Central Banking
Riksbank researchers flag benefits of major capital boost
Significant increase in the leverage ratio for Swedish banks could bring net social benefits, study finds
New Glass-Steagall would not separate banks if implemented, says Mnuchin
US treasury secretary’s stance on banking reform appears to contrast with that of president Donald Trump, who has offered seemingly contradictory statements on regulation
US household debt surpasses pre-crisis peak
Household debt exceeds 2008 level for first time, driven in part by auto loans and student debt
ECB criticises Slovenian draft law on bank’s crisis actions
Disclosure of information would contravene European law, and the use of experts should be changed, the ECB says
Paper examines effects of concentration of exports
Bank of Spain researchers examine 12 eurozone countries
Credit cycle matters for fiscal policy – BIS paper
Phase in financial cycle has “substantial” impact on public finances, authors find; commodities cycle less important but matters for some
Kashkari: Fed should not seek to deflate asset bubbles
Spotting bubbles is too difficult and the costs of failure too great, the Minneapolis Fed chief warns, although he concedes raising interest rates remains an emergency option
Zambia cuts interest rates again
Monetary tightening has tamed inflation but squeezed financial sector – IMF
Malaysian central bank to name and shame non-compliant banks
Bank Negara Malaysia to publish enforcement actions next year, while introducing regulation to allow banks to share information on employees engaged in misconduct
People: Romanian deputy nominated; Belgium’s Dewatripont leaves central bank
Romania to soon have new deputy governor, pending parliamentary approval; National Bank of Belgium’s deputy Dewatripont leaves central bank; India creates CFO role; and more
Croatian governor: western Europe could improve NPL provisioning
Central and eastern European countries are leading the way in dealing with NPLs, says Vujčić
ECB issues guidance on leveraged transactions
Senior management must have a “comprehensive” view of all leveraged loans
Norges Bank reserves swell, thanks to equity returns
Fixed-income portfolio returns were essentially zero in Q1, but the central bank is able to achieve returns on equity holdings
IMF expands access to disaster funds
Economies are offered more generous thresholds for funding in the face of severe natural disasters
PBoC and HKMA announce Bond Connect scheme
The current phase only allows overseas institutional investors to invest in China's bond market
Uganda will ‘claw back’ losses – Tumusiime-Mutebile
Ugandan governor remains upbeat about the country’s growth, with new figures showing recovery in both the services and industrial sectors; he urges people to ignore pessimistic media reports
Zim’s Mangudya slams media amid reports of deepening crisis
Zimbabwe governor says "false" social media reports are direct attempt to discredit government and central bank efforts
Physical currency is still necessary and relevant, says BNM deputy
Deputy governor of Bank Negara Malaysia says cash is a key branding tool of central banks; BNM is in the process of building a new modern mint
SNB launches next new banknote alongside updated app
New 20-franc note incorporates the theme of light not only in design but also in identification of security features; Kurz foil element once again integrated
IMF paper sheds light on solvency and liquidity interactions
Neglecting the “solvency-liquidity nexus” could lead to mistakes in stress-testing models, authors warn
French paper looks at impact of budget-neutral fiscal changes
Benefits and costs of budget-neutral changes “not equally distributed across agents”
Lithuanian central bank calls for major pension reforms
“Time to put an end” to short-term political decisions on pensions, governor says
Riksbank proposes changes to inflation target
Central bank plans to use a variable that avoids short-term distortions, and to reinstate a band around the target
HKMA tightens restrictions on bank loans as risks rise
The city’s de facto central bank is trying to contain credit risk among banks as their exposure to housing developers is growing