Central Banks
Asset managers becoming key drivers of policy transmission – BIS research
Asset managers in the eurodollar futures market play a role in helping, or hindering, the transmission of policy, and have begun to respond more to Fed announcements than the macroeconomy
People: Debelle becomes RBA deputy governor
Foreign exchange expert becomes deputy governor of RBA; Mongolia appoints deputy governor
Central Bank of Bahrain looks to establish stronger sharia governance
Formal framework specifies governance structures banks must put in place if they are to be licensed as Islamic, in an attempt to establish best practice
Annual inflation climbs to 8.6% in Q2, Colombian inflation report reveals
Inflation set to decline closer to 3% target in second half of 2016; contingent on adjustment in food prices among other factors
RBA launches first banknote with edge-to-edge window
Twelve-year project cost the bank $37 million; new series to feature pioneering security elements and is the first to trial tactile features for the visually impaired
Australia’s Future Fund doubles its money
Sovereign wealth fund is now twice the size of its initial endowment, driven in part by alternative investments and private equity; warns future returns likely to be lower
Kenyan parliament amends central bank’s regulation powers
Bill requires central bank to take decisions to place commercial banks into receivership “in consultation” with a senior bureaucrat at the country’s finance ministry
Working paper examines interactions between credit defaults and monetary policy
Countercyclical capital buffers can lessen macroeconomic fluctuations but increase the length of slumps, author argues; bank recapitalisation “overcomes this trade-off”
‘More market pressure’ on institutions to compete on safety, says RBNZ’s Fiennes
There is no government guarantee, says Fiennes; boards and managers are responsible for managing risks
BIS survey points to turnaround in global forex volumes
Latest survey suggests more than a decade of growth may have come to an end, as data points to a restructuring away from spot trades towards derivatives
Emerging evidence can guide design of macro-prudential policies, say BIS, IMF and FSB
International institutions present review of evidence on macro-prudential policies; no consensus but some patterns are emerging
Mozambique replaces governor Gove with IMF official
Ernesto Gove leaves central bank after a decade in the role; new governor to leave role as head of IMF mission to Djibouti and Somalia
RBI annual report shows both income and expenditure on the rise
Staff costs and transaction fees drove rise in overall costs in 2015–16, although these were balanced by higher income; staff numbers on the decline
IMF praises Argentina’s new statistical rigour
Fund pleased with progress made reforming statistics but there is still work to be done; IMF willing to provide “technical assistance”
Countries’ capital flows differ substantially since financial crisis – ECB paper
Macro-prudential policies could be a long-term impediment to capital flows, according to the authors of an ECB paper
Slovenian central bank appeals against court decision on advisory committee disclosure
Dispute is the latest clash between Slovenian legal authorities and the central bank over an inquiry into the country’s 2013 banking sector bail-out; move follows July police raid
Praet warns against creating ‘trade-off’ between monetary and financial stability
Senior ECB economist defends eurozone monetary policy against charges of being too concerned with short-term objectives
Rajan tells regulators: do not be afraid of innovation
Regulators should not ban innovation in order to be safer, outgoing RBI governor says; innovation needs support to encourage its “appealing features”
FSB sees limited evidence of regulatory side-effects
Global financial reforms appear not to have had a significant impact on market liquidity or emerging markets, and have helped prevent the global system from fragmenting, authority says
Bank Indonesia launches training and research institute
Central bank establishes a new centre for research and staff training, with the hope of building expertise and boosting credibility
Second half of global FX code to be circulated in October – Debelle
“Significant progress” has been made drafting the second phase, says RBA assistant governor; market participants will be able to comment on draft proposals and provide feedback
Nepal employing varied approaches to financial inclusion – governor
Bank has developed a number of models to make financial services affordable; other initiatives have included interest-free loans to those in rural areas
Ukrainian central bank complains of failure to prosecute banking offences
Deputy governor criticises failure to bring “high-profile” court cases against suspected financial criminals; IMF has yet to announce whether it will disburse next tranche of aid
US credit constraints heighten global propagation of financial shocks, researchers argue
Normal credit conditions in domestic US economy greatly lessen the global impact of American financial shocks, a European Central Bank paper argues