Central Banking
Crisis exposes flaws in US financial stability regime
Former Fed chair Janet Yellen urges Congress to reform US’s financial stability framework, after failure to curb corporate leverage in the lead-up to lockdown
IMF agrees Ukraine aid after government backs banking reform
Move is major setback for billionaire accused of harassment campaign against central bank
European Commission pushes for €750 billion budget expansion
Shared financial resources designed to support weakest EU members while spreading cost
OCC chief resigns immediately after finalising controversial regulation
FDIC abandons support at final hour after facing strong criticism from Democratic senators
Sarb’s Kganyago ‘concerned’ over sovereign-bank links
Financial stability report warns banking sector is exposed to overstretched government finances
US consumers expect more fiscal support – New York Fed survey
Consumers assigned a 40% chance of more federal welfare benefits in next 12 months
Eurozone approaching ECB’s worst-case scenario – Lagarde
Economy likely to shrink by over 10% in 2020, says ECB president
BIS launches round-the-clock banking with Mexican dealing room
Dealing room expands BIS presence in the Americas as part of “Innovation 2025” strategy
French governor says ECB could directly fund loans
Villeroy de Galhau also calls for flexible emergency purchases but rules out yield curve control
Iranian central bank announces takeover of militia-owned banks
Five banks owned by Revolutionary Guards to be taken over by country’s largest lender
Israel holds as exchange rate hampers exports and inflation target
Central bank left rates unchanged at 0.1%; government bond purchases support financial stability
ECB warns banks face significant losses due to Covid-19
Central bank stresses fiscal and monetary interventions have contributed to stabilise markets
Poloz calls for action to avoid deflationary spiral
It is critical to avoid deflation as it interacts “horribly” with debt, outgoing BoC governor says
BoE paper: mining newspaper text can boost forecasts
Authors design “powerful new method” of incorporating text information into macroeconomic forecasts
People: Carmen Reinhart to be World Bank chief economist
Carmen Reinhart to take over from Penny Goldberg at World Bank; BIS picks Hong Kong hub head; Libra Association appoints chief executive
Economists challenge standard notion of labour market recovery
Paper on post-crisis recoveries questions demand shortfall narrative
ECB minutes hint at further easing measures
Governing council discussed expanding size and scope of pandemic purchase programme
People: World Bank appoints new vice-president for integrity
BIS appoints new deputy head of banking, and Bank of Finland recruits sustainability specialist
Turkish central bank cuts rates again
CBRT makes ninth consecutive cut since July 2019 but analyst warns strategy is “unsustainable”
Covid-19 biggest threat to Fed mandate ‘in our lifetimes’ – Clarida
Fed may not provide further forward guidance until September, Richard Clarida says
Sarb carries out fourth consecutive rate cut
Sarb says banks can apply for looser prudential requirements on “case-by-case” basis as it cuts rates to record lows
Indian MPC cuts rates to record low in unscheduled meeting
RBI says Covid-19 is having a more severe economic impact than anticipated
Venezuela sues Bank of England over refusal to release gold
Authorities say they need $1 billion to fund response to Covid-19 crisis
BoE paper lays foundation for ‘system-wide stress test’
Economists develop framework linking banks, investment funds and hedge funds