Central Banking
EBA sovereign scenarios under scrutiny
European Banking Authority stress tests reveal eight banks failed to meet 'tougher' 5% core Tier I capital ratio amid concerns over sovereign risk scenarios
Progress made on information gap project
IMF and FSB report 'considerable' progress on implementation of information gap recommendations
Euro counterfeit figure drops
European Central Bank releases counterfeit figures; 18.8% decrease in notes found
Peru governor agrees to stay on
Julio Verlade will remain in role as governor for another five-year term; president wants to maintain economic stability
Mexican recovery reflects external patterns: Mexico’s Sánchez
Bank of Mexico deputy governor Manuel Sánchez says economic recovery in Mexico underpinned by external factors
Exogenous financial shocks should factor into monetary policy: Dallas Fed paper
Dallas Federal Reserve study says exogenous financial shocks should be incorporated into monetary policy decisions
Response to fiscal policy shocks can impact debt expectations: ECB paper
European Central Bank study says fiscal shocks not accompanied by an expected spending reversal increases debt burden and reduces economic activity
Hedging strategies in periods of financial stress: IMF paper
Fund study shows that hedging strategies can reduce volatility during volatile periods but not necessarily in tranquil times
BoE makes gains on QE assets
Bank of England’s Asset Purchase Facility Fund reports £9.8 billion increase in value of balance sheet; gains channelled to UK government in form of indemnity
Bank of Finland snaps up ousted Estonian deputy governor
Märten Ross becomes adviser to the Bank of Finland’s monetary policy and research department in the area of the international economy and economic policy
South Sudan enacts central bank law
Bank of South Sudan becomes central bank; new currency to be floated in a ‘managed’ way
Uncertainty over resignation of Pakistan governor continues
State Bank of Pakistan spokesperson says governor Shahid Kardar's resignation has 'not yet' been accepted
Lebanese government renews governor’s term
Government gives Riad Salamah six more years in charge; term begins August 1
BoJ minutes highlight concerns over shortage in nuclear energy
Bank of Japan minutes warn delay in resumption of nuclear energy plants may require more 'conservative' growth forecast
Sovereign default risks amplify supply shocks: IMF paper
Fund study incorporates sovereign default risks into a general equilibrium model
Draghi says sovereign credibility must be earned
Bank of Italy governor Mario Draghi says solvency of euro area countries must be earned by putting public finances in order
Frequency of cyclical unemployment is rising: Fed paper
Federal Reserve study shows cyclical movements in unemployment have become more persistent in recent decades
Helaba withdrawal hints at 'fundamental value' in stress test results, says analyst
German bank Helaba’s withdrawal from the European stress-testing process indicates there could be 'fundamental value' in the results, an analyst says
Greece inches closer to default status
Fitch downgrades Greece’s long-term credit rating to CCC, one notch above default, in an active week for ratings agencies
Kenya reverses rate decision
Central Bank of Kenya reverses earlier rate increase on overnight discount rate but imposes restrictions on its discount window; analysts say measures amount to tightening in monetary policy
Foreign exchange intervention less effective in open economies: IMF paper
Fund study shows the effects of foreign exchange intervention on currency is less effective the more open the economy
Boston Fed’s Rosengren clarifies state of US recovery
Boston Federal Reserve president Eric Rosengren says US recovery is not in a soft patch, but in a consistently weak state
ECB paper highlights differences in EU real wage flexibility
European Central Bank study shows real wages are more flexible in Central and Eastern European economies than euro area countries
Policymakers can mitigate post-crises unemployment effects: Turkey’s Başçı
Central Bank of Turkey governor Erdem Başçı says declines in employment during crises can be reduced by introducing policies to ease firms’ borrowing costs