Central Banks
US Treasury slashes forecast for cost of Tarp
US Treasury estimates cost of government bailout at $30 billion, less than a tenth of original forecast
Brussels crafts principles for bank account access
European Commission consults on principles to ground law granting universal access to basic bank accounts; 6% of adults do not have a bank account
Anglo bailout prompts Ireland downgrade
Fitch knocks Irish debt one notch; says higher bailout cost will impair fiscal consolidation plans
Japan edges towards zero bound
Bank of Japan cuts benchmark rate to 0% to 0.1% range, announces further stimulus
RBI names working group to review key open market operations
Reserve Bank of India names working group members assessing liquidity adjustment facility; six out of ten from central bank
NY Fed’s Sack on FOMC’s policy shift
New York Federal Reserve executive vice president Brian Sack said further measures represent meaningful shift in balance sheet path
IMF: Gulf bank balance sheets severely impaired by economic downturn
Fund study finds link between economic conditions in Gulf states and banks’ nonperforming loans in region
Basel Committee demands more rigorous governance standards
Basel Committee on Banking Supervision issues new corporate governance principles for banks; calls for independent chief risk officer
Paper problems delay release of new $100 note
Federal Reserve says sporadic creasing of paper on new banknote will setback release of new $100 bill
Swiss to make UBS and Credit Suisse pay for systemic status
Swiss commission proposal beefs up Basel III for Credit Suisse and UBS with 19% capital requirement and other measures to tackle 'too big to fail' problem
Bank of Spain's Roldán highlights Basel III flaws
Basel III’s architecture, hybrid capital and liquidity buffers among potential pitfalls; views shared by BaFin's Sanio
BaFin's Sanio: no fix for cross-border failure
Jochen Sanio says supervisors nowhere near to solving “key issue” highlighted by crisis; flags lack of communication on Lehman Brothers
González-Páramo: macroprudential policy implementation a work in progress
European Central Bank executive board member José Manuel González-Páramo says policymakers must understand full effects of macroprudential policies
Australian banks demonstrate resilience says RBA
Reserve Bank of Australia Financial Stability Review shows improvement in banking sector as bank profitability returns to pre-crisis levels
IMF: low income countries lack proper monetary policy framework
Fund study shows monetary transmission mechanism in low-income countries is less effective due to institutional deficiencies
Senate confirms two out of three Fed directors
Last-minute deal seats Yellen and Raskin, Diamond turned down
Basel II grievances stir transatlantic tensions on new accord
BNP Paribas chairman Michel Pébereau slams United States’ failure to implement Basel II across the board; says Basel III will unfairly impair Europe
Weber, Blankfein praise Basel III leverage cap
Bundesbank president Axel Weber and Goldman Sachs chairman Lloyd Blankfein laud Basel III’s inclusion of leverage ratio, as opposition mounts
OECD reappoints Gurría as secretary-general
Angel Gurría commits to second term as secretary-general at Organisation for Economic Cooperation and Development
Hungary’s Simor asks for independence to be written in statute: reports
National Bank of Hungary governor András Simor reportedly asks lawmakers to put central bank independence in constitution as controversial pay cut takes effect
ESRB big leap for Europe: Trichet
European Central Bank president Jean-Claude Trichet says launch of European Systemic Risk Board indicates significant progress in regulatory architecture
Fisher: Bank special liquidity scheme will not be extended
Bank of England executive director of markets Paul Fisher says government bond swap facility will expire in 2012
BoE: stress tests tightened credit conditions
Bank of England’s survey on credit conditions shows lenders thought the availability of funds tightened in response to European stress tests
IMF on link between collateralised borrowing and systemic risk
Fund study says rapid declines in the value of bank collateral can cause systemic risks