Central Banking
Fiscal multiplier tends to double in times of crisis, Bank of Portugal paper shows
The paper analyses the size of short-run fiscal multipliers in both normal and crisis times
Asian central bank FX reserves not properly recognised by rating agencies, says Sheng
CBRC adviser and former Hong Kong SFC chief Andrew Sheng points to inconsistent approach in sovereign debt ratings; doubts international crisis co-ordination is possible
MAS benchmark proposals may reduce number of dealers in SGD market
MAS proposal on financial benchmark setting aims to hold banks more accountable by imposing criminal and civil punishment
FX clearing driven by capital and collateral costs rather than mandate
As mandatory NDF clearing has been delayed, the likely increase in capital and collateral requirements for FX trades is forcing some to consider clearing ahead of the mandate
Eurozone’s unique policy framework creates communication confusion, ECB paper shows
Political communication has a quantifiable effect on sovereign bond spreads – at least in the short term, authors argue
Central Bank of Cyprus ‘moving in direction’ of more active board
David Lascelles says interim report on Cypriot banking sector has been well-received; hopes parliament will sanction a ‘more democratic’ board
Carney's BoE shifts towards forward guidance on rates
Bank of England holds monetary policy steady, telling markets that expectations of rate rises have been premature; formal forward guidance is expected at the August meeting
RBA deputy says public sector must stand ready to save banks in a time of crisis
Philip Lowe said it would be a mistake to reject the idea of using public balance sheet during a period of financial stress or crisis
Lithuanian governor lays out economic priorities for Council of EU
Vitas Vasiliauskas says European policy-makers have proven they are ‘ambitious architects’ but must now demonstrate they are ‘good constructors’
IMF paper highlights weak monetary transmission mechanism in Vietnam
Vietnam has suffered from higher inflation than other Asian economies over the past five years – despite comparable growth rates
Finance sector balance sheets vital for monetary policy transmission, IMF paper shows
Balance sheet effects are comparable in magnitude to the traditional interest rate channel in transmitting monetary policy, say IMF researchers
ECB commits to keep interest rates down
Governing council says interest rate will remain at or below 0.5% for an ‘extended period of time’ despite previously refusing to pre-commit monetary policy
No CVA exemptions in US Basel III rules
Europe isolated as US regulators opt for broad counterparty risk charge
RBA governor optimistic economy can negotiate end of investment boom
Glenn Stevens says the Australian economy is facing ‘interesting times' but the right mix of prudent policies and frameworks can give the country ‘confidence for the future'
UK's FCA commits to active participation in designing European regulation
FCA chairman says the UK financial industry must take a pragmatic approach towards regulation from Brussels; MP Mark Garnier says regulation that is too complex can lead to ‘accountability firewalls'
People: Senior roles filled at the EBA; Atlanta Fed appoints new HR head
The European Banking Authority has elected Portugal's Pedro Duarte Neves to the role of alternate chairperson; Atlanta Fed promotes Blake Lyons, who will also advise the bank's management committee
Former BoE deputy to review RBS SME lending practices
Andrew Large will look into RBS group's lending practices in a bid to ensure more liquidity reaches UK businesses
Sweden's Riksbank holds rates, but new deputy dissents
Ingves suggests the possibility of another increase in mortgage risk-weights after they were raised to a minimum of 15% in April; Riksbank estimates consumer price inflation to remain at 1% in 2013
Bundesbank’s Nagel says internationalisation of renminbi is ‘long overdue’
Executive board member says that renminbi is now established as a trading currency – the first step towards becoming a global reserve currency
Carney prioritises 'women on banknotes' issue
New Bank of England governor says issue of present and future female representation on banknotes is under discussion; pledges further public announcement by end of July
Portuguese paper questions efficacy of fiscal policy at zero lower bound
Working paper finds that government and private consumption are substitutes when the nominal interest rate is at the zero lower bound; this reduces impact of fiscal policy on output by a third
Fed board member highlights 'especially daunting' challenge of cross-border bank resolution
Jerome Powell says new American approach could serve as a 'simplifier – making theoretically possible something that seemed impossibly complex'
Iceland central bank closes last vault outside of Reykjavik
Vault closure is the culmination of a 10-year review of the bank's role in distributing banknotes around the sparsely populated island nation
Federal Reserve adopts Basel III for US banks
Fed Board unanimously votes to introduce new capital requirements as of January 1; Daniel Tarullo says additional measures will follow including proposals for a higher leverage ratio