Central Banking
RBA deputy sets out potential changes to interest rate benchmark
Debelle emphasises importance of the bank bill swap rate, outlines possible reforms including lengthening the window in which transactions are used to calculate rate
BoE officials grilled on weakening sterling
Members of the MPC ask whether the depreciation of the currency will cause the Bank of England to hike; Treasury Committee raises questions over EU referendum
Senate committee chair urged to clear backlog of nominees
Nominees to Federal Reserve board of governors among those waiting to learn fate; delay reportedly stems from disagreement over another key Fed post
Lagarde reappointed as IMF managing director
Christine Lagarde is formally reappointed to lead the International Monetary Fund; early tasks facing her include Greek debt agreement
National Bank of Belgium sees deposit guarantee scheme as ‘missing component’
Central bank says a joint scheme is the ‘missing component’ of banking union, but argues risk-sharing must be accompanied by better risk control
Kenya sees a reduction in use of bank services
Mobile payments preferred, with 47.8% of the population using mobile services on a daily basis; banks now mainly used for salary payments
Wage settlements may force Sarb to hike rates further, deputy says
Sarb may look to tighter monetary policy to curtail any second round inflation effects from wage settlements; headline figure already above target range
National Bank of Angola no longer on FATF monitoring list
Angola makes “significant progress” in improving AML/CFT regime; one of three countries removed from monitoring list, alongside Algeria and Panama
Ukraine pushes for transparency on bank ownership
Ukraine’s central bank has closed one commercial bank and warned of potential for ‘enforcement measures’ against up to 29 others, as it pushes for transparency over ownership structures
Ten Fed presidents handed new terms
All presidents and first-vice presidents at the 12 reserve banks now have terms that run to end of February, 2021; Powell insists there was a ‘rigorous process’
Former PBoC deputy to head up embattled regulator
Central bank veteran Liu Shiyu replaces Xiao Gang as head of China Securities Regulatory Commission in highly publicised reshuffle
Book notes: Stabilising capitalism: a greater role for central banks, by Pierluigi Ciocca
Pierluigi Ciocca offers an excellent, brief and crisp account of the main issues facing central banks today
ECB costs and profits on the rise, annual accounts show
Net profit for the ECB rose in 2015 year on year due to higher gains from securities sales and more fees charged for supervisory activities; operating costs also rise due to staff increases
Norway’s pension fund may be close to peak, Olsen says
Norges Bank governor says Norway should not count on being able to build its sovereign wealth fund much further, and must brace for a difficult period of rebalancing after the oil boom
Christchurch recovering after quake, RBNZ paper finds
Economy proves ‘resilient’ to earthquake as rebuild continues; uncertainty around the timeline puts off businesses from investing in the region
Paraguay’s Valdovinos: world has a lot to learn on macro-prudential tools
Paraguayan governor underscores importance of macro-prudential policy but says global economy still has a lot to learn; monetary policy is 'too blunt' to solve all problems
Liberian president’s son becomes acting governor
New acting central bank governor is Liberian president's son, source says; Charles Johnson Sirleaf has spent over 10 years at the central bank
End of sanctions offers chance to fix Iran’s banking sector
Iranian banks struggling with high levels of non-performing loans may see their situation improve, but deep reforms are needed and the political situation remains complex
Hungary central bank action ‘distorting’ swaps curve
The Central Bank of Hungary has offered up 1 trillion forint notional of cheap interest rate swaps, driving down bids for receiver swaps and government bond yields, say dealers
Domestic inflation remained ‘benign’ in 2015 – Rwandan statement
Inflation in Rwanda continued to record “moderate” and “low” levels throughout last year; current monetary policy stance “justified”
Argentina inches towards repaying debt
Montreux Partners LP and EM Ltd settle; four creditors yet to agree on removing injunction
ECB governing council minutes stress need for good communication
Members of the ECB’s Governing Council agreed on the need for good communications but disagreed over the evidence of second-round effects in recent wage dynamics, minutes show
Peso depreciation casts shadow over Mexico rate decision
Central bank adamant it is not in a hiking cycle after 50bp rise; government taking steps to enforce measures on Pemex
EBA publishes guidelines for co-operation agreements between deposit guarantee schemes
European Banking Authority lays out guidelines for agreements between EU deposit guarantee schemes; clear principles should lessen conflict and make mediation easier, authority says