International
Treasury systems initiative: Ion Treasury
Ion’s acquisition of Openlink in 2018 has boosted its central bank and agency clients to 65, with a new ECB contract being a ‘jewel in its crown’
Only Fed could respond to fresh downturn, Axel Weber says
Most central banks have no room for manoeuvre, says former Bundesbank president
Financial inclusion initiative: Federal Reserve Bank of St Louis
Improvements in the bank’s financial inclusion initiatives are helping tackle the polarisation of economic education in the US and across the globe
Financial market infrastructure services: ParFX
The foreign exchange platform has pioneered a market-driven effort to tackle concerns about poor market behaviour and distrust in the $5 trillion-a-day market
IMF expects global growth to slow further in 2019
“Significantly higher” and “increasingly intertwined” risks weigh on global growth, Lagarde says
Brexit unlikely to affect sterling’s reserve currency status
No-deal scenario could put major downward pressure on the currency
Crypto assets hobbled by proof of work, finds BIS economist
Raphael Auer says bitcoin payments could take “nearly a year” to become truly final
Asset manager of the year: State Street Global Advisors
The US financial group used its global presence, and equity and fixed income expertise, to expand its central bank client base and assets under management in 2018
Global markets award: HSBC
HSBC’s global reach and expertise in emerging Asian markets has helped its long-term central bank clients develop more sophisticated reserve management strategies and move into new markets
Innovation in reserve management: BNP Paribas Asset Management
The asset manager developed new fixed income investment strategies in 2018 that have delivered strong returns and diversification for clients, while also offering practical training support
Custody initiative of the year: Citi
The US financial group used its global presence and technological edge in 2018 to deepen existing relations and obtain new mandates
Growth keeping global debt-to-GDP just below all-time high – IIF
Latest monitoring report puts debt at three times global GDP, with some countries especially vulnerable
Basel Committee softens impact of revised market risk framework
Final framework cuts expected increase in average capital requirements almost in half; committee may consider some further rule-making in 2019
Supervisory lessons: resolution is a ‘dirty business’
Former Bank of Spain head of supervision Aristóbulo de Juan reveals his principles for resolving problem banks in the final article of a four-part series
Individual bank diversification can increase systemic risk, researchers find
Banks that are not systemically important can be ‘systemic as a herd’, authors say
Rise of renminbi prompts central banks to open Asian offices
A total of nine central banks now have offices in Asia, but New York remains city of choice
French governor warns of the perils of ‘impatience’
Central banks should maintain a longer term view, even in the face of volatility and government pressure
BIS’s Borio calls on economists to take money more seriously
Money is too often explored in isolation, or ignored completely, the BIS economist says
People: Nellie Liang withdraws from Fed nomination; World Bank chief resigns
Trump nominee had played a key role in setting up the Fed’s stress tests; Kim was due to leave World Bank presidency in July 2022; further appointments in UK, Vietnam and Ghana
Price shocks worse with poorly anchored inflation expectations – IMF paper
Inflation rises less and falls quicker after shocks when expectations are well anchored, study finds
Diverging regulatory policies could spell trouble for banks, report says
Deloitte says there are obvious signs of regulatory divergence as regulators and supervise focus on national policies
2018: The year in review
The past year marked a return to instability, but also saw some innovations among central banks
The PBoC’s efforts to solve the ‘impossible trinity’
Chinese central bank intervenes to manage offshore renminbi rate; uses swaps, rather than selling reserves in latest currency interventions
‘Key currencies’ affect patterns of global imbalances – BIS paper
Authors say it is important to think about a “dollar zone” not just the dollar