Central Banking
BIS research finds capital requirements had minor impact on bank lending
Quarterly review article presents evidence that banks have adjusted to higher capital requirements mainly via retained earnings, rather than by cutting lending, with less of a macroeconomic impact
BoE economist creates ‘nowcast' composite from global indicators
Combined indicator weights global indexes such as PMI and CPB world trade to ‘nowcast' world economic activity more accurately than before
Central banks behind curve on innovation, says World Payments Report
Central banks are struggling to keep up with rapid growth of innovative new payment systems, report warns; risk to European firms that regulation will cause mobile payments to fall behind
Croatia under threat from falling growth and rising debt
Public debt is capped at 60% but is now approaching that limit; there are further signs of weakness in the Croatian and European real economies
RBA looks to exchange rate
The Reserve Bank of Australia keeps the door open for further rates cuts but emphasises that a weaker currency ‘would be helpful’ in boosting demand
A sad ending to Summers versus Yellen
The politicisation of the debate over who should be the next chair of the Federal Reserve may be a sign of the times, but it is a sad day for central banking, argues Thomas Cargill
Inaugural Central Banking Awards deadline extended
Central banks and market practitioners have one more week to submit their work for consideration in the Central Banking Awards 2013
Eurozone inflation and output do move in step, says IMF working paper
Researchers argue co-movement of inflation and output is observable in the eurozone at ‘business cycle frequencies', confirming New Keynesian models to demand shocks
IMF report highlights macro-prudential challenges
Kohn and Viñals talk of key role for central banks in macro-prudential framework; report singles out challenges faced by national authorities in setting up macro-prudential policy frameworks
Collapse in PMA index adds to bleak outlook for Palestinian economy
Palestine Monetary Authority records ‘enormous' drop in its business cycle indicator for the West Bank; follows IMF report warning of ‘dim' future for economy if peace negotiations fail
Indonesia parliament approves central bank deputy appointment
Indonesian House of Representatives picks current head of bank deposit guarantee scheme to fill the long-vacant position of senior deputy governor at Bank Indonesia
Sanusi unveils revised Nigerian payments strategy
Central Bank of Nigeria governor underscores progress made already with modernising payment systems in Nigeria, and reveals details of revised payments strategy for 2020
BIS statistics show surge in emerging market claims
Latest figures for cross-border claims show rapid increase in lending to emerging markets in first quarter of 2013, though Fed taper talk has since reversed the flow
Draghi highlights win-win productivity gains in Berlin speech
While cost adjustments increase competitiveness only relatively, productivity gains, by increasing trend growth, can be absolute and benefit all countries, ECB president tells conference audience
Near-zero interest rates of limited help to non-financial firms
BIS quarterly review article finds that lesser pass-through is partly related to higher premium for risk required by financial intermediaries
Summers drops out of race for Fed chair
Larry Summers writes to Barack Obama to withdraw his name from consideration as the next chairman of the Federal Reserve, citing likely 'acrimonious' confirmation hearings
Reserve Bank of Fiji adviser targets 5% growth
Lorraine Seeto believes the Fijian economy can grow by 5% each year; highlights the need for more investment, more exports, and a low and stable inflation rate
Central Bank of Russia simplifies interest rate policy
New measures will streamline the interest rates that the central bank targets; changes brought in two days after the appointment of a new deputy governor for monetary policy
RBI sets up committee to make monetary policy ‘transparent and predictable'
Reserve Bank of India announces make-up and mandate of committee commissioned by new governor Rajan to overhaul the way the central bank conducts monetary policy
Hungary council members divided over rate drop
Central Bank of Hungary monetary council members were split over the size of last month’s rate cut; minutes from August meeting signal that easing cycle is winding down
Bank of England publishes banking primer to educate public
Article says role of prudential regulation is to ensure the soundness of banks by ensuring they have sufficient capital and liquidity to avoid disruption of critical services provided to the economy
Economists criticise ‘incomplete’ Bank of England guidance
Richard Barwell and Jagjit Chadha criticise the Bank of England for failing to lay out the path back to a more neutral monetary policy in its attempt at forward guidance
Dallas Fed highlights transformation of FOMC statements over past 20 years
Before 1994, markets were left in the dark over interest rate changes; statements have expanded seven-fold in the past 20 years, reflecting the evolution of monetary policy operations
Regional Fed presidents stand their ground on MMFs
Presidents of the regional Federal Reserve banks push the Securities and Exchange Commission to impose more stringent reforms on money market funds including requiring a floating net asset value