News
Hungarian central bank to bid for country’s stock exchange
Hungary’s central bank is in talks with Austrian banks to buy a majority shareholding in the country’s stock exchange
National Bank of Kazakhstan plans overhaul of interbank card payment infrastructure
Central bank looks to create new infrastructure for interbank card payments with the aim of improving the efficiency with which banks plug into clearing systems
Kohn warns of 'serious shortcomings' in US macro-prudential framework
Former Fed vice-chair says inability to impose LTV and LTI ratios on mortgages may imperil US rate weapon at a time when central bank is failing to meet targets
ECB sparks bank tug-of-war over debt eligibility
The European Central Bank may force local regulators to choose whether banks can use senior debt for TLAC or to access its liquidity programme – setting G-Sibs against regional banks
Former Nigerian governor Sanusi attacks current central bank policy
Former governor of the Central Bank of Nigeria Sanusi Lamido Sanusi challenges monetary policy stance of Nigeria’s central bank and calls for a currency devaluation
South-eastern European banking supervisors agree to co-operate with EBA
Six supervisory agencies agree to share information with European Banking Authority
External debt is Greece’s perennial Achilles heel, economists warn
Cycles of external debt and dependence are ‘perennial themes’ for Greek crises since 1829, and other countries may be similarly vulnerable, Carmen Reinhart and Christoph Trebesch argue
BoJ lifts lid on new approach to macro stress testing
Tests designed to measure system-wide impact of a ‘tail event’ on financial and economic stability, allowing comparisons over time; BoJ reveals underlying variables for first time
Retail banking investigation findings criticised by MP
First report from investigation on retail banking criticised by Andrew Tyrie for its findings on ‘free-if-in-credit’ model for current accounts
Fed support high on wish list for buy-side repo clearing
Risk USA panellists want liquidity support for planned new services
Long-term low interest rates risk financial instability, Geneva report argues
Long-run accommodative monetary policy could raise risks to financial instability, Charles Bean and other economists argue; issuance of leveraged loans in US corporate market on the rise
Communication and education the answer to transparency 'paradox', says RBNZ's Hannah
Mike Hannah discusses the findings of the Reserve Bank of New Zealand's first external stakeholder engagement survey and their implications for central bank comms
China confirms launch of QDII2
Scheme allowing Shanghai-based individuals to invest overseas agreed in meeting chaired by Premier Li Keqiang this week
Liquidity issues demand further work, says BoE’s Cunliffe
Greater fragility of market liquidity requires reassessment of regulation, new stress tests and better data, BoE deputy says; private sector economists warn of distortionary effects from QE
UK’s Osborne defends ‘middle way’ struck by BoE bill
Finance minister tells MPs the decision to drop the reverse burden of proof avoids creating a two-tier regime; talks up value of BoE independence in response to concerns over NAO role
Draghi sets stage for December easing
Governing council could adjust asset purchases or cut rates further at next meeting, ECB president says; staff tasked with examining different options as they were before QE launch
Regulators push back at complaints of fatigue
EBA chief and secretary-generals of Basel Committee and Iosco defend their work so far and stress the bulk of regulation will be completed in 2016 – though there is more on the horizon
Norges Bank to supervise $1bn-plus SWF property deals
Central bank executive board will supervise real estate investments above $1bn made by sovereign wealth managers; separate committee formed for investments over $250m
RBA reduces share of euro in reserves
Australian central bank cuts euro holdings by 10% while nearly doubling RMB share of reserve portfolio; running yield ‘very low' at 0.2% at end-June, annual report says
Carney wants ‘clear principles’ to safeguard non-euro members
Bank of England study of EU membership finds union has broadly contributed to ‘dynamism’ in the UK economy, but imposition of regulation from afar may not suit UK needs
Egyptian governor to resign early with former deputy waiting in wings
Hisham Ramez, governor of Egypt’s central bank, announces early resignation; successor urged by country’s President to ensure citizens have access to ‘basic goods’ after subsidy cuts
Riksbank floats new collateral limits
Swedish central bank looks to limit the amount of covered bonds pledged as collateral for intraday credit; assessment suggests limited impact on banks
Bank of England expands swap line with China
The BoE and PBoC strike a deal to increase the swap line to RMB350bn and extend it by three years; seen to support London as an offshore centre
BoE unveils new systematic stress tests
Stress tests designed to move counter-cyclically with the financial cycle and inform decisions on capital buffers; BoE looking to improve modelling techniques to keep pace