Central Banking
Outgoing World Bank president reveals next roles
Robert Zoellick says he will join Belfer Center for Science and International Affairs at Harvard University and the Peterson Institute for International Economics on leaving the World Bank
Latest amendments to Hungarian central bank law appease IMF
Hungarian government publishes letter from Christine Lagarde which gives controversial law the go ahead; says IMF is ready to begin talks about financial aid once law is passed
Governor of Central Bank of Tunisia fired: reports
Governor to be relieved of duties following economic policy dispute; Mustapha Kamel Nabli has been chief since the revolution in Tunisia
MAS agrees establishment of office in China
Monetary Authority of Singapore will open a representative office in Beijing after settling on a deal with the People’s Bank of China; third overseas office for MAS
Namibia offers reward to catch head of counterfeiter ring
Central bank announces reward for information leading to the arrest of “main culprit” responsible for counterfeit notes found recently; fake notes discovered just days after new currency launch
IMF paper examines crisis indicators
Working paper assesses the effectiveness of various indicators in predicting financial crises; finds that leverage is ineffective and instead use of poor quality collateral is “critical link”
New Zealand central bank publishes statement of intent
Statement emphasises commitment to price stability as “primary goal”; highlights need to adapt to macroeconomic environment in setting monetary and macro-prudential policy
Australia’s Debelle defends rate cuts
RBA assistant governor says central bank’s rate cuts will have an effect; argues housing market is stronger than many critics believe
Bank of Canada paper models repo market collapse
Working paper develops model of repo markets to explain causes of collapse; finds that central bank intervention can help prevent problems
Malaysia’s Zeti considers economic challenges facing Asia
Zeti Akhtar Aziz examines impact of global spillovers on Asian countries; says greater regional cohesiveness and co-operation have boosted region’s potential to overcome difficulties
Central Bank of Cyprus supports bailout request
Central bank recognises need for European help to recapitalise Cypriot banks; commits to supporting efforts to finalise the bailout
Basel Committee reveals final rules on capital disclosure
Final rules published on disclosure of banks’ capital composition as well as consultative document on risk reporting; committee aims to reduce financial stability risks from international banks
King laments growing problems in global economy
BoE governor says worsening situation in emerging economies, slowing US growth and continued eurozone trouble leave him “pessimistic”; Treasury Committee member confronts MPC over decision-making
Bank of Japan concerned about wrong-way risk on banks’ cross-holdings
Helping banks by purchasing stock will create moral hazard, says Bank of Japan director-general
Graeme Wheeler to replace Bollard as New Zealand governor
New Zealand unveils World Bank veteran Graeme Wheeler as replacement for RBNZ governor Alan Bollard
IMF paper studies fiscal impact of ageing population
Working paper analyses the effect of ageing populations on 'fiscal space' in G-7 countries; finds a greater impact on countries with larger governments
RBI paper develops systemic liquidity index
Working paper designs a 'systemic liquidity index' of financial markets in India; says index would be useful in monitoring financial system trends
BIS’s Cecchetti discusses financial globalisation
Stephen Cecchetti considers whether financial systems can grow too big and assesses how far countries should go in outsourcing financial services
Singapore and Thailand sign cross-border collateral MoU
Monetary Authority of Singapore and Bank of Thailand sign agreement to establish cross-border collateral arrangement; aims to promote financial stability in both countries
EC staff to ‘step up’ work on Spanish banks assessment
Olli Rehn calls for staff to speed up assessment of Spanish banking sector; downgrade rumours swirl after official government request for financial assistance from the Eurogroup
New $50 note released in Trinidad and Tobago
Central bank issues new note as part of independence celebrations; limited number of new $50 banknotes carry commemorative message
IMF highlights problems with overreaction to financial crises
Working paper studies data on banking crises; finds that a strong macroeconomic response to a banking crisis may reduce incentive for banks to restructure
Iceland central bank governor discusses policy challenges
Már Guðmundsson reflects on difficulties that remain in removing capital controls and tackling high inflation; suggests that others could learn from the Icelandic model
BoE paper studies impact of Lehman’s collapse on payments
Bank of England working paper studies the effect of the Lehman Brothers collapse on wholesale payment patterns; finds slower payments and increase in risk following the default