Europe
Phasing out coal-fired power could ultimately pay for itself – BdF paper
Authors say gains from lower operating and finance costs could compensate for outlay costs
Households biased in views of purchasing power – BdF deputy
Bénassy-Quéré says too much emphasis placed on food and energy prices’ effects on inflation
China poses ‘risk of economic coercion’ – Belgian paper
National Bank of Belgium says trade with EU has shifted to more “strategic” goods
Draghi report calls for step change in EU investment
Former ECB chief says bloc should revive securitisation and finish capital markets union to stay competitive
Portfolio managers make up largest share of reserve teams
Staff average annual earnings hover around $30,000 level
Phillips curve differs depending on labour market – Fed study
Research finds curve to be flat in normal markets and steep in tight ones
ECB’s Cipollone positive about September rate cut
Data “confirms our direction of travel”, board member says
The post-Archegos risk model rebuild begins… slowly
Following regulatory prodding, banks start to overhaul counterparty risk models. A flurry of new research on the topic may aid the effort
Most eurozone countries pay high price for membership – study
Central Bank of Iceland research finds smaller states would be better off setting rates independently
Schnabel outlines alternative scenarios for eurozone inflation
ECB board member says uncertainty looms over trajectory for prices
Global house prices have ‘almost stabilised’ – BIS
Prices still declining in aggregate, a trend driven mainly by China and the eurozone
Mortgage reforms, surprise rate hikes harm renters – ECB study
Researchers say young people could lose equivalent of 1% of their lifetime consumption
Cyber crime is central banks’ top financial instability risk
Upper-middle income countries more likely to be wary of foreign exchange crisis
BIS publishes centuries of data on central bank balance sheets
New “spliced” series extends back to founding of Sweden’s Riksbank in 17th century
Supra-national stress tests less common in middle income countries
Most central banks conduct stress tests of banks more than once a year
Majority of central banks carry out cyber defence exercises
Respondents suggest ways to improve exercises’ effectiveness in building up resilience
Financial literacy quickens monetary policy reaction – study
Improving people’s knowledge of money matters could strengthen transmission
Lenders not ready for resolutions – EBA research
Authority finds commercial banks still unprepared for bail-in tool
Cyber attacks increased in most countries over past two years
Central banks want cyber experts, awareness campaigns and collaborations to mitigate risks
BIS paper links interest rate risk to bank lending supply
Monetary tightening affects bank lending more when “duration gap” is larger, authors find
Central banks say co-operation on AML/CFT effective
But some still want improved data sharing, surveillance and relationships
Rising AML/CFT risks reported in 40% of jurisdictions
But majority of central banks empowered and well equipped to mitigate risks
Authorities resolved median of one bank over past decade
Central banks suggest measures for resolving failed banks
Three in five central banks seek improved banking regulations
Basel III reforms, liquidity controls, capital adequacy, others dominate list of concerns