News
Higher inflation in the US could accelerate Fed’s tightening
US Treasury yields rise as GDP growth accelerates and inflation expectations increase
Bank of Tanzania must remain ‘vigilant’ during framework transition
Central bank will need to be careful as it transitions to new monetary policy framework, IMF warns, given expected recovery in spending
Bundesbank panellists call for change in German ‘mindset’
Mario Monti says he would like to free Germans from their economic “straightjacket”, while Benoît Cœuré hints at need for rebalancing
EU ombudsman asks Draghi to relinquish G30 seat
Prolonging the president’s membership threatens independence and public’s trust in the ECB, O’Reilly declares
Bank of Korea on hold amid policy dilemma
Strong won and benign inflation likely to keep the BoK on hold in the first half of 2018
Short-selling bans increased instability – ESRB paper
Banks’ volatility, leverage and default probability increased by bans on short-selling – researchers
German coalition talks open possibility of reformed ESM
European Commission proposed creating a new institution to lead crisis programmes in December
People: Banque de France deputies named
Sylvie Goulard and Denis Beau take positions at Banque de France; second deputy governor at Bank of Ghana vacates post; Bolivian central bank’s board gets new vice-chair; and more
Egypt’s new banknote facility to be built by G&D
German firm awarded over $300 million for successful tender which will see “majority” of Egypt’s banknotes printed at the plant
PBoC releases liquidity ahead of new year celebrations
RRR cut is expected to release liquidity to counter the seasonal tightening around Chinese new year
Auditors find ‘flaws’ in ECB’s crisis management framework
ECB must improve co-ordination with SRB and national supervisors – report
Ukrainian bank owners carried out ‘co-ordinated fraud’, forensic audit says
Crimes by former owners of PrivatBank cost at least $5.5 billion, says Kroll report
German savings banks may buy debt to gain political favour, ECB paper says
Research warns this behaviour increases interdependence between banks and governments
Core-periphery model of bank networks called into question
Researchers find multiple cores in the interbank market, posing different systemic risks
BoE’s Woods warns of ‘point of tension’ in Brexit negotiations
PRA chief fears EU supervisors may adopt a local mindset when dealing with cross-border firms
Bundesbank to begin investing in renminbi
Executive board member says the bank is considering investing in other foreign currencies
Russia raises capital ratios, launches fintech consultations
Systemically important banks must increase capital ratios; smaller banks can choose “basic” or “universal” licences
Morocco introduces a more flexible exchange rate
The central bank introduces a daily band of 5% for the dirham to trade against major currencies
Economists need to better understand macrofinancial links – BIS paper
Stijn Claessens and Ayhan Kose call for “new generation of models” among other research to solve ongoing puzzles
Gontareva accused of complicity in money laundering
Ex-governor denies she improperly helped former president Yanukovych
Minneapolis Fed launches too-big-to-fail plan
The four-step plan proposes stricter capitalisation rules for big banks and looser regulation for smaller institutions
Peruvian central bank cuts rates amid political crisis
Economy impacted by political crisis following the pardon of former president Alberto Fujimori
Sri Lankan central bank launches sweeping reforms in wake of bond scandal
Central bank tightens controls on debt management and pension fund trading after investigation uncovers malpractice
HKMA launches consultation on open API framework
Open API enables personalised services for bank users but requires access to customer data