Liquidity
Bank of Canada plans new emergency liquidity facility
Facility designed in response to new threats, such as cyber and extreme weather events
FOMC considering repo market tools, minutes show
Meeting participants worried that standing repo tool might create moral hazard
US market liquidity deteriorated in 2019, Fed warns
Frequency of equity market flash events has increased significantly since 2018
European pension fund liquidity may need to rise – Danish central bank
Central clearing exemption to expire in 2023 under market infrastructure regulation
The challenges facing Christine Lagarde
The new ECB president will need to focus on a successful review of the ECB’s monetary and communications policy, while encouraging fiscal stimulus and structural reform
NY Fed unveils new measures to tackle year-end funding pressures
Fed is expecting a “sharp increase” in flows out of reserves during December, statement says
FSB warns gaps remain in resolution frameworks
Issues remain for central counterparties, global banks and insurers, report finds
De Guindos says ECB ‘implicitly has symmetrical targeting policy’
ECB vice-president backs Macron plan for common eurozone fiscal policy
Italian banks exploit ECB tiering to sharply boost local deposits
Rush to exploit arbitrage opportunity is “interesting showcase” of fragmented markets, says Benoît Cœuré; giving non-banks access to liquidity could help
ECB’s Löber: Facebook’s libra a “black hole” of legal certainty
But current global standards fit for purpose to underpin digital assets
Book notes: The Bank of England and the government debt, by William Allen
Required reading for Treasury, Debt Management Office and Bank of England staff
Fed stands ready to ease year-end funding squeeze, says Logan
New York Fed prepared to adjust recent market operations, says markets chief
Both short and long-term banking liquidity ratios needed – ECB paper
Net stable funding ratio has not been introduced in all jurisdictions, researchers say
Fed considering tools to help flow of reserves in the system
Remarks are some of the most detailed Jerome Powell has made on financial plumbing issues
Global credit to non-banks growing faster in Q2 – BIS figures
Latest global liquidity figures show rapid growth in lending to the non-bank sector
Fed researchers aim to address uncertainty over demand for reserves
Demand for reserves could be between $712 billion and $919 billion, researchers find
Fed expands daily repo operations
Recent auctions show banks still have a strong demand for liquidity following last month’s rate spike
Tackling ‘dead-end’ monetary policy
A shift to lower inflation targets would help central banks escape forever-loose monetary policy, writes former IMF chief Jacques de Larosière
PBoC says its bills are better tools than bonds for China
Central bank bills will play a bigger role in stabilising yuan exchange rates, suggests PBoC research note
St Louis Fed president calls for standing repo facility
Facility would solve “almost all” of the Fed’s problems in controlling rates, James Bullard says
Global banks vulnerable to dollar funding shocks, IMF stability report shows
There has been a “resurgence” of US dollar liabilities relative to assets in non-US banks, IMF warns
Fed unveils plan for ‘technical’ asset purchases
New York Fed will buy Treasuries “at least into the second quarter of next year”
Brainard attacks Fed plan to soften regulations
Governor warns regulatory cutbacks risk weakening “core safeguards” put in place post-2008
World risks ‘global liquidity crunch’, former BIS officials warn
“Urgent action” needed to prevent crisis, say Philip Turner and André Icard