Central Banking
Video: Banks can arbitrage central bank liquidity provision
A conflict between new liquidity regulations under Basel III and existing central bank operations leaves a gap that banks may be able to exploit, warns financial stability expert
Ex-UK chancellor calls for disbandment of Bank's Court
UK former chancellor of the exchequer Alistair Darling launches scathing attack on Bank of England's governance framework; says the Bank's Court should be broken up
G-sibs surcharge will have positive macroeconomic impact, says joint Basel, FSB working group
Macroeconomic Assessment Group says growth benefits from capital surcharge on global systemically important banks outweigh costs from higher bank funding costs
ESRB publishes foreign currency lending recommendations
European Systemic Risk Board releases recommendations on lending in foreign currencies; new measures addressed to member states, national supervisory authorities and European Banking Authority
Kuwait and China agree on deeper cooperation
Kuwaiti finance minister holds talks with Chinese representatives of central bank and sovereign wealth fund; agree on heightened cooperation
Dexia bailout spells trouble for Belgium and France, say analysts
Nationalisation of banking group Dexia threatens downgrades to sovereign credit rating of Belgian and French governments
IMF paper identifies source of inflation in Cemac nations
Fund study says inflation in Central African Economic and Monetary Community countries largely driven by global food and fuel prices
ECB’s Constâncio highlights challenges in measuring contagion risk
European Central Bank vice-president Vítor Constâncio says difficulties in identifying contagion risks requires policymakers to be more vigilant of spillover risks
Oil price surge driven by speculation: St Louis Fed paper
St Louis Federal Reserve study says speculation in oil markets played role in recent rise in commodity prices
Liquidity risks raised crisis funding costs: Bank of Italy paper
Bank of Italy study shows heightened liquidity risk caused interbank market spreads to widen during the financial crisis
Israel completes appointments to new rate-setting body
Israeli government confirms appointment of three external members to Bank of Israel’s new Monetary Committee; rate-setting body due to vote in October
Central banks shy away from euro reserves
New data from the IMF’s currency reserves database suggests reserves accumulation has slowed during 2011 and the appetite to hold euro reserves has also waned, particularly in emerging markets
IMF modelling work on liquidity risk points to capital hike, says Jobst
Recent analysis by the International Monetary Fund indicates that banks in the US need to raise capital to cover systemic liquidity risk threats
EBA stress test: €3.4 billion error in BPCE's derivatives exposure to France
Owner of Natixis overstated derivatives exposure to France by €3.4 billion after mixing up notional and mark-to-market numbers
European regulator holds crisis talks
Pressure mounts on European banks to bolster their capital buffers as European Banking Authority holds unscheduled talks in London
Japan extends emergency relief measures
Emergency loan facility and relaxation of collateral eligibility standards extended; sign of Japan’s continued economic struggle
Oil reserves eclipse Norway SWF assets
Norway budget confirms sovereign wealth fund assets still smaller than oil left in seabed
ECB’s Constâncio favours single prudential rulebook for euro area
European Central Bank vice-president Vítor Constâncio says maximum harmonisation of prudential requirements will support financial integration and reduce costs
Mortgage securitisation fuelled housing bubble: Bank of Spain paper
Bank of Spain study says increased mortgage securitisation in Spain had strong impact on new borrowers' access to credit during recent housing boom
Wage contract negotiations often sparked by high inflation: NY Fed paper
New York Federal Reserve study says large deviations from expected inflation levels often trigger new labour contract renegotiations
Sri Lanka releases customer protection charter for banks
Central Bank of Sri Lanka issues direction on customer protection in licensed banks; covers banks' commitments to customers and ways customers must also behave to ensure safe banking practices
Kenya’s Ndung’u calls for policies to stimulate competition
Central Bank of Kenya governor Njuguna Ndung’u says increased transparency and growth can be achieved through policies promoting competition and financial innovation
Riksbank narrows banknote design contest
Swedish central bank selects eight finalists out of 46 entrants to go on to final stage of krona banknote design competition; winner to be announced next April
ECB celebrates Italian culture
European central bank announces 2011 cultural days will focus on Italian culture; events include classical and jazz music concerts, film screenings, literary and art events