European Central Bank (ECB)
ECB's Mersch touts securitisation of SME loans as way of boosting EU economy
Executive board member says second priority after assessing banks' balance sheets is to support lending to SMEs by strengthening capital markets
Banks respond differently to capital target deviations, ECB paper shows
Working paper finds banks tend to reshuffle risk-weighted assets or increase holdings when above Tier I ratio, but more inclined to increase equity levels when below target
Latvia central bank brings rates and rules in line with eurozone
Bank of Latvia slashes rates to match ECB's ultra-low 0.25%; economists say the move, along with new regulations, was designed purely to ready the country to join the eurozone in January
ECB's Asmussen defends 'unorthodox measures' in pursuit of 'orthodox objectives'
Executive board member highlights distinction between policy goals and instruments; says LTROs, OMTs and forward guidance crucial to ensure monetary transmission and hit inflation target
Mersch tells Greece not to forget future generations
Executive board member praises country for its ‘extraordinary efforts to refute the naysayers’, but warns hesitation now will force future generations to bear the burden of past mistakes
Collateral could be useful tool at zero lower bound, says ECB paper
Working paper shows broader collateral eligibility makes funding conditions easier for banks; notes this could be useful for policy, but central banks should not forget sound risk management
ECB to house new SSM in old ‘Eurotower’
Central bank decides to use existing headquarters for around 1,000 new staff responsible for single supervisory mechanism; plans being implemented to avoid overflow while new tower is completed
ECB says no treaty change needed for SRM
Central bank pushes for introduction of ‘lawful' SRM by 2015; warns delay of bail-in tool may undermine resolution efforts by creating regulatory inconsistency and uncertainty
ECB paper questions quantity theory of money in low-inflation countries
Researchers say evidence for the theory is 'just not there' in countries with low or moderate inflation, but becomes a ‘better fit' when correcting for variation in output growth
'Bold' ECB cuts rates as low inflation settles in
Mario Draghi surprises markets by announcing a cut in the main refi rate in face of falling inflation; opinion differs on whether this is the ECB's last throw of the dice
Bank of Slovenia lifts lid on bank health checks
The 10 banks under investigation will be subjected to asset quality reviews and bottom-up stress tests; results will be challenged by an outside consultancy
Fall in OECD inflation highlights advanced economy monetary policy dilemmas
New OECD figures show lower annual inflation rates despite Japanese CPI turning positive; pressure mounts on ECB and Fed to counteract trend, but analysts unsure with what tools
Constâncio insists private sector will play ‘major’ role in filling capital shortfalls
The ECB’s vice-president says banks will be able to fill any capital holes turned up in the central bank’s comprehensive assessment at least partly through private funds
ECB paper finds value in high-frequency trading
Working paper suggests high-frequency trading aids price discovery, such that regulatory restrictions could damage market efficiency
ECB faces parliamentary grilling on Troika track record
Senior managers from European Central Bank and European Commission defend the accountability and forecasting track record of the Troika in European Parliament hearing
ECB’s Asmussen urges Denmark and Sweden to sit at banking union table
Jörg Asmussen says the single supervisory mechanism will be the envy of those outside the eurozone; tells Denmark and Sweden they will get more of a say if they have ‘a chair at the table’ now
Leading central banks make emergency swap lines permanent
Six leading central banks are leaving bilateral swap agreements introduced during the financial crisis in place until further notice; US dollar liquidity-providing operations will continue as normal
Central bankers divided over quota for female staff
Participants in a CentralBanking.com poll say that central banks should make efforts to increase the proportion of women in senior positions; split over whether this should be achieved through quota
Bank of Spain's Linde touts comeback of local banks
Governor says lenders' solvency position has improved noticeably from a year ago; highlights 'drastic reduction' in toxic assets on banks' balance sheet
ECB seeks head lawyer who is ‘resilient to overwork’
Employment law expert says the European Central Bank’s criterion for its next director-general of legal services is a 'concerning pre-condition to employment'
ECB's Cœuré urges eurozone to take lessons from Asia
Executive board member says governments' response to the Asian financial crisis, including overhaul of domestic financial sectors, made for painful adjustment but swift recovery
ECB’s Asmussen backs ‘allocative’ fiscal union
Board member ‘sees a role’ for a European fiscal union in ensuring resources are allocated efficiently; suggests other forms of centralised budgeting are less useful
Cyprus governor hits back over reports of bank re-cap ‘success fee'
Panicos Demetriades says fresh reports refer to confidential documents that have been unlawfully leaked; says central bank will not pay fees based on size of failed banks' recapitalisations
Cœuré concerned over 'big bang’ payments migration
ECB says many member states are planning to migrate to the Single Euro Payments Area in the last quarter of the year; Benoît Cœuré points to operational risks of leaving it to the last minute