Central Banks
Cross-border banking contraction broadens – BIS statistics
Latest cross-border banking statistics show drop in cross-border claims spread in Q4 2015 from emerging markets to broader regions; China sees particularly large drops in lending
JMW Turner to appear on new £20 banknote
Painter chosen from 590 British visual artists to adorn new polymer £20 note, after lengthy selection process; note scheduled to enter circulation by 2020
FinCoNet offers regulators chance to advance financial consumer protection – chairman
The association of national financial consumer protection agencies has made progress in supporting reform, but has considerable work ahead, chairman Sheridan says
Fed liftoff pushed some rates down – Riksbank paper
Researchers find hike in policy rate lowered average interest rates on subprime lending, and narrowed spreads with the less risky section of the market, using novel "scraped" data set
BoJ sees operational issues dampen negative rate effect
Financial system report says combination of negative rates and QQE is helping push rates lower and prompting portfolio rebalancing, but “several factors” are holding the effects back
MAS director hails work on natural catastrophe data
Bernard Wee introduces Natural Catastrophe Data Analytics Exchange, aimed at remedying “gappy” expertise in the region
Ukraine unifies main rate while easing policy
Ukraine’s central bank moves to “streamline” operational framework, while adopting an easier stance in the face of falling inflation
SBP’s Aziz sees renminbi gaining ground in global reserves
Pakistan’s reserves head sees potential for Chinese renminbi to muscle in on the euro and yen’s territory in global reserves, on account of negative interest rates
Riksbank extends QE as inflation remains ‘fitful’
Central bank not yet comfortable inflation will return reliably to target, though it is forecasting CPI to be close to target in two years’ time
ECB paper models influence of financial fragmentation on eurozone crisis
Working paper published by ECB models the influence of financial fragmentation on three key stages in the eurozone crisis
Draghi warns criticism of monetary policy may delay recovery
Mario Draghi says some politicians' criticisms of ECB policy might delay eurozone recovery; says easing policies are working but need time to bring about recovery
Conditions for lifting capital controls ‘could hardly be better' – Guðmundsson
Central Bank of Iceland governor says it is important to press ahead with liberalisation while the economy is strong and financial system stable, in latest financial stability report
Carney speaks of ‘new’ financial system to support sustainable finance
Bank of England governor launches FAIR initiative; FSB members developing more ‘effective’ macro-prudential policies to support system
Troubled Kenyan bank to reopen under new management
Chase Bank will be managed by Kenya Commercial Bank, which may go on to acquire majority stake; questions raised over pressures on small and mid-sized banks
Women feature heavily on new US dollar designs
Final designs to be announced in 2020, Treasury secretary announces; while security features are yet to be announced, multiple historic female figures will be incorporated into designs
Basel Committee opts for local discretion on rate risk
Committee abandons attempt to create common global standard for interest rate risk, opting instead to leave discretion with banks and supervisors in final standards
New Turkish governor presides over cut at first meeting
Monetary easing remains the order of the day at the Turkish central bank, as MPC lowers ceiling of rate corridor in Murat Çetinkaya’s first week in office
Parliament gains influence in FCA chief appointments
George Osborne says Treasury Select Committee will be able to scrutinise future appointments before they are formalised, with the ability to send them to the House of Commons for a vote
Swedish regulator takes second stab at amortisation rule
Macro-prudential regulator unveils plans for mandatory amortisation similar to those struck down by the Swedish judiciary in 2015
RBI deputy outlines ‘key tasks’ for market development
Harun Khan lays out the main areas of work in broadening financial markets, including efforts to improve liquidity and access and improving central bank communication around debt management
Australian governor Stevens sees more viable options than helicopter money
Reserve Bank of Australia governor identifies a host of practical issues to helicopter money, and says there is more governments can be doing before then
Research digs into disagreement about inflation expectations
Paper published by Reserve Bank of Australia examines how the disagreement within stakeholder groups about inflation expectations has evolved
Brazil and Paraguay near local currency payment system
Cross-border system could account for 5% of all trade between the countries; importers and exporters can use own currencies
Carney stresses bank resilience in face of large shocks
UK banks display resilience when threatened with Brexit-like shock, stress tests show; London "unlikely" to retain global financial centre status if Britain leaves EU, Carney says