Central Banking
Big banks the ones making a mint from seigniorage
Smaller central banks lacking independence in poorer countries generally make less from seigniorage, the profit involved in minting coins, research published by the International Monetary Fund shows.
Singapore SWF could invest $5 billion in US bank
Temasek, the Singapore finance ministry's sovereign wealth fund, could be the latest fund to cash in on Wall Street's subprime losses by injecting as much as $5 billion into Merrill Lynch in exchange for what could amount to a 10% stake in the American…
Fed to conduct auctions for "as long as necessary"
The Federal Reserve said on Friday it will continue to run Term Auction Facility auctions twice a month "for as long as necessary to address elevated pressures in short-term funding markets."
Cyprus cuts rates before eurozone entry
The Central Bank of Cyprus's rate-setting board on Friday unexpectedly slashed rates by 50 basis points to 4% to match the European Central Bank's benchmark rate.
Interbank rates edge down again
Money market tensions eased further on Friday, signalling that the joint action announced by five of the most powerful central banks last week is having some impact in narrowing spreads between interbank and central banks' benchmark rates.
UBS shareholders uneasy with SWF investment
Shareholders at UBS, the Swiss bank, are threatening a revolt over capital injections worth Sfr 13 billion ($11.2 billion) from two sovereign wealth funds.
Basel II procyclicality concern must be mitigated
The elements of Basel II built into the framework to mitigate procyclicality must be properly used, especially in the current climate, said Jaime Caruana, the director of the International Monetary Fund's monetary and capital markets department.
Rate setters act on inflation not job location
Little evidence exists of any systematic differences in the voting habits of internally- and externally-appointed members of the Bank of England's monetary policy committee, research published by the Bank finds.
Bank of Haiti - Annual Report 2006
The Haitian economy expanded by 2.3% in 2006, the highest rate of growth since 1999.
Bank of Finland - Financial Stability Report 2007
The Finnish financial system is stable and would likely withstand even considerable disruptions in the operating environment, the 2007 edition of the Bank of Finland's financial stability report says.
China lifts rates in new bid to halt inflation
The People's Bank of China on Thursday hiked rates for the sixth time this year in an effort to curb inflation now at an 11-year peak.
Japanese board all back 0.5% rate hold
The Bank of Japan's rate-setting board voted unanimously in favour of keeping its benchmark uncollateralised overnight call rate at 0.5% on Thursday.
Joint action lessening interbank spreads
In a sign that central banks' concerted action aimed at easing money market tension is doing just that, banks' borrowing costs fell further on Thursday.
Philippines cuts rates to 5.25%
The Central Bank of the Philippines's rate-setting board voted on Thursday to reduce its benchmark overnight borrowing rate to 5.25%. The decision marks the third rate cut in a row for the central bank.
Taiwan hikes rates to 3.375%
The board of the Central Bank of the Republic of China (Taiwan) on Thursday opted to raise its benchmark discount rate by 12.5 basis points to 3.375%.
Central Bank of Lesotho - Annual Report 2006
Lesotho's economy expanded by 6.2% in 2006, boosted by the strong performance of the manufacturing industry.
East Asian integration must be monitored: Fukui
East Asia's growing economic and financial integration must be closely monitored to avoid negative side effects, said Toshihiko Fukui, the governor of the Bank of Japan.
Currency flexibility needed for China's success
China will need exchange rate flexibility and, eventually, convertibility with open capital markets if it is to carry on succeeding as a large and diverse economy, says Maurice Obstfeld, an academic based at the University of California, Berkeley.
Renminbi revaluation would help dampen inflation
An appreciation of the renminbi against the greenback should lead to the Chinese authorities having more control over inflation, but would have little effect on the size of the United States trade deficit, says Marvin Goodfriend, an academic based at…
Bank of England committee unanimously backed cut
All nine members of the Bank of England's monetary policy committee voted in favour of cutting rates to 5.5% earlier this month, minutes published on Wednesday reveal.
Federal Reserve hardens rules on subprime lending
The Federal Reserve on Tuesday issued a set of proposals for firmer regulations on subprime lending practices aimed at protecting consumers from unfair and deceptive home mortgage lending and advertising.
China SWF invests $5 billion in Morgan Stanley
The China Investment Corporation (CIC) became the latest sovereign wealth fund to capitalise on commercial banks' subprime losses on Wednesday, injecting $5 billion into Morgan Stanley, an American financial services group. The deal could lead to CIC…
Central bank injections reduce borrowing costs
Central banks' attempts to narrow the spread between their benchmark and money market rates by offering funds at attractive costs have met with some success.
Riksbank holds rates at 4%
The Riksbank's rate-setting board voted on Wednesday to keep its benchmark repo rate at 4% despite higher-than-predicted inflation.