Central Banking
Central Bank of Kenya cracks down on crime
Report highlights ‘significant progress’ in strengthening defences against money laundering; optimistic about development of banking sector ‘despite 2013 being an election year’
RBNZ gets macro-prudential go-ahead
New Zealand’s’ central bank tools up with four macro-prudential instruments; analyst says continued growth in house prices could prompt action before year-end
Orphanides lambasts European ‘blunders’
Former Central Bank of Cyprus governor attacks European authorities for mismanaging sovereign debt crisis; holds communist party responsible for Cypriot bailout
DR Congo central bank names new governor
Head of markets given the nod as Jean-Claude Mulongo steps down after three terms; takes over after dramatic cycle of tightening drags inflation into single digits
Legal action against Bank of Spain already seeing results, claims lawyer
Lawyer representing shareholders in failed Spanish bank Bankia claims he has a 'very strong' case against the regulators, though the courts are expected to take a ‘cautious line'
RBI’s Chakrabarty fleshes out plans for risk-based supervision in India
Deputy governor examines pre-requisites for effective risk-based supervision as central bank prepares ‘phased migration’ to the new approach
Norges Bank paper seeks to solve ‘exchange rate puzzles’
Working paper looks to research into ‘market microstructure’ to explain rapid evolution of foreign exchange markets
King shows cautious optimism with last inflation report at BoE
Growth forecast revised up and inflation down for the first time since the financial crisis; Report reflects new communications policy recommended by Stockton Review
New York Fed paper launches DSGE defence
Staff report says the standard DSGE model produced ‘surprisingly accurate’ forecasts during the financial crisis and subsequent recovery
ECB research uses game theory to assess optimal T2S adaptation
Working paper attempts to find optimal lump-sum investment by central securities depositories migrating to Target2 Securities, and tests possibility of tacit collusion
BoE's Tucker weighs in on 'unco-ordinated' global regulation
Bank of England deputy governor says cross-border agreements can overcome national barriers to resolution
Europe's finance ministers inch closer to bail-in framework
Meeting of finance ministers, the ECB and the European Commission highlights differences between member states but strikes a hopeful note for agreement
ECB paper explores current account reversals
Study finds that some external adjustments are more likely to trigger a current account reversal than others; this is determined by the country’s exchange rate regime
Inflation target may necessitate hasty QE exit, says Plosser
Philadelphia Fed president argues for pace of asset purchases to slow from next FOMC meeting; says accommodative monetary policy may need to be removed 'more aggressively' than some think
IMF research warns Liikanen, Vickers and Volcker could cause instability
IMF economists including José Viñals call for global cost-benefit analysis to assess cross-border impact of national plans to restructure banks
VocaLink: Seven-day account switching set to shake up UK banks
Chris Dunne says UK payments are undergoing important changes that could see ‘economic battle' between banks; expects closer scrutiny of infrastructure by regulators
RBI governor finds ‘a lot of scope for improvement’ in IMF advice
Duvvuri Subbarao examines performance of the IMF since the financial crisis, and finds the Fund wanting in a number of areas
Former MPC members warn against 'shock' QE exit
Andrew Sentance and Kate Barker warn of economic impact of the Bank of England ending its asset purchases; Sentance surprised by persistently low interest rates
Lack of co-ordination of bank resolution regimes behind subsidiarisation push
Asia still behind on global rules forcing subsidiarisation of foreign banks in the region
Swedish deputy wants central bank independence reconsidered
Barbro Wickman-Parak, in her last speech at the Riksbank, says independence is ‘essential’ for price stability but needs to be reviewed with regard to macroprudential policy and financial stability
Germans clash over banking union treaty change
ECB board member opposes German finance minister's plan to introduce limited version of banking union to allow time for treaty change
Irish plan for distressed borrowers attracts criticism
Central Bank of Ireland encourages cooperation between lenders of secured and unsecured debt to keep distressed borrowers from bankruptcy; Irish League of Credit Unions denounces scheme
BIS: Forex OTC markets hold steady, despite regulatory uncertainty
Semi-annual BIS survey reveals a rise in forex OTC derivatives transactions in the second half of last year
Israel cuts rates and buys forex in moves to ward off ‘Dutch disease'
Unscheduled monetary policy decision by Bank of Israel cuts base rate 25bp as central bank launches a forex purchase programme to hold the shekel down after gas finds