European Central Bank (ECB)
Trust and comprehension seen as more important than audience size
Central bankers see trust as the most important measure of communications effectiveness
ECB adopts 2% symmetric inflation target
Central bank chooses not to follow Federal Reserve’s lead on average inflation targeting
ECB likely to shy away from AIT in new monetary policy framework
Symmetric 2% target is expected outcome; governing council members struggle to agree on forward guidance
Three ways to bolster flawed AML/CFT in the EU
The EU needs to significantly improve the structure and resourcing of its AML/CFT oversight if it really wants to combat illicit money flows, write Panicos Demetriades and Radosveta Vassileva
ECB’s Enria warns eurozone banks over risk-taking
ECB likely to lift recommended dividend pause in September, chief supervisor says
Climate risks narrowly concentrated among EU banks, report finds
Only 25 EU banks bear most exposure to physical risks of climate change, ECB-ESRB report says
Eurozone inflation expected to decline in June
Early estimates suggest inflation fell to 1.9%, from 2% in May
ECB launches consultation on supervisory practices
Central bank says exercise aims to boost transparency on its interaction with banks
ECB paper investigates macro-pru’s impact on inequality
More research is needed on how borrower-based measures affect income inequality, researchers say
ECB takes over supervision of largest EU investment firms
Firms posing systemic risk should not try to circumvent new regime by changing structure, ECB says
ECB’s Panetta: fiscal-monetary co-ordination no danger to independence
Executive board member thinks interaction can be fruitful in attaining inflation goal
The role of individuals in guarding against inflation
External pressure may test governors’ resolve as inflation climbs, say former officials and academics
Charles Goodhart on inflation targets, financial stability and the role of money
The LSE professor says inflation targets should have been 0%, the Fed’s move to AIT is a mistake, independence is under threat from inflation, big balance sheets support liquidity, AI can help supervisors and climate stress tests are unconvincing
ECB extends capital relief for largest Eurozone banks
Continued relief on central bank assets will release additional €70 billion in Tier 1 capital, ECB says
CBDC: the case for ‘wait and see’
Despite growing interest, some central banks are staying out of the digital currency game
EU blocks 10 major banks from bond issuances
Commission alleges lenders need to clarify previous antitrust breaches
‘Contagious zombies’ menace German economy – Bundesbank paper
ECB’s policies have increased flow of credit to “non-viable firms”, researchers say
Central Banking FinTech & RegTech Global Awards 2021
In March 2021, Central Banking launched its fourth annual FinTech & RegTech Global Awards to showcase some of the groundbreaking projects undertaken in the community. The results are revealed in the awards articles published in this special winners’…
ECB calls for change to proposed Polish central bank law
Proposal on loans to bank guarantee fund would break prohibition on monetary financing, ECB says
ECB could tilt bond purchases to favour greener companies – Schnabel
But sovereign bond purchases must overcome scarcity of green bonds and limits imposed by capital key
NGFS has ‘momentum’, but faces obstacles – Després
Lack of data and frameworks hamper climate mitigation, says Banque de France official
Research urges ECB to consider establishing ‘fossil bank’
Entity would play similar role to ‘bad banks’ established after financial crisis
Lagarde declines to give date for taper
Austrian governor immediately contradicts ECB chief, suggesting divisions on council
Spanish governor favours green monetary policy
Hernández de Cos stresses ECB should account for climate risks in its price stability mandate