News
RBI’s Subbarao bemoans contradictory demands on central bank
Reserve Bank of India governor says unique Indian growth and inflation dynamics make it impossible to satisfy everyone; deflects criticism over rates being both too high and too low
Central banks ‘are not done easing yet’, says Morgan Stanley chief economist
US investment bank’s Joachim Fels says central banks are entering into a third stage of monetary easing; eurozone growth forecast cut to -0.7%
Gold should dominate RMB in central bank reserves, says WGC
World Gold Council encourages central banks – particularly in emerging market economies – to diversify into gold ahead of RMB and other ‘alternative’ currencies
Putin picks economic adviser as Bank of Russia chief
Elvira Nabiullina nominated to succeed Sergey Ignatiev as chairman of the Bank of Russia; faces challenge of maintaining monetary policy credibility despite close ties to the Kremlin
Bank of Japan derivatives purchases threaten already low equity ratio
The BoJ's latest inflation-targeting weapon could challenge its balance sheet strength
Goodhart argues bail-outs are better than bail-ins
LSE panel highlights unintended consequences of new regulation, in areas including bail-ins, capital requirements and banking separation; Charles Goodhart says investors will not buy bail-inable debt
BoJ unveils policy for oversight of market infrastructure
The Bank of Japan reveals new policy for its oversight of payment and settlement systems and CCPs; mainly concerned with mitigating systemic risk
Riksbank’s payment system restored after technical failure
Sweden’s large-value payments system, RIX, restored to full functionality after failing to start yesterday afternoon. But cause of disruption still unknown
T2S programme hit by delays with costs set to soar
Europe’s new securities settlement system, Target2-Securities, faces tough implementation schedule, say Clearstream and Euroclear officials; ECB reaffirms commitment to price plan and timescale
ECB’s LTROs contribute to 12% drop in repo transactions
Icma report warns ‘abundant’ liquidity provided by ECB’s long-term refinancing operations is undermining the repo market in Europe; notes signs of increased risk appetite
UK Banking Commission urges higher leverage ratio
Parliamentary Commission on Banking Standards says 3% leverage ratio prescribed by Basel III and planned UK rules is insufficient for banks; also advocates power to impose full separation of banking sector
Vietnam central bank needs clearer mandate not independence
The Vietnamese government should worry less about meeting calls for more legal independence for the State Bank of Vietnam and think more about relieving the central bank from some of its wide-reaching responsibilities, says new Central Banking Journal…
RBA targeted by cyber attacks
Reserve Bank of Australia reveals it has been the victim of cyber crime; consults with government intelligence agencies over appropriate defence strategies
New York Fed demands better management of foreign exchange risks
Greater use of capital and collateral to mitigate all risks relating to foreign exchange trading is crucial, warns Jeanmarie Davis, head of financial market infrastructure at the NY Fed
Fed stress tests reveal potential for losses of $460 billion
Stress tests show banks would suffer heavy losses if another financial crisis hits, with some hovering very close to the US Federal Reserve’s minimum core capital requirements – and one falling below
Central Bank of Mexico cuts rates for first time in four years
Mexico slashes benchmark rate 50 basis points to combat falling demand and rising unemployment; Brazil and Canada hold rates steady
Lagarde sets out case for ECB rate cut and wider use of OMT
IMF managing director says ECB has room to cut rates and a European recovery is constrained by a lack of demand; suggests OMT programme could help countries ‘regain market access'
People: Bank of England names PRA board; Rwanda’s finance ministry and central bank swap chiefs
Bank of England names three board members for new prudential regulator; Claver Gatete switches National Bank of Rwanda governorship with finance minister John Rwangombwa; and more
Bank of Portugal distances itself from anti-trust investigation
Portuguese central bank says investigation into banks' anti-competitive practices will not undermine the stability of the financial sector
BoE asset purchases sit on knife-edge
Bank of England rejects further asset purchases in what is assumed to be a ‘close call’; UK finance minister could alter MPC remit in upcoming budget
Draghi hints at governing council rate split
ECB holds rates again but Draghi reveals dissent among council members; central bank staff lower growth forecast
Asia-Pacific central banks tread water with rate holds
Malaysia and Indonesia join Australia and Japan in holding rates - citing healthy growth and on-target inflation
Bundesbank’s waning role in Europe dates back to Schmidt’s ‘Auschwitz’ comments
The loss of German central bank authority in Europe in the past two years dates back to an historic meeting with Helmut Schmidt, who used references to Auschwitz to drive home monetary integration
RBNZ policy to be set by ‘governing committee’
Reserve Bank of New Zealand’s four governors will make all its monetary and financial policy decisions in a new committee