Central Banks
Finance sector balance sheets vital for monetary policy transmission, IMF paper shows
Balance sheet effects are comparable in magnitude to the traditional interest rate channel in transmitting monetary policy, say IMF researchers
ECB commits to keep interest rates down
Governing council says interest rate will remain at or below 0.5% for an ‘extended period of time’ despite previously refusing to pre-commit monetary policy
No CVA exemptions in US Basel III rules
Europe isolated as US regulators opt for broad counterparty risk charge
RBA governor optimistic economy can negotiate end of investment boom
Glenn Stevens says the Australian economy is facing ‘interesting times' but the right mix of prudent policies and frameworks can give the country ‘confidence for the future'
People: Senior roles filled at the EBA; Atlanta Fed appoints new HR head
The European Banking Authority has elected Portugal's Pedro Duarte Neves to the role of alternate chairperson; Atlanta Fed promotes Blake Lyons, who will also advise the bank's management committee
Sweden's Riksbank holds rates, but new deputy dissents
Ingves suggests the possibility of another increase in mortgage risk-weights after they were raised to a minimum of 15% in April; Riksbank estimates consumer price inflation to remain at 1% in 2013
Bundesbank’s Nagel says internationalisation of renminbi is ‘long overdue’
Executive board member says that renminbi is now established as a trading currency – the first step towards becoming a global reserve currency
Carney prioritises 'women on banknotes' issue
New Bank of England governor says issue of present and future female representation on banknotes is under discussion; pledges further public announcement by end of July
Portuguese paper questions efficacy of fiscal policy at zero lower bound
Working paper finds that government and private consumption are substitutes when the nominal interest rate is at the zero lower bound; this reduces impact of fiscal policy on output by a third
Fed board member highlights 'especially daunting' challenge of cross-border bank resolution
Jerome Powell says new American approach could serve as a 'simplifier – making theoretically possible something that seemed impossibly complex'
Iceland central bank closes last vault outside of Reykjavik
Vault closure is the culmination of a 10-year review of the bank's role in distributing banknotes around the sparsely populated island nation
Federal Reserve adopts Basel III for US banks
Fed Board unanimously votes to introduce new capital requirements as of January 1; Daniel Tarullo says additional measures will follow including proposals for a higher leverage ratio
ECB paper aims to quantify effect of ‘inertia' in reserve currency use
Researchers say dollar's position as the dominant reserve currency is not insurmountable - but force of habit plays a significant role
BoE's Tucker wants immediate 3% leverage ratio in UK
BoE deputy governor Paul Tucker calls for 3% leverage ratio to be imposed immediately on UK banks; says banking crisis has taken capacity out of financial system
Bank Negara Malaysia seeks to limit superfluous supply of banknotes
Central bank prints 500 million new banknotes for celebrations at the end of Ramadan each year; urges public to accept high-quality recycled notes in their stead
New York Fed's Dudley says ‘much more' to be done to ensure financial stability
Central bankers and regulators must remain vigilant for ‘symptoms of instability', says Dudley, who admits the task of ‘securing financial stability will never be truly complete'
Chile central bank warns of volatility on US QE withdrawal
Latest monetary policy and financial stability reports say economy and banks remain on the right track, but ‘tapering' from the US Fed could cause volatility in the Chilean financial markets
Israeli paper examines price-setting behaviour
Research finds that consumer prices in Israel are ‘moderately sticky’ and only change every 6 to 9 months; finds inflation expectations impact pricing behaviour more than actual inflation
Mark Carney era underway at Bank of England
Expectations are high the new Bank of England governor will introduce forward guidance; academics point out he will first need to win over a divided MPC