Europe
ECB’s QE boosts equity prices beyond fundamentals – DNB research
Negative sovereign bond yields encourage investors to increase exposure to riskier assets
Latvian coalition nominates new central bank governor
Nominee has publicly disavowed current governor as authorities try to deal with serious allegations
Slovakian government extends bank tax despite ECB warnings
ECB and Slovak central bank warn increased bank levy could endanger financial stability
Book notes: The Japanese central banking system compared with its European and American counterparts, by Yoshiharu Oritani
The book has “no equal” in reviewing new microeconomic theory for central banking
Negative rates not to blame for low eurozone bank profitability – Fed paper
Rates and macroeconomic environment only make up third of shortfall, researchers find
Will the ECB make climate change a policy goal?
Weidmann declared strong opposition to “green QE” as climate groups call on Lagarde to shift policy
Facing up to the tech challenge
Central banks get a wake-up call from libra
Enria proposes more change for eurozone stress tests
New framework would include macro view, but will not be ready until 2022, says chief ECB supervisor
Cœuré flags risks to ‘autonomy and resilience’ of European payments
Central banks need to resist payment market fragmentation, says ECB official; Banque de France’s Beau calls for experimentation with wholesale CBDC
EU could take legal action against Slovene central bank law
Commission could act over lawmakers’ bid to force central bank repayments
Focus on cross-border payment systems, not CBDC – Bundesbank official
German central bank board member says “fast and efficient” payment network should take priority over digital currency development
Lagarde says eurozone must end export dependence
Call to boost demand is likely to be seen as aimed at German policy-makers
Regulators and firms confront problems of ‘open banking’
Basel Committee report says challenging trade-off exists between privacy, security and efficiency
Eurozone should look at raising capital buffers – ECB paper
Impact on growth of 50-basis point rise in counter-cyclical buffers would be limited, researchers say
European pension fund liquidity may need to rise – Danish central bank
Central clearing exemption to expire in 2023 under market infrastructure regulation
People: French official becomes ECB’s market operations director
RBNZ replaces assistant governor role in main office with Auckland post; World Bank’s investment arm gets new managing executive officer
The challenges facing Christine Lagarde
The new ECB president will need to focus on a successful review of the ECB’s monetary and communications policy, while encouraging fiscal stimulus and structural reform
ECB paper looks at eurozone corporate debt purchases
Buying of corporate bonds by ECB boosted issuance of euro-denominated debt – researchers
Dutch governor warns of unconventional policy hazards
Knot also argues for expansionary fiscal policy and symmetrical inflation target
EBA’s Campa: reduce Pillar 2 charges to offset output floor
Bankers plead for smaller capital hit and more predictability on implementation of Basel III
De Guindos says ECB ‘implicitly has symmetrical targeting policy’
ECB vice-president backs Macron plan for common eurozone fiscal policy
Italian banks exploit ECB tiering to sharply boost local deposits
Rush to exploit arbitrage opportunity is “interesting showcase” of fragmented markets, says Benoît Cœuré; giving non-banks access to liquidity could help
France’s ACPR will not comply with Eiopa Brexit recommendation
ACPR is concerned over risks shifting from UK to France
Powell to lead two key BIS committees
French governor leads BCBS oversight body, BoE’s Cunliffe to head CPMI, and NY Fed has key Americas role