News/Financial Stability
Gold could hit $1,600 in 2011, say analysts
Commentators say investor appetite for the precious metal will continue to soar as concerns over US economy, eurozone sovereign debt issues, persist
EBA plans new round of stress tests
New European Banking Authority announces second round of stress tests for European banks at opening meeting
Oberthur seeks equity house support in De La Rue takeover bid: reports
French banknote firm Oberthur reportedly in talks to issue private equity houses with convertible bond to fund De La Rue acquisition
Senior officials for new European regulators named
European regulators in Paris and Frankfurt appoint a number of new heads and board members
Portugal succeeds at auction but fails to sway analysts
Portugal sells $1.6 billion worth of government debt at auction, but commentators remain wary of fundamentals
Fed uncooperative and audit insufficient, claims influential senator
US senator Bernie Sanders dissatisfied with Federal Reserve’s response to further questions on audit of emergency lending facilities
Barclays’ Diamond argues case for universal banking
Barclays' chief executive Bob Diamond adamant bank’s model funds cheaper lending and is less risky
Oberthur given takeover deadline as De La Rue spat intensifies
French banknote printer told to “put up or shut up” by 7 February; ruling comes on the heels of efforts to force De La Rue to clarify relationship with RBI, failed November takeover bid
High inflation stirs banknote shortage in Argentina: reports
Inflationary pressures in Argentina create shortage of high-denomination banknotes forcing long queues at cash machines
Sudan bans some imports as forex shortage looms
Bank of Sudan bans imports of luxury items, goods with local substitutes, to conserve foreign currency; currency wobbles on secession, oil fears
Stability objective should drive financial policy, says BoE’s Bailey
Bank's Bailey says stability goal must not be swayed by “murky compromises with other objectives”
IMF in bid to strengthen governance of cross-border capital flows
IMF executive directors support greater Fund role in surveillance of cross-border capital flows and creation of rules for capital account policies
Renminbi liberalisation, price stability priorities: PBoC
People’s Bank of China says currency internationalisation, price stability top priorities for 2011, following annual meeting
Icelandic central bank, regulator ink deal to collaborate
Central Bank of Iceland and Financial Supervisory Authority sign landmark agreement to work together on oversight in areas including systemic risk
Irish central bank names advisers for stress test exercise
Central Bank of Ireland calls for BlackRock Solutions, Boston Consulting Group and Barclays Capital to assist in stress tests
Brussels sets the stage for senior debt haircuts
Internal markets directorate publishes consultation paper calling for senior bondholder haircuts in resolution regimes; analysts worry move could further disrupt funding for troubled banks
Haircut fears push up bank CDS prices
Spreads on the credit index for senior European financials widen as EU releases burden-sharing consultation paper
Brazil steps up efforts to ease real gains
Central Bank of Brazil raises reserve requirements on domestic banks' foreign exchange position in bid to halt real appreciation
Bidder calls on De La Rue to reveal details of RBI relationship
Oberthur says firm should inform shareholders about recent business with Reserve Bank of India; claims paper scandal has "undermined" ability to win new contracts as a stand-alone firm
Hong Kong lawmakers to enforce mandatory CCP by the end of 2012
Hong Kong joins Japan in mandating central counterparty clearing for OTC derivatives with CCPs and a central repository expected to be set up in the coming months.
CentralBanking.com’s top ten stories of 2010
Regulatory change features heavily
Netherlands' Berndsen to build unified model of financial infrastructure
Netherlands Bank's head of oversight Ron Berndsen to construct complete financial infrastructure model as part of professorial appointment
Imbalances could treble in next two decades: Bank's Haldane
Bank of England executive director Andy Haldane charts course of global imbalances, pointing to trends likely to widen them
Fed extends temporary dollar swap lines
Dollar swap lines reopened with five central banks in May will remain in operation until August 2011, seven months past original date of expiry