banks to the private sector
RBNZ well prepared for anti-money laundering duties, says head of AML
Rob Edwards says both the Reserve Bank and the entities it will oversee are ready for a new anti-money laundering regime; outlines central bank’s approach to enforcement
IMF paper weighs effect of shifting bank funding in eastern Europe
Researchers from the International Monetary Fund find banks rebalancing their funding sources away from foreign loans; warns global regulation may make this process too rapid
Chinese banks may face shadow finance credit crisis, say rating agencies
Strong links between the regulated and unregulated credit sectors in China due to the use of wealth management products and lending to shadow banks pose a systemic threat to Chinese banks
Poloz seeks to reassure Canada's exporters
New Bank of Canada governor says inflation target remains ‘sacrosanct'; promises to help build business confidence through clear monetary policy
Reckless bankers should face jail, says UK parliamentary report
UK Parliamentary Commission on Banking Standards delivers raft of recommendations on how to cultivate better responsibility among bankers, banks and their regulators
Bank of England’s FPC needs expanding, says UK parliamentary review
Parliamentary Commission on Banking Standards delivers verdict on UK’s new regulatory architecture; recommends appointing additional external member to FPC to shift power away from bank insiders
Survey finds Lithuanians lack opportunities to use payment cards
Survey respondents would like to pay by card at places that currently do not accept them - but paying through mobile phones is still beyond the pale