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Banking & Central Banks


Presentation at U.S. Monetary Policy Forum
New York, New York
By John C. Williams, President and CEO, Federal Reserve Bank of San Francisco

Presentation to California Bankers Association
Santa Barbara, California
By John C. Williams, President and CEO, Federal Reserve Bank of San Francisco

Setting a higher minimum wage seems like a natural way to help lift families out of poverty. However, minimum wages target individual workers with low wages, rather than families with low incomes. As a result, a large share of the higher income from minimum wages flows to higher-income families. Other policies that directly address low family income, such as the earned income tax credit, are more effective at reducing poverty.

BBC Interview with ex CEO of Barclays, Antony Jenkins
http://www.bbc.co.uk/programmes/p03b0j9f
The former Barclays CEO, Antony Jenkins, talks to Kamal Ahmed.

Can Islamic Banking Increase Financial Inclusion?
http://www.imf.org/external/pubs/cat/longres.aspx?sk=42710.0
The paper analyses existing country-level information on the relationship between the development of Islamic banking and financial inclusion.

The age of asset management? – speech by Andrew Haldane
http://www.bankofengland.co.uk/publications/Pages/news/2014/068.aspx
In a speech at the London Business School’s Asset Management Conference, Andrew Haldane discusses the risks posed by the asset management industry to financial stability, and the associated policy implications. In doing so, he also highlights the ways in which asset management – “a key bridge between end-savers and end-borrowers” – can strengthen both the financial system and the real economy.

What Is Shadow Banking? - an IMF Working Paper prepared by Stijn Claessens and Lev Ratnovski
http://www.imf.org/external/pubs/ft/wp/2014/wp1425.pdf
There is much confusion about what shadow banking is. Some equate it with securitization, others with non-traditional bank activities, and yet others with non-bank lending. Regardless, most think of shadow banking as activities that can create systemic risk. This paper proposes to describe shadow banking as “all financial activities, except traditional banking, which require a private or public backstop to operate”. Backstops can come in the form of franchise value of a bank or insurance company, or in the form of a government guarantee. The need for a backstop is in our view a crucial feature of shadow banking, which distinguishes it from the “usual” intermediated capital market activities, such as custodians, hedge funds, leasing companies, etc.

Semi-annual Monetary Policy Report to the Congress
http://federalreserve.gov/newsevents/testimony/yellen20140211a.htm
Chair Janet L. Yellen report before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C., February 11, 2014.

A speech presented at the 35th Annual Economic Seminar sponsored by the Simon Business School with JP Morgan Chase & Co., Rochester Business Alliance, and the CFA Society of Rochester by Charles I. Plosser, President and CEO of the Federal Reserve Bank of Philadelphia.

How economists grade Ben Bernanke’s Federal Reserve tenure
http://www.pbs.org/newshour/bb/how-economists-grade-ben-bernankes-federal-reserve-tenure/
After eight years, a financial crisis, a Great Recession and an economic recovery, it is Federal Reserve chairman Ben Bernanke’s final day on the job. Economics correspondent Paul Solman looks back at Bernanke’s performance for an assessment of his legacy by two economists.

Speech given by Mark Carney, Governor of the Bank of England.

Mark Carney, Governor of the Bank of England
http://www.charlierose.com/watch/60312544
Charlie Rose with Bank of England Gov. Mark Carney…..All up some 25 minutes – lots of interesting ideas and comments.

President Charles I. Plosser proposes setting limits on the Federal Reserve so that it can better fulfill what he believes is its essential role. He considers restrictions on the types of assets the Fed can buy to limit its interference with markets. He also touches on the Fed's governance and accountability and ways to implement policies that limit discretion and improve outcomes.

Solving too big too fail: where do things stand on resolution
http://www.bankofengland.co.uk/publications/Documents/speeches/2013/speech685.pdf
Speech given by Paul Tucker, Deputy Governor Financial Stability, Member of Financial and Monetary Policy Committees, and of the Prudential Regulation Authority Board of the Bank of England, at the Institute of International Finance 2013 Annual Membership meeting, Washington DC.

A Blessing in Disguise: The Implications of High Global Oil Prices for the North American Market
http://www.bankofcanada.ca/wp-content/uploads/2013/07/wp2013-23.pdf
In this paper by Ron Alquist and Justin-Damien Guénette from the Bank of Canada, they examine the implications of increased unconventional crude oil production in North America. This production increase has been made possible by the existence of alternative oil-recovery technologies and persistently elevated oil prices that make these technologies commercially viable. They first discuss the factors that have enabled the United States to expand production so rapidly and the glut of oil inventory that has accumulated in the Midwest as result of logistical challenges and export restrictions. Next, they assess the extent to which the increase in U.S. domestic production will affect global supply conditions and whether the U.S. experience can be repeated in other countries with rich unconventional oil sources. The evidence suggests that even in the best-case scenario, the increase in U.S. production will not make a large contribution to global production, so its effect on the price of oil is expected to be limited. Furthermore, the United States enjoys unique infrastructural and technological advantages that make it unlikely that similarly rapid increases in unconventional production can be achieved elsewhere.

Assessing Monetary Policy
Assessing Monetary Policy
On 12 June 2013 the President and CEO of the Federal Reserve Bank of Philadelphia, Charles Plosser provided an updated overview of and outlook for the US economy. In this speech he argues for a more systematic approach to monetary policy. In particular he wishes to see the Fed:
1. Wind down asset purchases by the end of 2013 in a gradual and predictable manner.
2. Commit to the forward guidance on the fed funds rate path by treating the 6.5 percent unemployment rate
and the 2.5 percent inflation rate as triggers rather than thresholds.
3. Explain how policy will evolve after the trigger is reached by committing to a robust policy rule.

Shedding Light on Shadow Banking
Remarks by Timothy Lane, Deputy Governor of the Bank of Canada discussing shadow banking, which is an important area for financial system reform, both globally and in Canada. Shadow banking refers to a set of activities outside the formal banking system that carry out similar functions to those performed by banks. While the term “shadow banking” tends to suggest something secretive or illicit, Timothy Lane will argue that, on the whole, shadow banking serves a useful purpose. At the same time, the experience during the global financial crisis revealed that shadow banking has some important fragilities. He will talk about certain common threads in the reforms being developed at the international level to address these fragilities and their relevance to Canada.

Former Reserve Bank Board member Warwick McKibbin talks to "The Business"
The correction in the Nikkei in the past few days put some wobbles through markets but around the world, central banks are rethinking their approach to austerity in favour of growth. In this 27.05.2013 ABC "The Business" interview, Ticky Fullerton discusses potential implications with former Reserve Bank Board member Warwick McKibbin.

Central Banking Further into Uncharted Territory
Speech from 28 May 2013 at a Meeting Held by the Foreign Correspondents' Club of Japan, by Ryuzo Miyao, Member of the Policy Board, Bank of Japan. Miyao Sans speech is a pretty good overview of what the Japanese Government is currently trying to do with their economy.

The Economy and the Federal Reserve: Real Progress, but Too Soon to Relax
Presentation to Town Hall Los Angeles, Los Angeles, California, by John C. Williams, President and CEO, Federal Reserve Bank of San Francisco [3 April 2013 ].

Rebuilding Trust in Global Banking - 7th Annual Thomas d’Aquino Lecture on Leadership, Lawrence National Centre for Policy and Management, Richard Ivey School of Business, Western University, London, Ontario
25 February 2013
Six years ago, the collapse of the global financial system triggered the worst global recession since the Great Depression. Losing savings, jobs, and houses has been devastating for many. Something else was lost—trust in major banking systems. This deepened the cost of the crisis and is restraining the pace of the recovery. The real economy relies on the financial system. And the financial system depends on trust. Indeed, trust is imbedded in the language of finance. The word credit is derived from the Latin, credere, which means “to have trust in.” Too few banks outside of Canada can claim credit today. Bonds of trust between banks and their depositors, clients, investors and regulators have been shaken by the mismanagement of banks and, on occasion, the malfeasance of their employees. Over the past year, the questions of competence have been supplanted by questions of conduct. Several major foreign banks and their employees have been charged with criminal activity, including the manipulation of financial benchmarks, such as LIBOR, money laundering, unlawful foreclosure and the unauthorized use of client funds. These abuses have raised fundamental doubts about the core values of financial institutions.

In this analysis, Mark Carney Governor of the Bank of Canada discusses the breakdown of trust and what is required to rebuild it. The G-20’s comprehensive financial reforms will go a long way but will not be sufficient. Virtue cannot be regulated. Even the strongest supervision cannot guarantee good conduct. Essential will be the re-discovery of core values, and ultimately this is a question of individual responsibility. More than mastering options pricing, company valuation or accounting, living the right values will be the most

The dog and the frisbee
This speech by Bank of England Executive Director Andrew G Haldane, was presented to “The Changing Policy Landscape” economic policy symposium in Jackson Hole, Wyoming, 31 August 2012. Haldane highlights via back-tested data the inadequacy of complex regulation in the aftermath of the GFC. This actually leads to worse outcomes than more simple "common sense" regulatory rules. This realisation led to the push-back on Basel 2 regulations, which through use of internal risk models in the regulatory framework led to out of control regulatory complexity without actually reducing systemic risk in the global finance system. Through numerous historic anecdotes, Haldane also highlights the important role of market discipline in complementing regulatory rules and supervision.

The Outlook for Dwelling Investment
http://www.rba.gov.au/speeches/2012/sp-so-131112.html
A speech delivered by Dr Jonathan Kearns from the Reserve Bank of Australia to the Australian Business Economists’ Lunchtime Briefing in Sydney on 13th November 2012.

Economic Outlook and Monetary Policy
Economic Outlook and Monetary Policy
In his September 2012 speech to the CFA Society of Philadelphia, The President and CEO of the Federal Reserve Bank of Philadelphia, Charles Plosser provides an overview of and update on the outlook US economy. He also warns of excessive focus on the short-term and an underestimation of of the longer-term consequences of policy choices.

This "In The Balance" BBC podcast from 8 September 2012 asks if, as the ECB brings in a new scheme to save the euro, central banks have been over- reaching themselves. Have they been poking their noses into stuff that should be left to elected politicians? Plus central bankers' impenetrable jargon: In the Balance's resident comedian Colm O'Regan reckons parents could deploy that kind of language next time the kids ask for more pocket money. Discussing these issues with Lesley Curwen - naturally in the clearest way possible - are Randall Kroszner, former member of the Board of Governors of the Federal Reserve, who was chair of its Committee on Supervision and Regulation of Banking Institutions during the global financial crisis; Professor David Blanchflower, formerly a member of the Bank of England's interest rate-setting Monetary Policy Committee and economist Gabriel Stein, from the Official Monetary and Financial Institutions Forum.

The Euro Crisis and the Financial System - Speech by Philip Lowe, Deputy Governor, Reserve Bank of Australia
http://www.rba.gov.au/speeches/2012/index.html
The presentation slides and audio webcast of Dr Philip Lowe’s speech to The Economist's Bellwether Series 2012 in Sydney are available on the Reserve Bank website. The webcast includes the Q&A following Dr Lowe’s presentation. These RBA speeches often provide an up to date snapshot of key economic indicators put into perspective by the commentary of the highly experienced presenters.

In his June 2012 testimony to the Joint Economic Committee, The Chairman of the Board of Governors of the Federal Reserve System, Ben Bernanke provides an overview of the US economy.

In this February 2012 speech the President and Chief Executive Officer of the Federal Reserve Bank of Philadelphia, Ian Plosser argues for improved communication of Monetary Policy. He favours not only proper disclosure of the policy outcome, but more detailed disclosure as to how the final outcome was arrived at, given often widely differing views between members of the Federal Reserve Bank. This drive for improved transparency has resulted in the Federal Open Market Committee (FOMC) now including information about each participant’s assessments for the target federal funds rate path in its Summary of Economic Projections. The FOMC has also clarified its longer-run goals and monetary policy decision-making process and clearly articulated its inflation objective. Along the way, Plosser provides useful insights into his assessment of the American and global economies.

RDP 2011-08 - The Mining Industry: From Bust to Boom
http://Portals/0/rdp2011-08.pdf
In this December 2011 Reserve Bank of Australia RESEARCH DISCUSSION PAPER the authors Ellis Connolly and David Orsmond examine the current mining boom in the context of Asian economic development and historic boom and bust scenarios in the mining sector.

RDP 2011-07 - Australia's Prosperous 2000s: Housing and the Mining Boom
http://Portals/0/rdp2011-07.pdf
In this December 2011 Reserve Bank of Australia RESEARCH DISCUSSION PAPER the authors Jonathan Kearns and Philip Lowe examine the impact on the Australian housing and mining sectors from rapid Asian development.

In this 2009 speech the President and Chief Executive Officer of the Federal Reserve Bank of Kansas City, Tim Hoenig argues against the motherhood statement that some financial institutions are "too big to fail", drawing on historic lessons from Japan and Sweden. He argues against the protracted nationalisation of "too big to fail" institutions.

Remarks by Timothy Lane / Discours Prononcé par Timothy Lane
http://www.bankofcanada.ca/2011/09/speeches/curbing-contagion-options-and-challenges/
A speech from the Deputy Governor of the Bank of Canada titled, "Curbing Contagion: Options and Challenges for Building More Robust Financial Market Infrastructure".

FRBSF Economic Letter: Variable Capital Rules in a Risky World
http://www.frbsf.org/publications/economics/letter/2011/el2011-27.html
....The Federal Reserve Bank of San Francisco (FRBSF) write on how the recent financial crisis showed that a financial institution’s equity may be sufficient to absorb losses during normal times, but insufficient during periods of systemic distress. In recognition of this risk, the Basel III agreement last year introduced a new element of macroprudential regulation called countercyclical buffers, variable capital requirements that shift based on credit growth. These buffers raise the classic regulatory dilemma of safety versus economic growth, but may provide protection against financial calamity at an acceptable cost.

Macroeconomic Costs of Higher Bank Capital and Liquidity Requirements
http://www.imf.org/external/pubs/ft/wp/2011/wp11103.pdf
In this 2011 International Monetary Fund working paper, Senior Economist with the IMF European Office, Scott Roger and co-author Jan Vlček examine the transitional macroeconomic effects of introducing higher capital and liquidity requirements for banks. A key finding is that the costs of raising capital and liquidity requirements are likely to be quite moderate, particularly if phased in over an extended period.

Bankruptcy: Is It Enough to Forgive or Must We Also Forget?
http://www.philadelphiafed.org/research-and-data/publications/working-papers/2011/wp11-14.pdf
In this 2011 article, Senior Economist of the Federal Reserve Bank of Philadelphia, Ronel Elul and co-author Professor of Economics at the European University Institute, Piero Gottardi test the proposition that lenders are only given limited information about borrower's past performance.
 
Mortgages and Housing in the Near and Long Term
In this 2011 Bank of England speech, David Miles (Economist, Visiting Professor at Imperial College London, former Chief UK Economist of Morgan Stanley and External Member of the Monetary Policy Committee), examines some of the dynamics in the mortgage and housing markets that make him optimistic about eventual recovery, over long term structural decline.
 
150 Years of Innovation and Challenges in Monetary Control
http://www.boj.or.jp/en/announcements/press/koen_2011/data/ko110309a.pdf
In this 2011 speech by Bank of Japan Governor Masaaki Shirakawa, he identifies four key "innovations" in monetary control, from the creation of central banks to the introduction of the concept of central bank independence. He goes on to discuss various unconventional policy measures that major central banks took during the Global Financial Crisis and then examines the response by the Bank of Japan to the bursting of Japan's asset bubble. He concludes that with further globalisation in the future, cooperation between central banks will become essential.
 
Bank Ownership and the Effects of Financial Liberalisation: Evidence from India
In this 2011 International Monetary Fund working paper, Economist and Professor at the Indian Council for Research on International Economic Relations (ICRIER), Poonam Gupta et al. examines to what extent public and private banks increased their credit to the private sector following liberalisation of the financial sector in India 1991-2007.
 
Lessons on Unconventional Monetary Policy from the United Kingdom
http://www.bankofengland.co.uk/publications/speeches/2011/speech478.pdf
In this 2011 Bank of England speech by former Chief Economist and now Deputy Governor of the Bank of England, Charles Bean discusses the pros and cons of various "unconventional" monetary Policy options available to central banks.
 
Subprime Mortgages and the Housing Bubble
In this 2011 working paper of the Federal Reserve Bank of Philadelphia, Economics Professor at California University-Irvine, Jan K. Brueckner et al. explore the link between house-price expectations of mortgage lenders and the extent of subprime lending. Not surprisingly, the link exists and leads to a vicious circle where more funding is offered to subprime lenders, which in turn inflates the housing bubble further, which further reassures mortgage lenders that house prices will continue to rise, enticing them to lend even more.

Competition in the Canadian Mortgage Market
In this 2010 Bank of Canada Review article, Jason Allen (Principal Researcher of the Financial Stability Department at the Bank of Canada), looks at changes in the Canadian mortgage market over the last 20 years. This paper looks at consumer preferences and competition in the mortgage market and the implications this has for the central bank.
 
Curbing the Credit Cycle
In this 2010 paper by David Aikman (Economist and Senior Manager in the Financial Stability directorate of the Bank of England) et al., they conclude that to curb the credit cycle, some new policy apparatus might be needed to target bank balance sheets directly and systematically. This direct approach is preferred over applying ineffective monetary or micro-prudential policy.  

The Case For Doing More
In this 2010 speech by Adam S. Posen (US Economist and External Member of the Monetary Policy Committee of the Bank of England), argues that further monetary easing by central banks is needed. The danger of doing too little is not merely a slightly painful break in getting back to growth, but rather runs the risk of permanent damage being done to the nation's workforce and creating a potential threat to the entire economic and political system. The scenario may be akin to the rise of extremist intolerant parties in pre-war Europe, when the populations endured sustained high unemployment and austerity and perceived their governments to be unresponsive to their dire economic conditions.
 
Australian Banking System Resilience: What Should Be Expected Looking Forward? An International Perspective
http://www.imf.org/external/pubs/ft/wp/2010/wp10228.pdf
In this 2010 International Monetary Fund working paper, Pierluigi Bologna (Economist and Technical Assistance Advisor for the Monetary and Capital Markets Department at the International Monetary Fund) examines how the Australian banking system fared during the Global Financial Crisis. He assesses how they are currently positioned and then considers how the proposed new liquidity rules by the Basel Committee on Banking Supervision would affect the Australian banks.
 
In this 2010 speech by the Governor of the Bank of England, Mervyn King, he explains how the size, concentration and riskiness of banks has grown markedly. Banks are inherently fragile since they use short-term debt to fund long term, illiquid investments. He then considers a number of proposals designed to offer a solution to this problem.

The Role of Bank Capital in the Propagation of Shocks
In this 2008 Bank of Canada working paper, Césaire Meh (Economist and Research Director at the Economic Analysis Department of the Bank of Canada) and co-author  Kevin Moran (Economist and Assistant Professor at the Department of Economics of the University Laval) highlight the importance of adequate bank capital in mitigating moral hazard between banks and suppliers of loanable funds and how bank capital increases an economy's ability to absorb shocks. 



Australia and New Zealand

Reserve Bank of Australia
http://www.rba.gov.au/

Reserve Bank of New Zealand
http://www.rbnz.govt.nz/

 

Africa

Bank of Botswana

Central Bank of Egypt

Bank of Ghana
 
Central Bank of Liberia
 
Central Bank Of Libya
http://www.cbl.gov.ly/eg/
 
Bank of Namibia
 
Central Bank of Nigeria
 
South African Reserve Bank  


America

Banco Central do Brasil
http://www.bcb.gov.br/?english 

Bank of Canada
http://www.bankofcanada.ca/?page_moved=1 

Board of Governors of the Federal Reserve System
http://www.federalreserve.gov/ 

   Federal Reserve Bank of Atlanta
   http://www.frbatlanta.org/ 

   The Federal Reserve Bank of Boston
   http://www.bos.frb.org/ 

   Federal Reserve Bank of Chicago
   http://www.chicagofed.org/webpages/index.cfm 

   Federal Reserve Bank of Dallas
   http://www.dallasfed.org/ 

   Federal Reserve Bank of Minneapolis
   http://www.minneapolisfed.org/ 

   Federal Reserve Bank of New York
   http://www.newyorkfed.org/index.html 

   Federal Reserve Bank of Philadelphia
   http://www.philadelphiafed.org/index.cfm 

   Federal Reserve Bank of San Francisco
   http://www.frbsf.org/

 

Asia

People's Bank of China
http://www.pbc.gov.cn/publish/english/963/index.html 

Reserve Bank of India
http://www.rbi.org.in/home.aspx 

Bank of Japan
http://www.boj.or.jp/en/ 

Bank Negara Malaysia - Central Bank of Malaysia
http://www.bnm.gov.my/ 

Bank of Papua New Guinea
http://www.bankpng.gov.pg/ 

Bank of Korea
http://eng.bok.or.kr/ 

Saudi Arabia Monetary Agency
http://www.sama-ksa.org/sites/samaen/pages/home.aspx 

Monetary Authority of Singapore
http://www.mas.gov.sg/ 

Bank of Thailand
http://www.bot.or.th/English/Pages/BOTDefault.aspx

Central Bank of the United Arab Emirates
http://www.centralbank.ae/en/index.php

Asian Development Bank (ADB)

http://www.adb.org/default.asp
ADB is a multilateral development bank, dedicated to reducing poverty in Asia and the Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration.

 

Europe

European Central Bank
http://www.ecb.int/home/html/index.en.html 

National Bank of the Republic of Belarus
http://www.nbrb.by/engl/

Bank of England
http://www.bankofengland.co.uk/

Banque de France
http://www.banque-france.fr/en/home.html 

Deutsche Bundesbank
http://www.bundesbank.de/Navigation/EN/Bundesbank/bundesbank.html 

Banca d'Italia - Il sito ufficiale della Banca Centrale Italiana
http://www.bancaditalia.it/ 

Central Bank of the Russian Federation
http://www.cbr.ru/eng/ 

Swiss National Bank
http://www.snb.ch/