European Central Bank (ECB)
ECB researchers suggest refinements to macro stress tests
Working paper identifies a number of factors in addition to growth that determine the rate of non-performing loans; authors say this could allow for more accurate stress testing
Draghi backs single resolution mechanism as banking union next step
ECB chief says single resolution authority should be set up when single supervisory mechanism is in place; suggests failure to do so would leave central supervisor toothless
ECB paper scrutinises fiscal multipliers in high-debt countries
Researchers assess impact of fiscal stimuli at different debt levels in Europe; caution that high debt levels may impair government’s ability to stimulate the economy
ECB researchers model systemic crises with heterogeneous interbank market
ECB working paper finds positive supply shocks feed credit booms leading to systemic banking crises
European recovery stalls as UK politicians warn of complacency
Latest GDP figures reveal eurozone economy contracted by 0.5% in 2012; OECD calls for wider and stronger reform efforts
ECB’s Praet targets stronger ABS demand
Executive board member Peter Praet says the recovery of the market for asset-backed securities is essential for the provision of credit
Constâncio sets out ECB's priority tasks in European banking union
European Central Bank vice-president aware of reputational risks from single supervisory mechanism; says ECB must work with EBA to develop a manual of supervisory practices
ECB working paper finds fiscal consolidation improves bank balance sheets
Improvement in capital adequacy ratios results from a portfolio re-balancing from private to public debt securities, reducing the risk-weighted value of assets
Co-operation needed to avoid reduction in cross-border activity, says Canadian deputy
Timothy Lane says a reduction in cross-border activity only internalises the contagion risk; greater global co-operation needed to improve financial stability
G-20 urged to address financial system flaws
Group of Thirty wants G-20 to act on conflicting financial services regulation, taxation and reporting rules; calls on Asian central banks to inject up to $4 trillion into diversified SWFs
ECB 'conflict of interest' puts effective supervisory mechanism at risk
The European Parliament's rapporteur on the SSM fears a conflict of interest inherent in the ECB stands in the way of creating an SSM that is up to the task
ECB's Cœuré argues integrating SSM in ECB has benefits for monetary policy
Executive board member sees benefits to monetary policy in bringing supervisory mechanism into the ECB
Ireland passes emergency liquidity restructuring bill
Irish parliament passes bill to transform promissory notes into long-term sovereign bond, and wind up 'bad bank'
Draghi says markets should have final say on currency strength
ECB president re-affirms the central bank's independence; emphasises ‘accommodative' monetary policy, as governing council votes to hold rates again
‘Crisis in the eurozone is not over’, says MAS chief
MAS's Ravi Menon offers a roadmap to central banks and governments to help ‘normalise’ the global financial system; hits out at loose monetary policies and says fiscal policy debate is misinformed
ECB paper tweaks the evaluation of early warning systems
Research proposes changes in the way the costs and benefits of early warning systems are calculated
Constâncio concerned about credibility in wake of SSM
ECB vice-president says problem in banking industry could damage the central bank’s reputation; denies any conflict of interest between monetary and supervisory functions
ECB’s Praet warns against ‘hazardous’ policy experiments
Executive board member says he is ‘very sceptical’ of suggestions to raise the inflation target, but cautions against complacency over policy toolkits
Banks rush to repay LTROs at first opportunity
Repayments of the European Central Bank’s long-term refinancing operations exceed many analysts’ expectations, as 278 banks choose to pay back nearly 30% of the total
Dutch paper attempts to fill gaps in European unsecured lending data
Working paper develops algorithm to extract information on unsecured money-market loans from Target2 data, then uses the new data to identify trends in lending
ECB working paper highlights success of LTROs
Researcher finds three-year long-term refinancing operations significantly boosted European growth prospects and eased lending conditions
Mixed reactions from banks as ECB prepares to wind down LTROs
Repayment window for LTROs set to open on January 30; some commentators raise concerns over possible monetary tightening, while others view early repayments as sign of financial health
Draghi optimistic as ‘darkest clouds’ in euro area subside
ECB president Mario Draghi praises the euro area’s achievements in 2012, and urges countries to be unrelenting in their pursuit of reform
ECB working paper posits improved volatility measure
Paper proposes new measure of volatility that provides information on whole market rather than single maturities; authors say results are simpler and more robust than existing models