European Central Bank (ECB)
ECB paper presents new model for ‘fire sale’ contagion
Agent-based model shows asset managers spreading contagion during larger liquidity shocks
Weak eurozone banks hindered monetary policy – Bundesbank paper
“High-risk” banks failed to increase loan spreads despite ECB liquidity injection, researchers say
ECB’s TLTRO2 eased Italian credit conditions – BoI paper
QE measure lowered loan interest rates while increasing credit quantities, researchers find
Should the ECB add owner-occupied housing costs to its inflation measure?
Yves Mersch argues broader measure of housing costs would give more realistic inflation picture
ECB and BoJ point to major problem in DLT-based payments
Latest “Project Stella” report says central source of information could create single point of failure
Schnabel takes on Germany’s ‘false narratives’ on ECB policy
Criticism based on “half-truths” imperils trust in single monetary policy and “undermines European cohesion”
Bulgaria: long live the currency board
Bulgaria should reject the euro and extend its currency board to cover bank deposits
Yield curve models overstate chances of US recession – ECB research
Models need to account for effects of QE asset purchases on bond premia, authors say
ECB paper looks at professional inflation forecasters
No statistically significant evidence of some forecasters being worse than others, researcher says
ECB monetary policy was weakened by regulation – Bundesbank paper
Tighter regulation reduced lending by weakly-capitalised banks from 2008 to 2018 – researchers
ECB officials lay out positions on future inflation target
Weidmann and de Cos set priorities as strategy review focuses on inflation measurement and target
Eurozone banks increase illiquid assets after solvency shocks – DNB paper
Shift in asset holdings could create asset price distortions after banking crises, researchers say
Sharon Donnery stresses international co-operation role in financial stability
Irish deputy governor explains macro-prudential measures implemented since global financial crisis
ESRB models long-lasting EU recession for stress tests
Tougher adverse scenario adopted because EU is “at an advanced stage of the financial cycle”
De Guindos stresses uncertainty from coronavirus outbreak
Powell and Carney said Fed and BoE are closely monitoring the virus’s impact on the economy
Central Banking Awards 2020: first winners announced
Prizes include central bank of the year, risk manager, payments and FMI, and treasury systems
Payments and market infrastructure development: European Central Bank
The ECB has created a framework to help payments and market infrastructure firms bolster cyber defence that is being disseminated on a global scale
ECB reallocates subscribed capital after Brexit
Eurozone central banks will increase their total paid-up capital by €1.2 billion over the next two years
ECB reveals large banks’ individual capital requirements
Enria warns banks to improve profitability, saying “challenging environment” will not change soon
ECB’s Mersch warns of negative side-effects of ultra-loose policies
Policies may be contributing to risk-taking, high asset-price inflation and inequality, board member says
Lagarde promises wide-ranging review as ECB holds rates
ECB’s monetary policy review will look at green finance and engagement with citizens – Lagarde
Should the ECB increase the transparency of governing council meetings?
Observers and former officials weigh pros and cons of greater disclosure for policy efficacy and independence
Sovereign debt needs strong collective action clauses – ECB paper
CACs with bond-by-bond voting fail to prevent creditor holdouts, researchers find
Book notes: The long journey of central bank communication, by Otmar Issing
This book is a “masterly exposition on central bank communication, its evolution and continuing challenges”, writes Anand Sinha