News
ECB agrees €45 billion bilateral swap line with PBoC
European Central Bank joins a long list of central banks with renminbi swap line with the People’s Bank of China; deal is smaller than some speculated
New $100 bill the ‘most sophisticated piece of currency' to date, says Fisher
Most counterfeited US bill is embellished with new security features to 'deter bad guys' and protect consumers and businesses from losses
Thai governor says the fate of emerging markets rests on institutional progress
Prasarn Trairatvorakul says the destinies of emerging markets are "not strictly bound to each other" and will depend on the quality of institutions in each individual country
Janet Yellen set for nomination as Fed chair
US President Barack Obama expected to nominate Janet Yellen as Ben Bernanke’s successor; would be first female appointment to top job
‘Unprecedented' US rate normalisation is global economy's biggest challenge, says IMF
Overshooting interest rates prompted by Fed taper may expose substantial financial weaknesses in both advanced and emerging countries, warns stability report; shadow banking of particular concern
Chorus for Fed taper grows louder
Sandra Pianalto dismisses concerns over labour force participation and argues economic data was and is strong enough to warrant taper; Charles Plosser says Fed has damaged its credibility
Central Bank of Ireland diverges from Basel III on AFS bonds
Irish bank capital numbers would filter out unrealised gains and losses on government bonds
Bank of Mongolia should brace for impact of runaway growth, says IMF
Article IV consultation concludes central bank has negotiated a number of hazards successfully, but says it must shore up its defences as the economy shows signs of overheating
IMF’s Blanchard flags ‘yet another transition’ as emerging markets struggle
IMF chief economist admits emerging market economies have performed worse than expected; calls for central banks to focus on credibility and dismisses US default as a ‘tail risk’ event
BBA chair says European deposit guarantee scheme raises concerns about moral hazard
Nigel Wicks says single resolution mechanism ‘immensely complicated' and in need of treaty change while European deposit protection raises moral hazard issues; argues healthy eurozone is in UK's interest to maintain financial sector's 'critical mass'
BoE's Tucker wants more robust CCP governance
Bank of England deputy governor Paul Tucker raises concerns over the size and for-profit nature of CCPs; says stress tests not possible until loss allocation work is finalised
Japan’s ministry of finance issues inflation-indexed JGBs after five-year absence
First linker issuance in Japan since 2009 is 3.7 times oversubscribed but success of future auctions will depend on the Bank of Japan’s ability to deliver 2% inflation
European finance sector needs complete overhaul, says ECB's Praet
Executive board member says Europe's financial sector must be overhauled in 'its entirety' not through ‘selective mending'; warns of Japanese-style zombie banks undercutting return to growth
Norges Bank handed advisory role on macro-prudential policy
Norwegian central bank will advise the ministry of finance on whether it should impose a countercyclical capital buffer and, if so, what size it should be
BoE prepares to implement Banking Standards recommendations
Response to final report of the UK’s Parliamentary Commission on Banking Standards endorses the majority of the findings, although many points require further consultation
IMF tells Turkey to fix flawed monetary policy framework
Article IV mission calls on central bank to ‘re-consider’ its policy framework, accusing policy-makers of targeting too many objectives and consequently failing to control inflation
ECB's Cœuré backs committed liquidity facility
European Central Bank executive board member suggests a committed liquidity facility could help remove incentives for regulatory arbitrage in the Eurosystem
Dollar lending in East Asia can override local monetary policy, says BIS' McCauley
Paper by Robert McCauley and Dong He of the HKMA argues the growth of credit in foreign currencies, especially the dollar, transmits global monetary easing to East Asia
Maltese politicians clash over new deputy governor appointment
Move to appoint a deputy governor in charge of financial stability at the Central Bank of Malta led to opposition accusations of politicisation
Fed's Williams questions future of unconventional tools
San Francisco Fed president John Williams says forward guidance will help to improve transparency in more conventional times, while asset purchases should only be used as a last resort
Lagarde says US has ‘special responsibilty' to unwind QE responsibly
IMF director says failure to raise US debt ceiling could seriously damage the global economy; warns emerging markets will have to adjust to new economic reality for remainder of the decade
NY Fed paper compares tools for managing short-term market rates
Researchers at the Federal Reserve Bank of New York evaluate the benefits and drawbacks of paying interest on excess reserves, offering term deposits and engaging in reverse repos
Hungarian central bank takes over financial stability role under new deputy governor
László Windisch will be in charge of financial stability, as former financial services authority is brought inside the central bank
Bank of Lebanon signs memorandum of understanding with Dubai FSA
Agreement aimed at improving information sharing on financial stability issues was signed by regulators in Dubai earlier this week