Central Banking
Italy reaches crisis point as bond yields soar
Announcement that Italian prime minister Silvio Berlusconi will resign does little to calm markets; bond yields hit euro area record high, raising the stakes for a potential default
Athens heeds Greek governor's plea to agree on coalition government
Outgoing prime minister confirms agreement on coalition government; hours after Bank of Greece governor George Provopoulos called for Athens to stop political squabbling
Canada announces renewed inflation target range
Canadian government and central bank announce renewal of the inflation-control target for the central bank; goal to remain the 2% mid-point of a 1-3% range
Iran deputy governor remains in custody
Hamid Pourmohammadi remains in custody as investigation into banking fraud continues; new UN report could lead to more sanctions on the country
Plosser pushes for adoption of explicit inflation target
Philadelphia Federal Reserve president Charles Plosser calls for Fed to introduce explicit inflation-targeting framework
Central Bank of Brazil paper on designing an effective macroprudential framework
Central Bank of Brazil study says macro-prudential tools can adversely influence monetary policy transmission mechanism
Ireland releases agreement on split of banking oversight responsibilities
Previously confidential memorandum of understanding between department of finance and central bank shows split of responsibilities; document forms part of bail-out programme
BIS paper identifies lending threshold to bank recapitalisation efforts
Bank for International Settlements study shows recapitalisation of banks will only boost lending once balance sheets are sufficiently strengthened
Bank of England is ‘monetising the deficit’ with QE – Monetary Policy Forum
Former BoE employees agree the latest round of quantitative easing in the UK could be seen as a way of monetising the deficit; panellists stress Greece’s exit from the euro would be catastrophic
Carney takes aim at shadow banking activity
New Financial Stability Board chairman emphasises fight against shadow banking institutions; says global liquidity fluctuations are damaging financial stability
High unemployment not structural: Boston Fed’s Rosengren
Boston Federal Reserve president Eric Rosengren says high levels of unemployment in US unlikely to be structural
Undercapitalisation of banks raised financial distress during crisis: ECB paper
European Central Bank study shows that size, capitalisation of banks and degree of credit expansion contributed to stress in banking sector during the crisis
Central banks at risk of losing independence: SNB’s Jordan
Swiss National Bank vice-chairman Thomas Jordan says contribution to quasi-fiscal policy measures can lead to gradual loss of independence
BIS paper examines effects of negative asset price bubbles in Asia-Pacific
Bank for International Settlements study shows underpricing of assets in Asia-Pacific caused cross-border spillovers
Treasury Committee recommends overhaul of Bank’s Court
Treasury Committee report says Bank of England Court should be replaced by new supervisory board to provide leaner and more expert review of policies
New Zealand consults banks on Basel III
Reserve Bank of New Zealand issues consultation paper on implementation of higher Basel III capital requirements; deadline for comments January 2012
Philippines re-launches economic and financial learning centre
Central Bank of the Philippines reopens economic and financial learning centre in its Cabanatuan Branch Office; education activities continue throughout the country
The dangerous scramble for liquidity
William Allen of the Cass Business School in London warns there is a danger that capital requirement measures intended to make the financial system safer may do more harm than good
Korea governor selection process under fire
Politician takes on president’s ability to choose governor of the central bank board; wants to see candidates face parliamentary confirmation hearings
Papademos flies to Athens as Greece decides on new leader
Former European Central Bank vice-president Lucas Papademos rushes to Athens as Greek officials discuss leadership choice for new coalition government
SNB’s Hildebrand ready to intervene in Swiss franc market
Swiss National Bank chairman Philipp Hildebrand says central bank is prepared to weaken “highly valued” currency further if deflationary risks materialise
Time for timidity has passed, says Lagarde
Christine Lagarde calls for action from developed and emerging economies; tells Russia to rebuild fiscal buffers
Ireland introduces revised requirements for lenders dealing with SMEs
Ireland changes rules for banks lending to small and medium-sized enterprises when they are facing financial difficulties; new code updates 2009 effort
Bank of Canada paper evaluates degree of banking stress in high-income countries
Bank of Canada study shows high-income countries dominated capital flows and experienced largest banking sector stresses during crisis