Central Banking
ECB’s Tumpel-Gugerell outlines challenges for ESRB
ECB executive board member Gertrude Tumpel-Gugerell says European Systemic Risk Board must overcome limitations to measuring systemic risk
Swiss National Bank upbeat about recovery
Swiss National Bank revises 2010 growth forecast upwards after revival in manufacturing; says recovery likely to slow in 2011
BoJ: consumption tax hike insufficient to balance budget
Bank of Japan study says consumption tax increase and moderate growth unlikely to return country to fiscal sustainability
Norges Bank sues Citi over subprime-related losses
Norges Bank alleges bank was deceitful over true nature of health; condemns Citi’s subprime mortgage, CDO practices
UK banking commission moots reforms
Commissioners stress they have an open mind as to which structure will best suit British banking industry
New York Fed research finds flaws in inflation expectations polls
New York Federal Reserve research uncovers faults in measuring inflation expectations; says questions on rate of inflation rather than price level provide better guide to future uncertainty
Isoard to head International Association of Deposit Insurers
International Association of Deposit Insurers appoints former governing board member of Mexico's deposit protection agency Carlos Isoard as next secretary general
Rate decisions this week
Majority of central banks stand pat as uncertainties persist over growth, price pressures; Iceland cuts while Turkey, Uruguay tighten policy
FSA’s Turner: regulator faces challenging transition period
Financial Services Authority chairman Adair Turner says restructuring of regulator will no doubt impact quality of operations
FSA worried over excessive EU rules while firm on proportionate solution for hedge fund pay
UK regulator worried heavy handed rules will drive hedge funds out of Europe, depriving supervisors of information on their European activities
MAS governor on regulatory reform
Monetary Authority of Singapore’s Heng Swee Keat notes need for better regulations, better appreciation of the macro-financial linkages, and firmer supervision
RBNZ’s Spencer: monetary policy will have more bite
Reserve Bank of New Zealand deputy governor Grant Spencer says cautious lending means monetary policy will have more bite than in previous years
No easy alternatives to credit ratings
US regulators are right to look to curb their reliance on credit ratings. However, it will prove tricky to find viable alternatives
BoE: consumption volatility explains global decline in real interest rate
Bank of England study shows lower global real interest rates caused by higher consumption volatility in traded goods
Weber’s German defence highlights leadership flaws
Bundesbank president Axel Weber blames deficit countries for eurozone’s woes; analysts say comments further complicate chances at ECB presidency
BIS must fix data gaps: Bank paper
Bank of England paper identifies specific information gaps in cross-border banking statistics published by Bank for International Settlements; improvements thought to be under way
Finland’s Liikanen demands greater economic coordination in eurozone
Bank of Finland governor Erkki Liikanen says better public finance governance serves common interest in Europe
Norway’s Gulbrandsen: benefits of regulation outweigh costs
Norges Bank’s executive director of financial stability Kristin Gulbrandsen says tight regulation would have net social benefit
Wellink keen on expanding Basel III rules
Basel Committee chairman Nout Wellink says further improvements to new Basel rules will increase quality of capital base
Argentina’s Marcó del Pont nominated for full term
Argentine President nominates central bank governor Mercedes Marcó del Pont for full six-year term, even as inflation soars and currency value drops; deputy, board members also nominated
Reform missed chance to fix mortgage markets: Volcker
Former Federal Reserve chairman Paul Volcker says US mortgage markets are dysfunctional due to reliance on government; renminbi appreciation in China’s own interest
US to launch financial stability council next week
Financial Stability Oversight Council to hold first meeting on 1 October
Bank of Russia wants to scrap kopek coin
Russian central bank proposes that one and five kopek coins be abolished due to high metal prices and low demand
BIS’s Caruana lauds Basel III
Bank for International Settlements general manager Jaime Caruana spells out importance of Basel III capital reforms