Central Banking
FSB sets out markers for intense, effective supervision of Sifis
FSB issues recommendations to shape top notch oversight of systemically important financial institutions; calls for expansions, clarifications to core Basel principles
UK doesn’t need more QE: former MPC members
Sir John Gieve, DeAnne Julius and Rachel Lomax say Bank should hold on launch of QE2; Gieve flags asymmetric bias towards looser policy
BoJ’s Suda criticises decision to buy government bonds
Bank of Japan monetary policy minutes reveal dissent over central bank’s decision to include government bonds as part of stimulus programme
Ex-Bank’s Lomax attacks government over cutbacks
Former MPC member Rachel Lomax lambasts climate of fear promulgated by Britain’s coalition government in order to pave the way for fiscal retrenchment
India tightens loan-to-value ratios
Reserve Bank of India sets out higher loan-to-value ratios on housing loan exposures; central bank also hikes as inflation, inflation expectations, remain high
SNB council member to step down next April
Swiss National Bank’s Armin Jans to resign from Bank Council after 12 years in role
CEPR: park cash in foreign assets to ease effects of foreign exchange windfall
Centre for Economic Policy Research says foreign exchange windfall can be absorbed by parking money in foreign assets
St Louis Fed says TAF announcement raised risk premiums
St Louis Federal Reserve study shows announcement of Fed’s Term Auction Facility unintentionally caused market participants to revise upward their expectations of seriousness of financial crisis
Bundesbank’s Dombret calls for international effort to close information gaps
Bundesbank executive board member Andreas Dombret says international approach will address information gaps in shadow banking sector
Bank’s Tucker: all EU countries should have resolution regime
Bank of England deputy governor Paul Tucker calls for national resolution regimes
Luxembourg’s Mersch condemns Basel III bias
Central Bank of Luxembourg governor Yves Mersch says Basel III will be more detrimental to European banks than US lenders; echoes bankers’ concerns on lending to small and medium enterprises
Abandon theory, Sheng urges central bankers
Andrew Sheng says current generation of central bankers became so enamoured with models they missed bigger picture; says there will be a great need for discretion, not rules, in future
Bini Smaghi attacks watered-down EU fiscal sanctions
European Central Bank executive board member Lorenzo Bini Smaghi criticises EU proposals to have option to apply veto on excessive deficit sanctions
Iran makes substantial shift into gold: reports
Tehran news agency reports central bank governor Mahmoud Bahmani as saying around 15% of foreign exchange reserves have been moved into gold
Roubini: Eurozone restructurings will leave bondholders facing losses
Government debt levels in peripheral Europe mean restructurings cannot be avoided, says economist Nouriel Roubini.
Strong dollar sees RBA book record A$3.8 billion hit
Reserve Bank of Australia reports biggest ever loss of A$3.8 billion as foreign exchange reserves slide on domestic currency strength
Interview: Mahamudu Bawumia
Former Bank of Ghana deputy governor discusses the economic and monetary policy challenges facing Ghana and Africa
Financial sector deepening crucial for Africa: ex-Ghana deputy
Former Bank of Ghana deputy governor Mahamudu Bawumia says bringing financial services to rural populations is key
Sigtarp criticises Treasury's bailout accounting
AIG investment cut from $45 billion loss to $5 billion loss following accounting change, report claims
Ireland to raise consumer protection standards
Central Bank of Ireland proposes rules requiring firms to be tougher when selling products to customers
Bank on payment splitting
Bank of England study shows quantity of liquidity necessary to settle payment depends on threshold for payment splitting
BIS investigates drivers in US stock market
Bank for International Settlements study says changes in expected excess returns on dividends main driver of US stock market
Korea’s Kim says volatile capital flows can be suppressed
Bank of Korea governor Kim Choong-soo says sound macroeconomic policies can mitigate volatile capital flows
Canada’s Carney: recovery to weaken
Bank of Canada governor Mark Carney forecasts subdued growth as economy enters next phase of recovery