Central Banking
Berlusconi asks Bini Smaghi to step aside
Italian prime minister acts to ensure French support for Mario Draghi as next head of the European Central Bank
Tanzania deputy governor leaves
Enos Bukuku takes up role with East African Community; Natu el-Maamry Mwamba reportedly replaces him
Switzerland votes for tougher capital rules on big banks
Swiss upper chamber backs bill to raise capital requirements of largest banks to 19%; Swiss National Bank vice-chairman Thomas Jordan says potential losses must be fully absorbed
Wellink wants European Financial Stability Facility funds doubled
ECB governing council member wants fund boosted to €1.5 trillion
King defends his additional powers
UK government publishes draft legislation handing significant powers to the governor of the Bank of England; King reassures critics of the shift
Ireland proposes haircuts for Anglo Irish bondholders
Irish finance minister Michael Noonan says Anglo Irish Bank senior bondholders should receive haircuts; pits the Irish government against the European Central Bank
Carney cautious over Canadian housing market boom
Bank of Canada governor Mark Carney warns of vulnerabilities in Canadian housing sector
RBA’s Stevens hints at rate hike
Reserve Bank of Australia governor Glenn Stevens signals resumption of monetary policy tightening
IMF paper on GCC equity market spillovers
Fund study says Gulf Cooperation Council equity markets were exposed to US and regional losses during crisis
Denmark’s Bernstein optimistic on consumption-led recovery
National Bank of Denmark governor Nils Bernstein says private sector savings will drive consumption and investment to more normal levels
Greece debate grips European markets
Dutch finance minister Jan Kees de Jaager says private credit holders of Greek debt should bare 30% of losses on paper; Fitch says any exchange of distressed debt would constitute a default
UK chancellor backs ring-fencing of banks
Chancellor of the exchequer endorses plans to separate retail from investment arms; says FPC’s stability remit to be reviewed annually
Bernanke warns Congress on fiscal deficit
Fed chairman warns limiting debt ceiling self defeating, says US must choose between “careful and deliberative process” of financial policy change or “much more painful” crisis response
ECB highlights funding vulnerabilities in euro area banks
European Central Bank June 2011 Financial Stability Review shows funding vulnerabilities remain "Achilles heel" for euro area banks
Government representative quits Costa Rica’s board
Government representative on central bank board resigns; leaves body without power to make decisions on foreign exchange policy
LCR should include equity, says ACP’s Nouy
Basel III liquidity coverage ratio should admit equities with significant haircuts, says Danièle Nouy at the Autorité de Contrôle Prudentiel
Risk & Return Brasil: Supervisors need to be more curious, says Donizeti
Authorities should put less faith in numbers and what they are told by banks, says top Brazilian supervisor
Sweden’s Ekholm not in favour of current account targets
Riksbank deputy governor Karolina Ekholm says central banks should not set targets for how large their deficits and surpluses can grow
Toxicity Index levels rising: RBI report
Reserve Bank of India June 2011 Financial Stability Report finds evidence that exposure to inter-bank distress is creeping upward
South African Reserve Bank – Annual Report (2010–11)
South African Reserve Bank 2010–11 Annual Report says there is no obvious threat to domestic financial stability
US dollar leading currency peg: ECB paper
European Central Bank study shows US dollar continues to dominate as most used exchange rate currency anchor
Basel working group calls for 'explicit' financial stability mandate
Working group on financial stability governance calls for explicit and clear mandates for central banks
IMF disqualifies Fischer
IMF tells Stanley Fischer he cannot run for the role of managing director because of age; Fischer “proud and happy” to remain in role at Bank of Israel
China blames loose global monetary policies for inflationary pressures
People’s Bank of China brings price control to the forefront; says loose global monetary conditions have pushed up inflation expectations