Central Banks
Impact of flight to liquidity on bonds important for policy-makers, study finds
The effects of flight to liquidity episodes on bond markets ‘are important for policy-makers’, since they are associated with ‘lower macroeconomic confidence’, research finds
IMF paper: Costs of macro-pru policies still unclear
Policy-makers should ‘move carefully' in adopting macro-prudential tools as ‘knowledge is still limited', working paper argues
Poloz warns regulation could stifle credit to SMEs
Bank of Canada governor says new financial regulation likely to reduce the availability of credit to small companies by discouraging financial innovation
Women still hold less than 10% of top jobs
Central banks continue to become 'more equal employers' in 2014, but only 18 of 189 institutions are led by women
Brazil’s central bank lowers expectations of further action
Brazil’s central bank says inflation will enter ‘a long period of decline’ next year, as it looks to guide inflation and interest rate expectations
Basel Committee tightens securitisation standards despite bank protests
Final standards for securitisations impose tougher capital requirements despite banks’ complaints that the rules are ‘punitive’; reduces reliance on external ratings
Norges Bank cuts interest rates as krone weakens
Low inflation gives Norway's central bank room to tackle the impact on growth of falling oil prices; governor suggests key rate will remain at record low for the next two years
Czech banks ‘resilient’ to adverse shocks
Latest stress tests conducted by the Czech National Bank finds the country’s banking sector is ‘sufficiently resilient’ to shocks, including a ‘sizeable decline’ in economic activity
Bank of Finland’s Honkapohja advocates ‘cautious and gradual’ approach to deregulation
Central bank board member offers lessons for China from Nordic experience with financial deregulation, and advocates a cautious approach over a ‘big bang’
Bank of England unveils sweeping transparency changes
Bank of England to publish transcripts of monetary policy meetings, cut number of meetings, revamp committee structures and more; Barry Eichengreen says benefits likely to ‘dominate’ costs
Linde fears ‘revival’ of debt sustainability concerns
Concerns about the sustainability of European sovereign debt have not disappeared and could be reactivated if the economic conditions worsen, says Linde
Weak TLTRO demand increases pressure on ECB
Banks borrow €129.8 through ECB's second operation; pressure increases on governing council to launch new measures in January or March 2015
Bank of Russia raises interest rates by 100bp
Central bank will continue to hike to stem double-digit inflation; growth expected to remain low "until import-substituting industries develop"
Davis Report reveals extent of FCA communications blunder
Report uncovers misguided comms strategy, poor supervision by senior managers and sluggish response as FCA ‘taken by surprise’
IMF praises Central Bank of Kuwait’s ‘proactive’ approach
Central bank is ‘proactive’ in its liquidity management and macro-prudential supervision, IMF report says; publishing more timely information on oil sector would be ‘useful’
Central bank says macro-pru tools ‘crucial’ in Turkey
With the threat of a ‘spillover from global uncertainty to inflation’ in 2015, the Central Bank of Turkey highlights the importance of macro-prudential defences
Praet explores QE transmission channels
ECB chief economist considers scope of portfolio rebalancing and signalling effects for both corporate and sovereign bond purchases
Irish research finds macro-pru tools have ‘greater impact’ on first-time buyers
Economic letter published by Central Bank of Ireland explores impact of loan-to-value and loan-to-income ratios on different groups within residential property market
Fed proposes tougher capital surcharges on biggest banks
US central bank aims to go beyond Basel framework on loss-absorbing requirements for GSIBs; Failure to comply would lead to restrictions on dividends and bonuses
Healthy domestic variables can smooth rating downgrades, paper finds
Good domestic variables can help a country recover from a sovereign rating downgrade, but these fundamentals have little capacity to accelerate on an ‘upgrade cycle’, research finds
Rohde mulls higher capital requirements if Denmark stays out of bank union
Danish governor wants country to join the European banking union in 2015; banks have lower capital buffers than counterparts in other non-member countries
Central Bank of Ireland urges households to spend 2.5bn copper coins on Christmas shopping
Bank warns local shops are running out of coins as people consign them to ‘jars and piggy banks'; says small change ‘better being spent or given to charity'
BIS paper spots correlations in capital control effects
Study of emerging market capital controls finds bonds flow into other regional countries if one loosens its controls, but the effect is weak when countries tighten
Bank of Mexico sells dollars to stop peso decline
Bank of Mexico will buy up to $200 million worth of pesos a day, after a currency depreciation that it fears could boost inflation and push the central bank into an interest rate hike