News
European Commission launches shadow banking onslaught
Commission looks to impose more stringent liquidity and capital requirements on money market funds; industry body hits out at 'ill-considered' proposals
Bank of Finland deputy calls on Denmark and Sweden to join the SSM
Pentti Hakkarainen says a strong Nordic dimension in the European banking union would benefit all countries involved; Sweden focused on domestic supervision for time being
BIS papers study effects of monetary and fiscal policy shocks
Researchers find fiscal shocks within the eurozone lead to a real exchange rate appreciation through inflation differential; monetary policy shocks have minor impact on commodity prices
East African central banks take different approaches to rising inflation
Bank of Uganda hikes key rate by 100bp to 12% as food shortages push crop prices up by 16% in August; Central Bank of Kenya dismisses own inflationary pressures and holds rates
German voters want to keep the euro - but not to save it, poll finds
Two-thirds do not believe the next chancellor has mandate to support eurozone countries financially after the September 22 elections; a third supports break up of eurozone and return to deutschmark
RBA quiet on further easing as it holds rates
Reserve Bank of Australia holds its key policy rate at 2.5% and omits earlier guidance on the prospect of an additional rate cut from accompanying statement
Net lending to UK businesses still negative, BoE data shows
Second quarter figures for the UK's Funding for Lending scheme shows credit creation remains subdued; Bank of England attributes weak performance to alternative funding sources
Danish central bank calls for better liquidity management in payments markets
National Bank of Denmark urges market participants to reserve ‘adequate liquidity’ for payments settlement; breaks down ongoing modernisation of financial market infrastructure
Carney urges G-20 leaders to cooperate
FSB releases report on global progress toward ending too-big-to-fail as its chairman, Mark Carney, stresses importance of cross-border cooperation over global financial reforms for global trade
Regulators exempt forex swaps and forwards from initial margin rules
Working Group on Margining Requirements exempt forex swaps and forwards from initial margin rule for non-centrally cleared derivatives; offer a more restricted exemption for cross-currency swaps
US takes lead in ending credit rating agency ‘hard-wiring’, says FSB
China, Indonesia and South Korea have made little progress in dealing with concerns about over-reliance on credit rating agencies; US takes the lead, followed by Europe, in reducing hardwiring of ratings in the financial system, FSB report finds
Bank Negara Malaysia strikes deals with AFI and HKMA
Malaysian central bank joins forces with the Alliance for Financial Inclusion to develop global capacity-building programmes; will work with HKMA on offshore renminbi business development
Summers trails Yellen and Fischer in Central Banking Fed poll
Readers of CentralBanking.com make Janet Yellen first choice to succeed Ben Bernanke as Fed chair - with Stanley Fischer a strong second; Larry Summers joint third with Christina Romer
Pakistan adds Basel III capital surcharge to allow for modelling shortfalls
State Bank of Pakistan outlines its Basel III capital requirements for domestic banks
Tough tests ahead as Rajan prepares for RBI top job
Raghuram Rajan holds many of the skills required to govern the RBI, but he will face substantial monetary policy, governance and financial stability challenges, a new Central Banking article finds
Subbarao reviews success and failure in RBI valedictory speech
Outgoing governor Duvvuri Subbarao makes no apology for acting decisively in 2008, but says the RBI should have tightened policy faster in 2009; says bank is not targeting a level for the rupee
ECB looks to double the number of women in senior positions through quota
The bank is launching a ‘gender diversity action plan' to ensure 35% of mid-level management positions and 28% of senior positions are held by women by the end of the decade
People: Bank of Finland appoints head of monetary policy; Cleveland branch gets new vice-president
Tuomas Välimäki is Bank of Finland's new head of monetary policy and research; Guhan Venkatu takes over from Robert Schaub as president of Cleveland Fed's Pittsburgh branch; and more
Indonesia raises rates in unscheduled meeting to rescue the rupiah
Bank Indonesia raises interest rates in attempt to slow the fall in the value of the rupiah; observers fear the move will hit economic growth
Bank of Brazil hikes rates for the fourth time in as many months
Brazilian central bank deploys primary monetary policy weapon in a bid to hold back inflation and open another front to support the real, following intervention in the currency markets
Canada deputy says QE exit may be ‘more benign’ than critics fear
Despite Canada’s close ties to the US, Bank of Canada deputy governor John Murray believes tapering of Fed asset purchases will have less of a negative impact than many pundits fear
Czech governor slams one-size-fits-all regulation
CNB workshop considers impact of Basel III on emerging and smaller economies; participants consider the unintended consequences of both capital and liquidity rules
Carney's BoE walks fine line between stimulus and financial stability
Bank of England governor Mark Carney’s maiden speech includes announcement of relaxation of bank liquidity rules; insists the central bank is in charge of interest rates, despite market moves
Bank of Jamaica will continue to tighten liquidity conditions
Governor Brian Wynter says central bank will keep on issuing ‘special securities’ to ensure exchange rate stability; unconcerned by recent increases in inflation rate