Central Banking
Turkish central bank embarks on daily dollar sales
Announcement follows yesterday's decision to raise interest rates, but fails to stop lira hitting record low against Western currencies
Bundesbank’s Dombret urges co-ordination over shadow banking
Executive board member says shadow banking activities are 'not evil' but do produce systemic risks; highlights need to track banks’ exposures to shadow entities and manage ownership links
RBI loosens liquidity as long-term rates spike
Reserve Bank of India moves to ease liquidity squeeze, as measures to support the currency see long-term rates hit 12-year high
Unemployment strongest predictor of mortgage default in the US
Atlanta Fed research finds that individual unemployment increases the probability of mortgage default by 5 to 13 percentage points compared with average sample
Swelling profits explain rebound in risk appetite, San Fran Fed paper suggests
Research indicates corporate profit growth explains 40% of the decline in the spread between risky and risk-free bonds, according to economic letter by research vice-president
Irish central bank appoints top French supervisor as deputy governor
Cyril Roux, previously second-in-command at the French prudential supervisory authority, will join the Central Bank of Ireland as deputy governor with responsibility for financial regulation
Fed urges big banks to improve internal capital planning
Federal Reserve says lenders must strengthen methods for assessing risks; reveals 18 biggest US lenders face challenges in one or more areas
EM central banks in a bind as capital volatility set to worsen
Central banks in the biggest emerging market economies are bracing for ever faster outflows of capital if tomorrow's FOMC minutes continue to point to US monetary tightening
RBNZ restricts low-deposit mortgage lending
Graeme Wheeler says banks will face ‘speed limit’ on their high loan-to-value mortgage lending from October 1; RBNZ hopes to avoid raising rates while currency remains over-valued
Break-even value of PMI is not 50 but 44, RBI working paper suggests
Wholesale Price Index inflation turns positive when PMI exceed 44, according to research; paper also finds that PMI predict the movements of final WPI
NY Fed research constructs composite model for core inflation
Paper finds that price changes in core goods and services are driven by different forces; capturing this distinction enables researches to map core inflation more accurately
Buba's Dombret backs EU recovery and resolution plans
Bundesbank board member says new European directive on resolving big banks will be crucial in solving ‘too-big-to-fail', though he has reservations about public participation in the resolution fund
Surge in excess reserves drives overnight interbank rate to ‘floor of corridor'
Dynamics in the overnight money market are in line with ‘expected consequences of market stresses and unconventional monetary policies' according to RBA working paper
Robert Pringle’s Viewpoint: Managing without safe assets – tricky but not impossible
Unless sovereigns provide a credible backstop to the banking system the private sector will have to do the best it can, writes Robert Pringle
‘Tiered' clearing networks increases CCP risk, study finds
Complex clearing networks ‘appear to increase' some risks faced by CCPs, according to working paper investigating the ‘topology' of such networks
Employment losses have repaired corporate balance sheets, paper argues
Differences in post-crisis employment among EU members are largely driven by need in many countries to adjust balance sheets, according to IMF working paper
Boston Fed paper flags need for research into debt dynamics in recovery period
Research into the relationship between debt and consumption to the household level is ‘limited’ and does not ‘directly speak’ to the United States' recent weak performance, says discussion paper
Dual reporting requirements in Asia cause concern
While Singapore will mandate single-sided trade reporting, regulators in Australia and Hong Kong will follow the European Union’s requirement for dual reporting, leading to concerns among market participants
Nigerian monetary policy a ‘Faustian bargain' with hot money, says deputy
Deputy governor for financial stability says advanced economy QE is pushing investors to search for yield in countries such as Nigeria; sees increased use of renminbi in African central bank reserves
Bank of Slovenia widens group of stress test banks
Ten lenders, including three deemed systemically important, will be scrutinised by leading accounting firms in a joint effort with the Slovenian finance ministry
New Zealand opposition says RBNZ internal review backs case for more transparency
Internal review confirms New Zealand is an outlier in giving the Reserve Bank governor a monetary policy veto; Green Party says change in law should be 'non-controversial'
Eastern Caribbean Central Bank (ECCB) governor looking for ‘quantum leap’ in output
Dwight Venner calls for three-pronged approach to recoup the Eastern Caribbean Currency Union’s output losses over the past four years and return to growth
Bulgarian prosecutors probe printing press privatisation
Central bank strikes deal with French banknote producer to expand printing operations; investigation launched amid accusations of privatisation by stealth
Sanusi unveils $1.4bn lending scheme for Nigeria's small businesses
Nigerian central bank will offer funding on advantageous terms to ‘participating financial institutions' to lend on to micro, small and medium-sized enterprises