Category Archives: Banking

Banking

Where you can find me these days

Posted on June 13, 2019 by fmpdea

As expected, I have moved to fresher pastures. I have been the Economics Editor at sister publications NordSIP and Ekonamik since the beginning of January 2019 and want to invite you to check out our content. Both publications are focused … Continue reading →

Posted in A € for your Thoughts, Aides Memoire, Banking, Blog Maintenance, Brazil, China, Current Events, ECB, Economic Concepts, Euro-zone Update, European Integration, European Interdependences, European National Politics, Finance, History, Indicators, Inflation, Media Coverage, News Round up & Comment, Political Concepts, Risk Scenario Analysis, Sovereign debt Crisis, UK, USA, Visions of the Political Future of Europe, Week Ahead, Weekly Bond Yield developments in the Euro Area, World Affairs | Leave a comment

Why I think the ECB is not about to cut the MRO rate

Posted on May 1, 2013 by fmpdea

On Thursday May 2nd, the Governing Council of the ECB will hold is monthly meeting to determine the path of monetary policy. The market consensus seems to be that the ECB will cut the refi rate (MRO rate). I disagree. … Continue reading →

Posted in Banking, Current Events, ECB, Euro-zone Update, Finance, Media Coverage | Tagged Asmussen, Bank Lending Survey, Channel of Monetary Policy Transmission, Coeure, Constancio, Current Account at ECB, Deposit Facility, Draghi, ECB, ECB Balance Sheet, EONIA, GDP, Inflation, LTRO, M3, Marginal Lending Facility, Mersch, MRO, MRO rate cut, PMIs, Praet, refi rate cut, Target2, TARGET2 imbalances, Weidmann | 5 Comments

What Happened in 2012?

Posted on January 29, 2013 by fmpdea

This post takes a long overdue look at the monetary, financial, economic and political developments that took place during 2012 and the trends at the end of the year. It’s an exercise in taking stock and follows a relatively simple … Continue reading →

Posted in Aides Memoire, Banking, Current Events, ECB, Euro-zone Update, European Integration, European Interdependences, European National Politics, Finance, Indicators, Inflation, Sovereign debt Crisis, Uncategorized, USA, World Affairs | Tagged 2012, Balance of Payments 2012, Bank Lending Survey, Banking Union, BoE, BoJ, Bond markets, Bonds, Central banks balance sheet, Consumption 2012, Corporate Bond Bubble, Current Account Balance 2012, Deflation in Japan 2012, ECB, EU in 2012, Euro-zone in 2012, Europe in 2012, External balance of trade goods, External balance of trade services, External Trade Balance, Fed, Financial Account Balance 2012, Government debt, Government Expenditure, Holders of government bonds, Holders of government debt, Inflation 2012, Investment 2012, Japan in 2012, Lending to SMEs survey, Long Term Refinancing Operations, LTROs, Monetary base, Monetary supply, OMT, Outright Monetary Transactions, politics of Germany, politics of Greece, politics of Italy, politics of Portugal, politics of Spain, politics of UK, QE, Quantitative Easing, Sovereign Credit Ratings, UK in 2012, USA in 2012, Voter intention polls, What Happened in 2012, Where is the money going to?, Yearly Review | 1 Comment

Some Comments on the USA’s ISA

Posted on December 21, 2012 by fmpdea

In a recent post discussing the Euro-Zone’s TARGET2, I made some reference to the equivalent clearing and settlement system in the USA without any depth because it was beyond the purview of that post. To address that gap, I dedicate … Continue reading →

Posted in Banking, Economic Concepts, USA | Tagged Imbalances, Interdistrict Settlement Account (ISA) procedures of the Federal Reserve System, ISA, Richmond, San Francisco, SOMA, System of Open Market Account, Target2, tgt2, USA Federal Reserve System | Leave a comment

The European Banking Union Negotiations – Supervision

Posted on December 9, 2012 by fmpdea

The banking union is a particularly important item in the long term reform agenda of the EU/Euro-Zone, and one that has often been neglected. In a crisis that is characterised by the linkages between public finances and the banking sectors, … Continue reading →

Posted in Banking, ECB, European Integration, European Interdependences, Finance, Inflation, Sovereign debt Crisis, Week Ahead | Tagged Banking Union, Denmark, ECB, European Bank Deposit Guarantee, European Bank Deposit Guarantee Scheme, European Banking debt resolution, European Banking Supervision, European Banking Union, European Banking Union Negotiations, Financial Stability, France, Germany, Landesbank, Landesbanken, Price Stability, Scope of supervision, Spain, Sweden, UK, Voting rights | Leave a comment

A Brief Review of the Eurosystem’s TARGET2 Imbalances

Posted on November 5, 2012 by fmpdea

This post is a long overdue look at the infamous TARGET2 (im)balances, which are yet another symptom of the ongoing malaise in the Euro-Zone. I do not claim to make any new contribution in this post, whose motivation was exclusively … Continue reading →

Posted in Aides Memoire, Banking, ECB, Economic Concepts, Finance, Indicators, Inflation | Tagged Accounting, Assets, Balance of Payments, Banking Union, Banks, Buiter, Capital Flight, Central Banks, Clearing, Core, Corporates, Current Account Deficits, Deposit Facility, Deposit Flight, ECB, ECB Longer Term Refinancing Operations, ECB's Main Refinancing Operations, Equity, Euro, Euro-zone, Euro-Zone Banking Union, Eurosystem, Foreign deposit flight, Former Soviet Union Republic, Former Soviet Union Republics, FSURs, Germany, Households, ISA, Koning, Liabilities, LTRO, MRO, OMTs, Outright Monetary Transactions, overdrafts, Periphery, Ruble-Zone, Seignioreage, Settlements, Sinn, SOMA, Spain, Target2, TARGET2 imbalances | 5 Comments

Euro-Zone Banking Union: Coverage and Pace of Implementation

Posted on September 19, 2012 by fmpdea

This post considers the present debate about the coverage of the Banking Union to be created in the Euro-Zone as well as the pace of its implementation. This coverage is contentious because it affects many established interests while attempting to … Continue reading →

Posted in Banking, ECB | Tagged Banking Union, Deutsche Bank, Different European Financial Systems, Differing European Banking Systems, Differing European Financial Systems, EAA, Euro-Zone Banking Union, European Banking Systems, European Commission, European Financial Systems, FMS Wertmanagement, Italian bonds, Landesbank, Landesbanken, Merkel, Monti, Moscovici, Panicos Demetriades, Schauble, Spanish bonds, Sparkassen, West LB | 1 Comment

On Banking Unions – Concepts, their Status, Proposals & Examples

Posted on June 29, 2012 by fmpdea

The point of this post is to summarise existing information about banking unions. This is a very vague term that incorporates several concepts. Therefore clarifying this seems quite timely, in light of ongoing discussions. This is briefly described in the … Continue reading →

Posted in Banking, Economic Concepts, European Integration | Tagged Bank Insolvency Resolution and Restructure System, Bank Insolvency Resolution System, Bank Insolvency Restructure System, BIS, Deposit Guarantee Schemes, Deposit Guarantee Schemes (DGS), DGS, ECB, EU legislation, European Banking Union, European Commission, European Union, Existing EU legislation, Financial markets, Financial Supervision, Germany, IMF, MRO Cut, Nowotny, Praet, Proposed EU legislation, Single Market, UK Parliament, World Bank | Leave a comment

ECB Market Intervention: Covered Bond Purchasing Programme (CBPP)

Posted on February 22, 2012 by fmpdea

Having looked at the tools available to the ECB, at its balance sheet, and at the transmission of monetary policy into the interbank lending market.after considering financial market failures due to Fractional Reserve Banking, overlending and VaR, I would like … Continue reading →

Posted in Aides Memoire, Banking, ECB, Economic Concepts | Tagged Bank Lending Survey, Banking crisis, CBPP, CBPP1, CBPP2, Cointegration, Covered Bond Purchasing Programme, Covered Bonds, ECB, France, Germany, iBoxx, iShare, Italy, Monetary Policy Transmission, Portugal, Spain, Stabilisation | 10 Comments

ECB: Monetary Policy Transmission – Interest Rate Channel System, Reserves & the Interbanking Market

Posted on February 17, 2012 by fmpdea

Having looked at the tools available to the ECB and at its balance sheet, after considering financial market failures due to Fractional Reserve Banking, overlending and VaR, I would like to turn my attention to the actual operation of monetary … Continue reading →

Posted in Aides Memoire, Banking, ECB | Tagged Aides Memoire, Banking, Banking crisis, CDS, Collateral, Counter-party risk, Debt auctions, debt repurchases, Deposit Facility, ECB, EONIA, EUREPO, EURIBOR, interbanking, interbanking rates, intermediation, Liquidity Risk, LTROs, Marginal Lending Facility, Maturity, MRO, OIS, Overnight Index Swap, Reserve Base, Reserve Ratio, Reserve requirements, Reserves, Risk free interest rate, Sovereign Debt Crisis, Term Premium, Term Spread, Yield curve | Leave a comment