Central Banking
IMF paper examines bank lending in Saudi Arabia
Despite low oil prices, credit to the private sector “remained robust”, but an overreliance on banks financing the deficit needs to stop, author says
‘Old Lady of Threadneedle Street’ crowned Central Bank of the Year
Despite criticism around Brexit, the Bank of England came out on top in 2016, helping to calm markets in a turbulent year; African central banks scoop awards for website and risk manager
Malaysian government opens case on historic forex losses
Task force to probe heavy losses of Bank Negara Malaysia in the early 1990s, which reportedly included costly bets against George Soros
ECB paper models causes of flash crashes
Informational asymmetry and thin participation can cause liquidity problems, paper argues
Yellen calls for “sustainable” fiscal policy
Bank lending has grown since passage of Dodd-Frank Act, Fed chair tells Congress
Riksbank sees need for expansionary policy, despite rising inflation
Inflation in Sweden is now close to target, and expected to overshoot, but the central bank is holding policy steady with an eye on political uncertainty
Only struggling banks cut lending to raise capital ratio – IMF paper
Study of Eastern Europe says banks' strategy matters when it comes to assessing the impact of Basel III; only banks with low profitability cut lending to meet requirements
BoE says launch of £10 to go ahead, despite tallow traces
UK central bank will continue to print the £10 on the same substrate as the controversial fiver; options may be reconsidered for the £20
Danish paper examines funding costs in stress test scenario
Banks unable to attract funding quickly in a liquidity crisis, author says; model underscores importance of incorporating funding costs into stress tests
People: MAS picks chief for new data group; SBP deputy reappointed
MAS appoints machine-learning specialist as chief data officer; State Bank of Pakistan deputy gets another term; long-serving IAIS secretary-general to step down
Communications are Canada’s forte, latest set of awards show
Bank of Canada scoops Central Banking’s Transparency Award for 2017, while currency providers dominate the market practitioner categories
BoE to work with Anomali on cyber intelligence
Cyber security firm to work with BoE on its 'Threatstream' technology to improve the bank's threat intelligence framework and the sharing of such information
Spanish ex-governor to appear in court over ‘Bankia affair’
Three Bank of Spain employees resign over investigation of commercial bank collapse
RBNZ presses ahead with dashboard plan, despite bank concerns
Banks raise fears over the dashboard plan to publish disclosures on RBNZ website, but the central bank says it believes it can address all the concerns
IMF authors build network model of trade fragility
Network theory helps authors unpick the effects of a supply shock on the “highly interconnected” global trade system
Asia needs new growth model – BoJ’s Kuroda
Region can no longer serve as “the workshop of the world” as the trade in goods slows down, says the Bank of Japan governor
Barbados’s Worrell told to resign or be fired
Governor’s “dictatorial” management style is impacting morale, says board member; court blocks dismissal until February 22
Macro-prudential policy must move beyond core banking – BoE’s Brazier
Stressed firms may outwardly be resilient but collectively be “overwhelmed”, says BoE director, calling for collective work to understand “feedback loops”
Eurozone needs ‘hard laws’ for credible resolution, economist argues
“Soft law” arrangements can break down in crises, Schoenmaker says
Bank of Israel and Sama triumph in latest Central Banking Awards
Middle Eastern central banks take home Reserve manager and initiative of the year in Central Banking’s 2017 awards; market practitioners prove it is possible to weather volatile markets
Fed’s Fischer: econometric models are still flawed
US Fed vice-chair says models still cannot capture the complexities and rapid evolution of the economy – despite his hopes as an undergraduate
Market ‘tightness’ affects QE success – Riksbank paper
Model accounting for the demand and supply of bonds allows authors to reveal new insights into the price and liquidity impact of asset purchases
Tarullo resigns from Fed board
Early departure may give Trump a chance to reshape US regulation
BoE should embrace the ‘spirit’ of the millennial – Carney
The millennial way of thinking is “better suited” to the current challenging environment – Carney; governor believes the younger generation might have something to offer when it comes to problem-solving