News
Italy reaches crisis point as bond yields soar
Announcement that Italian prime minister Silvio Berlusconi will resign does little to calm markets; bond yields hit euro area record high, raising the stakes for a potential default
Athens heeds Greek governor's plea to agree on coalition government
Outgoing prime minister confirms agreement on coalition government; hours after Bank of Greece governor George Provopoulos called for Athens to stop political squabbling
Canada announces renewed inflation target range
Canadian government and central bank announce renewal of the inflation-control target for the central bank; goal to remain the 2% mid-point of a 1-3% range
Iran deputy governor remains in custody
Hamid Pourmohammadi remains in custody as investigation into banking fraud continues; new UN report could lead to more sanctions on the country
Ireland releases agreement on split of banking oversight responsibilities
Previously confidential memorandum of understanding between department of finance and central bank shows split of responsibilities; document forms part of bail-out programme
Bank of England is ‘monetising the deficit’ with QE – Monetary Policy Forum
Former BoE employees agree the latest round of quantitative easing in the UK could be seen as a way of monetising the deficit; panellists stress Greece’s exit from the euro would be catastrophic
Carney takes aim at shadow banking activity
New Financial Stability Board chairman emphasises fight against shadow banking institutions; says global liquidity fluctuations are damaging financial stability
Treasury Committee recommends overhaul of Bank’s Court
Treasury Committee report says Bank of England Court should be replaced by new supervisory board to provide leaner and more expert review of policies
New Zealand consults banks on Basel III
Reserve Bank of New Zealand issues consultation paper on implementation of higher Basel III capital requirements; deadline for comments January 2012
Philippines re-launches economic and financial learning centre
Central Bank of the Philippines reopens economic and financial learning centre in its Cabanatuan Branch Office; education activities continue throughout the country
Korea governor selection process under fire
Politician takes on president’s ability to choose governor of the central bank board; wants to see candidates face parliamentary confirmation hearings
Papademos flies to Athens as Greece decides on new leader
Former European Central Bank vice-president Lucas Papademos rushes to Athens as Greek officials discuss leadership choice for new coalition government
SNB’s Hildebrand ready to intervene in Swiss franc market
Swiss National Bank chairman Philipp Hildebrand says central bank is prepared to weaken “highly valued” currency further if deflationary risks materialise
Time for timidity has passed, says Lagarde
Christine Lagarde calls for action from developed and emerging economies; tells Russia to rebuild fiscal buffers
Ireland introduces revised requirements for lenders dealing with SMEs
Ireland changes rules for banks lending to small and medium-sized enterprises when they are facing financial difficulties; new code updates 2009 effort
IMF to supervise Italy on debt reduction plan
Italian prime minister Silvio Berlusconi agrees to invite International Monetary Fund to Rome to oversee its fiscal consolidation efforts but turns down option for financial support
FSB confirms Carney as next chair
Financial Stability Board announced Bank of Canada governor Mark Carney as next chairman; vast experience in banking will come in handy
Final rules to tackle systemically important institutions announced
G-20 agrees on policy measures to address risks posed by systemically important financial institutions; 29 institutions identified as of global systemic importance
Central banks react to eurozone situation
Denmark and Romania lower benchmark rates and Australia lowers growth expectations; all point to continuing eurozone uncertainty as key decision-making factor
King wants clearly defined bank ring-fence
Bank of England governor Mervyn King says lawmakers must ensure legislation on retail banking ring-fence is clear so regulators can focus on enforcing the new measures
Papandreou retreats on referendum as lawmakers revolt
Greece’s beleaguered prime minister, George Papandreou, faces increasing pressure to resign after announcing U-turn on euro referendum
Draghi announces rate cut amid fears of mild recession
European Central Bank president Mario Draghi marks inaugural Governing Council press conference with 25 basis point rate cut; ECB reveals details of covered bond scheme
Brazilian politicians take on inflation-targeting mandate
Bill to alter Central Bank of Brazil's inflation target mandate passes Senate Economic Affairs Committee; discussion flares-up as to whether central bank is already employing a mulit-target mandate
Risk USA: US regulators “scared to death” by eurozone debt crisis
The sovereign debt crisis is a concern, but direct US bank exposure is manageable, says senior OCC official