News
Non-banks may amplify risks from policy divergence, Nakaso warns
Non-banks may be less constrained than banks in supplying dollar funding, but it could dry up at the first sign of trouble; the BoJ starts stress testing foreign currency liquidity
EU watchdog enquires into Draghi’s membership of G30
NGO accuses ECB of being too close to financial industry
Basel set to decide on capital relief for accounting changes
Phase-in to IFRS 9 and Cecl needed to avert "a dramatic overnight drop in regulatory capital", say auditors
Denmark to trial primary dealer payments in effort to boost liquidity
Central bank says payments in exchange for tougher requirements should improve liquidity, which has shown signs of weakening
Bank of Italy sells off three ‘good banks’ for €1
UBI Banca agrees to recapitalise banks created from regional lenders
Draghi says ‘substantial’ accommodation still necessary for eurozone
ECB sets out new criteria for asset purchases; Draghi says headline inflation rises are driven by energy prices
Riksbank early warning indicator signals high risks
New measure of financial fragility performs better than credit gap method, economists say; current readings suggest risks are on a par with 2008
Yellen: Fed expects rates to hit long-run level by end-2019
Fed chair warns there could be a “nasty surprise” down the road if policymakers wait too long to raise rates
Minneapolis Fed launches new research institute
“Opportunity and inclusive growth institute” will draw on multiple disciplines to extend the Fed’s research
BIS paper finds Fed’s QE had little discernible impact on real economy
Results are still preliminary, authors say, but “cast some doubt” on the effectiveness of US quantitative easing
Money targeting key to Egypt reform programme
Central bank to maintain flexible exchange rates and keep a close rein on the money supply as IMF pledges $12 billion support
Xi says China is open for business as US turns away
China to become a bigger player in global markets as US seems to be turning inwards, says President Xi; firms looking to invest overseas
Central Bank of Nigeria bans banks from using digital currencies
CBN warns on AML-CFT risk to banks from dealings with “virtual currency exchangers”
‘Digital base money’ could hinder monetary policy, ECB official warns
Mersch examines means of issuing central bank-backed digital money to non-banks
Irish central bank sells old premises for €67 million
Move to new purpose-built premises due to be completed by end of first quarter
Davos panellists highlight risks posed by strong dollar
At the World Economic Forum, experts underline the risks of a strengthening dollar on not only US monetary policy, but also on emerging markets’ economies
Review urges BIS to curb dominance of ‘house view’ in research
Panel including UK’s Charlie Bean finds BIS research has at times been “genuinely path-breaking” but should give economists more room to differ from the house view
Eichengreen sees danger in US fiscal stimulus
Veteran economist warns infrastructure spending in the US may prove damaging to both the domestic and global economy, without necessarily fixing secular stagnation
Carney: 250,000 jobs lost by 2018 if BoE had not acted after Brexit vote
BoE governor defends 2016 action by underlining policy trade-off, but warns consumers are "looking through" Brexit-related uncertainties
South Sudan president dismisses bank governor, reports allege
Country’s economy in crisis, but central bank role appears limited, experts say
IMF raises projections for US and eurozone growth for 2017
US policy mix still uncertain, but IMF staff do not yet believe changes will trigger an international trade shock; growth projections for emerging economies revised downwards
‘Humiliated’ RBI staff urge Patel to resist ‘unwarranted’ government interference
Reserve Bank of India staff send impassioned letter to governor to protect the central bank’s autonomy; finance ministry objects to claims, stating central bank is fully independent
People: RBNZ appoints new CIO; former BoE deputy to chair BBC
Reserve Bank of New Zealand appoints new CIO and head of risk assessment; David Clementi, former Bank of England deputy for financial stability, to head new BBC board; and more
Measurement error a big part of ‘missing growth’ – Philippe Aghion
Statistics fail to capture creative destruction, French academic argues; US researchers say productivity in IT sector points to continued puzzle