Central Bank of Colombia (Banrep)
Financial crises raise transmission of US spillovers to Latin America – paper
Central Bank of Colombia paper shows Brazil is a “net transmitter” of volatility; transmission of spillovers increases in times of political and financial uncertainty
Further tightening may be needed in Colombia, IMF says
Staff in Washington, DC, welcome “resolve” of central banking in latest tightening cycle; current account deficit and inflation expectations may call for further action
Colombian paper sees role for international co-ordination of housing policy
This may be needed where national policies have “important” cross-border effects; discusses macro-prudential policy and capital controls
IMF staff praise Colombian policy mix as central bank hikes by another 25bp
Co-ordinated policy action is supporting “orderly adjustment” in Colombia’s economy, IMF staff say, including good pass-through of rate hikes; central bank continues to tighten
Central bank models need to adjust to nature of exchange rate pass-through, paper says
Exchange rate pass-through shown to be incomplete, endogenous, nonlinear and asymmetric; working paper seeks to quantify effect over time
Colombian inflation measures might be ‘overstating’ true level – research
Some core inflation measures are failing to filter the impact of exchange rate on prices; policy-makers must be aware of the risk of expectations losing their anchor
Colombian paper finds ‘negligible’ contagion effects
Contagion in the interbank market poses no real threat to the Colombian financial system, working paper notes; examines link between bank failure and liquidity
Colombian paper explores signals from FX interventions
Interventions in the foreign exchange market act as ‘signals’ to solve co-ordination failure, paper says, suggesting findings can help strategy
Peer-monitoring can help identify ‘distressed’ financial institutions, paper says
Colombian working paper presents early warning system which looks at the liquidity price market participants charge one another
Colombia reinforces inflation target as it tightens policy
Central Bank of Colombia board expects to reach inflation target within two years; raises policy rate by 25bp to 5.5% as expectations increase
Changing commodity prices can ‘cushion’ other shocks, Colombian paper says
Colombian working paper suggests commodity price fluctuations do not always amplify business cycles in emerging markets
Oil prices are key drivers of metal prices, Colombian paper suggests
Research utilising ‘frequency-domain approach’ finds oil prices may be a key drivers of metal prices; consider implications for commodity-rich nations
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
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
Colombian paper paints nuanced picture of bank risk and efficiency link
Researchers find some efficiency gains from better capitalisation, but results differ depending on whether a bank is large or small, domestic or foreign
Colombian paper extends Bernanke research on asset price bubbles
Paper delivered at the BIS extends Bernanke and Gertler’s result that central banks should not lean against asset bubbles, finding the conclusion still holds in a small open economy
Central banks of Colombia and Peru expect bond impact from Fed rate hike
Even though markets are already anticipating a Fed interest rate hike, it will still have an impact on bond markets and asset prices, the governors of the central banks of Colombia and Peru argue
Colombian paper studies policy impact on ‘fragile’ banks
Combination of macro-prudential tools such as pro-cyclical capital requirements and monetary policy is “well suited” to containing the effects of a downturn, study finds
Colombian paper analyses intraday liquidity needs
Intraday liquidity risks can be ‘mitigated or even eliminated’ if entities have higher opening balances than the balances required to opportunely liquidate all payment obligations, paper finds
Colombian paper considers reaction functions in payments
Working paper examines how different entities within a large-value payment system react to failures within that system, finding that a range of factors are in play
Brazil’s central bank launches financial education website
The Central Bank of Brazil wants to ‘get closer to the population’, thus launching a new website with contents, videos and online courses on financial education
Colombian paper analyses impact of bank size and risk on policy transmission
Commercial banks with less credit risk on their books can ‘maintain a relatively good growth in the supply of credit’ when faced with a monetary policy shock, research finds
Colombian paper finds structure matters in modelling oil shocks
Working paper finds evidence that the impact of an oil price shock on an oil-exporting country such as Colombia can be large, but depends on the structure of the economy
Colombian paper examines synchronisation of economic cycles in Latin America
Central Bank of Colombia working paper finds there is ‘not a high’ level of synchronisation between a sample of seven Latin American countries