Liquidity
Atlanta’s Bostic lays out case for central banking with ‘ample’ reserves
Floor system performing well and has benefits, says Atlanta Fed president; Harker and Rosengren argue for shift in balance sheet composition
RBI swap operation heavily oversubscribed
Unusual move to inject long-term liquidity into the system draws strong demand from the market
Podcast: Greg Kaplan on heterogeneous-agent models
Monetary and fiscal policy are much more closely connected than many central banks would like
Local currency debt not enough to escape US dollar influence – BIS paper
Emerging markets borrowing in domestic currency are still affected by the US dollar exchange rate
US agencies move to protect swaps after week of Brexit chaos
Legacy swaps can be transferred without facing onerous requirements, Fed says; week of parliamentary wrangling produces little progress on a final agreement
Canada’s Wilkins calls for non-bank stress testing
Portfolio flows are now the dominant source of capital movements, but asset management risks are not well understood, says deputy governor
Bank of Jamaica pushes banks to meet full LCR this year
The central bank also plans to introduce other liquidity management standards in coming years
IMF paper looks at central banks’ use of forex reserves
Reserves used more for liquidity than for investment in decade since financial crisis, researchers find
Fed IOER amendment aimed at ‘thwarting’ The Narrow Bank
The move appears to specifically target The Narrow Bank’s business model, the firm says
BoE paper: corporate bond purchases boosted market liquidity
Study of post-Brexit QE finds purchases helped support bond market liquidity
Markets still in thrall to central banks – BIS
But some apparent anomalies may be signs of healthier market function, says Claudio Borio
RBI and Indian government boost banking sector as election nears
Central bank injects liquidity into banks as government re-capitalises more state-owned lenders
BoE ramps up liquidity auctions as Brexit looms
Central bank will conduct additional auctions of long-term sterling liquidity around the March 29 deadline; MPC members disagree on approach to no-deal uncertainty
US’s first Libor-replacement term rate coming in 2020
Staff at the New York Fed are working on a series of backward-looking averages
Climate change: a new challenge for financial stability?
Do climate change and the transition to a low-carbon economy pose a risk to financial stability? What is the role of central banks?
CBRT cuts reserve requirements, but stresses tight stance
Liquidity tools are more about transmission than policy stance, says Murat Çetinkaya
IMF prepares to overhaul its financial surveillance
Fund agrees with IEO report that there is much room for improvement, but budget remains an issue
Lifetime achievement: Zhou Xiaochuan
The former People’s Bank of China governor stands out for his high levels of integrity, intellectual rigour and bold reforms that have served the public interest in China and elsewhere
ECB stress tests to focus on liquidity risk
Tests will measure systemic European banks’ “survival period” without access to funding markets
Euro outpacing dollar as cross-border credit grows
Latest BIS statistics show widening gap between credit growth in the two major currencies
PBoC denies that new liquidity tool is a ‘form of QE’
Central bank bills swap is essentially quantitative easing, says one analyst
Economics in central banking: Greg Kaplan, Benjamin Moll and Gianluca Violante
Authors’ paper, ‘Monetary policy according to Hank’, boosts the realism of core economic models, delivering important insights into inequality and the transmission of monetary policy
Risk management technology: Vermeg
Having successfully delivered the collateral management module of its Megara system to four major central banks, Vermeg has won a high-profile tender to deliver the technology for the Eurosystem Collateral Management System
Innovation prompts firms to hold more cash – IMF paper
Firms must hold enough liquidity to insure against risky research and development