Central Banking
PBoC’s Zhou wants enhanced macroprudential policy in China
People’s Bank of China governor Zhou Xiaochuan says macroprudential policy must keep pace with the country’s financial growth
Canada calls for holistic approach to regulation
Bank of Canada study says regulators must consider capital, liquidity and short-term liabilities jointly when addressing systemic risk
IMF: dollar volatility influences Gulf risk premia
Fund study shows US inflation and consumption drive risk premia in Gulf Cooperation Council countries
G20 calls for bigger, better FSB to carry reform agenda
G20 leaders at Seoul summit identify areas in which further progress in needed, calling on Financial Stability Board to take the lead and drive reform; ask FSB to report on what extra resources it needs
FSB plans on Sifis win G20 approval
G20 leaders welcome reform packages to date, including fresh FSB proposal to tackle moral hazard posed by systemically important banks
Fed’s Tarullo defends US record on Basel II
Federal Reserve governor Daniel Tarullo dismisses criticism over US implementation of minimum capital requirements under Basel II; says Basel III will only be effective if applied rigorously by all countries
Leaders applaud IMF reforms, boosted safety net
Fund's boosted flexible credit line, new precautionary credit line praised by G20 leaders of the IMF
SNB records $8.7 billion loss on Swiss franc gains
Swiss National Bank reports loss of Sfr8.46 billion for first three quarters of the year after Swiss franc appreciated against major currencies
Banks could circumvent Volcker rule by gaining hedge fund exposure synthetically
Volcker rule may contain loophole that allows banks to invest in hedge funds
Bankers hit out at Basel III trade finance rules
Bank chief executives say tough rules on trade finance will suffocate global trade, putting growth at risk
Fed’s Warsh advocates pro-growth fiscal policy in US
Federal Reserve governor Kevin Warsh says pro-growth fiscal policy will spur long-term investment
Too soon to judge QE2: Korea's Kim
Bank of Korea governor Kim Choong-soo says Federal Reserve's second round of monetary easing cannot be prejudged; outlines challenges for domestic economy
IMF’s Viñals envisages financial system of the future
IMF director of monetary and capital markets José Viñals lays out vision of future financial system; says financial stability will need to be integrated in monetary policy decisions although price stability should remain central banks’ primary mandate
SNB: immigrants reduce seigniorage
Swiss National Bank study shows increase in immigration reduces seigniorage for banknotes
SNB: rich nation imports deskill developing economies
Swiss National Bank says trade with richer nation depresses relative wage of skilled workers in less developed countries
New York Fed announces QE2 purchase plan
New York Federal Reserve sets schedule for $105 billion-worth of purchases of Treasuries over the next month
Basel III will choke SMEs, say leading bankers
Sands, Ackermann emphasise need for policy that supports small and medium enterprises; reiterate calls for a level playing field under Basel III
IMF: policy prescriptions for Asean 5 economies
Fund study lays out strategy for fiscal retrenchment in Asean 5 economies
Norges Bank’s Qvigstad: monetary policy boards can lead to groupthink
Norges Bank deputy governor Jan Qvigstad says independent monetary policy votes are subject to group pressure
IMF finds persistent debt overhang in Baltic countries
Fund study finds level debt overhang most pronounced in Estonia and Latvia
Italy: Basel II framework left banks defenceless against monetary policy shocks
Bank of Italy study shows higher capital requirements under Basel II did not guard against monetary policy shocks
Islamic finance poses challenges for central banks: Bank of Italy
Bank of Italy study says underdeveloped market for Islamic finance creates problems for central banks and regulators
QE2 criticisms “baffling”: King
Attacks on the Federal Open Market Committee’s latest round of asset purchases meet with scorn from Bank of England governor
Focus on trade rather than stimulus: business leaders to G20
International Chamber of Commerce honorary chair Victor Fung calls on G20 to focus on boosting international trade rather than monetary stimulus to raise growth; currency tensions expected to feature heavily at Seoul Summit