Central Banking
Greek governor calls for ‘bold and innovative’ action on non-performing loans
Greek economy should start a modest recovery in the second half of 2016, but the government must hit bailout programme targets and take bold action on non-performing loans, governor says
Eurozone sovereign debt crisis has increased financial fragmentation, paper argues
Eurozone corporate bonds have different risk premia according to which country a company is headquartered in, paper argues; fragmentation has ‘dampened effectiveness’ of ECB policy
Carney airs scepticism on negative rates
Bank of England governor warns negative rates may only work through exchange rate channel, which would result in a ‘zero sum game’
Democratic Republic of Congo moves to stabilise currency following unscheduled MPC meeting
Central bank outlines plans to sell foreign currency and increase reserve requirements; calls on government for supporting measures
RBI paper questions impact of global spillovers
Authors find money and credit markets in India are largely unaffected by spillovers, although there is an impact via debt markets and the indirect effects of global growth and inflation
Denmark focuses on long-dated issuance amid low rates
National Bank of Denmark’s 2016 debt issuance strategy uses long maturities to reduce interest rate risk as low rates hold down costs; return to more normal footing after last year’s suspension
PBoC's Zhou dismisses talk of renminbi devaluation ahead of G20 meetings
Chinese governor says country is 'opposed' to competitive devaluations; argues capital outflows likely to subside given 'strong fundamentals'
UK regulator wants banks to sell their stake in payments infrastructure
PSR says the ownership of infrastructure by a handful of banks damages competition and innovation; unveils a raft of proposals, including forcing banks to sell their interest in VocaLink
Germans have unexplained high cash preference – Bundesbank article
Germans have a much higher tendency to use cash for larger transactions, article in a first edition of a new Bundesbank publication says
UK will not ‘heal’ if pay and productivity remain ‘stuck’ – BoE deputy
Cunliffe optimistic inflation will return to target as disinflationary pressures fade, also keeping close eye on productivity
Bank of Russia gains power to demand electoral candidates’ financial information
Russia’s central bank announces it can compel financial institutions to hand over the financial records of all candidates for elected office, and their spouses and ‘underage children’
IMF urges ‘comprehensive approach’ to growth that reduces reliance on monetary policy
International Monetary Fund calls for coordinated policy response ahead of G20 meetings; policy-makers ‘must act now’ to implement strategies
Irish insurance firms face more scrutiny, supervisor says
Irish central bank’s director of insurance supervision outlines new regime; firms will have to provide more evidence to back up their claims
Hong Kong activity should weather higher rates – paper
Research published by IMF argues consumption and investment will “remain robust”, despite increase in interest rates in tandem with the US
Peter Pang retires as HKMA deputy
Pang, one of three deputy chief executives, retires after more than 10 years in the role; he will be succeeded by Howard Lee, but responsibility for research passes to Eddie Yue
Riksbank minutes reveal knife-edge decision to cut
Cecilia Skingsley says decision was hardest since her appointment to the board; strong economy, weak inflation and unconventional policy make for tricky task
Lenders should reward low-risk customers – Kenyan governor
Banks should praise those performing well regarding credit management, and offer low-risk customers better terms as a result, governor says
EBA unveils 2016 stress test methodology
European Banking Authority presents the methodology for 2016 stress tests; no single capital adequacy level, but results will inform regulators’ assessments under SREP
Bank of Canada picks ‘renowned and prolific’ new deputy
Sylvain Leduc chosen as new deputy governor, bringing a lengthy list of publications and a ‘deep understanding’ of the international monetary system; deputy duties also reshuffled
Small and medium eurozone banks must assess business models, Lautenschläger says
Smaller financial institutions need to examine their business models in detail, eurozone regulator says; SSM wants harmonised treatment of institutional protection schemes
Bank of Mauritius seeks more clarity in payments law
Draft bill provides “comprehensive legislation” regarding the payment system in Mauritius, central bank says; outlines the bank’s authority on the regulation of the system
FSB looks to gauge risks around collateral reuse
Reusing collateral brings various benefits, but could also pose stability risks, report says; FSB outlines options for measures that could give supervisors a clearer picture of reuse patterns
RBA’s Richards sees possibility for digital Australian dollar
New card regulation to be ready by May, says Richards; digital currency a possibility in the ‘more distant future’, but RBA not ‘actively considering’ it
Zeti marks construction of new ‘central bank school’ campus
Retiring governor will continue to serve as co-chair of institution set up in 2015 that 'represents central bank's commitment to education'