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Middle East and Central Asia > Jordan

You are looking at 1 - 5 of 5 items for :

  • Type: Journal Issue x
  • Asset and liability management x
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Cover IMF Working Papers
The Scarcity Effect of Quantitative Easing on Repo Rates: Evidence from the Euro Area
William Arrata
,
Benoit Nguyen
,
Imene Rahmouni-Rousseau
, and
Miklos Vari
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.
Keywords:
WP; repo rate; repo market; GC rate; SC rate; monetary policy; Specialness; asset purchases; money market; Repo rates; Bonds; Securities; Excess liquidity; Money markets
Cover IMF Working Papers
Monetary Policy in the Presence of Islamic Banking
Mariam El Hamiani Khatat
This paper discusses key issues related to the conduct of monetary policy in countries that have Islamic banks. It describes the macrofinancial background and monetary policy frameworks where Islamic banks typically operate, and discusses the monetary transmission mechanism in economies where Islamic and conventional banking coexist. Most economies with Islamic banks also have conventional banks and this calls for a comprehensive approach to monetary policy. At the same time, a dual approach to monetary policy should be considered whenever the Islamic segment of the financial system is not as developed as the conventional one. The paper tries to shed light on potential spillovers between conventional and Islamic financial systems, and proposes specific recommendations on the design of Islamic monetary policy operations and for facilitating monetary transmission through the Islamic financial system.
Keywords:
WP; monetary policy; bank; market; financial system; exchange rate; Islamic banks; dual financial systems; monetary transmission mechanism; monetary operations; Sukuk markets; lender of last resort; monetary policy framework; monetary policy transmission; transmission mechanism; government securities market; bank lending channel; funding cost; banks competition; Islamic banking; Interbank markets; Liquidity management; Liquidity; Monetary policy frameworks; Global
Cover Policy Papers
The Fund's Lending Framework and Sovereign Debt-Further Considerations
International Monetary Fund
In discussing the June 2014 paper, Executive Directors broadly supported staff’s proposal to introduce more flexibility into the Fund’s exceptional access framework to reduce unnecessary costs for the member, its creditors, and the overall system. Directors’ views varied on staff’s proposal to eliminate the systemic exemption introduced in 2010. Many Directors favored removing the exemption but some others preferred to retain it and requested staff to consult further with relevant stakeholders on possible approaches to managing contagion. This paper offers specific proposals on how the Fund’s policy framework could be changed, presents staff’s analysis on the specific issue of managing contagion, and addresses some implementation issues. No Board decision is proposed at this stage. The paper is consistent with the Executive Board’s May 2013 endorsement of a work program focused on strengthening market-based approaches to resolving sovereign debt crises.
Keywords:
PP; fund's lending framework; lending; further consideration; annex; framework; financing commitment; Market access criterion; debt restructuring; prospects lie; Debt restructuring; Debt sustainability; Spillovers; Global
Cover Departmental Papers
Monetary Issues in the Middle East and North Africa Region: A Policy Implementation Handbook for Central Bankers
Mr. Simon T Gray
and
Mr. Philippe D Karam
This paper documents the main themes covered in two seminars (December 2011 and September 2012) on monetary policy and implementation at the IMF—Middle East Center for Economics and Finance, and includes country case studies. Against the backdrop of the global financial crisis and swings in cross-border capital flows, operational frameworks have become more flexible, and liquidity management has impacted the relationship between the policy rate corridor and market rates. The balance sheet structure of central banks in the Middle East and North Africa (MENA) shows differences between oil exporters and others, while a few countries have exhibited notable changes since early 2011. Collateral now has a significant financial stability function. Although only one MENA country is part of the G20, implementation of the Basel III bank capital adequacy and liquidity rules will most likely impact banks’ way of doing business in MENA countries, even if indirectly.
Keywords:
DPPP; DP; rate of exchange; FX market; quantitative easing; bank deposit; inflation targeting; money market; U.S. dollar; financial market; foreign exchange; nominal exchange rate; Exchange rate arrangements; Exchange rates; Monetary policy frameworks; Central bank policy rate; Liquidity; Global; Middle East and Central Asia; Middle East
Cover IMF Staff Country Reports
Tunisia: Financial System Stability Assessment
International Monetary Fund
The Central Bank of Tunisia's (CBT) liquidity support contributed to rapid credit growth in Tunisia and an uptick in inflation. The Tunisian economy is expected to recover gradually. Banking sector vulnerabilities are much higher, and stress tests indicate that the banking sector may face large recapitalization needs. Improving financial intermediation efficiency, antimoney laundering, and combating the financing of terrorism is required. A comprehensive capital market reform is needed to support long-term investment. Banking sector reform should improve access to finance for individuals, and small and medium enterprises.
Keywords:
ISCR; CR; bank; loan; regulation; Tunisia; bank-restructuring process; banks universal; development bank; green-field bank; bank financing; rescheduling rate; bank intermediation; bank assets; bank performance; illiquid bank; headline inflation; troubled bank; State-owned banks; Commercial banks; Nonperforming loans; Liquidity; Loans; Europe