News
IMF backs Canada cut despite overvalued housing
Fund says central bank's decision to lower rates for first time in four years is ‘in line with staff advice'; says housing market overvalued by up to 20%
Oman central bank toughens rules for systemic banks
Central Bank of Oman unveils framework for regulating domestic systemically important banks, including capital surcharges, stress testing, crisis management and resolution planning
Bank of Russia cuts key rate by 200bp
Central bank cuts rate to 15% just one month after raising it by 650bp to 17%; points to the risk of a ‘sizeable decline in economic activity’ as the motivation for the decision
Brazil's central bank says inflation progress ‘not enough’
A rise in regulated prices is fuelling Brazil’s inflation, which rose 6.69% in January; minutes from latest MPC meeting suggest dissatisfaction with level despite rate hikes
Fed’s Powell: Virtual currencies ‘not ready’ for role in payments reform
Governor Jerome Powell says virtual currencies could play a ‘bigger role’ in the future, but are not yet ‘mature enough’ to contribute to the Fed’s faster payments initiative
IMF report says ‘time has never been more right' to reform securitisation markets
Staff report emphasises need to make securitisation practices more robust while spurring demand; calls for standardised classifications of underlying risk characteristics
Carney calls on eurozone members to share fiscal burden
Bank of England governor takes stand on contentious debate, arguing ‘timidity' of European leaders who ‘do not currently foresee fiscal union as part of monetary union' is costly
Denmark cuts rate for third time in 11 days
Danish central bank cuts its deposit rate for the third time since the Swiss National Bank decided to abandon its exchange rate commitment; rate now sits at -0.5%
ECB warns banks over dividends and bonuses
Danièle Nouy tells banks to take a ‘conservative’ approach to paying out dividends, while ECB announces probe into variable remuneration
Basel Committee issues enhanced disclosure standards
Revised standards aim to improve the comparability of banks’ risk-weighted assets, shedding light on internal model-based approaches
Upbeat Fed statement keeps mid-year rate hike alive
Federal Reserve keeps policy on hold but delivers a positive account of US economy, suggesting inflation will return to target over medium term despite oil price drop
HKMA to introduce 'maximum' countercyclical capital buffer next year
Hong Kong will introduce Basel III tool at 0.625% of CET1 capital in January to guard against property market fallout; could raise it further in coming years if risks do not subside
Central Bank of São Tomé and Principe assumes management of failing bank
São Tomé and Principe’s central bank appoints an intervention team to manage a local bank, following a ‘progressive deterioration of its level of liquidity’ and with insolvency ‘imminent’
Renminbi cracks top-five payment currencies
Share of the renminbi in global payments increases to 2.17% in December, Swift data shows, pushing it above the Canadian and Australian dollars, and into the top five
MAS makes surprise adjustment to currency policy
In an unscheduled policy statement the Monetary Authority of Singapore announces a reduction of the slope of the currency band after a review of inflation forecasts
Turkey’s central bank expects to break letter-writing cycle
The Central Bank of the Republic of Turkey forecasts inflation falling back to target from mid-2015, sparing it a fourth letter to the government in the space of five years
Treasury Committee attacks FCA’s use of media as ‘tool of regulation’
UK conduct regulator defends use of press to disseminate its policies, but MPs call the process ‘bizarre’ and a ‘colossal risk’
Asean central banks to improve settlement transparency
Members of the Asean Central Banks’ Working Committee on Payment and Settlement Systems adopt principles to improve transparency for cross-border trade settlements
BoE appoints two executive directors
Alex Brazier and Sam Woods take responsibility for financial stability and insurance, respectively; Brazier fills role left vacant by departure of Spencer Dale
Chilean banks must plan for liquidity shortages
Chilean banks will adopt new liquidity management policies later this year while reporting their LCR and NSFR; Central Bank of Chile may impose further rules next year
Fed challenges payments industry to get quicker and safer
New document sets out strategies for improving US payment system; Federal Reserve will only consider expanding role as service provider if private sector falls short
Syriza reaction: Exit fears overblown but bitter struggles to come
Economists respond to Greece’s new Syriza-led coalition government with mixed feelings, but see an exit from the euro as unlikely despite the coming north-south confrontation
People: Bulgarian deputy dismissed by parliament; HKMA appoints director
Bulgarian parliament dismisses central bank deputy governor over failure of a commercial bank; HKMA creates post of executive director for risk and compliance; and more
State Bank of Pakistan slashes rates to decade low
Governor Ashraf Mahmood Wathra strikes upbeat note despite inflation falling significantly below target, as central bank cuts interest rates by 100 basis points