United Kingdom
Investigation unearths flaws in BoE’s RTGS system
Combination of elderly and complex RTGS system, inadequate testing and poor contingency planning led to nine-hour outage last October; BoE adopting review’s recommendations in full
UK inflation hits zero
For the first time ever, consumer prices were unchanged in the year to February, although the 0% figure masks substantial variation among sectors; BoE hints at easing possibility
BoE’s Brazier sees room for improvement in stress testing
New executive director outlines enhancements including counter-cyclical testing and extending the regime to the non-bank sector
BoE agents shift perspective towards shadow banking
Role of central bank agents shifts towards financial stability and brings particular benefits in tracking the rise of non-bank finance, shows BoE quarterly bulletin
Carney: some shocks might warrant lower inflation target
BoE governor says persistent supply shock could justify a change in the inflation target, but stresses this is a ‘pure hypothetical’; optimistic over long-term picture for productivity
UK fraud office probing Bank of England liquidity auctions
Bank of England liquidity auctions during the financial crisis of 2007 and 2008 are under investigation; Grabiner compiled an initial report before matter handed to SFO
Carney targets 'strategic’ approach to market intelligence
BoE governor Mark Carney sheds light on some of the recent changes to the way the central bank gathers market intelligence in Treasury Select Committee hearing
Climate change on BoE research agenda
Bank of England says research could examine how central banking can ‘play a role’ in addressing systemic environmental risks; conference panellists consider issue
BoE’s Hauser says markets review will avoid heavy-handed regulation
Andrew Hauser says UK’s Fair and Effective Markets Review will seek to achieve its aims through market discipline if possible, instead of imposing burdensome regulation
Treasury Committee attacks FCA’s use of media as ‘tool of regulation’
UK conduct regulator defends use of press to disseminate its policies, but MPs call the process ‘bizarre’ and a ‘colossal risk’
BoE's Forbes says few MPC members are 'perennial hawks or doves'
External member lays out key risks to Bank of England's central forecast, including stronger US growth, lower oil prices, and exchange rate pass-through
People: Sri Lanka gets new governor, Albania 'very close'
Arjuna Mahendran appointed governor of the Central Bank of Sri Lanka following elections last week; Gent Sejko on track to become Albanian governor, says spokesperson; and more
BoE wartime minutes show sharp contrast between Court of then and now
Minutes from 1914-1946 show an evolving Court of Directors, but one radically different from today; the latest release covers both World Wars and the Great Depression
Banks are being herded into using similar risk methods by regulation, experts warn
Regulation is encouraging banks to manage risk using similar methods, which presents a threat to financial stability, witnesses tell a UK parliamentary committee
Bank of England MPC still split 7-2 on rates
Minutes from the December meeting show Ian McCafferty and Martin Weale voted for a 25bp hike for the fifth consecutive month; they argue wage growth could ‘pick up sharply’
FCA director says breakdown in controls led to communications blunder
Clive Adamson says FCA has taken steps to improve internal procedures; tells MPs the organisation can struggle to operate in a crisis
UK payments regulator may use powers to force innovation
Payment Systems Regulator emphasises its "strong" powers over industry and says it will not hesitate to use them if firms fail to collaborate on innovation
Davis Report reveals extent of FCA communications blunder
Report uncovers misguided comms strategy, poor supervision by senior managers and sluggish response as FCA ‘taken by surprise’
UK's FCA unveils reshuffle amid criticism
Conduct supervisor admits supervisory model for small firms has been "under strain" as three directors quit; critical report due to be published this week
Cluster effect helps explain size of UK banking sector, BoE bulletin finds
Firms and people locating near one another means banks may be able to provide services more efficiently in the UK than other countries, researchers say
Top EU court should dismiss UK bonus cap plea, says advocate general
Opinion rejects UK’s main legal challenge to EU bonus cap law and argues use of word ‘cap’ is misleading; UK Treasury says opinion ‘demolishes’ case for fixed ratio
UK bank reforms may be ‘diluted’, warns parliamentary commission
Former members of the Parliamentary Commission on Banking Standards warn regulations are at risk of being misinterpreted, diluted by lobbying, or applied incorrectly
Chief currency dealer dismissed from Bank of England
Grabiner report unveils transcripts of conversations between BoE's Martin Mallett and market participants discussing 'matching off' trades; BoE says dismissal unrelated to FX investigation
UK launches probe into banking sector competition
Investigation will assess whether retail banking market is too concentrated, with barriers to entry and opacity under scrutiny