News
Asian central bank FX reserves not properly recognised by rating agencies, says Sheng
CBRC adviser and former Hong Kong SFC chief Andrew Sheng points to inconsistent approach in sovereign debt ratings; doubts international crisis co-ordination is possible
MAS benchmark proposals may reduce number of dealers in SGD market
MAS proposal on financial benchmark setting aims to hold banks more accountable by imposing criminal and civil punishment
FX clearing driven by capital and collateral costs rather than mandate
As mandatory NDF clearing has been delayed, the likely increase in capital and collateral requirements for FX trades is forcing some to consider clearing ahead of the mandate
Central Bank of Cyprus ‘moving in direction’ of more active board
David Lascelles says interim report on Cypriot banking sector has been well-received; hopes parliament will sanction a ‘more democratic’ board
Carney's BoE shifts towards forward guidance on rates
Bank of England holds monetary policy steady, telling markets that expectations of rate rises have been premature; formal forward guidance is expected at the August meeting
ECB commits to keep interest rates down
Governing council says interest rate will remain at or below 0.5% for an ‘extended period of time’ despite previously refusing to pre-commit monetary policy
No CVA exemptions in US Basel III rules
Europe isolated as US regulators opt for broad counterparty risk charge
UK's FCA commits to active participation in designing European regulation
FCA chairman says the UK financial industry must take a pragmatic approach towards regulation from Brussels; MP Mark Garnier says regulation that is too complex can lead to ‘accountability firewalls'
People: Senior roles filled at the EBA; Atlanta Fed appoints new HR head
The European Banking Authority has elected Portugal's Pedro Duarte Neves to the role of alternate chairperson; Atlanta Fed promotes Blake Lyons, who will also advise the bank's management committee
Former BoE deputy to review RBS SME lending practices
Andrew Large will look into RBS group's lending practices in a bid to ensure more liquidity reaches UK businesses
Sweden's Riksbank holds rates, but new deputy dissents
Ingves suggests the possibility of another increase in mortgage risk-weights after they were raised to a minimum of 15% in April; Riksbank estimates consumer price inflation to remain at 1% in 2013
Carney prioritises 'women on banknotes' issue
New Bank of England governor says issue of present and future female representation on banknotes is under discussion; pledges further public announcement by end of July
Iceland central bank closes last vault outside of Reykjavik
Vault closure is the culmination of a 10-year review of the bank's role in distributing banknotes around the sparsely populated island nation
Federal Reserve adopts Basel III for US banks
Fed Board unanimously votes to introduce new capital requirements as of January 1; Daniel Tarullo says additional measures will follow including proposals for a higher leverage ratio
BoE's Tucker wants immediate 3% leverage ratio in UK
BoE deputy governor Paul Tucker calls for 3% leverage ratio to be imposed immediately on UK banks; says banking crisis has taken capacity out of financial system
Bank Negara Malaysia seeks to limit superfluous supply of banknotes
Central bank prints 500 million new banknotes for celebrations at the end of Ramadan each year; urges public to accept high-quality recycled notes in their stead
Mark Carney era underway at Bank of England
Expectations are high the new Bank of England governor will introduce forward guidance; academics point out he will first need to win over a divided MPC
IMF figures show advanced economies loading up on Australian dollars
Stock of foreign exchange reserves continues upward trajectory, with Australian currency finding favour in advanced economies, and the Canadian dollar in vogue in emerging nations
Cyprus central bank told to dilute governor power
Independent report says too much power was concentrated in the governor’s hands in the build-up to the recent Cypriot crisis; calls for new policy-setting committee with non-executive majority
Croatian membership boosts ECB capital
Croatia’s central bank has joined the European System of Central Banks (ESCB), with governor Boris Vujčić taking his place on the ECB’s general council
Top Fed officials speak out to calm markets
Two Federal Reserve governors and the New York Fed president emphasise a change in monetary policy will be driven by data, not the date; further easing remains a possibility
IMF plans overhaul of assistance to central banks and governments
Policy paper lays out plans for ‘single strategy’ combining technical assistance and training; pilot programme for new Capability Assessment Program aims to improve monetary and fiscal policy
Austrian deputy resigns amid ongoing bribery case
Wolfgang Duchatczek quits National Bank of Austria; stands accused of bribery in relation to banknote printing deals with Syria and Azerbaijan
Hungarian inflation bound for 3% target after central bank cuts again
Hungarian National Bank cuts benchmark interest rate by 25bp for 11th successive meeting; forecasts that inflation will pick up in 2014 and hit target the following year