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This is so because it is well recognised that financial sector and economic development in any country go hand in hand and that the collapse of the sector can have serious negative effects on both the socio-economic and political state of any country. It is therefore important that the financial sector be backed by a strong legal framework.

This is even important realising the economies are susceptible to crises as experienced in the recent global financial crisis. A robust legal and regulatory structure can act as a bulwark against the backdrop of the crisis, providing clarity and confidence for market players and consumers alike.

We expect this to consequently translate to BMAP’s sustained support of the priority reforms that we, at Bangko Sentral, continue to implement for a more stable and dynamic, more efficient, more depositor- and customer- friendly banking system. BSP reform initiatives The BSP indeed has taken bold and decisive moves.

We believe we have already mounted the appropriate regulatory framework for the prudent conduct of banking business in these challenging times through the reforms initiated by my esteemed predecessor. The next thing to do is to make this work.

Thinking and Acting Globally The first is the importance of having a global point of view. The old adage tells us to “think globally and act locally.” But we should really think and act globally. BIS Review 50/2003 1 Let me put that idea in more concrete terms.

In the US, the ARRC, which is sponsored by the Federal Reserve Bank of New York (New York Fed), has identified the Secured Overnight Financing Rate (SOFR) as its preferred alternative for US dollar Libor.

To ensure energy security and sustainability, Pakistan’s energy plan recognizes the growth in domestic demand for energy that has to be catered by exploitation and development of balanced energy mix with maximum reliance on indigenous and environment-friendly resources, besides tapping the regional resources.

8 The framework will mandate standards for the systemically important insurance companies to follow in managing risk and will identify the parties responsible for ensuring the integrity of a company's risk-management practices. Enhanced liquidity requirements will likely include internal control requirements, general comprehensive cash flow projections, contingency plans to manage liquidity stress events, and internal liquidity stress testing requirements.

mean a guarantee from the Danish central government that the exchange rate vis-à-vis the Danish krone could be maintained. This unlimited guarantee in terms of amount and time would make the regime more credible, unless there was speculation against abolishment of the government guarantee.

However, the Danish central government cannot be expected to furnish such an unlimited guarantee without gaining some insight into or control over other economic-policy measures implemented under the currency board or by the Faroese authorities. In addition, the monetary-policy interest rate would be determined entirely by interest rates in Denmark.

In contrast, more recent work on the subject, to which I contributed, showed that the health of the financial system and the performance of the broader economy are closely interrelated, both in the short run and in the long run.

It would be hard to deny that this was “financialisation” even if, as I would argue, on a smaller scale than in the US.11, 12 Smaller because the exploitative predatory lending evidenced in 11 It is notable that most of the recorded profits of the banking sector were reinvested and not paid out in dividends: more so indeed in Anglo Irish Bank than in the other two large locally controlled banks.

Just as important is to encourage the banking sector to adjust and shed any excess capacity that exists in the financial services industry. Otherwise, the European governments in particular may end up supporting a number of ineffective and unviable banks.

In fact, the development of all of the bilateral agreements and the regional initiatives such as Chiang Mai just prove the need for international cooperation in a context of an absence of a multilateral organization in a position to perform as a kind of “central bank of the central banks”. This is the next step we need to go for.

This is why I did not oppose the baseline scenario in the past. However, with the projection period extended to fiscal 2016, I considered that the description of the price outlook should clarify the timing when the Bank’s “price stability target of 2 percent” will be achieved, rather than providing an expression – namely, “around 2 percent” – that contains a degree of latitude.

There is no gainsaying that, the evidence with independent initiatives all over the world, has revealed the potentials of Information and Communication Technology in, namely:(i) Empowering people to help themselves in a very broad range of applications, irrespective of their age, gender, race or level of education; (ii) Addressing the multi-dimensional nature of poverty; and (iii) Transferring the initiatives for development from outside sources to individuals, communities, local authorities and nations.

Both institutions experienced a run on them by their financial counterparties, who were unwilling to roll over their funding because of the concerns that the poor quality of the assets on their balance sheets might render the two institutions insolvent. The crucial distinction between uncertainty and risk came to the fore.

I can assess the riskiness of an asset or an institution by assigning a probability to its likely value. I can then manage that risk appropriately. But if I am uncertain and unable to make a firm assessment about the value, the situation is a lot worse.

Daniel K Tarullo: Shadow banking after the financial crisis Speech by Mr Daniel K Tarullo, Member of the Board of Governors of the Federal Reserve System, at the Federal Reserve Bank of San Francisco Conference on “Challenges in global finance: the role of Asia”, San Francisco, California, 12 June 2012.

* * * The three decades preceding the financial crisis were characterized in the United States by the progressive integration of traditional lending and capital markets activities. This trend diminished the importance of deposits as a source of funding for credit extension in favor of capital market instruments sold to institutional investors.

The pace of new dwelling construction is starting to respond to higher prices in the established property market, as we need it to. But at this stage, the available information suggests that broader investment intentions in the business community remain subdued. It may be a while yet before we can expect to see conclusive evidence of a change here.

Pre-emptively drawing in the reins in the name of financial stability could stifle innovation, prevent fintechs from developing important economies of scale, and deprive small businesses and households of the benefit of technological progress. On the other hand, allowing risks to accumulate in an unregulated sector may undermine financial stability and undo the benefits of past regulatory efforts.

Transactions often took place through scarcely regulated financial intermediaries characterized by high leverage and risk exposure, in particular as regards their valuation (in which a crucial role was played by rating agencies, without any particular control by regulatory authorities or information providers), by means of statistical models and often carried out on the basis of incomplete and insufficient data.

We also considered whether economic conditions such as the unemployment rate, the median household income, the number of business establishments, or changes in any of these measures might be useful in predicting which markets would lose community banks over time. Taking into account all of these variables in a regression framework did not yield much explanatory power.

6 BIS central bankers’ speeches Implementation: issues and challenges 29. Let me now dwell upon some implementation challenges that need to be overcome if the goal of attaining universal financial inclusion has to be achieved. a) Believing in financial Inclusion as a viable business 30.

There is still a widespread belief that if the poor have to be provided financial services, it must be done in a subsidized manner or as an act of charity. And this belief has kept the poor bereft of these services while keeping the regime of rationing, queuing and patronage alive.

Two surveys of consumers—by the University of Michigan and the New York Fed—show medium inflation expectations running over 4 percent, and bond investors are requiring over 3 percent compensation for future inflation and inflation risks.

As you have chosen very topical issues for our discussion today, I will get started on the substance without further ado. First, I will share with you our assessment of the economic outlook for the euro area and the implications for the ECB’s monetary policy.

Only by taking action on several fronts will it be possible to achieve levels of profitability that allow the system’s capitalization to be increased while ensuring the ability to finance the economy.

BIS Review 148/2010 3 Banks’ governance and the role of the foundations More than two years have passed since the Bank of Italy, anticipating international developments, laid down rules on banks’ governance.

“Timely” means that the measures take effect when they are needed; any delays in assessing the cyclical situation, in taking decisions and implementing the measures may fail to prevent a drop in output. “Temporary” implies that the fiscal impulse should only last as long as the recession in question. “Targeted” relates to the expected size of the multiplier effect.

In addition to these “TTT” criteria, the measures should be consistent with other policy objectives such as fiscal sustainability, long-term economic growth and the functioning of the market mechanism. Implications of policy measures The current crisis has increased the role of the government in the economy. Some bank rescue operations have involved outright nationalisations, so governments now have significant exposure to the financial sector.

• Banks can use any supplementary evidence such as a letter received through post for further verification of the address. CIP – PEPs (non-resident) Politically Exposed Persons (PEPs) are individuals who are entrusted with prominent public functions in a foreign country (as of now, we are focusing on foreign PEPs).

e.g., Heads of states/Govts., senior politicians, senior Govt/judicial/defence officers, senior executives of state-owned corporations • Banks to compile all information, identity details, and details of sources of funds before accepting a PEP as customer • Decision to open account for PEPs to be taken at a senior level as spelt out in the policy.

Recently, there has been some discussion, prompted by senior staff at the International Monetary Fund (IMF), that central banks might aim for high inflation – say 4 per cent – as a way of giving them more scope to reduce official interest rates in future downturns. This idea does not seem particularly sensible.

As history has taught us, inflation distorts decisionmaking in the economy, discourages saving, and increases uncertainty about the future. None of this is helpful for expanding the supply side of the economy, and ultimately higher inflation means higher nominal interest rates.

Bank of Japan’s annual review of monetary and economic developments BANK OF JAPAN COMMUNICATION, the Bank of Japan Annual Review 1998.

BIS Review 29/2004 1 Besides the international financial markets, there is also evidence that the euro is increasingly being used as a settlement or invoicing currency in euro area countries’ trade with non-euro area residents.

One is that Miyazaki beef was awarded the gold medal in 2012 at a contest, held once every five years, to select the best Wagyu beef in Japan. This was the first time the same brand of beef had received this award on a consecutive basis. Another is that production of Miyazaki caviar started at end-2013 after almost 30 years of R&D activity.

Going forward, construction of the East Kyushu Highway will be accelerated, extending from Miyazaki City to Kita-Kyushu City in fiscal 2014. In addition, the number of scheduled flights connecting Miyazaki and Taipei will go up next month.

This poses a regulatory dilemma as the Regulator then needs to play a balancing act in weighing the benefits brought in by innovative business models on one side and emerging business conduct and regulatory concerns on the other side.

An attempt has been made by the Reserve Bank to address this issue through issuing principle-based guidelines on digital lending The third important development was the reinforcement of our focus regarding the importance of inclusiveness. The desperate times reminded us that even a small help at an appropriate time could make a world of difference to the person in need.

At a time when the level of savings is very low, the prospective deterioration in the US current account deficit of around $ billion a year (due to the spending bill signed into law last month) will almost inevitably reduce the overall level of savings.

This will also cause the trade deficit to widen, bringing to mind the Reagan Administration, under which the US experienced twin deficits, i.e. a fiscal and a current account deficit. If tariffs are imposed to a large extent and they are persistent, a trade war will break out, which may lead to competitive devaluations between the US and China.

The reality is that as the advanced countries tighten their anti-money laundering regimes, criminals could be expected to target small countries like ours, which have less-robust defenses. To our credit, we have embarked on a comprehensive program to upgrade our financial infrastructure in general and our anti-money laundering regime in particular.

We have a new Financial Institutions Act; we are close to introducing new legislation for the insurance and the credit union sectors and we have brought in money remitters under the central bank’s purview. In the last few months, we have brought our AML/CFT regime closer in line with international requirements.

Sources: Bank of Japan; Japan Securities Depository Center; Japan Securities Dealers Association; I-N Information Systems; Bloomberg; Ministry of Internal Affairs and Communications; Ministry of Health, Labour and Welfare; Japanese Trade Union Confederation (Rengo). 4 Chart 5 II.

Continuation of QQE with Yield Curve Control Examination on Policy Effects  The Bank conducted an analysis using a macroeconomic model to estimate simulated developments in real GDP and the CPI assuming QQE had not been introduced. The differences between the counterfactual figures (A to E) and actual figures are regarded as the policy effects. Real GDP (Level) 580 s.a., tril.

Also prompted by the societal and political call to up the speed of payment transfers, and create the possibility to make payments at all days and hours of the year, the Forum is working together with the Covenant parties on a plan to be presented at its autumn meeting on 21 November 2014.

I’m already looking forward to it, as this plan may even spark real-time payment transfers. This will in fact also demand comprehensive renewal of the payments infrastructure, which will have to be paid for. In fact, the call for faster payments transfers has already led to tangible improvements in Sweden, Denmark, the UK, and Australia.

During the recent crisis, in Italy – unlike other countries – the presence of foreign banks did not cause strains or inflict losses on Italian savers and investors. However, more highly diversified lines of business and the rapidly evolving external environment have increased risk exposure, especially in some segments.

A third of the land was burned up, along with a third of the treesand all green grass.

As the economy moves closer to full employment, there is a need to guard against the risk that economic conditions give rise to 4/8 BIS central bankers' speeches overheating dynamics. To date, the tightening of the labour market has not been accompanied by significant evidence of strong wage or price pressures.

However, further increases in aggregate demand may lead to overheating in the economy. Financial system resilience and macroprudential policy So, we find ourselves in the interesting position of considering a potential slowdown in the international environment and the UK leaving the EU. And at the same time, also worrying about potential overheating from a domestic perspective.

Given the bank's role in helping establish the vehicle in the first place, the bank's reputation was tied to the performance of the vehicle, which gave the bank a powerful incentive to act beyond its contractual obligations. If we look at the lead-up to recent disruptions, two important aspects of banks' interaction with these vehicles over the past several years stand out.

Within the U.S. economy, the virus may cause durable changes to business models in a variety of activities, resulting in greater reliance on remote work, reductions in nonessential travel, and changes to CRE usage and valuations.

On the other hand, it would be unacceptable if people were to take the law into their own hands, or if safety on the street were to become only their own responsibility. An impartial supervisory authority - in this case the police and other instruments of the constitutional state - may not be the ultimate remedy.

Jean-Claude Trichet: Interview with Bild am Sonntag Interview with Mr Jean-Claude Trichet, President of the European Central Bank, in Bild am Sonntag, conducted by Messrs Walter Mayer and Michael Backhaus on 27 October 2011, and published on 30 October 2011. * * * Mr President, your term of office comes to an end on Monday.

Digital Assets and crypto currencies The Financial Services Commission has recently issued a Guidance Note on the recognition of digital assets as an asset-class for investment by sophisticated and expert investors.

The Guidance Note clarifies that cryptocurrencies are not legal tender in Mauritius but have “value” since they are exchangeable for other things having value, thereby showing characteristics akin to physical commodities such as precious metals. I expect that this Guidance Note will clarify a number of queries regarding cryptocurrencies.

Indeed, since the increased external deficit is explained mostly by the decline in public revenues, in turn the result of the fall in both prices and output of oil, fiscal policy represents the most adequate 8 instrument to tackle this imbalance.

Despite the recent visits by TCs Winston and Zena, visitor arrivals in the first four months of this year were still up by 6.8 percent on the same period last year, a testimony to the untiring efforts of the industry and all those who support it. Efforts are continually being made to grow our share of visitors.

It must provide claw back of questionable transactions that may have contributed to the financial stress of the defaulting borrower. V. Finally, an effective resolution regime should protect the majority from the minority by forcing a cramdown if the majority decision covers a predefined threshold of approval.

In addition to the above five principles, the resolution framework should also distinguish between various classes of financial creditors based on the quality of security available to them since the initial pricing of the credit instrument may have factored in the availability of security, and the lender stands to lose if such security is not reckoned while assessing the share in resolution value.

At present, the stock market is showing some buoyancy in terms of both price and volume. I trust, however, that the securities industry will not loosen its resolve and that it will continue to target creativity and higher efficiency. The Japanese economy as well as the financial system is still burdened with a number of difficulties.

Nevertheless, lights of hope, though dim at present, are on the horizon. The Bank, for its part, will continue to do its utmost to ensure that these lights do not fade. 2 BIS Review 42/2003

BIS Review 92/1999 2 The deficit on the current account should be financed comfortably by net capital inflows. Barring any unforeseen shocks on the international front, the South African economy has entered a period of more rapid growth coupled with a fairly comfortable balance of payments situation.

To address counterfeiting issues, we intensified media campaign on banknote security features and maximised public awareness on how to detect fake banknotes. We even brought over specialists from UK-based De La Rue to conduct a two-day seminar on ‘Counterfeit Detection’ for our stakeholders, a first of its kind!

A global value chain is a type of organisation in which the individual stages of production are carried out by companies located in different countries. See Forbes (2016). Cf. Yellen (2017). 3 Thus, a country’s inflation would be largely independent of the domestic economic situation, making it harder for central banks to control it. This is only part of the story, however.

If a significant part of the money stock were to circulate outside the euro area and if its development were to deviate from that circulating inside the euro area, this could be a source of instability in money demand. But this is only one of the challenges which the ESCB will be facing in analysing developments in monetary aggregates.

And, indeed, some have BIS Review 85/2008 1 argued that they are meaningless because in their view asset price bubbles do not really exist! Some economists had claimed that even the most famous bubbles in history – e.g.

the Dutch Tulip Mania from 1634 to 1637, the French Mississippi Bubble in 1719-20, the South Sea Bubble in the United Kingdom in 1720 and, more recently, – the worldwide new economy boom in the late 1990s (the “dot.com-bubble”) – should not be considered as such because they can be explained by rational expectations justified by fundamental factors related to future returns on the respective underlying assets.

At present Indian GDP, measured in exchange-rate mediated dollars, is approximately the same as that of South Korea, joint third in Asia, behind Japan and China. In these terms, Indian GDP in 2005 was $ billion (World Bank data), twelfth largest in the world, in a group of five countries with very similar GDPs (Brazil, South Korea, India, Mexico, and Russia, in that order).

18 The Governor’s Concluding Remarks Annual Report 2022 BANCA D’ITALIA Raising incomes and creating better employment opportunities requires an improvement in the quality and capacity of production for the entire economic system, which is all the more necessary today in light of the ongoing demographic changes.

There is also perhaps, an interest rate swap (IRS) or overnight index swap (OIS) in OTC market, as there is sometime a quotation in Bloomberg or Reuters. But, it seems not quite regular and the transaction is supposed to be in a very small number. Thus, in general, money market is not yet considered to better serve banks’ portfolio management.

I learned a lot then and even more last weekend when I had a chance to read the new excellent history of the company written by Timo Herranen. Many investments were taking place at the time in Rauma and atmosphere was positive. Pekka Paasikivi was running the company during my visit. Jukka and Jari Paasikivi had also important responsibilities in the firm.

I am sure you are familiar with that slogan. The main subjects of this speech In the first part of my speech I will briefly discuss the way DNB has incorporated governance issues in its supervisory approach and how this compares with views held among the business community.

While the pandemic may have set us back on some of our goals, I am confident that we are on our way to regaining our pre-pandemic growth trajectory. There are two things fueling my optimism: First is the continued confidence in the Philippine economy.

While India has a very advanced G-sec market, the corporate bond market is relatively under developed. Developing a more vibrant corporate bond market has, therefore, become an important agenda among the concerned stakeholders.

Some of the challenges which need attention include taking measures to improve liquidity, such as, consolidation of particularly the privately placed bonds, setting up a suitable framework for market making in corporate bonds, providing tools to manage credit, market and liquidity risks {e.g. CDS, Interest Rate Futures (IRF), Repo in corporate bonds, etc.

But above all, the major factor is that Japan's economy was not able to achieve a full-scale recovery in the 1990s and that the negative output gap expanded due to lack of demand. Needless to say, there is a strong correlation between economic activity and prices.

First, the level of economic activity and the balance of supply and demand change, and then prices respond to these changes. In short, prices rise after economic recovery begins, and not vice versa. Structural reforms aim to directly tackle the problems that have long prevented a sustained growth of the economy and improvement in productivity, and thus boost private demand.

The ceiling could be set through a so-called Lombard facility at which banks would be able to borrow at a penalty rate, perhaps 50 basis points above the 12 The debate was touched off by a provocative paper by Friedman (1999) which in turn provoked a series of papers on the same topic, including King (1999), Freedman (2000a and b), Goodhardt (2000), and Woodford (2001).

BIS Review 100/2001 9 target funds rate. Banks would never pay more than 50 basis points above the target funds rate to borrow reserves if they had access to such a facility and if borrowing from the facility had no nonpecuniary cost.

5 Achieving this balance will not always be easy. We certainly do not want to lay the seeds for future bank problems by encouraging or permitting imprudent lending today. That is why we have emphasized to both bankers and our examiners the importance of careful analysis of the circumstances of individual borrowers.

With the labour market already tight and wages rising, productivity growth is vital to economic growth—and to increasing wages without raising unit labour costs. In our forecast, productivity growth in Canada closes in but remains below US productivity growth. But I suspect our forecast does not do justice to your ambition.

While growth is considered to be a key measure of macroeconomic performance, economic stability is indicated by inflation. In the ‘eighties, India’s average inflation rate was close to Asian developing countries, above developed ones and lower than the average for all developing countries. In the ‘nineties, inflation has been relatively low in the second half of the decade.

In the external sector, India, along with China, has been described as “an island of stability amidst seas of turbulence” in international currency markets in the recent years. The ratio of debt to GNP in 1999 was 21.3, the only other developing country with a more favourable ratio being China.

The operators – NPCI – have a role in ensuring that failed transactions involving their network are conclusively resolved. Being authorized arrangements, they have to also monitor the practices followed by system participants and report these to the regulator.

Let me state in this connection that RBI has commissioned a survey of customers using the ATMs and based on the findings appropriate regulatory action would be taken. Fraud 23. Frauds in an non-electronic payment system were mainly related to tampering of cheques (Fake/printed cheques and material alterations) or presentation of fraudulent cheques. These were detectable on close examination at the drawee/drawer bank level.

Central Banking Act 2000 making the Central Bank Independent; b.

Policy makers will have to foster the positive implications of this change, while at the same time searching for solutions that help mitigate the negative effects. Fiscal policy, often together with structural policies, will have to accommodate systemic changes, for labor markets in particular.

To be frank with you, it is impossible to say for sure whether our prudential policy approach is working or not.

We have had no bank failures since the new policy was implemented, but then we had 1 2 Remarks by the Chairman of the Board of the US Federal Reserve System, Dr Alan Greenspan, at the annual conference of the Association of Private Enterprise Education, Arlington, Virginia, 12 April 1997.

Historical experience from other countries shows that this type of dynamic would potentially have had severe and lasting negative repercussions for the economy and the financial sector and needed to be avoided 2 BIS Review 72/2009 After consultation between all the relevant authorities, a decision was taken to recapitalise our largest domestic banks following due diligence on these banks’ exposures.

BIS central bankers’ speeches 3

Others proposed that power be distributed to regional bodies with no central or coordinating board. Still others resisted any sort of central bank. 10 This debate reflected the many and diverse interests in the United States-farmers, laborers, businessmen, small-town bankers, big-city bankers, technocrats, populists, and more--that experienced different conditions across a large geographic expanse.

Monetary policy is assumed to be in suspended animation until 2020. While I would welcome the time off, this presumption is inconsistent both with the range of unconventional tools that central banks have and the medium-term prospects for the global economy. The estimated impact of the reforms on the cost of bank debt exceeds the increase experienced during the crisis!

When the virus first came to our shores, many people hunkered down, but as the days wore on, households and businesses adjusted and changed what they do and how they do it. This resilience has helped keep the economy going and kept people in jobs. Many firms changed their business models, moved online, used new technologies and reconfigured their supply lines.

Households adjusted too, with spending patterns changing very significantly. Some of the spending that would normally have been done on travel and entertainment has been redirected to other areas, including electrical goods, homewares and home renovations. Online spending also surged, increasing by 70 per cent over the past year (Graph 3).

Independence to set policy instruments also insulates the central bank from the myopia that can be a feature of the political process. Instrument independence thus makes it more likely that the central bank will be forward-looking and adequately allow for the long lags from monetary policy actions to inflation in setting its policy instruments.

We will now report on the outcome of today’s meeting of the Governing Council. Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged. HICP inflation rates have declined further, as anticipated, and are expected to fall below 2% in the coming months. Over the policy-relevant horizon, inflationary pressures should remain contained.

Clearly, firms find some leverage advantageous in enhancing returns on equity, and thus moderate leverage undoubtedly boosts the capital stock and the level of output. A sophisticated financial system, with its substantial array of instruments to unbundle risks, will tend toward a higher degree of leverage at any given level of perceived underlying economic risk.

But the greater the degree of leverage in an economy, the greater its vulnerability to unexpected shortfalls in demand and to other miscalculations. Although the fears regarding business leverage have been confined mostly to specific sectors in recent years, concerns over potential systemic problems resulting from the vast expansion of derivatives have reemerged with the difficulties of Enron.

(e) Strengthening the transmission channels In a market-oriented economy, policy signals are transmitted through an integrated and efficient money, government securities and foreign exchange markets combined with a robust payments and settlement system. The Reserve Bank has therefore, been engaged in developing, widening and deepening of various markets and institutions.

Whereas until the mid-1990s one state controlled bank – the NBG – (including its subsidiary the National Mortgage Bank) had a market share of almost 50% and, as such, was effectively the market maker, to-day its domestic market share is 23%, closely followed by two private banks with a market share of 18% each and two others with 10% each.

And even if they decide to sell their house and leave, who will buy it? Every time the school closes, parents have to stay at home and can’t go to work. And even if they work from home, how are you supposed to do that when you have no power?

Part of the solution to inaction may simply be to take a stronger approach when examiners have identified deficiencies in need of remediation. But for some banks, management’s responsiveness to supervision—traditionally an area that rewarded conservative and prudent management—has changed, with a greater emphasis on innovation, especially those that promise to transform the business of banking.

c) Information technology As part of the MoU signed with the states, RBI committed itself to facilitating IT and human resources development initiatives in UCBs. On the technology front, a beginning was made by RBI with the development of software that facilitates compilation and submission of all supervisory and regulatory returns by UCBs to RBI, electronically.

The software also allows banks to analyse their own data and it is, therefore, being used as a powerful management information tool by many banks. The data submitted by banks are subjected to analysis by supervisors, inter alia, with the objective of tracking incipient stress faced by banks as also for identifying outlier banks.

These figures, though, cannot hide the reality that the recovery will be uneven and bumpy and that it will be drawn out. Some parts of the economy are doing quite well, but others are in considerable difficulty.

Although these instruments cannot reduce the risk inherent in real assets, they can redistribute it in a way that induces more investment in real assets and, hence, engenders higher productivity and standards of living. Information technology has made possible the creation, valuation, and exchange of these complex financial products on a global basis.

Challenges Ahead Gender Gaps in Skills and Skill Use Literacy Skill Use Literacy Notable gap in Japan 0.4 0.2 0.2 0.0 0.0 Gender gap 0.4 -0.2 -0.2 -0.4 -0.6 -0.6 -0.8 -0.8 AUT BEL CAN CHL CYP CZE DNK EST FIN FRA DEU GRC IRL ISR ITA JPN KOR LTU NLD NZL NOR POL SGP SVK SVN ESP SWE TUR GBR USA -0.4 AUT BEL CAN CHL CYP CZE DNK EST FIN FRA DEU GRC IRL ISR ITA JPN KOR LTU NLD NZL NOR POL SGP SVK SVN ESP SWE TUR GBR USA Gender gap No significant difference between countries Note: Figures show unconditional gender gaps in skills and skill use.

Besides retail schemes, the new regulations also authorize expert schemes which are suitable for medium size investors. Also, the regulations create a new category of “exempt” schemes, under which hedge funds, leveraged buyouts, and other high risk funds could be established.

FSB Governance Review: As part of the process to enhance trust and confidence in the financial system, the FSB has proposed a review of its governance structure to ensure a comprehensive approach to representation in the FSB across all levels.

South Africa recognises the value of having the widest possible participation when developing global solutions to regulation in a highly globalised financial system and supports the principle of equal and balanced representation. The development of global financial standards, principles and processes require coordination between central banks, prudential and market conduct regulators, as well as policy making institutions such as the Ministries of Finance.

As long as the CCP is itself robust, the effect should be to reduce the scope for contagion and thereby limit the impact on the market if one or more of the participants fail. The experience with resolving the Lehman failure in 2008 testifies to the effectiveness of this mechanism in a crisis.

But there is typically a lag between a contraction in economic activity and the formation of new NPLs. The policy support provided to borrowers through moratoria and public guarantees may imply that this lag will be longer than in past downturns, and NPLs may start to materialise in the course of next year.

During that phase, in many countries the financial support provided by governments to banks was considerable; at the end of 2011 the impact of State aid on public debt amounted to 48 per cent of GDP in Ireland, 11 per cent in Germany, and 7 per cent in the Netherlands and Belgium.

In Italy, it came to 0.2 per cent of GDP, reflecting the limited exposure of our banks to the structured finance products that had triggered the financial crisis. The response to the sovereign debt crisis in the euro area that began in 2010, after the true state of Greece’s public accounts came to light, was not so rapid or adequate.

the European Central Bank and the national central banks of the European Union, the programme will be implemented by the European Central Bank in partnership with seven national central banks, namely those of Bulgaria, the Czech Republic, Germany, Greece, France, Italy and Romania.

The question is how to have suitable rules that offer basic fairness, but with minimum adverse effects on enterprise, employment, and the scope for free agents to come together in ways that mutually suit them – and that grow the economy. Whether we have that balance right is a question you might address. Growth is important.

In the foreign exchange markets, the last comprehensive survey on turnovers was carried out by the Bank for International Settlements (BIS) in the spring of 1998, i.e. before the introduction of the euro.

The December 2007 edition of the Review places special emphasis on the financial market turmoil, which is also the focus of the overview chapter. This edition of the Review addresses several topical issues in 19 boxes and also contains five Special Feature articles.

Lorenzo Bini Smaghi: Intervention at Sveriges Riksbank conference “Monetary policy in an era of fiscal stress” Intervention by Mr Lorenzo Bini Smaghi, Member of the Executive Board of the European Central Bank, in the panel “Challenges for monetary and fiscal policy”, at the Sveriges Riksbank conference “Monetary policy in an era of fiscal stress”, Stockholm, 17 June 2011.

* * * It is a pleasure for me to contribute to this Sveriges Riksbank conference entitled “Monetary Policy in an Era of Fiscal Stress”. The subject is indeed a very topical – and global – one.

 In Jamaica, the latest data show a decline of 1.1 per cent in the first quarter 2010 compared with 2.2 per cent in the last quarter of 2009.  In the OECS, it is estimated that there was a decline of 4.1 per cent in the first quarter following upon a decline of 7.3 per cent in 2009.

Before continuing, I would like to note that we are referring here to the outer wrapping of fiscal policythat which serves as the focus of the government’s decision when the budget is being discussed. We have not spoken about content-priorities in expenditure, the government’s social policy, and the composition of tax receipts-and its contribution to the process of economic growth.

Setting aside differing visions of the role of the State, Regions and local government in implementing the interventions, valid solutions must be identified to ensure that these are effective.

The planning and execution phases, together with the outcomes, must be constantly monitored, with a clear assignation of responsibilities to overcome shortcomings and delays, so as to avoid a repeat of past errors when the resources available were not always used fully and well.

Mahalanobis’ mastery over empirics was exemplary as illustrated in using the method of fractal graphical analysis of consumption data, which was published in Econometrica (1960). It is also understood that the concept of interpenetrative sub-sampling and pilot survey, pioneered by Mahalanobis, essentially form the basis of sequential analysis and modern bootstrap methods.

Evolution of the statistical system after independence After independence in 1947, the country saw an urgent need for a statistical framework suitable for economic and social development.

But US policy-makers themselves would still say, I think, that such remains to be seen, and we have recently seen some shift in market pricing in recognition of the fact that the risk of higher inflation has not yet disappeared. Around Asia, Japan is growing again, but the big story is of course China.

According to the official figures, China’s GDP grew at about 11 per cent over the latest year, even faster than the preceding period. Just about every statistic on the Chinese economy paints a picture of dazzling growth, though there are also several areas where the Chinese authorities have expressed concern.

As Tommaso argued, there is also some lack of recognition of the fundamental flaws in the present monetary arrangements, or rather non-arrangements. Being a policy-maker, he not only identified the flaws, but proposed the essence of a solution to the problem. Greater cooperation between economies was a critical element in a reformed international monetary system. Let me elaborate on this point.

Why would international policy coordination be beneficial in the first place? After all, every country strives to meet its own growth and stability objectives in order to produce a strong and stable economy. Isn’t that enough? The message from the crisis, loud and clear, was “no”.

These APRs adjust much more frequently to respond to changes in the market or to changes in a borrower's credit risk profile. The typical card no longer has an annual fee, but it has many other fees tied to a variety of features, or to requirements of the credit agreement, or to a growing number of optional services.

In an October report, the Institute of International Finance (IIF) projected that such flows would rise to $ trillion this year, or to about 4% of emerging-market GDP – meaningfully higher than the lows of 1.5% in 2015 although still far off the pre-crisis peak of over 9% in 2007. The bulk of the improvement would reflect debt portfolio and banking-related flows.

With regard to potential emergency liquidity assistance (ELA) to financial institutions, this is primarily a national responsibility, so that all costs and risks associated with such operations would be borne by the competent national authorities.

At the same time, any liquidity effects of potential ELA operations must not interfere with the implementation of the ECB’s monetary policy; in order to ensure this, the Eurosystem has established the necessary rules and procedures.

As noted earlier, the ratio of household debt to household disposable income has more than doubled over the last seven years, and most of this increase has had nothing to do with buying food and other necessities. However, central banks have very limited ability to influence the mix of monetary conditions.

In the same way, the dimensions of poverty in economic activity are not exceptional, but the government’s policy to reduce poverty, which is relatively modest, is reflected in a particularly high poverty rate by international standards in terms of disposable income.

However, there were significant crosscountry differences, ranging from 10 per cent to 174 per cent. Non-bank financial intermediation is relatively small in the case of emerging market economies compared to the level of GDP. In India, Turkey, Indonesia, Argentina, Saudi Arabia the amount of non-bank financial activity remained less than 20 per cent of the GDP as at end 2012.

As such, the size of the non-banking financial sector in India is relatively low, by global standards. Section 2: Extant regulatory framework for NBFCs With the objective of designing comprehensive regulatory and supervisory framework for NBFCs, Chapter IIIB, IIIC and V of the RBI Act 1934 were amended in 1997.

Against this backdrop, the economic and financial ties between the United States and Japan remain as important as ever. On behalf of all the current and past colleagues of mine at the Bank, I would like to express my deepest gratitude for the unconditional support that has been extended to us over the years.

I have no doubt that the coming decades will be no less rewarding than these 100 years have been. Thank you. 2 BIS Review 2/2005

Let me start with financial markets. One does not have to follow financial markets too closely to know that developments in US financial markets have a big influence on our markets here in Australia. The correlation between the Australian and US stock markets, and between the Australian and US bond markets, is very high.

Most mornings, one can get a pretty good idea of how the Australian share market will open simply by looking at what happened to US share markets overnight. Similarly, US news has an important influence on the Australian dollar exchange rate and on the price of many of the resources that Australia sells.

3.1 The African Monetary Cooperation Programme (AMCP) Stated in point form, the stages of the programme are as follows: Stage I (Year 2002-2003) - Establishment of Sub-regional Committees of the AACB where they do not exist and revitalisation of existing Committees. - Adoption by each Sub-region of formal monetary integration programme.

17 18 19 Chart 3 Growth Rate and Output Gap Real GDP 15 Output gap contribution ratio, s.a., ann., q/q % chg. 8 6 10 % reversed, DI ("excessive" ‐ "insufficient"), % points Capital input gap (left scale) Labor input gap (left scale) ‐40 ‐30 Output gap (left scale) 4 Tankan factor utilization index (right scale) ‐20 5 0 Private demand -5 Public demand ‐10 0 0 ‐2 10 ‐4 20 ‐6 30 ‐8 CY20 07 08 09 10 11 12 13 14 15 16 17 18 19 40 Net exports -10 -15 CY20 1 1 2 Real GDP 12 13 14 15 16 17 18 19 Notes: 1.

Given this important role in society, the banks are subject to extensive regulation and supervision by the authorities. As I mentioned before, it is important that we continuously ensure that there is no excessive risk taking in the financial sector and that we do not repeat yesterday's mistakes. *** Thank you!

Organizations such as the Workforce Alliance and public-private partnerships supported by the governor’s office are helping people in Virginia improve their own lives and economic circumstances. As our nation continues to recover from the recession, these and similar workforce development programs in communities across the country are demonstrating that they are vital to the well-being of Main Street economies all over America.

I also fully share the view that more than five years on, EMU can be regarded as a great success. On some issues, however, slight differences of view remain. The draft resolution asks for the publication of the minutes of the Governing Council meetings whilst accepting implicitly that individual votes of members would not be made public.

BIS central bankers’ speeches 1 To structure my remarks, I would like to begin by thinking about the objectives we want to achieve from such a single market, and then consider the policies that are necessary to get there. What is the objective of a single market in capital?

Monitoring of credit flow to MSMEs from banks through off-site returns, onsite inspections and in fora such as SLBC etc. has put in place a strong monitoring mechanism to ensure increased flow of credit to MSMEs.

Peter Praet: Lifting potential growth in the euro area Speech by Mr Peter Praet, Member of the Executive Board of the European Central Bank, at the Welt-Währungskonferenz, Berlin, 23 April 2015. * * * I would like to thank John Hutchinson for his contributions to this speech.

Furthermore, on December 1, 2009, in order to enhance easy monetary conditions, the Bank introduced a new fixed-rate funds-supplying operation against pooled collateral (hereafter the fixed-rate operation), whereby a large amount of funds totaling approximately 10 trillion yen are to be provided at an extremely low fixed interest rate. This operation has contributed to encouraging a decline in longer-term interest rates.

On March 17, 2010, the Bank decided to 6 BIS Review 67/2010 expand the measure to encourage a decline in these rates by increasing the amount of funds to be provided through the fixed-rate operation to approximately 20 trillion yen, from the previous amount of approximately 10 trillion yen. Meanwhile, the Bank emphasized its stance on fighting deflation.

The paradox is that those who are well to do and highly influential or capable of doing damage get the services at no cost to themselves but the poor who cannot afford these services and for whom the allocation are made by the government are deprived. Access to services is rationed not by price but by the status.

At the second Summit in Bamako, Mali in December, 2000, the Authorities formally launched and established the Second Monetary Zone as the West African Monetary Zone (WAMZ) and approved a set of convergence criteria to be attained by member states before the commencement of the monetary union.

Beyond these economic effects, high levels of debt and housing prices have broader effects on the communities in which we live. The high cost of housing is a real issue for many Australians and can have serious side-effects. High levels of debt and high housing costs can also reinforce the existing distribution of wealth in our society, making social and geographic mobility more difficult.

So it is understandable why Australians are so interested in these issues. At the Reserve Bank, we too have been focused on these issues in the context of our monetary policy and financial stability responsibilities. Our work has been in three broad areas. First, understanding the aggregate trends and their causes. Second, understanding how debt is distributed across the community.

In addition, the effectiveness of monetary policy hinges crucially on the proper functioning of financial markets and the financial system. This is because monetary policy is implemented through central banks' lending, deposit-taking, money-market operations, and other activities in financial markets. If financial stability is at risk, central banks' policy would be severely constrained.

Throughout the 1990s, the BOJ conducted its policy while paying close attention to the condition of the financial markets and the financial system. This was especially true in the late 1990s when the systemic dysfunction of our banking system was apparent.

Once one recognizes the correlation between market risk and credit risk, the next step is a consideration of a global approach to risk management and the possibility of extending an internal models approach beyond market risk. The application of that approach implies, however, that prices can be obtained from thin markets and used effectively in risk measurement.

Indeed, I would argue that they are a key contributor, not least because they have facilitated the longer length of economic expansions. The difference in inflation rates between the two decades is particularly striking (Graph 5).

14 Even so, these students can benefit from high school counselors or other mentors who can assist them in choosing schools that provide the financial and counseling support that will help them complete their degrees. And they can benefit from help in picking majors and degrees that lead to higher earnings.

15 Second, lower-income students often pursue their education while working to support themselves and family members. Educational programs that help students balance these competing responsibilities go a long way to improving completion rates. In recognition of this fact, the U.S. Department of Education is offering competitive grants to postsecondary institutions to support or establish campus-based childcare programs primarily serving the needs of low-income students.

6 But if it were so simple, why did the Japanese authorities apparently fail to take the necessary measures to prevent deflation? The answer is: it wasn’t that simple. What “The Foolproof Way” underestimates is the enormous difficulty of turning around expectations of prices and economic activity when the functioning of the financial system is seriously impaired.

In particular, we anticipate that even after employment and inflation are near mandate-consistent levels, economic and financial conditions may, for some time, warrant keeping the target federal funds rate below levels that the Committee views as normal in the longer run.

As it is, there are still a number of mortgage products with rates not much above 4 per cent, even a few advertising a “3” before the decimal point. We also note that a significant proportion of owner occupier households is ahead of schedule on mortgage repayments – in large part because these households did not lower their payments as interest rates fell.

Most of these households are unlikely to need to part with extra cash each month as a result of the recent interest rate changes. (Equally, many of these households were probably not boosting spending as interest rates fell, instead allowing their loan principal to fall faster.) As for the general environment, according to business surveys conditions outside mining have been slowly improving, not deteriorating.

India has shown how to integrate successfully in the global exchange of goods and services and has become an emerging market economy of major importance. Moreover, (financial) globalisation poses various challenges to both the domestic and global economic and monetary policy environment. The analysis of these challenges, their origin and possible implications, remains on the top of many central banks’ agenda.

Coping successfully with these challenges continues to be vital to fostering sustainable growth and development in many parts of the world and is hence a matter of global interest. BIS Review 31/2007 5

Many critics...have concluded that such innovation is to be actively discouraged. But I would claim that this is precisely the wrong lesson to draw. Despite the unsettling and even dramatic recent global experience with “cutting edge” finance, I believe that without a renewed effort to foster financial innovation in the global economy, all countries – including emerging market economies – will underperform their potential.

When evaluating the appropriateness of their action, central banks do not have the luxury of linking policy to a handful of summary statistics. They engage in a complicated process of signal extraction from a wealth of diffuse data and events.

The study of household finance has much to say on the causes and consequences for the economy of the current financial crisis. The 2007 crisis, which originated in the US, is labelled the “sub-prime crisis”, and it is rooted in the excessive accumulation of debt by households which did not have the appropriate buffers to repay their debt in case of a negative shock.

And in the event of default, investors are still exposed to the further risk that the recovery rate will be lower than expected. The management of default and recovery risks presents nothing fundamentally new to investors. Instruments like single-name CDS and credit derivative indexes simply replicate the sort of credit exposures that have always existed.

You are the product of a system which sees the ultimate goal of your education as the creation of new Caribbean persons who respect human life, have strong moral, family 2 BIS Review 151/2009 and community values, who are able and independent thinkers and who respect ethnic, religious and cultural diversity. Graduating from Roytec sets you apart in your community.

A large financial legislation package is currently being submitted to the Folketing. I have the draft with me here. It weighs 1.37 kg. (Although I should add that the weight can be halved by printing on both sides of the paper.) And we will see much more in the coming years.

Meanwhile, medium-sized economies, such as Peru, have sold almost USD 6 billion in order to stabilize their money markets as from October. Moreover, most central banks in the region have supplemented this generalized direct intervention with strong operations in derivatives markets, especially in the form of swaps. This explains why the private sector demand for money was below our calculations.

Given this new scenario, which I will thoroughly address in a few moments, one can see that any action towards forcing the trend of this monetary aggregate to comply with expectations but under very different international conditions would have been more detrimental than beneficial for the economy as a whole.

Just don’t take that long to get there! 2 BIS Review 104/2008 The fresh wind of Islamic banking is also keeping us all on our toes. We have moved fast from idea to action. We have consulted far and wide. We have issued guidelines. We have joined the international standard-setting body for Islamic Banking. We have invited applications. We have processed them.

The release of the minutes after 14 days of the MPC meeting and individual statements of the members, including my statement, have 10 further strengthened our communication. A range of statutory and staff publications on key analytical aspects of monetary economics are an additional avenue of our forward-looking communication. 23.

Therefore, the Bank should analyze and assess in more detail postcrisis demand for World Bank lending and explore other options before resorting to a general capital increase. As a result of the crises, the number of people living in extreme poverty has increased significantly. The Bank Group should not lose focus on this vulnerable group.

When changes in policy rates are not appropriately transmitted to the real economy, this is a matter of concern. In a context of large refinancing needs and persisting funding stress for banks, the ECB launched two long term (i.e three years) refinancing operations in late 2011 and early 2012.

The Reserve Bank has shared a very special relationship with the NIBM - it catalyzed its creation in 1969, provided the venue for its first campus and has been intimately associated with its functioning.

A lot of work is under way to find ways of doing this. Improved transparency should foster the self-control and self-discipline of the markets. That includes different aspects such as: more and better data on the debt structure of individual countries, the application of standards for banking supervision, improved disclosure of risk positions of market participants.

The central regulatory tenet – that those who enjoy the benefits must also bear the costs – was neutralised for major banks who could count on being rescued by the taxpayer because of their importance for the economy. Keeping profits in the private realm, but expecting taxpayers to foot the bill if a crisis arises undermines responsible behaviour.

Rules that are consistent with the principle of liability and which ensure that banks, say, take a leaf out of the business community’s book and shoulder their losses themselves in future without jeopardising financial stability, are vitally important for a functioning economic order.

But some recent events are affecting bankers’ perceptions about their role in this critical area, and have raised serious questions about what bank regulators and other government authorities - most notably law enforcement agencies - expect of bankers.

The stock of confidence gained by the ECB has helped to limit the prevailing fears and doubts concerning EMU, especially in Germany, so that today more and more residents are regarding the European Central Bank as a worthy successor to the Bundesbank. -V- BIS Review 29/1999 2 What, then, are Germany’s expectations of the transition to a single currency in Europe?

While reimbursing excess liquidity made a lot of sense from the individual bank’s microperspective, it was hurting the economy in the aggregate. Today, we want to make sure that the economy is on a sufficiently robust footing before there is a turn in policy.

From that perspective, there is still some way to go before all three criteria for a sustained adjustment are met at the same time. So, we still need patience and persistence in our monetary policy. We need patience because it takes time for price pressures to build up.

Non-bank financial institutions continued to experience a contraction in their balance sheets, with their assets falling to just under 4 percent of the total assets of the financial system in June 2012 compared with a share of 12 percent in 2008. Credit quality in the non-bank sector deteriorated in 2012, as a few institutions which extended loans to the luxury real estate, hospitality and tourism sectors were negatively affected by the continued fallout from the global macroeconomic environment.

The sale of a significant portion of a commercial bank’s non-performing loan facility to its non-bank subsidiary also contributed to the worsening of credit quality. At the end of September 2012, the ratio of non-performing loans increased to around 7.5 percent of total loans, from a little over 4 percent a year earlier.

Another round of deepening deterioration would surely put intense downward pressure on the US economy by cutting our exports, depressing equity markets and weakening investor and consumer confidence. As Chairman Alan Greenspan has said, we cannot expect to be an “oasis of prosperity” in a deteriorating world economy.

Available data are still mixed, with some of the most recent indicators showing a slight improvement, but there are no signs as yet that a more sustained recovery in economic activity has already started. At the same time, looking beyond the short term, there continues to be reason to expect a gradual improvement in economic activity in the euro area.

This has changed somewhat of late and a further development towards increasing direct financing through the capital market is to be expected. There is wide speculation as to how this will affect investment.

INAUGURAL INUA BIASHARA DAY 2019 AND LAUNCH OF STAWI Remarks by Dr. Patrick Njoroge Governor, Central Bank of Kenya Safari Park Hotel November 6, 2019 As Prepared for Delivery I am delighted to be here this morning at the Inaugural Inua Biashara Day 2019 and the launch of the lending product Stawi.