Central Banks
Co-operation needed to avoid reduction in cross-border activity, says Canadian deputy
Timothy Lane says a reduction in cross-border activity only internalises the contagion risk; greater global co-operation needed to improve financial stability
RBI deputy wants to make banking a 'fundamental right'
Kamalesh Chandra Chakrabarty champions universal access to basic banking services; says banks’ cost structures are incompatible with the ideal
Buba’s Weidmann concerned by central bank politicisation
Bundesbank president says euro is not overvalued; finds Stiglitz comments on central bank independence 'concerning'
G-20 urged to address financial system flaws
Group of Thirty wants G-20 to act on conflicting financial services regulation, taxation and reporting rules; calls on Asian central banks to inject up to $4 trillion into diversified SWFs
Irish governor hopes SSM can avoid a 'nationalistic backlash'
Patrick Honohan sets out hopes and fears for a centralised regulator, warning incomplete implementation of banking union could result in 'divisive clashes'
Visco calls for powers to dismiss bank directors
Bank of Italy governor says the supervisory authority should have the power to remove senior management in banks from their posts
Eurosystem backs Barnier over Euribor submission
The Eurosystem supports Michel Barnier's desire for legal right to compel banks to participate in Euribor rate-setting; stresses need for private sector to lead rate overhaul
National Bank of Romania struggles to keep inflation on target
Romanian inflation remains outside target band despite negative output gap, with blame pointing to energy market developments among other factors
Bangladeshi governor hails central bank's "unorthodox developmental role"
Governor Rahman points to role of central bank in helping Bangladesh to meet millennium development goals
Dombret wary of conflicts between regulatory measures
Bundesbank executive board member Dombret urges the consistent and timely implementation of international regulation on a national level
Polish paper extolls benefits of probability forecasts
Research finds forecasting technique that seeks to quantify the uncertainty surrounding economists’ predictions has ‘rich interpretation possibilities’
National Bank of Kazakhstan’s SWF seeks new fund managers
Central bank issues tenders for two managers to oversee portfolios worth $50-150 million each
Banks could be forced into Euribor submission
European Commissioner Michel Barnier says banks could be compelled to take part in rate-setting process under new legislation
ECB 'conflict of interest' puts effective supervisory mechanism at risk
The European Parliament's rapporteur on the SSM fears a conflict of interest inherent in the ECB stands in the way of creating an SSM that is up to the task
Stein says Fed could deploy monetary policy to cool credit markets
Jeremy Stein says imperfect regulatory tools may require monetary and macro-prudential policies to work in tandem if credit markets overheat, but spotting trouble is not straightforward
Norwegian paper suggests alternative to ‘conclusion-based’ interest rate decisions
Research examines the stories behind interest rate decisions; reveals benefits to voting on contributing elements as opposed to final level
ECB's Cœuré argues integrating SSM in ECB has benefits for monetary policy
Executive board member sees benefits to monetary policy in bringing supervisory mechanism into the ECB
Czech researchers examine factors behind monetary transmission lags
Working paper synthesises 67 quantitative studies of lags in monetary policy transmission, finding that financial development increases lags, but results may be biased by study design
NY Fed paper highlights money market fund ‘stampede’ risk
Staff report finds intermediation by money market funds can turn unexpected withdrawals into runs, meaning a small shock can bring down the whole banking system
Carney champions flexible inflation target
Bank of England’s governor-designate welcomes debate on monetary policy framework but says he strongly favours flexible inflation targeting
Ireland passes emergency liquidity restructuring bill
Irish parliament passes bill to transform promissory notes into long-term sovereign bond, and wind up 'bad bank'
Draghi says markets should have final say on currency strength
ECB president re-affirms the central bank's independence; emphasises ‘accommodative' monetary policy, as governing council votes to hold rates again
HKMA shores up Hibor-setting mechanisms
Package of measures aims to improve the transparency and robustness of the benchmark rate; UK bank fined $612 million by US and UK regulators over Libor rigging
UK’s Adair Turner advocates stimulus by ‘helicopter money’
Chairman of the UK’s Financial Services Authority says there are circumstances where monetary financing of government deficits is justified, calling for more serious discussion of the topic