Central Banks
Danish central bank to cut workforce by 10%
National Bank of Denmark to lay off 55 employees as it adjusts to post-crisis environment and introduces new IT system that makes some jobs obsolete
Curaçao governor ‘baffled’ by bond market reluctance
Emsley Tromp extols the value of innovation in monetary policy, and expresses his bemusement at the region’s apprehension over the creation of a corporate bond market
RBI takes hawkish stance against inflation with another rate hike
Repo rate hike and MSF rate cut bring spread back to its normal level of 100 basis points; ‘material' risk of entrenched inflation could mean another hike is on the way, says DBS economist
Central Bank of UAE set to bolster ‘under-developed' local bond market
UAE has looked to economies with strong trade balances as role-models to help develop a domestic bond market; may issue government debt in the coming years
BoJ’s Iwata draws lessons from ‘Takahashi economic policy’
Current Bank of Japan deputy examines former governor and finance minister’s success in lifting Japan out of deflation in the 1930s; underlines importance of expectations, both past and present
Banque de France backs efforts to circumvent ratings agencies
Central bank gives scathing assessment of credit ratings agencies and supports Esma proposals to reduce reliance on ratings; Moody’s and S&P critical of the plans
Group of 30 calls for closer relationships between bank boards and supervisors
Report authored by a G-30 committee headed by Roger Farmer argues for a ‘new paradigm' in which bank boards and supervisors work more closely together towards their shared objectives
Canadian research finds drop in uncertainty following policy changes
Bank of Canada working paper presents evidence that uncertainty over interest rates in Canada fell after recent changes to monetary policy including forward guidance
ECB’s Asmussen backs ‘allocative’ fiscal union
Board member ‘sees a role’ for a European fiscal union in ensuring resources are allocated efficiently; suggests other forms of centralised budgeting are less useful
German researchers present indicator of interbank market stress
Bundesbank discussion paper says banks’ bidding behaviour in Eurosystem’s weekly refinancing operations reflect conditions in the interbank market
RBA paper supports CCP interoperability
Researchers weigh the benefits of increased netting across linked central counterparties against the potential costs arising from the bilateral exposures each link creates
NY Fed's Checki to retire; Minneapolis hires new head of research
New York Fed head of international affairs ends 46-year tenure, while acting communications head wins permanent post; Minneapolis Fed names new research director
State Bank of Vietnam taps Thomson Reuters for FX monitoring system
Vietnam's central bank takes a step forward in increasing transparency and reporting in its foreign exchange market
A new and explicit policy on liquidity provision
The Bank of England's new rules on liquidity provision reflect much closer regulation of banks' liquidity policies and a desire to avoid the mistakes of the crisis
Hedge funds caused post-Lehman liquidity crisis, research finds
Staff report from the New York Fed argues the evidence points to hedge funds, rather than dealers, precipitating the post-Lehman liquidity crisis - with implications for rules on prop trading
Bank of Thailand lowers growth and inflation forecasts
Central bank says Thailand’s rising debt burden and falling consumer confidence are holding back domestic demand, which in turn is slowing the pace of growth and inflation
External balance-sheet structure key in explaining the financial crisis
High gross external debt was indicator of subsequent vulnerability, according to BoE paper; finds ‘important interaction' between 'competing ‘savings glut' and ‘banking glut' hypotheses
Portuguese paper presents macroeconomic model for small economies
Researchers at the Bank of Portugal detail the features and applications of the Portuguese Economy Structural Small Open Analytical (Pessoa) model, which they say is useful for small economies in monetary union
RBA and government set out rules of engagement
Update to ‘statement on the conduct of monetary policy' says Australian government recognises the Reserve Bank's need for a strong balance sheet; RBA will pay no dividend to the government this year
Fed targets tougher LCR for US banks
Federal Reserve proposes a liquidity coverage ratio for country’s largest financial institutions that goes above and beyond the Basel III minimums
Demoted Myanmar governor ‘allowed' to quit central bank
Former governor was replaced in July by his predecessor, and made one of three vice-governors; he has now been ‘allowed to resign of his own volition', according to the presidency
Carney says BoE 'open for business' ahead of QE wind-down
Extra money for more types of collateral to be made available over longer tenors and at cheaper prices, in a bid to prepare UK banks for the end of QE; facilities could also be opened to non-banks
PMA attributes inflation disparity to Egyptian smuggling
The Palestine Monetary Authority blames the divergence between inflation in the West Bank and the Gaza Strip partly on the cheap goods being smuggled into Gaza from Egypt
Cyprus governor hits back over reports of bank re-cap ‘success fee'
Panicos Demetriades says fresh reports refer to confidential documents that have been unlawfully leaked; says central bank will not pay fees based on size of failed banks' recapitalisations