Central Banking
Fed’s Tarullo identifies supervisory difficulties in applying Volcker rule
Federal Reserve board member Daniel Tarullo says regulators were finding it difficult to distinguish proprietary trading from market-making activities
Macro-stress tests not suitable as early warning systems, says BIS paper
Bank for International Settlements study says macro-stress tests are ineffective tools for identifying vulnerabilities in the financial sector during tranquil times, and could even mislead supervisors
Central banks' financing of governments warranted in some cases, says IMF paper
Fund study outlines appropriate framework to enable central banks in developing countries to lend to governments in the short-term
Robert Pringle's Viewpoint: Policy-makers in thrall to group thinking
Philipp Hildebrand’s resignation has renewed fears about market practitioners working in central banks. But FOMC minutes from 2006 reveal a deeper problem – placing too much reliance on economists
Former contractor charged for hacking New York Fed files
Computer programmer at Federal Reserve Bank of New York arrested for stealing proprietary source code used to track the US government’s finances; code is estimated to be worth $9.5 million
Haldane calls for radical rethink of accounting rules
Bank of England financial stability executive director Andrew Haldane says departure form fair-value accounting principles necessary to prevent pro-cyclical behaviour of asset prices
Global economic growth fears prompt emerging markets to ease rates
Central Bank of Brazil, Central Bank of the Philippines and National Bank of Serbia cut interest rates on weaker global outlook; elevated inflation forces South African Reserve Bank to hold rates
Risk managers complain about Fed stress test workload
Twelve new banks are included in this year's US stress test, and some institutions are unhappy about the extra work
IMF plans to raise $500 billion in new funds
Fund executive directors say doubling of lending resources will shore up emergency facility and aid indebted nations
Quasi-fiscal policies pose inflationary risks, warns IMF paper
Fund study says quantitative easing can lead to excessive inflation if fiscal authorities do not fully back operations to expand central banks' balance sheets
ECB paper identifies substantial shift in invoicing patterns following euro adoption
European Central Bank study shows Norway's trading partners participating in the eurozone used their own currency more frequently than before the introduction of the euro
Financial conditions ripe to relax renminbi rules, says HKMA’s Chan
Hong Kong Monetary Authority chief executive Norman Chan says continued growth of Hong Kong's offshore renminbi market has paved the way for more relaxed regulatory requirements
Deflationary risks could be a long-term trend, says BoE’s Posen
Bank of England Monetary Policy Committee external member Adam Posen warns deflation is likely to be a more frequent problem for policy-makers moving forward
BoK to invest reserves into onshore renminbi assets
Inter-bank bond market quota and QFII qualification pave the way for Bank of Korea to place more of its reserve in mainland China
European Commission begins legal action against Hungary
European lawmakers launch accelerated infringement proceedings against Hungary regarding the independence of its central bank; Budapest has one month to respond or risks financial penalties
Singapore launches new regulation for credit rating agencies
Monetary Authority of Singapore issues final regulation on credit rating agencies in Singapore; measures will require individual representatives of agencies to hold special licences
Sebi considers speed limit on high-frequency trading
The head of the Securities and Exchange Board of India calls for a speed limit for high-frequency trading to protect the interests of retail investors
BoE rejects proposals to revamp court
Bank of England dismisses Treasury Select Committee’s recommendations to replace its court with a new supervisory board; proposes establishment of new Oversight Committee for financial stability
Japan to support EFSF bonds as S&P strips AAA rating
The Japanese government will continue to support bonds issued by the EFSF despite Standard & Poor’s stripping them of their AAA rating; Junker says no indication other rating agencies will follow
Belgium central bank paper reviews effects of trade liberalisation in low-wage countries
National Bank of Belgium study shows low-wage countries experience less movement in labour and output to high-skill-intensity industries as a result of trade liberalisation policies
IMF’s Lipton: credit easing policy in Asia may be warranted
Fund first deputy managing director David Lipton says policy-makers in Asia may need to introduce unconventional monetary policy measures in the event of a global recession
Fed paper models financial stress index
US Federal Reserve study discusses several factors that should be considered when building financial stress indexes
RBI’s Chakrabarty discusses limitations of crisis management frameworks
Reserve Bank of India deputy governor KC Chakrabarty says policy-makers will need to anticipate future crises by taking pre-emptive action
European banks still exposed to US dollar funding risks, ESRB warns
European Systemic Risk Board issues recommendations to prevent build up in US dollar funding and liquidity risk; calls for single entity to be responsible for national macro-prudential policy