News
Policy interactions may drive global banking contraction, BoE economists find
The combination of unconventional monetary policy and regulation may cause ‘substantial’ spillovers as banks cut cross-border lending, economists including Kristin Forbes find
People: Tombini takes FSB committee chair; Al-Wazir moves to IMF
Alexandre Tombini is appointed to chair budget committee; former PMA governor joins IMF; Kazakh sovereign wealth fund replaces its chairman; and more
South Korea’s new SWF chief sets sights on ‘top ten’
Former World Bank executive director takes office as CEO of the Korea Investment Corporation; sets out desire to grow assets under management beyond $200 billion
Kuroda and Davos panel see little alternative to divergence
Bank of Japan governor warns a synchronised exit from easy policy in the major economies ‘could be worse’ than the ’staggered arrangement’ at present
ECB’s Cœuré calls for new attitude to liquidity
Liquidity in the European banking system should not return to its pre-crisis levels, Benoît Cœuré tells a Davos audience; CMU offers chance to fix problems which caused crisis, he adds
Revised Basel III better reflects bank risk, research finds
Study says 2013 capital rules more in line with actual risk, but can be easily gamed
New Bank Negara Malaysia website gets ‘trial run’
Malaysian central bank launches new website for a trial period, before it becomes fully operational by end of March; existing site will remain functional in the interim
Lane reveals string of transparency initiatives in first speech as Irish governor
Central Bank of Ireland discloses new details on salary structures as governor Lane reveals new minutes, reviews and website
Issing says eurozone status quo is in danger
Former ECB board member says Europe’s monetary union is still plagued by problems caused by absence of political integration, which could pull the eurozone apart
Analysts see Hong Kong peg under scrutiny
Hong Kong dollar reached lowest level in nearly a decade this week, putting long-standing peg ‘under fresh scrutiny' and prompting fears of possible attack
IMF staff back Moldovan central bank response to crisis
Staff report supports many actions taken by the Moldovan central bank in dealing with the crisis caused by banking fraud; calls for bank to gain more powers and independence
ECB will 'review and possibly reconsider’ stance in March
ECB policy rates and asset-purchase programme remain unchanged, but Draghi says council was ‘unanimous’ in agreeing it should announce March review
Regulators need better grasp of electronic trading, BIS committee says
Rapid growth of electronic trading in fixed-income markets demands more sophisticated regulatory analysis, Markets Committee says; new risks may be developing
Economists point to external woes as Central Bank of Brazil holds rates
Monetary policy committee leaves interest rate at 14.25% in surprise move; politics and fiscal policy making life harder for central bank, analysts suggest
Lagarde nominated for second term as IMF head
Christine Lagarde is backed by UK and Germany for a second term as managing director when her first expires in July; the International Monetary Fund launches the selection process
FCA officials grilled on second comms backlash
MPs accuse FCA of failing to recognise perceived importance of dropped bank culture review, leading to strong public backlash; chief executive says approach to communication will be reassessed
Market fears endanger Italian and Portuguese bank sell-offs
Recent measures by the Bank of Portugal, as well as market fears about the quality of Italian banks’ assets, may discourage investors from buying Italian and Portuguese bridge banks
Monetary policy less effective than structural reform, Davos panellists argue
Structural reform is more effective than monetary or fiscal policy in current conditions, Axel Weber and Raghuram Rajan agree; Weber foresees four Fed rate rises but thinks markets disagree
Observers cast doubt on first Venezuelan inflation figures in a year
Central bank report puts annual inflation at 141% at end of September, after a year without publishing the data; some consider the figure to be too conservative
Iranian banks may reconnect to Swift as sanctions lift
Reconnection ends four-year exclusion from the global payments messaging service and should make sending international payments considerably less costly
US, China trends put Hong Kong in potential tough spot, warns IMF report
Housing prices have tripled since 2008 and could face correction as result of slowdown prompted by outside pressures
Independent review calls for major changes at Riksbank
Riksbank criticised for reliance on models, board members’ quarrels and ‘surreal’ monetary guidance, though King and Goodfriend say it is ‘clearly a success’ compared with past regimes
Carney says UK rate hike still some way off
Continued weakness in key indicators begins to puzzle policy-makers as Carney suggests there is room for the MPC to wait longer; CPI and core inflation on the rise
IMF cuts global growth forecast on back of EM challenges
Maurice Obstfeld says emerging markets and developing economies account for more than two-thirds of revisions; largest changes come in Brazil, where the MPC meets today