News
Yemen’s president sacks governor and announces new central bank in Aden
Move may increase humanitarian crisis as former central bank head managed to prevent worst outcome in “dire” circumstances, expert says
ECB officials and Borio disagree on falling real rates
Vítor Constâncio and François Villeroy de Galhau emphasise importance of saving-investment mismatch, while Claudio Borio stresses financial cycle, but speakers find some points of agreement
Distributed ledgers ‘too much of a moving target’ to write business standards, says Swift
Paper addresses questions about how DLT automation can run smoothly in multi-party network environment; Swift recognises full-scale standardisation of distributed ledger use is premature
Bank of Israel moves to eight-meeting policy cycle
Cut in number of meetings reflects stability of economic indicators and will allow for more detailed analysis at each meeting, central bank says, though one member criticises loss of flexibility
Central Bank of Barbados launches biannual economic magazine
Barbados launches financial magazine after “ironing out” issues; central bank’s latest venture “demystifies” economics for the general public
ESRB publishes guide to OTC derivatives database
Draghi repeats pledge to extend central clearing regulation to all forms of derivatives; ESRB paper sheds light on “opaque” markets
Sarb governor fends off political criticism
Central bank would co-operate should inquiry into supervision powers be launched; monetary policy committee leaves rate on hold with the prospect of an end to the hiking cycle nearing
IMF warns over problems in Belarusian banking system, but central bank disagrees
Systemic liquidity risks are “elevated” because of dollarisation, fund says; central bank claims country’s first asset quality review shows banking system is sound overall
Swift unveils software to help users detect fraud
Financial messaging service hopes new software will allow users to independently detect unusual activity; software to be launched in December this year
Fed holds but two more dissenters call for hike
Case for hike is building, says Janet Yellen, but economy has “a little longer to run”; two more FOMC members join Esther George in voting for hike
Eurozone employment-to-GDP-growth ratio has recovered strongly – ECB
Employment growth concentrated in Spain and Germany; productivity remains “stagnant at pre-crisis levels”
Central Bank of Kenya cuts rates despite new credit legislation
Commercial banks to amend lending rates again following a cut in interest rates; bank launches 50th birthday initiatives including new website
IMF lauds renminbi SDR launch, but some see momentum stalling
Fund officials praise China’s proactive approach to meeting SDR goals, but others warn progress on renminbi internationalisation may be slowing
BoJ targets inflation overshoot with revamped policy approach
Shift to “yield curve control” could give the central bank more room for manoeuvre on asset purchases, as it promises to keep easing until inflation exceeds the target
Liquidity stress testing ‘essential’ – ECB supervisor
Supervisor warns conference that banks will need to shape up their internal liquidity adequacy assessment process responses for 2017
Russian central bank closes eight lenders and reports alleged crimes
Six banks and two credit institutions were shuttered by Russia’s central bank in September; dossiers on alleged “crimes” at six more sent to prosecutors
BIS research seeks to forecast global inflation
Economist builds global inflation forecast using country-level survey forecasts, finding it can be used to improve domestic inflation projections in some countries
ECB paper examines use of eurozone bank lending survey
Changes in credit standards in the ECB’s bank lending survey serve as leading indicators for GDP and bank loan growth, researchers say
Indonesia to launch new banknote and coin series with a ‘bang’
New banknote and coin series featuring Indonesian “national heroes” to launch later this year; smallest coin will not feature in new series
Irish central bank announces major internal reorganisation
Bank will split market supervision department in two and create new financial stability directorate; full-time director of corporate affairs to be appointed
Target2 balance surge not a sign of eurozone ‘stress’ – ECB’s Praet
European Central Bank’s chief economist says €400 billion increase in outstanding euro real-time gross settlement claims is largely due to ECB’s asset purchases, rather than eurozone weakness
Markets back under central bank ‘sway’ – BIS quarterly review
Recent equity rally is “more stick than carrot”, says Claudio Borio, as latest report points to fresh signs of discomfort among banks and continued market distortions
Mark Carney: it would ‘make sense’ to get rid of UK penny
“What’s the point of the penny?” – children quiz BoE governor; Carney says as inflation rises, there might be reason to abolish the low-value coin
Andrew Bailey warns of macro impact from pensions trouble
FCA chief says low interest rates and other factors shaping the pensions market are likely to have knock-on effects on the economy, though the area is not well understood