Central Banking
Basel securitisation reform creates 'perverse incentives’, says senior Japanese banker
Inconsistent rules are damaging financial intermediation, according to Takashi Oyama of Norinchukin Bank
Fed’s Raskin warns of shortcomings in leverage ratio
Sarah Bloom Raskin says a leverage ratio can guard against the failings of risk-weighted capital requirements, but cautions that the ratio has issues of its own
FDIC clarifies approach to use of credit ratings
Article in latest edition of FDIC’s Supervisory Insights sets out expectations regarding credit risk due diligence, explaining what role credit ratings should play in making investment decisions
RBA researchers test new BVAR-DSGE method on Australia
New modelling technique aims to overcome small, open economy issues in previous attempts to combine Bayesian VAR and DSGE methods
ECB keeps SME measures ‘on the shelves’ and holds rates alongside BoE
Draghi says further unconventional measures were discussed at today’s meeting of the governing council, but are being held in reserve; ECB joins Bank of England in taking no policy action
Lagarde says QE risks are real, but bubbles are not forming yet
IMF managing director says accommodative policy should remain in place in advanced economies, but clear articulation of an exit strategy will be needed to avoid a repeat of 1994's ‘brutal exit'
ECB taken to task over SME finance in Central Banking debate
Participants in latest Central Banking On Air debate accuse central banks of 'unreasonably neglecting' SME funding difficulties; question whether the type of assets central banks hold is important
IMF paper says direct eurozone spillovers limited to US and UK banks
Working paper analyses effects of eurozone crisis at bank level; finds direct impact limited to UK and US though other regions could be susceptible to knock-on effects
Financial exclusion in Europe driven by move away from cash, study finds
New report from Brussels-based pressure group finds financial exclusion is a growing phenomenon as cash falls out of favour for everyday transactions
Bank of England annual report redefines financial stability
BoE annual report reveals change in interpretation of financial stability; central bank must maintain ‘efficient flow of funds' in the economy and ‘confidence in financial intermediaries'
Reserve Bank of Australia holds rates as exports drive growth
RBA decides against further cuts, as exchange rate converges on terms of trade and exports drive economic growth
Latvia to adopt euro in 2014
European Commission gives Latvia the green light to become eighteenth eurozone member after it comfortably meets convergence criteria, but ECB voices concerns over price and financial stability
Riksbank predicts ‘elimination’ of retail payments competition
Sweden’s retail payments market is expanding but Sveriges Riksbank says larger players will prevail and smaller companies ‘will be eliminated’
RBA research analyses factors driving US credit crunch
Working paper finds shutdown of the securitisation market explains a ‘significant share’ of the credit tightening in the US in the run-up to the global financial crisis
Fischer gives high marks to Bernanke and Draghi
Outgoing Bank of Israel governor Stanley Fischer believes the world owes a great debt to Fed chairman Ben Bernanke and praises ECB president Mario Draghi; says Israel can live with side effects of QE
Draghi and Carstens step up at BIS as King retires
Mervyn King's retirement as governor of the Bank of England has created three chair positions on BIS committees that will be filled by the heads of the ECB and the Bank of Mexico
Price stability ‘pivotal’ in shaping exchange rate pressures
Bank of Finland discussion paper analyses pressure on exchange rates during financial crisis; says countries that experienced high inflation beforehand were hardest hit
Colombian paper draws policy lessons from credit- and business-cycle links
Researchers find lagged response of growth to the credit cycle, making it challenging for policy-makers to target both financial and real variables with a single instrument
Paper examines roster of RMB bilateral swap partners
BOFIT researchers find the list of countries signing a swap agreement with China is determined by a range of factors - and suggest the agreements are not used as a ‘soft power' political tool
Brazilian currency must adapt to 'new reality', says deputy governor
Talk of an end to Fed QE is creating a 'new reality' for other currencies, as capital begins to flow back to the US; BCB will intervene if it sees the real diverging from a basket of currencies
HKMA and RBA voice fears over Iosco benchmark proposals
Responses to Iosco's Principles for Financial Benchmarks reveal concerns that many markets will not be able to support transactions-based rates; RBA questions 'lexicographic hierarchy'
Croatian governor cautious over banking union
Boris Vujčić says Croatia will adopt the euro "as soon as possible" after it joins the European Union next month; raises concerns over banking union and ECB’s lack of supervisory experience
People: Poloz takes over from Carney; Hristov returns from Bulgarian parliament
Stephen Poloz starts term as Bank of Canada governor; Bulgarian deputy resumes duties; Bermuda Monetary Authority shuffles management for ‘greater supervisory effectiveness’; and more
Caruana warns of yield curve 'global steepening'
BIS general manager Jaime Caruana says central banks must consider the effect on global bond markets of rising rates and shrinking balance sheets