News
Czech exchange commitment will ‘probably’ run beyond July 2016
Czech National Bank likely to use exchange rate as a monetary policy tool until July 2016 or later; formal extension and negative interest rates discussed but judged unnecessary
Weak jobs report sends dollar tumbling
Report shows nonfarm payrolls increased by just 142,000 in September, while July and August totals have been revised down; dollar drops by almost 1% against euro
Irish central bank proposes staggered rise in financial industry levy
Ireland’s central bank has proposed staggering a rise in the levy to cover financial regulation costs; still supports rise in proportion of costs paid by non-bank institutions
Basel Committee considers limiting bank modelling choices
Study of internal models of counterparty credit risk finds ‘considerable’ variation between banks, raising the possibility of the Basel Committee takings steps to increase consistency
FSB report finds mixed progress on benchmark reforms
Report welcomes ‘good progress’ on many recommendations, particularly surrounding London fix, but identifies room for improvements
Norges Bank unlikely to follow others into negative territory, says Olsen
Governor flags the dangers and distortions from very low rates, but says Norway has more room to manoeuvre than most; contrasts ECB and Riksbank liquidity policies
Romania euro entry ‘no longer feasible’ for 2019, central bank governor says
National Bank of Romania governor says it is ‘no longer technically possible’ to join the single currency by January 2019; had previously warned of need for structural reforms
Fed’s Dudley: liquidity warnings a ploy to weaken regulation
'Most arbitrage trading has simply ceased,' while Treasury market depth has dropped from $500 million to $130 million, bankers say
European Commission unveils capital markets union ‘action plan’
European capital markets must be standardised and liberalised, commission says; specific areas of focus include infrastructure funding and securitisation markets
IMF reveals Cofer submitters but scraps advanced-emerging breakdown
Fund reveals 96 economies submitting their reserves breakdown to the Cofer database, in the name of transparency – but axes breakdown of advanced/emerging economies for fear of revealing too much
Paraguayan central bank plans to expand new database
Central Bank of Paraguay aims to include wider range of data in new online platform, which was launched last week to ‘favourable reception’
Disharmony threatens EU regulation, says EBA’s Enria
EBA chair says countries have too many opportunities to bend regulations to suit them, undermining supervision and harming banking union; argues EBA should be granted greater responsibilities
Carney sees ‘clear interest’ in preparing for transition to lower-carbon economy
While central bankers will not determine response to climate change, they should ensure markets adjust efficiently, according to Carney, which means boosting transparency
Central banks should prepare to deal with sharp drops in liquidity, IMF says
Policy-makers need to take action to halt rising risks relating to liquidity, IMF says; central banks may be able to use collateral policies to deal with crises
Colombia concerned by loosening inflation expectations
Unexpected increase in inflation spurs Colombian central bank into action, as it raises key rate by 25 basis points; observers divided over importance of growth risks
Chicago Fed president wants more evidence of inflation
Evans backs an ‘extra-patient approach’ to monetary policy as he airs concerns over inflation outlook and ‘asymmetric’ risks; assesses economy more cautiously than FOMC colleagues
Trichet says banks must keep ‘hammering’ at their culture
Progress towards improving culture and behaviour at banks is uneven, and the G30 is calling on the laggards to catch up; Central Banking asked members what still needs to be done
Reserve Bank of India ‘front-loads’ easing with 50bp cut
Rajan points to deterioration in global outlook and desire to boost investment; RBI will now focus on improving the transmission of cumulative 125bp reduction in key rate
FSB agrees final TLAC principles but asset management work has way to run
Meeting in London sees the organisation agree final draft principles for total loss-absorbing capacity, as new branches of research into asset management risks sprout
‘Little support’ from data for theories of disconnect between trade and exchange rates, IMF report says
Data largely supports conventional economic wisdom linking movements in trade flows with levels of exchange rates, according to WEO chapter; Japan may be an exception
Colombia doubles value of largest banknote
Colombian central bank will issue new 100,000 note for the first time alongside five redesigned denominations in 2016
Irish central bank may spread higher levy on finance industry over time
The Central Bank of Ireland may spread the proposed increase in its annual levy on the financial industry over several years, but it still backs the call for non-banks to meet 100% of costs
RBNZ reveals adjustments to ‘tight budgetary framework’
Central bank cuts 15 positions in preparation for new funding agreement; talk of an ‘offshore office’ put on ice last year as operating expenses ran over budget
IMF staff calls for ‘comprehensive strategy’ on non-performing loans
IMF staff call for creation of asset management companies to free up European banks from distressed debt; cites Spain as good example