News
ECB provides detail on stress-testing methods
Top-down approach helped supervisors challenge banks’ results, ECB says
IMF economist builds agent-based banking system model
Model captures the diversity of agents and the use of rules of thumb; the author says the modular nature allows “straightforward” enhancements
Wheeler hits out at commercial bank for unforgiving commentary
RBNZ governor says commentary threatens its integrity, damaging the central bank and financial markets; former RBNZ official says Wheeler overreacting
Yellen told inflation target needs revising
Economists say current economic conditions call for a revision in the inflation target; Federal Reserve should appoint commission to advise on “path forward”
Cross-border deposit insurance would not be unfair – ECB article
Contributions to scheme should be on the basis of risk, researchers argue
Bank of Canada wary of hotter housing market
The central bank lists household indebtedness and regional price increases as two of its top concerns; Poloz says it is too early to say if more macro-pru needs to be implemented
Bahamian banknotes will feature three different substrates
The Caribbean nation is set to issue the highest denominations of its new series on a paper/polymer hybrid used by the Swiss National Bank; the new substrate offers a wider range of features
Riksbank unveils results of web-scraping project
The big data technique for collecting prices could better capture volatile inflation components, allowing for more accurate forecasts, economists say
UK election roundup: all eyes on Brexit negotiations
Economists react as UK vote delivers a hung parliament, casting doubt on the way forward with Brexit negotiations and causing a drop in the pound
Draghi flags wage weakness as he defends easing measures
“Very substantial” accommodation still needed, says ECB president; central bank is devoting resources to understanding low wage growth
RBNZ consults on DTI limits with full macro-pru review scheduled for 2018
Central bank evaluates benefits of limit and how it would interact with current macro-pru policies; consultation offers reassurance to households about welfare costs
Former PNG governor accuses institution of ‘fuelling corruption’
Morauta says central bank has become “inanimate puppet” in government game whereby it continues to fund the growing deficit
People: Trump names Otting for OCC job; Sri Lankan assistant governor promoted
People: Trump names Otting for OCC job subject to Senate approval; Sri Lankan assistant governor promoted to deputy role; Barbados appoints acting deputy; and more
Swedish clearing system puts infrastructure at risk – Riksbank
“Inflexible” system could damage the conduct of monetary policy, the Swedish central bank says; banks should consider other options
ECB approves resolution of Spanish bank
Santander set to raise €7 billion to cover capital shortfall at Banco Popular Español
‘Relentless pressure’ on Barbadian central bank harms growth
Former central bank governor says government should get help from IMF ‘without delay’; fund assistance is proven to help and would result in long-term gains, says Worrell
Australia’s bank levy could squeeze TLAC drive
Issuing Tier 2 and senior unsecured debt will become more expensive for the top four banks in the country
RBI looks to ease credit conditions as inflation projection falls
Rates on hold, but central bank is seeking to give banks more room to lend by easing capital and liquidity requirements; committee fends off possible government meddling
Uzbek senate appoints new central bank chief
Mamarizo Nurmuratov becomes chairman of the Central Bank of Uzbekistan, following the death of his predecessor
Possible Fed appointments on the horizon
Treasury department official Randall Quarles and former Fed staffer Marvin Goodfriend believed to be on the shortlist; no date yet for appointment announcement
Rwanda approves draft reform of central bank law
Independent members will join MPC and ‘board of censors’ will be abolished
Central banks should test robustness of their main macro models – paper
Bank of Canada paper says users of large-scale macroeconomic models should develop tools to assess whether non-linearities could be distorting results
Trinidad and Tobago scraps 1 cent coin
New coin composition and withdrawal of small denomination expected to save millions; new rounding system will see cash payments made easier
Thai central bank sets out timeline for forex reforms
Some regulations are “obsolete”, Thai governor says