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ECB Euro Liquidity Lines

Author : Silvia Albrizio

Publisher : International Monetary Fund

Page : 58 pages

File Size : 44,92 MB

Release : 2023-05-05

Category :

ISBN :

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Book Description

Central bank liquidity lines have gained momentum since the global financial crisis as a crosscurrency liquidity management tool. We provide a complete timeline of the ECB liquidity line announcements and study their signalling and spillback effects. The announcement of an ECB euro liquidity line decreases the premium paid by foreign agents to borrow euros in FX markets relative to currencies not covered by these facilities by 51 basis points. Consistent with a stylized model, bank equity prices increase by around 1.75% in euro area countries highly exposed via banking linkages to countries whose currencies are targeted by liquidity lines.



Evolution of Bilateral Swap Lines

Author : Michael Perks

Publisher : International Monetary Fund

Page : 40 pages

File Size : 14,13 MB

Release : 2021-08-06

Category : Business & Economics

ISBN : 1513590138

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Book Description

This paper makes contributions to the study of bilateral swap lines (BSLs). First, this paper fills a BSL information gap by constructing a comprehensive database of BSLs based on publicly available information, including after the onset of the COVID-19 pandemic. Second, the paper provides the results of regression analysis exploring several empirical questions that were not covered in previous studies. The paper documents the evolution of BSLs into an important part of the Global Financial Safety Net (GFSN), with some helping to stabilize financial market during both the Global Financial Crisis (GFC) and the COVID-19 pandemic. Analysis suggests that countries on the recipient side of BSLs are more likely to sign and renew BSLs designed to alleviate balance of payments needs as their external position weakens. U.S. Federal Reserve BSLs appear to have been effective at stabilizing financial market conditions during the COVID-19 pandemic.



International Reserves and Foreign Currency Liquidity

Author : International Monetary Fund. Statistics Dept.

Publisher : International Monetary Fund

Page : 258 pages

File Size : 17,72 MB

Release : 2015-01-07

Category : Business & Economics

ISBN : 1484350162

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Book Description

This update of the guidelines published in 2001 sets forth the underlying framework for the Reserves Data Template and provides operational advice for its use. The updated version also includes three new appendices aimed at assisting member countries in reporting the required data.



Collateral Frameworks

Author : Kjell G. Nyborg

Publisher : Cambridge University Press

Page : 345 pages

File Size : 13,70 MB

Release : 2017

Category : Business & Economics

ISBN : 1107155843

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Book Description

The first book-length study of the importance of collateral frameworks in monetary policy, focusing on the Eurozone and euro crisis.



Euro Area Policies

Author : International Monetary Fund. Monetary and Capital Markets Department

Publisher : International Monetary Fund

Page : 44 pages

File Size : 11,91 MB

Release : 2018-07-19

Category : Business & Economics

ISBN : 1484369483

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Book Description

The flexibility shown by the ECB/Eurosystem in adapting its framework, as required by circumstances, has helped improve funding and liquidity conditions. Compared to the situation pre-crisis, the ECB/Eurosystem has provided liquidity against a broader range of collateral and for as long as four years in terms of maturity; extended liquidity in foreign currency; conducted outright purchases of public and private sector assets (now tapering off); and reduced interest rates into negative territory. In these arrangements, policy is directed from the center, but is implemented mostly by the National Central Banks (NCBs); risks are largely shared. Market participants are complimentary about the role the ECB/Eurosystem has played in backstopping the financial system and its forward guidance on monetary policy.



Balance of Payments Statistics

Author : United States. Congress. Joint Economic Committee. Subcommittee on Economic Statistics

Publisher :

Page : 314 pages

File Size : 11,9 MB

Release : 1965

Category : Balance of payments

ISBN :

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Book Description

Considers methodology of reporting U.S. balance of payments statistics and focuses on controversial report prepared for the Budget Bureau entitled, "Balance of Payments Statistics of the U.S., A Review and Appraisal," proposing use of a new concept for reporting these statistics.



The ECB’s Monetary Analysis Revisited

Author : Helge Berger

Publisher : International Monetary Fund

Page : 66 pages

File Size : 45,15 MB

Release : 2008-07

Category : Business & Economics

ISBN :

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Book Description

Monetary aggregates continue to play an important role in the ECB's policy strategy. This paper revisits the case for money, surveying the ongoing theoretical and empirical debate. The key conclusion is that an exclusive focus on non-monetary factors alone may leave the ECB with an incomplete picture of the economy. However, treating monetary factors as a separate matter is a second-best solution. Instead, a general-equilibrium inspired analytical framework that merges the economic and monetary "pillars" of the ECB's policy strategy appears the most promising way forward. The role played by monetary aggregates in such unified framework may be rather limited. However, an integrated framework would facilitate the presentation of policy decisions by providing a clearer narrative of the relative role of money in the interaction with other economic and financial sector variables, including asset prices, and their impact on consumer prices.



The Scarcity Effect of Quantitative Easing on Repo Rates: Evidence from the Euro Area

Author : William Arrata

Publisher : International Monetary Fund

Page : 45 pages

File Size : 22,51 MB

Release : 2018-12-07

Category : Business & Economics

ISBN : 1484386914

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Book Description

Most short-term interest rates in the Euro area are below the European Central Bank deposit facility rate, the rate at which the central bank remunerates banks’ excess reserves. This unexpected development coincided with the start of the Public Sector Purchase Program (PSPP). In this paper, we explore empirically the interactions between the PSPP and repo rates. We document different channels through which asset purchases may affect them. Using proprietary data from PSPP purchases and repo transactions for specific (“special") securities, we assess the scarcity channel of PSPP and its impact on repo rates. We estimate that purchasing 1 percent of a bond outstanding is associated with a decline of its repo rate of 0.78 bps. Using an instrumental variable, we find that the full effect may be up to six times higher.



Central Bank Balances and Reserve Requirements

Author : Mr.Simon Gray

Publisher : International Monetary Fund

Page : 57 pages

File Size : 37,26 MB

Release : 2011-02-01

Category : Business & Economics

ISBN : 1455217905

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Book Description

Most central banks oblige depository institutions to hold minimum reserves against their liabilities, predominantly in the form of balances at the central bank. The role of these reserve requirements has evolved significantly over time. The overlay of changing purposes and practices has the result that it is not always fully clear what the current purpose of reserve requirements is, and this necessarily complicates thinking about how a reserve regime should be structured. This paper describes three main purposes for reserve requirements - prudential, monetary control and liquidity management - and suggests best practice for the structure of a reserves regime. Finally, the paper illustrates current practices using a 2010 IMF survey of 121 central banks.



The Lender of Last Resort Function after the Global Financial Crisis

Author : Marc Dobler

Publisher : International Monetary Fund

Page : 63 pages

File Size : 38,9 MB

Release : 2016-01-22

Category : Business & Economics

ISBN : 1513567780

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Book Description

The global financial crisis (GFC) has renewed interest in emergency liquidity support (sometimes referred to as “Lender of Last Resort”) provided by central banks to financial institutions and challenged the traditional way of conducting these operations. Despite a vast literature on the topic, central bank approaches and practices vary considerably. In this paper we focus on, for the most part, the provision of idiosyncratic support, approaching it from an operational perspective; highlighting different approaches adopted by central banks; and also identifying some of the issues that arose during the GFC.