Tuesday , November 24 2020
Home / Tag Archives: Financial Markets/ Finance

Tag Archives: Financial Markets/ Finance

When the Bank of England rescued Midland Bank in early 1990s

As we are dealing with several bank failures and rescues in India, good to read about another bank from other country. Clive Horwood refers to an extract from the book by Prof Harold James – Making a Modern Central Bank – The Bank of England 1979-2003: It was inherent in the mandate of the Bank of England in the 1980s and 1990s, as overseer of UK financial services, that its successes remained hidden in the shadows, while its failures were exposed to the harshest of lights. Those two...

Read More »

The second wave of central bank policy innovation

Pierre Ortlieb of OMFIF in this piece: As the Covid-19 pandemic began rippling through financial markets and the global economy earlier this year, central banks quickly unveiled a raft of initiatives aimed primarily at easing short-term liquidity conditions. These policy innovations took place across developed and emerging markets, encompassing new assets purchases, lending facilities and institutional relationships. Many emerging market central banks broke new ground by engaging in...

Read More »

Kenya’s digital transformation journey

Dr. Patrick Njoroge, Governor, Central Bank of Kenya in this speech: Digitalization, the theme I have been asked to focus on, has seen us through this difficult period. In the context of the COVID-19 containment measures—and particularly movement restrictions and curfews—digital platforms have enabled our citizens to access financial, health, education and medical services, entertainment, and shop online. In Kenya, the digital rails built over the last fifteen years have been a saving...

Read More »

India’s Inflation Process Before and After Flexible Inflation Targeting

Patrick Blagrave and Weicheng Lian in their new IMF research: We study the inflation process in India, focusing on the periods before and after the adoption of flexible inflation-forecast targeting (FIT) in India. Our analysis uses several approaches including standard Phillips curve estimation for headline and core inflation, an examination of the sensitivity of medium-term inflation expectations to inflation surprises, and the properties of convergence between headline and core...

Read More »

Laxmi Vilas Bank joins list of failed banks

Lakshmi Vilas Bank (LVB) has been under trouble for quite some time now. It has been in talks with Clix Capital for raising capital but nothing seemed to have worked. At the end, Lakshmi Vilas Bank (LVB) has failed and RBI had to impose a moratorium. The financial position of The Lakshmi Vilas Bank Ltd. (the bank) has undergone a steady decline with the bank incurring continuous losses over the last three years, eroding its net-worth. In absence of any viable strategic plan, declining...

Read More »

Making a Modern Central Bank and Six Days in September – Britain’s progressive estrangement

David Marsh of OMFIF reviews two books which discuss how the seeds of Brexit were sowed in 1992 currency crisis: Currency dramas linking the UK and continental Europe are tangled tales of confusion, intrigue and progressive estrangement. Harold James’ book on the 1979-2003 history of the Bank of England, to be launched by OMFIF on 23 November, acts as a powerful companion volume to Six Days in September: Black Wednesday, Brexit and the making of Europe, by William Keegan, David Marsh and...

Read More »

Building a Green Yield Curve

SO far, the coloour of finance was seen as either black or red as in profits or loss. Dr Sabine Mauderer of the Deutsche Bundesbank in this speech points that Germany is planning to build a Green yield curve: Germany issued a green bond with a 10-year term for the first time in September, followed by another green bond with a 5-year term last week. Both issues, with a total outstanding volume of € 11.5 billion, attracted huge interest among investors. Looking back at these successful...

Read More »

Comparing economics news driven indicators with macroeconomic indicators

Jon Ellingsen, Vegard H. Larsen and Leif Anders Thorsrud in this Norges Bank research paper: Using a unique dataset of 22.5 million news articles from the Dow Jones Newswires Archive, we perform an in depth real-time out-of-sample forecasting comparison study with one of the most widely used data sets in the newer forecasting literature, namely the FRED-MD dataset. Focusing on U.S. GDP, consumption and investment growth, our results suggest that the news data contains information not...

Read More »

Inside the regulatory sandbox: effects on fintech funding

Giulio Cornelli, Sebastian Doerr, Leonardo Gambacorta and Ouarda Merrouche in this BIS paper evaluate impact of sandboxes: The rise of fintechs promises to spur competition in the financial sector. This could lead to sizeable efficiency gains, more choice for consumers, and enhanced financial inclusion. However, the potentially disruptive growth of firms offering novel products and services poses new challenges for financial stability and consumer protection. In response, policymakers...

Read More »

RBI’s conflicting challenges in NBFC regulation

My new piece in Moneycontrol (behind a paywall). I look at this recent speech by RBI DG M Rajeshwar Rao where he speaks about the NBFC sector. Rao covers recent policy changes in regulating NBFCs and lists future challenges as well. This entry was posted on November 12, 2020 at 3:19 pm and is filed under Central Banks / Monetary Policy, Economics - macro, micro etc, Financial Markets/ Finance, Indian Economy/Financial Markets. You can follow any...

Read More »