Central Banking
Taiwan allows Chinese issuers in offshore RMB bond market
So-called Bao Dao bonds are expected to find a ready market eager for yield; offshore RMB bond market in Taiwan has seen just six issuances so far this year
Central Bank of Ireland staff face longer working hours
The central bank is in negotiations with a workers’ union over government proposals that would impose 37-hour working weeks on the majority of staff; tribunal makes final recommendations
Industry in discussions to change FX benchmark calculation, says ECB official
Senior market participants have suggested widening the time window in which benchmark exchange rates are set in forex, following allegations of manipulation
BoJ will need ‘aggressive' re-capitalisation at end of QQE, top economist warns
Nomura chief economist warns the practice of handing over the profits from QE to the Japanese government means the central bank could find itself under-capitalised when the programme ends
BoE's Carney: liquidity support for CCPs is a 'last-resort option'
Bank of England governor insists clearing houses must have enough liquidity to cope with the default of two big member firms
Shariah principles will engender financial stability, says Zeti
Bank Negara Malaysia governor Zeti says Shariah principles, if properly adhered to, will help Islamic finance make a positive contribution towards overall financial stability
ECB paper says global economy still haunted by ‘spectre of protectionism’
Researchers at the European Central Bank find evidence that countries still regress to trade protectionism in the face of recessions or loss of competitiveness; call for international peer pressure
Mersch defends ECB’s Chinese walls
European Central Bank executive board member Yves Mersch says plans to keep monetary and supervisory functions separate will ensure any ‘conflicts of interest’ are avoided
Swiss paper dissects asset price responses to economic news
Researchers find the relationship between asset prices and economic news is shaped by the prevailing economic conditions – including policy rates and perception of risk
Irish governor backs domestic and export banking separation
Patrick Honohan says that, by keeping the export and domestic banking sectors separate in small countries, authorities can avoid having to put a cap on the size of banks’ balance sheets
Somalia turns to former governor to take the reins again
Bashir Issa Ali will fill the governor vacancy at the Central Bank of Somalia, created when Yussur Abrar quit the bank and the country amid corruption controversies
New Zealand payment systems under review
Reserve Bank of New Zealand announces review of its two large-value settlement systems; expects to sanction ‘significant upgrades’ to both within the next four years
Sarb official warns about use of Aussie investments as a proxy for China
Australian and Chinese markets are 'vastly different', so investing in Australia as a proxy for China could be risky, South African Reserve Bank risk manager warns delegates at Nalm Africa 2013
Zambian governor says tougher capital rules will help foster financial inclusion
Michael Gondwe says recent increases in the minimum capital requirements imposed on domestic and foreign banks will make them stronger and improve the supply of credit to ‘local entrepreneurs’
ECB’s Asmussen demands gender diversity
Executive board member Jörg Asmussen says he is ‘deeply convinced’ of the need for greater gender diversity in the financial industry, and the benefit to both men and women
Bank of England terminates mortgage support
Funding for Lending Scheme will cease subsidising mortgages in 2014; Mark Carney outlines tools the central bank could use to rein in the ‘growing momentum’ in UK housing market
Liikanen calls for ‘precise’ communication at point of exit
Bank of Finland governor Erkki Liikanen emphasises the importance of central banks providing detailed and accurate communication as they approach the ‘turning point’ of monetary policy
Monetary union hampers current account adjustment, say Bundesbank economists
Paper examines current account dynamics in countries with fixed and floating exchange rates, and countries in a monetary union; find evidence that monetary union might aggravate existing imbalances
San Fran Fed letter highlights impact of oil prices on inflation expectations
Researchers from the Federal Reserve Bank of San Francisco say consumers update their inflation expectations using a ‘few simple rules of thumb’ – one of which is linked to the price of oil
Polish paper explains perceptions of higher inflation
Economists at the National Bank of Poland construct a consumer perceived price index that reflects the population’s loss aversion to price increases
Lithuania on track to join euro at second time of asking
The Bank of Lithuania has started publishing regular forecasts that keep track of the country’s progress towards meeting the convergence criteria necessary for accession to the eurozone
ECB's Smets made counsellor to president Draghi
Frank Smets, ECB director-general for research, steps into post vacated by Christian Thimann; will be counsellor to the president and co-ordinator of counsel to the executive board
Deploying ‘leapfrog' tech in Africa is no easy task, finds CBP Forum
Delegates and speakers debate technology outsourcing, data, staffing, project management and international co-operation at inaugural Central Banking Technology Forum
Nigeria could ditch polymer banknotes after six-year pilot
The Central Bank of Nigeria is considering reverting back to paper banknotes after using polymer for the past six years; spokesperson says it has ‘not had a good experience’ with the plastic notes