samchain/econo-pairs-v1 huggingface dataset:
While cost will inevitably be an important consideration, this should be weighed against the significant benefits and operational savings from the more accurate allocation of capital to risk. MAS will work closely with the local banks to implement the new Accord. Business and strategic considerations Next, banks have to decide how to grow and position their businesses over the longer term, especially the local banks. Maintaining margins and cutting costs is necessary in the short term, but beyond that, banks need longer term strategies for staying viable and competitive. After a period of domestic consolidation, the local banks have made several regional acquisitions, but they still remain small by international standards. Competition will intensify, within the domestic market because of liberalisation, and internationally because globalisation is continuing. The local banks may well find that in order to hold their own and be viable, they need to grow bigger. Possibilities for domestic growth are limited other than through further consolidation. But the region offers considerable opportunities. Asia is poised for sustained growth, having emerged from the Crisis as one of the most promising regions in the world. Countries have gone through a period of structural reforms and transformed their financial sectors. Now they are progressively opening up their  4  BIS Review 39/2004  economies to greater foreign participation. This is attracting interest from major regional and global players. Our local banks cannot ignore this game. They need to consider their options carefully.

b.  Secondly, MAS is prepared to grant a limited number of new Wholesale Bank (WB) licences to applicants that meet our admission requirements. BIS Review 39/2004  3  c.  Finally, QFBs will with immediate effect be allowed to negotiate with the local banks on a commercial basis to let their credit card holders obtain cash advances through the local banks’ ATM networks. Singapore now has one of the most liberal banking environments in Asia. However, over time, as the industry changes, we must be ready to liberalise further. MAS will reassess the environment before deciding on any further measures. While it is still too early to make a final judgment, banking liberalisation has so far achieved its aim of bringing about greater competition. It has fostered the consolidation of the local banks, which might otherwise have taken much longer. The overall market shares of local and foreign banks have not changed drastically, but there has been an all-round qualitative improvement which has enhanced the vibrancy of Singapore’s financial sector. The liberalisation measures and reforms of the last few years have set the financial sector on a firm foundation. However, we cannot afford to rest on our laurels. Challenges as well as opportunities exist for both the banking industry and the financial sector as a whole. We must identify and respond to them, in order to keep the financial sector dynamic and competitive. Challenges for banks For banks, I will focus on two main challenges.
They rely on huge amounts of data and their experience of how to deal with them; by taking advantage of network effects, they are starting to attack strategic links in this value chain (services with high technological added value and sometimes customer relations) in order to be able to offer new profit generating activities. Thanks to their dominance of certain sectors – let us take the example of cloud computing – and to their ability to expand – their cash reserves enable them to penetrate a market, to dominate it and to use technology to set up barriers to entry – these new entrants are giving rise to a significant risk of dependency, or even captivity, for established financial players. While  BigTechs today are, at least in Europe, subcontractors of banks and insurance companies, we cannot rule out a reversal of business models which would confine financial institutions to the role of specialised service providers: credit origination, middle and back office, compliance. These prospects raise several questions in terms of European sovereignty: how can we effectively protect citizens’ data (be they payment or personal data) and offer them real control over their use? How, in a global ecosystem with ever more open architectures, can we increase the strength and resilience of the financial system in the face of cyber risks? How can we encourage the development of pan-European payment solutions in the face of rising competition from non-European players in the payment solutions segment?

Following the launch of the National Financial Inclusion Strategy in 2017, new informal financial service providers have emerged, such as, village banks and savings groups in both the rural and urban areas. As both formal and informal financial service providers are agents of financial inclusion it is important for us, the regulators, to seek effective ways of linking the two types of players with a view to reducing informality as we expand financial inclusion. Distinguished Guests, in recognition of the importance of formal financial inclusion in supporting economic growth, the Bank of Zambia is collaborating with SaveNet, to 1  KEYNOTE SPEECH BY DR DENNY KALYALYA, GOVERNOR, BANK OF ZAMBIA AT THE 2019 WORLD SAVINGS DAY EVENT ON 31ST OCTOBER 2019 AT THE INTERCONTINENTAL HOTEL, LUSAKA  develop channels to link informal savings groups to formal financial services providers. According to SaveNet data, at the end of 2018 there were 15,700 savings groups in Zambia, with cumulative savings amounting to K53.1 million. This points to a good opportunity for the formal financial service providers to mobilise deposits. In this regard, it has been observed that a number of regulated financial service providers and mobile money operators have already started designing products aimed at tapping into this market. It is hoped that this move will expedite the transition of informal groupings into the formal financial sector and enable more people gain access to a wider range of quality and affordable financial services.
In part, this is due to the differences in character between domestic and foreign savings. Those managing foreign savings are, understandably, much less concerned about the long-term public interest than those managing domestic savings. Foreign savings are also much more sensitive to changes in market sentiment and shifts in domestic policies, and are more prone to reversals. While this imposes greater discipline on local authorities in pursuing prudent macro-economic policies, it also brings much higher volatility in the financial markets, to the extent of possibly creating systemic problems that Asian monetary authorities are ill-equipped to handle. Furthermore, the foreign financial intermediaries are usually large international financial institutions with considerable market power and influence, in terms of the amount they are in a position to mobilise, relative to the size of the domestic financial markets of the emerging economies. This enables them to operate in the market not simply as price takers, but as a “price maker” with the power of pushing prices in a particular direction. The implications for the emerging markets are greater market volatility, greater tendency for overshooting, and consequently, greater challenges in maintaining monetary and financial stability. The problems are more intense for emerging economies with medium-sized financial markets that are large enough to attract foreign capital but not large enough to be immune from the manipulative or speculative plays that are, more often than not, associated with these fund flows.

Yet, a fundamental policy objective should be that the recovery of activity and the repair of the financial system have to be achieved in a manner that will ensure a sustained growth performance and will prevent the recurrence of episodes of financial imbalances and market excesses that can threaten again financial stability and economic welfare. Put differently, it is important that the policies and reforms pursued today lay the foundations for sustained growth. Let me now elaborate on these issues by focusing on the role and contribution of central bank policy and of financial system reform. Central bank policy The ECB’s monetary policy and provision of liquidity have played a key role in containing the downside risks to price stability, supporting economic activity and stabilising the financial system. The extent of the monetary policy easing since last October has been unprecedented, with key ECB policy interest rates having been reduced by 275 basis points. At the same time, money market rates have declined even more from the peaks reached in October 2008 as a result of the reduction in the policy rates and the provision of unlimited liquidity to banks at a fixed interest rate (against an expanded range of eligible collateral) since last October. At present, Euribor rates of maturities up to three months are below or very close to the main refinancing rate (MRO) of the ECB and at historically low levels – ranging between 0.93% (overnight) and 1.56% (3 months).
People have more important things to do in their lives than think about interest rates and bank regulation, about price and financial stability. Or at least I hope they have. Indeed, central banks would be failing in their job if people were spending too much of their lives thinking or worrying about these issues. Nonetheless, the actions of central banks are important for most people at key decision points in their lives. At those points, a trusting and understanding relationship between the central bank and the public matters. It matters for people when making good decisions. It matters for the economy when following a good course. It matters for policymakers when setting good policy. That is why everyday economics, terrible title and all, matters to the Bank of England. 16  All speeches are available online at www.bankofengland.co.uk/speeches  16  Annex  Figure 1 – Study of Mathematics  Per cent of total population at each age  1%  Undergraduate level  12%  A-level  75%  GCSE  100%  Pre-GCSE  Sources: HESA, Joint Council For Qualifications, ONS and Bank Calculations Notes: As mathematics is compulsory at younger ages, we assume that the percentage of students studying it pre-GCSE is 100%. Undergraduate level includes of the professional graduate certificate in education, foundation degrees, HND/DipHE and other undergraduate qualifications. This chart does not include Scottish qualifications.

But if this model is right, higher rates would not help either, as rates substantially above equilibrium would mean that demand for loans from banks would decline sharply and the riskiness of future projects would increase, and even currently viable projects might turn into unviable, nonperforming ones. But let’s go back. What is a real problem, and take it as a criticism of our own club, is that we are unable to explain this story, this narrative. I have long pondered why this is the case. Recently, I caught a glimpse of an answer in the work of the young German economist Benjamin Braun. Like him, I feel that people have simply stopped understanding us. After 2008 we started to tell a different “monetary story” – a different narrative about money and central banks – to the one people were used to. Public confidence in the monetary system was and is grounded in the previous narrative, which in turn is based on three building blocks. One, the central bank is the sole creator of money and thus has perfect control over the quantity of money; money is therefore exogenous, to use the language of economics. Two, commercial banks do not create money but merely convert existing deposits passively into loans. And three, the lower the growth in the price level, the better. This narrative, which some would term imprecisely “monetarist”, did a very good job of reconciling public preferences and central bank decisions when bankers were fighting inflation and subsequently working successfully to stabilise it, i.e.
It will benefit Malaysia through greater efficiency and productivity, thereby enhancing our country’s competitiveness. We have no choice but to improve the way we conduct our financial affairs. The banking system has allocated huge amount of resources. From 2009 to 2017, the industry has invested RM893 million to enhance the e-payment infrastructure. Moving forward, the industry will invest a further RM346 million to expand the POS terminal network and RM40 million to develop the Real-time Retail Payments Platform to spur the usage of mobile payments. By the end of 2020, it is envisaged that individuals and businesses will be able to make and receive payments seamlessly via online banking, payment cards and mobile payments. There 3/4  BIS central bankers' speeches  are no reasons whatsoever for us not to migrate from a costly and inefficient payment mechanism to a cheaper, safer and more efficient payment mode. To reflect the higher cheque processing cost, hasten the migration away from cheques, and incentivise individuals and businesses to migrate to a lower cost of doing business, beginning 2 January 2021, the cheque fee will be increased from 50 sen to RM1.00 and gradually thereafter, to reflect the actual cost of cheque processing. However, users of financial services will continue to be given a choice of using cheques, if they prefer to use an expensive and inefficient option rather than a cheaper one. To support businesses and individuals, over the next three years a few initiatives will be implemented.

In 2017 alone, Bank Negara Malaysia has processed applications from 43 new non-bank players, an increase of 91% compared to the past two years. This is in line with global developments where the size of the global payments industry has increased to account for 34 percent of overall banking revenues in 2016 and is projected to become a $ trillion dollar industry by 2020. This is a significant turning point. In essence, the traditional 1/4  BIS central bankers' speeches  payment channels are increasingly being replaced by nimble, innovative and lower cost alternatives. We must embrace the next wave of technological and e-payment transformation. As a nation, we need to rise and seize this exciting opportunity, take a proactive rather than a reactive role, and benefit from the enormous opportunities brought about by technology to improve our payment system’s security, efficiency, productivity. We need to bereft ourselves of the inertia to move forward with the times. There are a few strategies we ought to adopt, to reduce further the wastage arising from the cost of maintaining two parallel systems by accelerating the displacement of cheques, harness the pervasiveness of mobile payments to ensure reach, and focus on solving the last mile obstacles to enhance migration to e-payments. The enormous cost of maintaining two parallel systems Cheque is a very costly payment instrument to process compared to electronic fund transfer.
Anita Angelovska Bezoska: Journalists are one of the main transmitters of monetary policy messages Address by Ms Anita Angelovska Bezhoska, Governor of the National Bank of the Republic of Macedonia, at the Journalist Workshop - 2018, organized by the National Bank of the Republic of Macedonia, Skopje, 25 December 2018. * * * Distinguished media representatives,  Welcome to the fourth Journalist Workshop hosted by the NBRM. I am glad to see you in greater numbers this year, which is confirmation of your interest in the topics that will be the focus of today’s event. Allow me to take a brief look at several basic, yet important aspects of central bank communication: 1. Why is central bank transparency and communication important and needed? 2. How has central bank communication evolved over the years? What were the challenges in the period after the outbreak of the global crisis and how were they addressed globally? 3. Challenges in central bank communication in the Republic of Macedonia. A comparison between the current and the past transparency level and central bank communication shows an exceptional transformation in this segment. The need for strengthening central bank transparency was brought to the fore for the first time in the 1990s, implying enhanced communication with the public, including the media. This change is associated with the concept of central bank independence, or the independence of the monetary policy from fiscal policy.

This can be attributed to the fact that the economy still has substantial momentum to support growth. Exports and private investment, in particular, are expected to grow on the back of continued global recovery, a high level of capacity utilization, and conducive financial conditions supported by a turnaround in credit extension of the banking sector. Moreover, the economy is now in a much better position to weather external shocks, thanks to an improved external position and the strength of domestic demand. In addition, the Government’s much improved fiscal position should allow the economy to adjust to higher oil prices without interrupting the growth momentum. It is, therefore, our view that the risks to growth from the higher oil prices should be manageable. BIS Review 58/2004  1  On the other hand, the impact of the higher oil prices on economic stability is expected to be more pronounced. Latest data on headline inflation continue to show signs of price acceleration. In August, Thailand’s headline inflation therefore rose by 3.1 percent year-on-year, while core inflation rose by 0.7 percent year-on-year. With a narrowing of the output gap and reported tightening in some segments of the labour market, we believe that there is considerable pent-up price pressure building up in the system that could eventually translate into higher consumer prices. Our inflation forecast points to a higher probability of rising domestic inflation going forward.
In this connection, I wish to emphasise the desirability and timeliness of independent public institutions having this type of ethical conduct framework, as a key element to proper performance by their high-level officials of their roles. From this standpoint, the aforementioned Code of Conduct for high-level European Central Bank Officials includes ethical conduct criteria that are particularly relevant to independence, impartiality, professional secrecy and public and private appearances by those high-level officials, in addition to specific obligations for avoiding conflicts of interest, for relationships with interest groups, for private financial transactions and for advantages, awards and invitations offered as a result of their positions (for more details, see Annex 5). As I reported to this very Parliament, early this year the Banco de España approved its Strategic Plan, whose essential content has been made public. Based on an analysis of the challenges facing the institution and its main strengths and weaknesses, the plan sets out the priority objectives for the coming years and the actions required to accomplish them. Aside from the importance of this exercise from the standpoint of internal coordination, I believe the drawing up and publication of this plan is a fundamental transparencyenhancing factor that will facilitate evaluation of the effectiveness of the Bank’s actions. Accordingly, under the Strategic Plan our activities will be subject to assessments. Should you see fit, we could report to this House on the content of the Strategic Plan, headway made in its implementation and the results of the assessments.

Certainly, a lot of work has been done in the London market, co-ordinated and steered by a team in the Bank, to ensure that London is as well prepared as other European BIS Review 67/1997  -6-  centres for EMU. And our assessment now, which I believe is shared by the EMI and the Commission, is that London is as well prepared as most if not all European centres. I can assure you that the Bank of England itself will be ready for EMU on 1 January 1999, whether or not the UK is a member. We will be able to offer euro accounts and euro settlement facilities. We have taken the lead in work on market conventions across Europe. EMU is likely to bring harmonisation of conventions such as day count and frequency of coupon payments among Europe’s bond markets, and the London market is ready to do that. We have been in regular discussion with ISDA which is taking a leading role in co-ordinating preparations of those involved with swaps and other OTC derivatives. And a recent working group chaired by the Bank has examined the adaptations that may be needed in the gilt market, covering re-denomination of gilts into euro, whether to quote in decimals or fractions, the frequency of coupon payments, etc. There seems a reasonable chance that the dramatic move to abandon 30 seconds as the basis for gilt pricing may come about before too long.
The growing complexity and interconnectedness in financial and economic systems, the increasing speed of change, as well as the ongoing structural changes in emerging markets will have profound impacts on all sectors of the global financial industry. These driving forces will shape the evolution of the financial system and the economy, as well as the risk-return profiles of a range of financial products. Financial institutions, investors, regulators, policymakers and researchers will have to make significant changes to their mental models, policies and practices. Let me touch briefly on some of these implications. Implementing policy reforms 9. Given Asia’s changing dynamics, Asian policymakers face some difficult balancing acts in navigating the challenges. They need to grow the financial system to support economic growth and promote the efficient intermediation of savings, but in ways which are safe and stable. They need to deepen capital markets, and permit the growth of hedging instruments and derivatives while keeping out instruments that are complex or opaque. They need to reduce the opportunity for regulatory arbitrage across different sectors, and treat similar risks in similar ways, without adopting a one-size-fits-all approach that reduces the diversity of players in the industry which might in turn reduce the overall resilience of the financial system. There is merit, for instance, in having diverse players such as pension funds and insurance companies that have different investment horizons and requirements in their asset-liability matching.

The intensification of the process of financial integration and liberalization of the capital transactions as global processes, have set new challenges for the countries in transition, which reflected not only in the balance of payments capital account, but in return in the balance of payments current account, as well as the exchange rate regime. Positive macroeconomic performances of the countries, as well as the fast global growth, low rate of inflation and historically low level of the interest rates in the developed countries are factors that caused high capital inflow in the transition countries and produced significant implications for the conduct of monetary policy in the transition countries. Having in mind that the majority of them are characterized by fixed exchange rate regimes, high capital inflows resulted in appreciation of the real exchange rate and further deepening of the trade deficit, and consequently of the deficit in the balance of payments current account. The process was intensified additionally by the higher productivity growth in the tradable goods through the so-called Balassa Samuelson effect, which according to certain estimates increased the appreciation of the currency on 4 average by 1.5 to 2.5 percentage points . Experiences of more developed transition countries are of special importance for the future challenges of the Republic of Macedonia, as a part of the increasingly intensifying process of EU integration.