News
Moldovan governor and first deputy resign as banking scandal intensifies
Governor and first deputy resign but will stay on to assist incoming IMF team; Dragutanu attacks local politicians for handling of ‘loss’ of an estimated $1 billion from commercial banks
FSB pushes for better tools to tackle high corporate debt
Report to G20 outlines some tools that could be used to tackle high and rising corporate debt, but the design process is still ongoing
Limited case for leaning against the wind, says IMF report
Staff conclude the short-term costs of using higher interest rates to address financial risks exceed the longer-term benefits in most cases, but stress door should ‘remain open’
ADB cuts China growth forecast to lowest in generation
Asian Development Bank revises down growth projection for 2015 to 6.8% but says talk of Chinese collapse is overblown
JP Morgan exec challenges CCPs over skin in the game
'Why wouldn't you put up... all of your capital?' asks Olsen, at panel on CCP recovery and resolution at New York conference
First Target2 data release sheds light on imbalances
Data on cross-border eurozone financial flows gives clarity as to the sharply different directions funds have been travelling, with Germany still comfortably the most popular destination
Norwegian SWF manager buys major London development
Norwegian sovereign wealth fund manager NBIM pays $373m in deal for London development; adds to the $22.7bn the fund held in real estate at end of Q2
People: Philadelphia Fed appoints new supervision head; Bank of Russia takes on HSBC economist
Philadelphia Fed announces William Spaniel as head of supervision, regulation and credit department; Alexander Morozov joins Bank of Russia as head of research and forecasting; and more
Fed presidents talk up prospect of 2015 hike
Richmond, St Louis and San Francisco reserve bank presidents offer thoughts in wake of last week’s decision to hold rates; all suggest a hike in October or December will likely be appropriate
Market liquidity drained by regulations, says DBS chief
Volcker, Basel III and Dodd-Frank have combined to drain liquidity, CEO says – particularly in times of market stress
IMF staff call for greater delegation of macro-prudential powers in Norway
Technical note finds institutional structure has worked to good effect in many ways, but identifies issues around co-ordination across ministry, central bank and FSA
Haldane weighs solutions to ZLB constraint
Andrew Haldane considers benefits and costs of adopting higher inflation targets, accepting QE as a conventional policy tool and creating central bank-issued digital currencies
Riksbank research suggests inflation correlated with policy rate in some cases
Research by two Swedish economists uses the work of Irving Fisher to illustrate how low policy rates might be leading to low inflation in some countries; cites Irving Fisher for causal explanation
Mexican governor granted second term on board
Carstens set for reappointment as governor after securing second term on board; his first term is widely viewed as a success, with one economist highlighting stable inflation
Fed holds off rate increase but outlook largely unchanged
The majority of Fed governors and presidents still expect a hike this year, but concerns over global outlook and domestic inflation prompt FOMC to hold fire for now
ECB allows national central banks to disclose ELA provision
Bank of Greece becomes first central bank to make use of power to disclose ELA figures
China eases restrictions on overseas borrowing
Move allows companies to raise funds in both local and foreign currency without state permission and could help offset record capital outflows, but analysts say short-term impact is likely to be limited
Bank of Portugal suspends Banco Novo sale
Portugal's central bank has halted the planned sale of Novo Banco, the good bank created after the collapse of Banco Espirito Santo, citing unsatisfactory bids
Sveriges Riksbank strikes $500 million swap deal with National Bank of Ukraine
Sweden’s central bank could sell up to $500 million over the next six months under the agreement, despite one deputy governor objecting to its acceptance of the responsibility
BoE says cash unlikely to ‘die out’
An article in the Bank of England's quarterly bulletin illustrates the continuing use of cash in the UK, despite the introduction of new payment technologies over the last decade
South African deputy looks to fill gaps in resolution setup
Francois Groepe highlights main elements of proposals for a new resolution framework in South Africa; particular emphasis on creating a deposit guarantee scheme
Difficult liquidity conditions are here to stay, say Asia conference panellists
Gapping moves in spot markets and higher prices for clients in FX derivatives are here to stay, as banks pull back from market-making in non-core currencies, panellists warn
French economists protest against choice of central bank governor
One hundred and fifty French economists publicly question whether François Villeroy de Galhau faces conflicts of interest as central bank governor
ECB sees house prices undergoing ‘sustainable’ recovery
European Central Bank says eurozone housing markets appear to have undergone necessary corrections, in article released ahead of Economic Bulletin