Central Banks
Euro architect says ECB has ‘destroyed’ market discipline in Europe
Otmar Issing, the man who designed the operational framework for the euro, says failures by European politicians and the ECB mean “all the elements” are in place to bring “disaster” to the monetary union
Further policy easing will be required – RBNZ assistant governor
Another rate cut on the cards despite improved inflation outlook, says McDermott, emphasising need for accommodative monetary policy to push inflation to middle of target range
Coen seeks to quell European fears on Basel III
European parliament members accuse Basel Committee of favouring US over European banks; William Coen says “Basel process” is transparent and not dominated by any one interest
‘Unlikely’ London’s financial hub will move to Europe – BoE’s Cunliffe
BoE deputy says London’s “complex financial ecosystem” is not easily transplanted; warns moving euro clearing system across channel would increase costs
Belgian paper studies work of pioneer of regional economics
Robert Triffin was the “architect” of the European Payments Union
Singaporean and Swiss regulators move against merchant bank in 1MDB scandal
Senior management pressured staff to ignore anti-money-laundering regulations, reports say
BoE paper tackles ‘sectoral co-movement puzzle’
Adding labour market frictions and habit formation helps to solve the problem of models implying a monetary contraction produces little response in output
Review proposes reforms to Riksbank research
External team recommends restructuring department, increasing its involvement with policy and boosting output – though it says Riksbank research is already “successful”
BoE’s new MPC member suggests tweaks to policy approach
Michael Saunders says models that assume pre-crisis level for equilibrium unemployment may be misleading; new FPC member grilled on other commitments in the US
Netherlands Bank to move gold and banknote operations out of Amsterdam by 2022
Highly secure location will house anti-counterfeiting and sustainable banknote operations
Yield curve control risks are manageable – Kuroda
BoJ governor says he shares concerns raised by Ben Bernanke, but believes the central bank will be able to cope with them
Benefits to inflation overshooting target – Chicago Fed president
Policy-makers “willing to accept” inflationary risk that comes with falling unemployment if Fed overshoots target, Evans says
State Bank of Pakistan spends $1.2 million on department move
Banking subsidiary to move five of its operations to the northern and central provinces; move will help “streamline” operations, spokesperson says
Greater role for capital markets would not necessarily harm policy transmission – ECB’s Praet
A ‘range of common factors’ is affecting both banks and non-banks, ECB chief economist says
Top US and EU officials hold resolution war game
US, UK and eurozone central bankers, regulators and politicians participate in an exercise designed to improve the co-ordination of cross-border resolution
Targets key tool in reducing NPL levels, Irish deputy governor says
Banks can be unwilling to start sustainable NPL restructuring, Donnery says; repeats call for reform of European restructuring processes
Emerging markets primed for Fed rate hike, central bank panel says
Emerging market central bankers say improved communication from the Fed has helped them to prepare for future normalisation; central banks have adopted a range of policies to absorb forex shocks
Policy-makers need to be aware of the distributional impact of policies – Carstens
Hunt for growth needs to accommodate all, says Bank of Mexico governor; Carstens advocates a "three-pronged approach"
BoE paper tests agent-based model of macro-prudential policy
Researchers use agent-based model to capture diversity of behaviour between different housing market participants, pointing to risks from larger buy-to-let sector
IFRS 9 deadline looms
The successful implementation of new accounting rules for financial instruments requires urgent attention and leadership from frontline departments. It should not be left solely to the accountants
Danish governor attacks prime minister’s property tax proposals
Policy will risk further inflating the housing bubble, Rohde says
Carney dismisses claim PM attacked BoE’s independence
BoE governor dismisses claims UK prime minister Theresa May attacked bank’s independence; Eurosceptic MP calls for government to be more critical of the central bank
Learning errors slow recovery from financial crises – paper
Researchers examine information rigidity in financial markets and incorporate the learning behaviour of investors into a DSGE model
BoE investigates 6% plunge in sterling
Bank of England to investigate a 'flash crash' in sterling during overnight trading; traders believe it was not a ‘fat finger’ error