Central Banks
Banknote counterfeit threat carries significant social costs, paper finds
Bank of Canada working paper shows central banks are right to ‘actively respond' to the threat of counterfeiting despite the small incidence of fraud, due to the social costs of the perceived threat
Inflation-targeting central banks respond to movements in the Fed funds rate, new research shows
A CPI inflation-based Taylor rule can implement flexible price allocation under some specific circumstances, authors say
IMF's Lagarde supports negative rates in eurozone
IMF Article IV for the eurozone backs Draghi promise to keep rates low and says negative rates would support demand and ward off deflation; ECB chief concerned that financial transactions tax will hurt monetary policy efficacy
ECB researchers find evidence for ‘bank liquidity risk channel' for monetary policy
Non-standard policy at the ECB and the Fed has lowered bank funding volatility and increased the supply of loans, acting as an additional channel of monetary policy transmission
Central Bank of Egypt seeks help at home and abroad to shore up currency reserves
CBE governor wins $3bn in grant and interest-free loans from the UAE; bank launches ‘Egypt support' fund amid political unrest
Challenges remain despite 'calmed' markets, says National Bank of Austria
Financial stability report published on Monday shows Austrian growth stalled in the second quarter of 2012 following a concurrent decline in demand for bank loans and a tightening of credit standards
Renminbi convertibility remains top of Chinese reform agenda – HSBC
Chinese authorities interested in ‘quality’ rather than ‘quantity’ of renminbi growth; expected to push through reforms to achieve convertibility in 2015, says senior HSBC executive
Cœuré says banking union vital to avoid a ‘lost decade' in Europe
Europe must act to break the sovereign-bank nexus and deal with zombie banks if it is to avoid a Japan-style decade of stagnant growth; backs ECB monetary policy to work toward this objective
Euro bank lending conditions were ‘softened’ ahead of crisis, ECB paper shows
Authors also found evidence of excessive risk-taking for mortgages loans
No ‘credit crunch' in the Middle East after Basel I, IMF paper finds
Despite higher capital adequacy ratios, banks expanded credit and asset growth, according to new research
Central Bank of Turkey in aggressive move to defend lira
Central bank sells between $1.5bn and $2.5bn worth of foreign exchange, its highest ever amount in one day, in an effort to halt a slide in the value of the lira
Bank Russia to become ‘mega-regulator' with mandate for growth
New law set to be enacted in September will hand the central bank responsibility for almost all of Russia's financial system, and give monetary policy a broader mandate to support ‘sustainable growth'
Basel Committee finds ‘considerable variation' in bank risk-weights
Variation in bank risk-weights 'driven by diversity in bank and supervisory practices', says Basel Committee as it also moves to strengthen oversight of investments in equity funds
Euro's international role hampered by continued fragmentation
ECB study finds reserve manager confidence in the euro is recovering, but a leading fund manager says the euro cannot challenge the pre-eminence of the dollar without issuing federal bonds
Asian central bank FX reserves not properly recognised by rating agencies, says Sheng
CBRC adviser and former Hong Kong SFC chief Andrew Sheng points to inconsistent approach in sovereign debt ratings; doubts international crisis co-ordination is possible
Eurozone’s unique policy framework creates communication confusion, ECB paper shows
Political communication has a quantifiable effect on sovereign bond spreads – at least in the short term, authors argue
Central Bank of Cyprus ‘moving in direction’ of more active board
David Lascelles says interim report on Cypriot banking sector has been well-received; hopes parliament will sanction a ‘more democratic’ board
Carney's BoE shifts towards forward guidance on rates
Bank of England holds monetary policy steady, telling markets that expectations of rate rises have been premature; formal forward guidance is expected at the August meeting
RBA deputy says public sector must stand ready to save banks in a time of crisis
Philip Lowe said it would be a mistake to reject the idea of using public balance sheet during a period of financial stress or crisis
Lithuanian governor lays out economic priorities for Council of EU
Vitas Vasiliauskas says European policy-makers have proven they are ‘ambitious architects’ but must now demonstrate they are ‘good constructors’
IMF paper highlights weak monetary transmission mechanism in Vietnam
Vietnam has suffered from higher inflation than other Asian economies over the past five years – despite comparable growth rates