Central Banking
Norges Bank governor backs plans for counter-cyclical capital buffer
Øystein Olsen gives support to proposals by the Norwegian government to introduce a counter-cyclical capital buffer; will be set by ministry of finance with advice from the Norges Bank
Netherlands Bank highlights ‘major risk’ of European crisis escalating
Financial stability report says danger from European debt crisis still looms large; warns of longer-term risks including addiction to low interest rates and incomplete banking union
Robert Pringle's Viewpoint: King’s efforts to be heard hit some marks
In his calls for reform, Bank of England governor Mervyn King has ploughed a lonely furrow. But some of his efforts are paying off
National Bank of Poland updates 18-year-old banknote security
Security features of Polish banknotes to be overhauled in 2014; central bank keeping tight-lipped on the upgrades
Kocherlakota warns of consequences of ‘mandate-consistent' lower rates
Minneapolis Fed president highlights risks accompanying persistent low rates, but argues rates must go lower still to be consistent with dual mandate
Lagarde says ECB has ‘room to manoeuvre' on rates
IMF managing director says it up to ECB when to cut rates but calls for co-ordinated policies worldwide to shift ‘from three-speed to full speed' global recovery
FSB and IMF ‘animosity’ claim rejected
Think-tank report blasts lack of co-ordination between organisations in early warning exercise; FSB secretariat member rebuffs claims, and brands exercises a success
BoJ's Miyao sees weaker yen as key to ending deflation
Leading proponent of monetary easing highlights a change in the dollar-yen exchange rate as key to hitting Bank of Japan's 2% inflation target
CPSS and Iosco start assessing compliance with FMI principles
Organisations begin process of monitoring ‘full, timely and consistent’ implementation of Principles for Financial Market Infrastructures across jurisdictions
Czech bulletin dissects monetary policy transmission
An economic research bulletin compiled by the Czech National Bank explores relationship between monetary policy and real economy in five articles
Asia faces increasingly complex risk, says MAS assistant managing director
Ng Nam Sin says insurers face both growing opportunities and increasingly large, complex and interconnected risks; Asean committee will help promote co-operation
SNB research finds Swiss franc is only safe haven against some currencies
Paper suggests Swiss franc is a safe haven from euro but not from other major reserve currencies; says this may be down to small size of market
Leap in renminbi trade strains PBoC exchange controls
Latest financial statistics show continued rapid rise in renminbi trade; PBoC deputy says exchange rate band may be widened again
RBI executive director discusses challenges in sustainable housing finance
Deepak Mohanty examines how best to extend housing finance in India, against the backdrop of multiple financial crises caused by unsustainable mortgage growth
ECB working paper puts forward new model for use in stress tests
Working paper based on risk-return optimal program in which banks aim to maximise risk-adjusted returns while taking into account regulatory capital and liquidity constraints
King says independence is a tricky course to steer
BoE governor says central banks are expected to be partially, fully and non-independent in different parts of mandate, which is almost impossible; outvoted again at latest MPC meet
Bank of Israel director says central banks can 'overdo' liquidity
Andrew Abir identifies difficulty in providing the right amount of liquidity; says the risk of impairing market function was one worth taking
Arbitrage threat kept 'fallible' leverage ratio to 4%, says Vickers
Vickers says his 'blue skies thinking' leverage ratio would have been 10%, and adds stress testing avoids banks gaming the system
RBA counter-cyclical moves will be 'inevitable', says Commonwealth Bank economist
RBA monetary policy minutes released yesterday say scope remains for rate cuts later this year; commentators expect macro-prudential tools to 'become inevitable' to avoid a housing bubble
Fed’s Yellen sees little evidence of stability danger from easy policy
Janet Yellen defends accommodative stance of US monetary policy; says there is no ‘pervasive evidence’ that policies are causing overheating
SNB vice-chair tells people to ‘fasten seatbelts’ following CCB activation
Jean-Pierre Danthine says activation of the counter-cyclical capital buffer aims to avoid a sharp fall in property prices and rise in defaults, but achieving a soft landing will be challenging
IMF flags growing risks from low interest rate environment
Global financial stability report urges caution by central banks employing loose monetary policy; says lack of adjustment to medium-term challenges could create ‘chronic phase’ of crisis
Fed demands more detailed 'living wills'
Federal Reserve and FDIC request additional information on risks that could derail resolution plans for largest bank holding companies, including issues of international co-operation
Draghi faces hostile Strasbourg reception but questions track record of SME lending schemes
ECB president grilled by European Parliament over the inability of small businesses to access credit; says action is 'absolutely essential'