Central Banks
BoE researchers flag potential flaws in CCP default funds
Paper asks whether ‘cover two’ standard for central counterparties is tough enough to prevent ‘disaster’; some distributions of risk give cause for concern
Bank of Mexico’s Sánchez considers EM response to tighter Fed policy
Deputy governor says emerging markets will need to contend with the end of the ‘financial bonanza’ that surfaced in the wake of the crisis, and must consolidate
RBNZ’s Wheeler highlights the many unknowns of financial linkages
Governor says our understanding of the ‘empirical links’ of exchange rates and cross-border financial flows remains limited
ECB will release bank health check results on Sunday
The European Central Bank will publish the asset quality review and stress test results for 130 eurozone banks this weekend. Here, Central Banking set outs what to look for.
China, India, among founders of Asian Infrastructure Investment Bank
Twenty-one Asian countries establish a new institution to aid infrastructure development in the region, which will be fully operational by the end of 2015
Fed issues tougher and broader 2015 stress tests
Severely adverse scenario adds oil price shock and wider corporate bond spreads; list of stress-tested institutions grows
Bank of England spells out resolution plans
Central bank details its approach to resolving a failed financial institution, including the use of bail-in, restructuring and international cooperation with other regulators
Central Bank of Iraq updates 5,000 and 25,000 dinar banknotes
The central bank says the new banknotes will coexist with their predecessors; most notable change sees addition of transparent window on 25,000 note
Uruguay digitises cheque clearing in payments overhaul
Central bank announces that all cheques will be cleared electronically – part of a payment system reform that will see the promotion of mobile banking
Rajan overruled external members’ call for rate cut in September
External members on RBI’s technical advisory committee see the case for easing, and the majority voted for a rate cut in September; deputy governor portfolios shaken up
BIS paper finds liquidity regulation need not harm lending
Evidence from the UK implies banks reduced their interconnectedness, but did not cut lending to the real economy in response to tighter liquidity regulations in 2010
Broadbent: Neutral real rates will stay low for ‘some time’
Bank of England deputy governor Ben Broadbent expects neutral real rates of interest to rise ‘eventually’, but expects them to remain low ‘for some time yet’
Paraguay’s central bank president calls for new powers
Carlos Fernández Valdovinos says the national law needs to be updated, in a manner that allows the regulator to adapt quickly in the face of emerging risks
IMF paper sees EU inflation expectations holding firm
Working paper says low core inflation in eurozone has had ‘significant’ impact on the rest of the region, though the main driver of disinflation remains food and energy prices
Bank of Finland paper examines impact of Basel II on international bank lending
Research finds sovereign credit rating revisions have become more important since the implementation of Basel II capital rules
Bailey accuses EBA of comms blunder
BoE deputy says EBA ‘incorrectly transmitted’ the news that its vote on an opinion regarding bonus caps had been unanimous - as he voted against it
Mexican committee makes progress on bank liquidity rules
Bank of Mexico is setting up new rules on banking liquidity that will take effect in January 2015, in line with Basel III requirements; work progressed through new committee
National Bank of Denmark to outsource production of banknotes and coins
The National Bank of Denmark will outsource all of its printing and minting services to an external supplier in 2016, with an estimated saving of $17 million by 2020
EBA finds Bulgarian National Bank ‘in breach’ of EU law
The European Banking Authority issues a recommendation calling for the Bulgarian authorities to allow depositors access to the funds held by failed banks
BoE minutes hint at dovish shift
Committee still split 7-2 in favour of holding rates, but language takes a more dovish tone with housing market and external environment providing cause for concern
People: Mexican deputy gets second term; Paraguay names new director
Mexican president reappoints Legaspi as deputy governor of Bank of Mexico; Central Bank of Paraguay promotes legal unit manager to director; and more
ECB health check ‘putting strains’ on Cyprus central bank
IMF staff report finds the operational capacity of the Central Bank of Cyprus is being stretched by the transition to the SSM, including the ECB's comprehensive assessment
Angolan central bank looks to boost BESA capital by $4.3 billion
National bank of Angola sets out plans to recapitalise BESA; Novo Banco will get a 9.9% stake in the bank and receive $850 million over ten years in restructuring deal