http://www.bis.org/list/ao_research/from_01012011/index.rss Research from the Asian Office 2011 to 2012 en http://www.bis.org/publ/work360.htm Abstract of BIS Working Papers No 360 China's evolving reserve requirements 2011-11-14T16:05:00Z This paper examines the evolving role of reserve requirements as a policy tool in China. Since 2007, the Chinese central bank (PBC) has relied more on this tool to withdraw domestic liquidity surpluses, as a cheaper substitute for open-market operation instruments in this period of rapid FX accumulation. China's reserve requirement system has also become more complex and been used to address a range of other policy objectives, not least being macroeconomic management, financial stability and credit policy. The preference for using reserve requirements reflects the size of China's FX sterilisation task and the associated cost considerations, a quantity-oriented monetary policy framework challenged to reconcile policy dilemmas and tactical considerations. The PBC often finds it easier to reach consensus over reserve requirement decisions than interest rate decisions and enjoys greater discretion in applying this tool. The monetary effects of reserve requirements need to be explored in conjunction with other policy actions and not in isolation. Depending on the policy mix, higher reserve requirements tend to signal a tightening bias, to squeeze excess reserves of banks, to push market interest rates higher, and to help widen net interest spreads, thus tightening domestic monetary conditions. There are, however, costs to using this policy tool, as it imposes a tax burden on Chinese banks that in turn appear to have passed a significant portion of this cost onto their customers, mostly depositors and SMEs. However, the pass-through onto bank customers appears to be partial. China's evolving reserve requirements 2011-11-14T16:05:00Z BIS Monetary Policy reserve requirements Chinese economy tax incidence sterilisation tools net interest margin and spread PDF version http://www.bis.org/publ/work360.pdf Guonan Ma Ma Mr Senior Economist Bank for International Settlements Yan Xiandong Xiandong The People’s Bank of China Liu Xi Xi The People’s Bank of China Guonan Ma, Yan Xiandong and Liu Xi November 2011 Bank for International Settlements: Working Papers 360 E60 E40 E50 E58 H22 E52 http://www.bis.org/publ/work356.htm Abstract of BIS Working Papers No 356 The Impact of the International Financial Crisis on Asia and the Pacific: Highlighting Monetary Policy Challenges from a Negative Asset Price Bubble Perspective 2011-11-07T10:27:00Z The international financial crisis of the late 2000s has revived interest in asset price bubble research. For some, the event confirmed the enduring relevance of studying asset price bubbles in our economies. For others, it was a realisation that asset price bubbles are of much greater significance than previously thought. The financial and policy preconditions that foster "frothy" asset prices which characterise bubbles have been the focus of considerable attention. While doubtless important, it is not the only aspect that requires greater understanding. We also need to develop a better understanding of the whole life-cycle of asset price bubbles, from their origins, to their expansion and spread, the inevitable collapse, and the aftermath that has to be cleaned up. It is increasingly recognised that researchers must not treat bubbles as one-off, exogenous events. The challenge is to develop a more holistic approach, and then build into our policy models endogenous bubble behavior. Such behavior may indeed be rare but nonetheless has its origins in a number of avoidable factors, not least being some combination of financial fragility, flawed policy frameworks, and poor risk management decisions. This paper contributes to our understanding of asset price bubbles by looking at assets when they are severely underpriced, ie when there are negative asset price bubbles. Generally, negative asset price bubbles are an underrepresented protagonist in most crisis stories, and this has certainly been the case in the recent international financial crisis. The particular illustration for this paper comes from an examination of the financial market spillovers from the West to Asia and the Pacific. The Impact of the International Financial Crisis on Asia and the Pacific: Highlighting Monetary Policy Challenges from a Negative Asset Price Bubble Perspective 2011-11-07T10:27:00Z BIS monetary policy central banking financial crisis asset price bubble PDF version http://www.bis.org/publ/work356.pdf Andrew Filardo Filardo Mr Head of Economics for Asia & the Pacific Bank for International Settlements Andrew Filardo November 2011 Bank for International Settlements: Working Papers 356 G01 E58 N15 E27 http://www.bis.org/publ/work351.htm Abstract of BIS Working Papers No 351 Weathering the financial crisis: good policy or good luck? 2011-08-08T12:46:00Z The macroeconomic performance of individual countries varied markedly during the 2007-09 global financial crisis. While China's growth never dipped below 6% and Australia's worst quarter was no growth, the economies of Japan, Mexico and the United Kingdom suffered annualised GDP contractions of 5-10% per quarter for five to seven quarters in a row. We exploit this cross-country variation to examine whether a country's macroeconomic performance over this period was the result of pre-crisis policy decisions or just good luck. The answer is a bit of both. Better-performing economies featured a better-capitalised banking sector, lower loan-to-deposit ratios, a current account surplus, high foreign exchange reserves and low levels and growth rates of private sector credit-to-GDP. In other words, sound policy decisions and institutions reduced their vulnerability to the financial crisis. But these economies also featured a low level of financial openness and less exposure to US creditors, suggesting that good luck played a part. Weathering the financial crisis: good policy or good luck? 2011-08-08T12:46:00Z BIS financial crisis principal components PDF version http://www.bis.org/publ/work351.pdf Stephen G Cecchetti Cecchetti Mr Economic Adviser, Head of Monetary and Economic Department Bank for International Settlements Michael R King King Mr Economist Bank for International Settlements James Yetman Yetman Mr Senior Economist Bank for International Settlements Stephen G Cecchetti, Michael R King and James Yetman August 2011 Bank for International Settlements: Working Papers 351 E65 F4 http://www.bis.org/publ/othp15.htm Abstract of "Local currency bond markets and the Asian Bond Fund 2 Initiative", July 2011 Local currency bond markets and the Asian Bond Fund 2 Initiative 2011-07-15T15:06:00Z Local currency bond markets and the Asian Bond Fund 2 Initiative 2011-07-15T15:06:00Z BIS PDF version http://www.bis.org/publ/othp15.pdf Eric Chan Chan Mr Statistical Analyst Bank for International Settlements Frank Packer Packer Mr Head of Financial Stability and Markets Bank for International Settlements Eli M Remolona Remolona Mr Chief Representative Bank for International Settlements Michael Chui Chui Mr Economist Bank for International Settlements Eric Chan, Frank Packer, Eli M Remolona and Michael Chui July 2011 http://www.bis.org/repofficepubl/arpresearch201106.htm BIS Quarterly Review, June 2011: Rating methodologies for banks 2011-06-30T02:18:00Z BIS Quarterly Review, June 2011: Rating methodologies for banks 2011-06-30T02:18:00Z BIS Frank Packer Packer Mr Head of Financial Stability and Markets Bank for International Settlements Nikola Tarashev Tarashev Mr Senior Economist Bank for International Settlements Frank Packer and Nikola Tarashev June 2011 http://www.bis.org/repofficepubl/arpresearch201111.htm prepared for the LU-CME Conference on "New Perspectives on Asset Price Bubbles: Theory, Evidence, and Policy" The impact of the international financial crisis on Asia and the Pacific: Highlighting monetary policy challenges from an asset price bubble perspective 2011-05-31T02:18:00Z The impact of the international financial crisis on Asia and the Pacific: Highlighting monetary policy challenges from an asset price bubble perspective 2011-05-31T02:18:00Z BIS Andrew Filardo Filardo Mr Head of Economics for Asia & the Pacific Bank for International Settlements Andrew Filardo May 2011 http://www.bis.org/publ/work344.htm Abstract of BIS Working Papers No 344 Dislocations in the won-dollar swap markets during the crisis of 2007-09 2011-04-21T07:11:00Z Dislocations in the won-dollar swap markets during the crisis of 2007-09 2011-04-21T07:11:00Z BIS FX Swap EGARCH model cross-currency swap regime switching foreign reserves PDF version http://www.bis.org/publ/work344.pdf Naohiko Baba Baba Mr Senior Economist Bank for International Settlements Ilhyock Shim Shim Mr Senior Economist Bank for International Settlements Naohiko Baba and Ilhyock Shim April 2011 Bank for International Settlements: Working Papers 344 G13 G18 G12 http://www.bis.org/repofficepubl/arpresearch201101_03.htm Pacific Economic Review, 16 (1), pp 1-17 Renminbising China's Foreign Assets 2011-01-31T07:09:00Z Renminbising China's Foreign Assets 2011-01-31T07:09:00Z BIS Guonan Ma Ma Mr Senior Economist Bank for International Settlements Robert N McCauley McCauley Mr Senior Advisor Bank for International Settlements Yin-Wong Cheung Cheung Mr Guonan Ma, Robert N McCauley and Yin-Wong Cheung January 2011 O24 F33 F31 F30 http://www.bis.org/publ/work336.htm Abstract of BIS Working Paper No 336 Policymaking from a "macroprudential" perspective in emerging market economies 2011-01-07T12:49:00Z Policymaking from a "macroprudential" perspective in emerging market economies 2011-01-07T12:49:00Z BIS monetary policy macroprudential capital flows PDF version http://www.bis.org/publ/work336.pdf Ramon Moreno Moreno Mr Head of Economics for Latin America and the Carribean Bank for International Settlements Ramon Moreno January 2011 Bank for International Settlements: Working Papers 336 F41 E61 F32 E58 F31 E44