samchain/econo-pairs-v1 huggingface dataset:
These loans are also secured by preferential rights in bankruptcy proceedings and, in addition, by a federal guarantee - that is to say, they are guaranteed with taxpayers' money (hence 'public' in public liquidity backstop). The interest rate on both types of loan is higher than that charged on the established liquidity assistance facilities. 3/4  BIS - Central bankers' speeches  The dramatic situation and enormous time pressure required the use of emergency law. In granting ELA+, we are going to the limits of what is feasible for the SNB, because with this loan preferential rights in bankruptcy proceedings are the sole security. We provided this liquidity only because rapid action was critical to restoring counterparties' confidence in Credit Suisse and stopping the outflow of client funds. Without the SNB's willingness to provide further liquidity via ELA+, a global financial and economic crisis could easily have been set in motion. In our view, this would have been irresponsible. Thoughts for the future Since the dramatic days of mid-March, the situation has stabilised. Let me now look ahead and share three thoughts with you regarding the future. My first thought is self-evident: Banking regulation and supervision will have to be reviewed in light of recent events. This will require in-depth analysis. Quick fixes must be avoided. However, from the SNB's perspective, there is one important point that needs to be emphasised right now.

After all, each bank fails in its own way, so each case is different, and each decision needs to account for these differences. We need to take all facts into account and assess them case by case, and not against a single yardstick. In short, we must be proportionate. Imagine a bank breaches capital requirements. Then we have to ask how severe that breach is and whether it might just be temporary. If it’s just a marginal breach which could be healed within a reasonable period of time, it might not be proportionate to declare the bank “failing or likely to fail”. We also need to take into account that a bank depends on the markets. So how do they react? A bank in trouble might quickly lose the trust of the markets. This could lead to a bank run, which requires supervisors to act differently. 4/9  BIS central bankers' speeches  So, to sum up: “failing or likely to fail” decisions are not taken automatically but are based on expert judgement. At the same time, they have to be taken case by case and in a proportionate manner. All in all, they are the most difficult decisions a supervisor has to take. And I can assure you that we do not take them lightly. How to resolve a bank Imagine that we have declared a bank failing or likely to fail. What happens next? Well, at that point the resolution authority takes over.
It is really a great honor to have representatives from the central banks of the EU member states as well as from the candidate countries attending this conference, especially having in mind that on the last day of the conference some of them will have presentations and share their experiences in the domain of payment systems. Ladies and gentlemen, Now, allow me to declare the seventh conference on payment and securities settlement systems open! I would like to wish the chairman Mr. Michiel van Doeveren and his colleagues a successful conference. I hope the weather will be fine and you will enjoy the beauties of Lake Ohrid, and in the afternoon and in the evening, you will have the opportunity to visit the city of Ohrid, which is one of the best preserved material and spiritual legacies witnessing the millennial existence of our culture and historical heritage. BIS central bankers’ speeches  3

Second, it can also provide perverse incentives for financial firms to grow bigger, more complex and more interconnected simply to secure public support and finally take on more risks. To answer these concerns, the policy response has focused on the issue of ‘too- big- to- fail’ institutions. The Financial Stability Board (FSB) has proposed that global systemic financial institutions should be better capitalized and be submitted to higher capital surcharges, proportional to their contribution to systemic risk. It has also recommended a tighter supervision of these institutions, notably by setting up Crisis management groups in charge of monitoring that these institutions develop appropriate resolution and recovery plans. BIS central bankers’ speeches  1  It may be useful at this point to step back a little. The TBTF problem was not born with the crisis. The official recognition of a TBTF policy and the coinage of the term itself date back to 1984 during the testimony before Congress of the then US comptroller of the Currency on the government rescue of the bank Continental Illinois. Afterwards, a further 11 banks were identified as TBTF in an article in the Wall Street Journal. The fact that continental Illinois rescue led to a subsequent decrease in market discipline for these banks has been confirmed by several academic studies. The last crisis however gave rise to two important developments in the TBTF problem.
A flexible exchange rate can reduce fluctuations in employment and output. Empirical studies do not provide any evidence that floating exchange rates have reduced growth in industrial countries. Rather, they suggest that industrial countries with floating exchange rates have fared well, and often better, than countries with an exchange rate target. A precondition is that there is an economic policy framework so that inflation does not spin out of control. Economic developments and prospects External cyclical developments and events have had considerable implications for developments in the Norwegian economy. BIS Review 11/2004  9  Chart 12. a. Output gap  b. Inflation  Deviation from trend BNP. Per cent  Per cent  5  4  4  US  2  Euro area  3  0 2  -2  1  Euro area  -4 1992  1996  2000  US  2004  0 1992  1996  2000  2004  Sources: OECD and EcoWin  The US fuelled the international upswing in the 1990s, with strong growth in private consumption, rising equity prices and a high level of investment. Inflation was low because productivity increased. In Continental Europe, the upturn started later and was weaker. Capacity utilisation in Germany and France was low through most of the 1990s. Chart 13.

At that time, the credit expansion which was caused partly by the deregulation of the credit market resulted in a debt ratio of around 130 per cent, while the interest ratio increased rapidly over a couple of years from around 6 per cent to almost 10 per cent. However, there is no doubt that the recent rise in indebtedness has made households increasingly sensitive to changes in interest rates. Households tend to focus on their cash flow and are unperturbed as long as their debt-servicing costs can be accommodated in their monthly budget. But an interest rate rise of just a few percentage points would have a much bigger impact on cash flow today than when levels were around 15 per cent. An interest rate rise of four to six per cent would cause monthly costs to increase by 50 per cent. Higher mortgage rates could therefore prompt households to increase their saving and reduce their consumption more than expected or intended. Hopefully we will be able to avoid sharp, quick interest rate rises in our conduct of monetary policy, although mortgage rates are also influenced by events outside Sweden. To some extent though, the effect of any increases in rates could be alleviated by the fact that an increasing number of households have recently been switching over to fixed-rate loans. Developments in the commercial property market Prices in the commercial property market have been driven by somewhat different forces than in the housing market.
19  Hermod Skånland writes about the need to hold someone accountable for the hardships of the 1920s: “The government is usually a good target for criticism, but there is little appeal in firing shots at a government that is no longer in office, and through the 1920s there had been so many governments that no single government stood out as more responsible than others. On the other hand, there had been one central bank governor, who had also been a prominent figure. Nicolai Rygg became the obvious scapegoat, open to attack from both the masses and from historians, without any economists springing to his defence. Thus, the myth became established that the economic difficulties of the 1920s were due to parity policy, and that Nicolai Rygg was responsible for them. From there, it was only a short step to a general scepticism towards monetary policy combined with a more specific distrust of central banks and central bank governors.” Hermod Skånland (1998): “Mytedannelsen om paripolitikken” (Myth-making about parity policy), Aftenposten 30 May. BIS Review 154/2010  5  virtually solely responsible – for a policy that became a crucial deterrent to central bank independence for generations of economists and politicians – myself included.” 20 The postwar period of coordination and regulatory optimism Views on economic policy changed considerably from the end of the 1930s. The Bretton Woods system of fixed exchange rates against the US dollar was established, with the US dollar pegged to gold.

However, Norges Bank’s tasks have otherwise varied over time. We manage the Norwegian oil fund, which was a natural step in light of Norges Bank’s management of foreign exchange reserves. The fund will not, however, be one of the topics of my speech today. 3 The origins of Norges Bank Norges Bank was established in 1816 as a limited liability company, privately owned but under the control of the Storting. It was Norway’s first bank. The Napoleonic Wars had been costly for Denmark and eventually led to hyperinflation. In order to secure confidence in the new specie daler, Norges Bank had to be independent. 4 The intention was to make it difficult  2  A. Cukierman (2008), “Central Bank Independence and Monetary Policymaking Institutions – Past, Present and Future”, European Journal of Political Economy, 24 pp 722–36. 3  For a discussion of the Government Pension Fund Global, see Gjedrem (2010): “Perspectives on managing the Government Pension Fund Global”, lecture at the Norwegian Polytechnic Society, 2 November 2010. 4  See also Carsten Smith (1980):”Bankrett og statsstyre” [Banking law and public governance], p. 39: “Det klassiske system internasjonalt sett har vært å knytte penge- og kredittpolitikken til en selvstendig stillet sentralbank [The classic system internationally has been to assign monetary and credit policy to an independent central bank].” Universitetsforlaget. 2  BIS Review 154/2010  for the government and the Storting to influence the central bank. The Bank’s headquarters were located in Trondheim, a 12-day journey from the capital.
Because it is a statutory mandate of the Central Bank in Malaysia, it has enabled Bank Negara to lead and drive the financial inclusion agenda with the support of our key domestic partners and stakeholders. With growing global concerns over rising inequality and the disproportionate impact of crises on the poor, there has been considerable focus by Governments and policymakers to ensure that no segment of society is left behind in participating and benefitting from the nation’s development. But what of the role of the financial services industry? It is worth noting that 14 out of the 17 SDGs include specific targets that focus at some level on the financial sector. To mention a few: On poverty: The SDGs include a specific target to build resilience of the poor and those in vulnerable situations; On hunger: Targets include doubling productivity and incomes of small-scale food producers through secure and equal access to financial services; On health and well-being: Ensure universal health coverage, including financial risk protection; On education: Ensure all youth and a substantial proportion of adults achieve literacy and numeracy; On decent work and economic growth: Encourage the formalisation and growth of micro and small and medium enterprises, including through access to financial services; On industry, innovation and infrastructure: Increase access of small scale industrial enterprises to financial services; and Of particular interest to this forum, on inequality: Reduce the transaction costs of migrant remittances to less than 3 per cent and eliminate remittance corridors with costs higher than 5 per cent.

Regulation should only be considered if the objective is abundantly clear and if there is overwhelming evidence that market participants lack the incentives or the capability to adequately manage these risks themselves. Rather than seeking regulation, market participants, central banks and regulators should focus on strengthening an already active dialogue with the aim of furthering our understanding of new types of risk associated with modern financial markets. BIS Review 44/2006  1
15  Financial Services Authority (2009): “Strengthening Liquidity Standards”, Policy Statement 09/16, UK October. BIS Review 131/2009  15  House prices in Norway have risen sharply and probably excessively. We must take account of developments in equity prices and property prices when projecting inflation and output. Norges Bank’s interest rate setting does not rely solely on one simple rule. Instead, we seek to take account of all factors that influence inflation and output in the medium term, and the key policy rate is set on the basis of an overall assessment. Asset prices such as house prices, the exchange rate and credit growth therefore have a bearing on Norges Bank’s interest rate setting. A written formulation of Norges Bank’s monetary policy reaction function would be fairly comprehensive and include all the variables that are considered. However, a reaction function must not be confused with the monetary policy target – our target function. The fact that we give weight to variables such as the exchange rate, house prices and credit growth in interest rate setting does not imply that there are specific target for these variables. The operational target for monetary policy is annual consumer price inflation of close to 2.5 per cent over time. Interest rate setting in a small, open economy can be particularly challenging in periods of strong credit growth and a wide interest rate differential against other countries.

2  Rygg, Nicolai (1950): Norges Bank i mellomkrigstiden (Norges Bank in the interwar years), Gyldendal Norske Forlag, p. 98. 3  Sejersted, Francis (1973): Ideal, teori og virkelighet. Nicolai Rygg og pengepolitikken i 1920-årene (Ideal, theory and reality. Nicolai Rygg and monetary policy in the 1920s) Cappelen, p. 51. BIS Review 131/2009  1  2  BIS Review 131/2009  Today we can see that the crisis was amplified by the surprise at how closely financial markets are interconnected. 4 Losses on high-risk US subprime mortgages triggered general distrust in the financial system. Financial institutions began to doubt their counterparties. They did not know whether counterparties held sufficient capital to cover any losses. Even worse, they were uncertain whether counterparties’ counterparties would be strong enough to withstand losses. So they stopped lending to each other. In the interwar period, as described by Rygg, depositors were responsible for the flight of funding. This time, that role was taken by banks’ lenders. Confidence had evaporated. Many banks worldwide had to take losses. The liquidity crisis turned into a solvency crisis. Banks in Norway have also noted that borrowers have experienced problems servicing their loans. However the increase in non-performing loans has been modest compared with the banking crisis at the beginning of the 1990s. 4  See for example Caballero, Ricardo J. and Pablo Kurlat (2009): “The ‘Surprising’ Origin and Nature of Financial Crises: A Macroeconomic Policy Proposal”. Paper presented at the Federal Reserve Bank of Kansas’ Jackson Hole Symposium.
Saudi banks have benefited greatly from the Universal Banking Model permitted by SAMA and offer a range of financial services including investment management, mutual funds, brokerage, and other services. During the past decade, the volume of business of Saudi banks has grown at a phenomenal rate. In the ten years period 1996-2005, the banks’ assets grew by 213 per cent, deposits by 224 per cent and capital and reserves by 248 per cent. During this period the profits for the banking system showed strong growth and the return on equity averaged well over 20% and return on assets was over 2%. The strength of Saudi banks is further underlined by their average risk-based capital adequacy, which has been high according to Basel capital adequacy standard, and averaged 18% during the past decade. If we review our long history of foreign investment in the financial sector since early 1950, a number of foreign banks were granted licenses to open branches in the Kingdom. In 1976, there were 12 banks in the Kingdom including 10 foreign banks. To Saudize the banking system and benefit from foreign expertise of the banks operating in the Kingdom, the government invited foreign banks to convert their branches into Saudi-foreign joint stock companies with an equity share of 40% for the foreign partner. Technical Management Agreements were also entered into to manage the new banks by the foreign partners.

Consequently, Saudi banking companies were established and became integrated with the global banking system, benefiting from its expertise and training capabilities, and coped with its  BIS Review 59/2006  1  developments. Eventually, the Saudi banks compare well with their counterparts in advanced countries. During the 1990s, no new bank licenses were issued. However the year 2000 ushered in a new era of openness when a license was granted to the Gulf International Bank, a Bahraini bank, owned by the GCC countries. This was to implement a decision made by the GCC Heads of States to permit qualifying GCC-owned banks in their home markets. This has been followed by new licenses to 4 more GCC-owned banks, (namely the Emirates Bank International, the National Bank of Kuwait, the National Bank of Bahrain and the Bank Muscat). Licenses were also granted to five other major international and emerging market banks (that include BNP Paribas, Deutsche Bank, JP Morgan, State Bank of India and National Bank of Pakistan). Just during this past week Deutsche Bank has opened its branch in Riyadh and National Bank of Kuwait in Jeddah. The remaining banks are in the process of opening their branches in 2006. On 27/2/1427H, a Royal Decree was issued approving the incorporation of a joint-stock company under the name "the Development Bank", with a capital of Rls 15.0 billion. This would enhance competition and open new horizons for diversified banking services.
48  All speeches are available online at www.bankofengland.co.uk/speeches  48  Chart 16: Change in bank capital and lending growth, 2010-2016 Growth in net loans (%), 2010 to 2016  300  200  100  0  -100 -10  0 10 20 Tier 1 capital ratio, change from 2010 to 2016 (percentage points)  30  Sources: S&P Capital IQ and Bank calculations. Chart 17: Leverage ratio as a function of the target hit rate  Target hit rate (%)  100 90 80 70 60 50 40 30 20 10 0  2  3  4 Leverage ratio (%)  5  6  Sources: Buckmann, M., Kapadia, S., Kothiyal, A. and Bank calculations. 49  All speeches are available online at www.bankofengland.co.uk/speeches  49  Chart 18: Receiver operating characteristic (ROC) curves for individual and combined regulatory tools (76 bank sample with NSFR) 1  Hit rate  0.8  0.6  0.4  0.2  0 0  0.2 LR  0.4 RWCR  0.6  False alarm rate NFSR  0.8  1  LR + RWCR + NFSR  Sources: Buckmann, M., Kapadia, S., Kothiyal, A. and Bank calculations.

The Labuan IBFC's competitiveness will be further enhanced through a revision of the pricing structure pertaining to incorporation and maintenance fee charges. There will be an annual reviews and prices will be revised in response to competitive market developments. The Labuan IBFC will also leverage on the national strategy of the Malaysian Islamic Financial Centre by promoting Syariah-compliant trusts and foundation. These products will complement Islamic financial products and services already available in Kuala Lumpur. Efforts will also be taken to further develop Labuan's captive insurance business which has enjoyed commendable growth over the years. Conclusion Ladies and Gentlemen, The establishment of Labuan as an international offshore financial centre in 1990 was indeed a bold step in its time. We are now seeing the payoffs from this initiative. With the transformation of Labuan as an International Business and Financial Centre, our ambition will be taken further. The new name signals that Labuan is ready to take on the much broader and larger role. The new name also represents a commitment. A commitment for the future. To demonstrate this commitment, the Government and the regulators have put in place the supportive and enabling environment to promote a more connected and more cost effective environment. Continued initiatives will also be taken to remove any impediments and obstacles to a more efficient delivery system and to advance forward the Labuan IBFC. 2  BIS Review 10/2008  The responsibility for ensuring the ambitions of the Labuan IBFC to be realised, is however, a shared responsibility.