News
Former ECB board members say OMTs are outside central bank’s mandate
Otmar Issing and Jürgen Stark both criticise ECB bond purchase plans in separate interviews; Issing calls political union a ‘dangerous idea’
Uribe given third and final term as Colombian governor
José Darío Uribe is reappointed by the Board of the Central Bank of Colombia for a third term as governor; will retire from the post in 2017
Spain releases banking stress test results
Stress tests show Spanish bank recapitalisation needs close to level identified in tests earlier this year; paves way for restructuring and resolution of failed banks
Riksbank’s Ekholm says Basel III not enough for Sweden
Karolina Ekholm says Swedish banks are highly interconnected, raising the need for stronger and more diverse macro-prudential regulation than under the Basel III framework
EBA report finds banks €199 billion short of Basel target
European Banking Authority report details capital shortfall of largest banks in eurozone; calls for ‘significant effort’ to hit targets
Ugandan deputy governor explains decision to nationalise NBC
Bank of Uganda takes over commercial bank after prolonged period of losses; Louis Kasekende says there was no other choice
Wheatley unveils details of planned Libor reform
Martin Wheatley’s final report recommends ‘comprehensively reforming’ Libor rather than replacing the benchmark; BBA stripped of rate-setting role
Greater use of renminbi will promote global stability, says Malaysia’s Zeti
China’s rising prominence in the global economy requires a dynamic response from policy-makers, says Bank Negara Malaysia governor; use of renminbi will promote global financial stability
Czech National Bank cuts rates to record low
Governing board votes to cut rates to historic low in face of persistent weakness in the economy; possibility of unconventional policy measures if low growth continues
‘Public inertia’ a sticking point for e-payments, Bank of Lithuania finds
Bank of Lithuania investigates costs involved in providing payments systems; suggests ‘public inertia’ is slowing the switch to electronic
RBA unveils details of new banknote programme
Reserve Bank of Australia releases details of plans to improve security features on its polymer banknotes. Scandal-hit Note Printing Australia to produce the new bills
CBP panellists raise concerns over macro-prudential innovation
Central Banking Publications webinar participants debate challenge of implementing macro-prudential policies; panellists highlight risks from central banks’ limited experience with some tools
Ireland unlikely to comply with fiscal compact until 2020
Central Bank of Ireland 'economic letter' estimates it may be 2020 before Ireland complies with the EU fiscal compact’s structural deficit target
IMF report says regulation is ‘unfinished’
IMF report says more regulatory action may be required; suggests existing reforms may have unintended consequences that require mitigation
Banks could cut bail-in risk, says BoI capital head
Banks could issue more subordinated debt to protect senior creditors from the threat of a bail-in – in theory. But Bank of Ireland capital head says market is too thin
ECB’s Draghi defends OMTs to German audience
European Central Bank president Mario Draghi stresses bond purchase plans are within the central bank’s mandate; says there are signs reforms are working
BBA resigned to likely loss of Libor-setting role
British Bankers’ Association says it will comply with Wheatley review if decision taken to change Libor-setting responsibilities; review’s conclusions to be presented on September 28
BoE’s Fisher details progress on ‘funding for lending’ scheme
Bank of England MPC member Paul Fisher reveals the initial uptake of UK ‘funding for lending scheme’; says impact difficult to judge
Research warns of global liquidity trap
Smithers & Co report says quantitative easing unlikely to boost demand due to worldwide liquidity trap; calls for fiscal stimulus but says such action is not expected
Banks move to meet Bank Indonesia call for ‘external loss database’
Indonesian banks form association to explore the sharing of loss data and help develop risk management practices in response to call by Bank Indonesia
SNB bond-buying ‘exacerbating’ euro fragmentation – S&P
Rating agency says Swiss National Bank activity is deepening divergent market conditions for euro sovereign issuance
Trust in Modigliani-Miller theorem is misguided, say former BCBS members
Regulators are wrong to believe changing the capital structure of banks will not affect their value as stated by the Modigliani-Miller theorem, say Urs Birchler and Patricia Jackson
MAS expands rate-setting review to cover NDFs
Monetary Authority of Singapore instructs banks to review rate-setting in forex market; banks instructed to discipline any staff found guilty of wrongdoing
US regulators release capital estimation tools for community banks
US federal banking regulators offer capital estimation tools to help community banks assess impact of proposed capital rules before comment period closes