samchain/econo-pairs-v1 huggingface dataset:
Caruana, the Bank of Spain governor, has become the driving force in one of the most controversial regulatory efforts in decades, said he was prepared to intensify efforts to convince those affected of the accord's merits. “There is a unanimous understanding of the need for Basel II,” he said. “It is a completely new approach and in that sense you could say that it is a kind of revolution.” To the ramparts Caruana defended the accord, saying the U.S. decision to apply the new rules to only the top 10 banks - instead of all banks as Europe intends - met the spirit of the accord because U.S. banks already met high regulatory capital standards. “We respect their decision. We think this is perfectly compatible with Basel II. Europe has taken a different decision,” he said. Caruana rejected concerns that it could dry up some capital markets, as banks fear, as some market activities could be assigned a higher risk weighting under the new accord. “Frankly speaking, we don't think that this is a problem. The strategic decisions that banks have already taken are based on economic capital and the accord should not change this,” he said. Daniele Nouy, secretary general of the Basel Committee and Caruana's top assistant, said in the same interview that banks already assigned a cushion of economic capital to their different areas of activities, including market activities. The new accord should broadly follow existing practices. “We don't anticipate as many changes as people believe,” she told Reuters.

He knows market risk. He worked on the trading floor,” Lannoo said. Lannoo and the shadow committee are critics of the accord, saying its overly complex nature may in fact heighten systemic threats by “capturing” regulators who would be required to take a more active role in banks' daily operations. Revolution in the making The new accord, now over five years in the making, represents a revolution for the banks who will adopt it. It leaves the first accord's simple dictates behind and offers a menu ranging from basic to complex. A second Basel Committee member, who also requested anonymity, said he had few doubts that the technocrat Caruana was the right choice for the job due to his expertise in such a complex field. “This is not new territory for Jaime,” he said. Indeed, some critics of the accord say a technocrat like Caruana is just who is needed to make sure that the byzantine draft is moulded into shape before being finalised by the end of this year. Caruana, a 51-year-old Valencian, studied telecommunications engineering and then qualified as a government economist. Those who have worked with him say he is a real technology fan, which given his studies is no surprise. The current controversy over the Basel reform is probably a source of discomfort for Caruana, who keeps himself to himself. “He is very simple and discreet, and shys away from limelight,” says a former colleague.
It would be naive to think that we can be right all the time. Nobody can be. We can only be less wrong. But more importantly, public support should not be built merely upon faith in an esoteric and aloof BIS Review 87/1998  -3-  HKMA being professional and acting in the best interest of Hong Kong. Whatever reputation the HKMA has been able to achieve, domestically and internationally, such support could never be sustained for long. We do run a system that, at times, inflicts considerable pain on the community. Many of the decisions taken by the HKMA are unpopular. The pain and the unpopular decisions may become too severe to bear just on the foundation of faith, particularly in the peculiar political setup of Hong Kong. 11. An essential part in the management of the political process concerning monetary issues, therefore, is to promote a better general understanding on those issues. This is not easy. Not only are those issues technical, but they are also changing all the time with the rapid changes in the global financial scene. Financial liberalization and the globalization of financial markets, encouraged by the advance of telecommunications and information technology, have drastically changed the behaviour of money. On top of all this, we have the complication that Hong Kong’s monetary system has really only started to take shape in the past ten years or so, as monetary reform measures were introduced to modernize it so it could cope with the demands and expectations of modern finance.

Piece together these facts and you will have quite a clear picture of what happened and whether there had been manipulation or a danger of serious market dislocation. Your views are as good as mine; but for what it is worth, let me give you my assessment. In contrast to October last year, when they had to pay very penal interest rates to fund their short Hong Kong dollar positions, during the currency attack in August this year the hedge funds had pre-funded themselves. This they did by swapping US dollars for Hong Kong dollars, through intermediaries, with multilateral institutions which had issued Hong Kong debt paper, incurring an interest cost of $ million a day for the $ billion position. But this was not a lot of money to them. We had reason to believe that they had been building up and maintaining quite large short positions in stock index futures. With an estimated 80,000 short contracts held amongst these hedge funds, for every thousand-point fall in the stock market index, they stood to profit $ billion. The cost and benefit calculation is clear. And this is the case regardless of economic or market fundamentals. So they waited for a good opportunity to sell the Hong Kong dollars they had borrowed, in the hope of creating a severe shortage in the money market and sharply higher interbank interest rates, thereby sending the stock market into a nosedive.
More strategic partnerships would also expand the IFSB’s capabilities in research, training and provision of technical assistance, all of which are critical to the development of the industry. Continued and stronger support for the IFSB, including active feedback from members on its Consultative Papers and participation in IFSB related events, as well as greater collaboration and cooperation between the members would further support the work of the IFSB. Consistent implementation of the prudential standards issued by the IFSB also enhances regulatory harmonisation and promotes full adoption of the standards. Of importance is the need for the IFSB to ensure that regulatory standards remain not only adaptive and effective in the changing regulatory environment, but also in riding the evolutionary waves of financial innovation that is prevalent in Islamic finance. Our quest and shared aspirations for financial stability requires concerted efforts on all fronts to foster a resilient and sound global Islamic financial system. The IFSB is an important part of these endeavours and its work remains relevant as we face a time of increasing uncertainties. The strategies identified in the IFSB’s Strategic Performance Plan for the year  2  BIS central bankers’ speeches  2013 to 2015 provides the focus for the IFSB to achieve the key result areas charted in the roadmap. I am confident that the IFSB would effectively manage its journey ahead amidst the increasing challenges, with the collective support from its members. Indeed, we look forward to the constructive outcome of the deliberations during this 10th IFSB Summit.

These include changes that have heightened competition and which have fostered the emergence of increasingly diverse market participants and organisations. The dramatically changing landscape calls for a new generation of highly-qualified professionals equipped with more comprehensive skills. To support and sustain these developments, the education system must evolve so as to meet these new demands. Against this backdrop, our ability to sustain long-term growth clearly depends on our ability to build, maintain and continuously expand our knowledge base. The key to this process is thus to be able to adapt to the new environment. As Charles Darwin observed "It is not the strongest", "nor the most intelligent that survive" but it is those that are "the most responsive to change." It is this capability that needs to be cultivated to ensure a mobile and agile work force that can adjust and respond to the emerging developments in the changing environment. As graduates today, you embody the hopes of the nation in making the transition towards a knowledge-based economy a reality. In graduating today, you would have achieved an important milestone in your life. This is indeed an important and distinct mark of success for all of you. Not so much because of the degree which you now hold in your hand, but more importantly its promise for your future. Your journey to reach this moment is a testimony of your own individual potential, determination and hard work. BIS Review 3/2006  1  The learning experience, however, needs to go on.
Islamic banking has strongly emerged as an efficient and effective financial intermediation channel, forming an integral part of the overall Malaysian financial system. Today, we have developed a comprehensive Islamic financial system covering banking, Islamic insurance, the money market and capital market, that operates in parallel with the conventional system. Islamic banking now accounts for 10 percent of the market share of the total banking system. There has been a rapid expansion in the development of Islamic financial instruments. At the global front, Malaysia was the first country to issue a sovereign Islamic financial instrument launched in the international financial markets. The capacity of the Islamic banking institutions to arrange and offer products with attractive features and competitive pricing, which are comparable to the conventional products has been enhanced. While Islamic finance was first introduced to meet the needs of the Muslim community, today, the Islamic financial products and services have wide appeal to both Muslim and non-Muslim customers. The Malaysian Islamic banking institutions operate under a robust regulatory and supervisory framework at par with the conventional banking institutions to ensure the soundness and stability of the system. At the international level, the establishment of the Islamic Financial Services Board will further harmonise the international prudential and regulatory standards for the Islamic financial institutions on a global basis.

The development of the venture capital industry, a better framework for SME financing and the provision of micro financing continue to be important priorities to ensure that credit is made available to all segments of the economy, as well as to support the growth of new areas and industries. Increased focus on developing these financing modes has been supported with higher public sector budget allocations for the venture capital industry and for specific development financial institutions to channel micro-credit to small micro-enterprises. Priority has also been accorded to investment in information and communications technology by the banking sector. With the completion of the consolidation exercise, domestic banking institutions have actively embarked on upgrading their systems, including in product delivery, risk management and information systems. The adoption of technology in the Malaysian banking system has predominantly been to automate business processes. However, more recently technology has been used as a tool to assess and drive business performance. With competition in the market becoming increasingly intense, the ability to understand the drivers of performance and the ability to make prompt response is vital to remain competitive. Business delivery channels and business processes have also been reviewed to enhance efficiency levels and service quality to the customers. Many have formed strategic alliances with partners to enrich their value proposition to their customers through cross-selling of products and services. Indeed, the Malaysian banking industry has now become more consumer-centric.
In particular, it stated that the Committee expects it will be appropriate to maintain the federal funds rate at its current target range until labor market conditions have reached levels consistent with the Committee’s assessments of maximum employment and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time.9 By linking future policy actions to economic outcomes and ultimately our dual mandate goals, this forward guidance clearly describes the key elements of the FOMC’s reaction function to economic developments and a changing outlook. Ready to Adapt One of the most important, but perhaps overlooked parts of our August announcement is that we will review our longer-run framework roughly every five years. This represents the Fed’s commitment to transparency and our willingness to continue to adapt to changing circumstances. Reviewing our longer-run framework and approach to our goals more frequently will ensure we are well prepared for the future, whatever it may bring. Conclusion I’ll conclude with this: these are extraordinary times. The announcement of changes to our longer-run framework comes during one of the most challenging periods our country and our economy have ever faced. These changes to the framework mean that we are well positioned to deliver on our dual mandate goals and support a strong and sustained economic recovery. 1 See Board of Governors of the Federal Reserve System, Statement on Longer-Run Goals and Monetary Policy  Strategy, as amended effective August 27, 2020.

As we work to help restore balance to the economy and bring down inflation, our actions will always be driven by the data, and we will remain focused on achieving maximum employment and price stability. 1 Board of Governors of the Federal Reserve System, Statement on Longer-Run Goals and Monetary Policy  Strategy, as adopted effective January 24, 2012. 2 See Board of Governors of the Federal Reserve System, Federal Reserve Issues FOMC Statement, November  3, 2021; Board of Governors of the Federal Reserve System, Federal Reserve Issues FOMC Statement, December 15, 2021; and Board of Governors of the Federal Reserve System, Federal Reserve Issues FOMC Statement, January 26, 2022. 3 Board of Governors of the Federal Reserve System, Principles for Reducing the Size of the Federal Reserve's  Balance Sheet, January 26, 2022. 4/4  BIS central bankers' speeches
Elvira Nabiullina: Bank of Russia’s 2020 Annual Report Speech by Ms Elvira Nabiullina, Governor of the Bank of Russia, at the joint meeting of State Duma dedicated committees on Bank of Russia’s 2020 Annual Report, 27 May 2021. * * * Good afternoon, Mr Aksakov. Good afternoon, dear colleagues. First of all, I would like to thank the members of the dedicated committees for the meaningful analysis and assessment of our work in 2020. Both within working groups and at the meeting with parliamentary fractions that my colleagues and I attended, we received not only comments, but also suggestions regarding measures that might be implemented in the future to develop the financial market. We will surely study them in detail. I would like to affirm that I and my colleagues, who are also present here today, would be glad to answer your questions. We are ready to provide various types of information about our work, results, and objectives. The heads of the committees of the National Financial Board, where all issues are discussed, also carry out extensive work. Hence, we are closely communicating with the State Duma not only when we present our report, but also throughout the year.

Our plans for the near future include analysis of the usefulness of insurance products — this is the start of important work and we are beginning to systematise this work. Some insurance products, especially in prescribed insurance, are questionable, in our opinion. We already identified instances of inefficient insurance, and we discussed them at the State Duma’s plenary sessions as well. I am talking about the so-called insurance in equity construction. It was only for the sake of appearance, but actually did not protect anybody’s interests. As we have a very large portion of prescribed insurance, the analysis of the usefulness of insurance products for customers with the assessment of required changes in this regard is extensive and systemic work that we are starting to carry out on a continuous basis. The last topic I would like to address — I do not have enough time to provide detailed information, but it is always a matter of special attention for us and deputies particularly focus on it — is financial consumer protection. Retail investors — Russians who have entered the securities market — currently number nearly ten million. And this number might continue to grow. In many countries, the portion of people participating in the securities market is even larger. Currently, people predominantly invest rather small amounts. However, the growth rate is high, and there are a lot of newcomers in the market. It is difficult for them to assess the risks and pitfalls of various financial products, which are often complex.
As a manifestation of this, China’s energy consumption per head in 2009 was half that of the UK level, having been just a fifth a decade earlier. Moreover, demand tends to be relatively price-inelastic, at least in the short run, though over a longer time frame there is surely some scope for increased substitution towards more energy-efficient practices. The immediate prospects for oil prices are, though, likely to hinge on supply conditions. Oil stocks are at reasonably healthy levels and can be utilised to meet short-term demand. More importantly, OPEC is believed to have spare capacity equal to around 5% of consumption, compared to a long-run average level of nearer 3% (Chart 5). That is more than enough to meet any shortfall resulting from the withdrawal of Libyan supply from the market (around 2%  BIS central bankers’ speeches  3  of total oil production). But if the present political upheavals were to disrupt Saudi Arabian supply, then that could potentially lead to very sharp upward pressure on oil prices. Prospects for the medium to longer term must depend on how quickly new sources of supply can be brought on stream to meet growing demand. The investment cycle in oil extraction is relatively long, and the current elevated level of prices is in part a reflection of low investment a decade ago.

As I said at the beginning, the annual variation of the Consumer Price Index excluding Food and Energy (CPIEFE)—our measure of core inflation that deletes the prices of food and energy from the CPI—has remained below 2%, with annual inflation still negative for goods and persistently around 3% for services. The CPI has approached 3%, mainly driven by the behavior of the more volatile prices (Figure 9). The peso depreciation has an effect on the revision of the short-term inflation outlook. By the end of this year, the annual variation of the CPIEFE is forecast to be at 2.7% (2.3% in June) and that of the CPI, at 3.1% (2.8% in June). Once both indicators converge to 3% during 2019, they will remain in the neighborhood until the end of the projection horizon (Figure 10). It is very likely that in September the annual CPI inflation rate will be temporarily above 3%, because of the low basis for comparison left by the unusual behavior of some foodstuffs in 2017. Regarding monetary policy, we think that the evolution of macroeconomic conditions makes it less necessary to maintain the current monetary stimulus. Therefore, our working assumption for the MPR is that it will begin to increase in the coming months and by 2020 it will stand near its neutral level—ie. between 4% and 4.5%. This assumption is not essentially different from the forecast a few months ago, as it implies gradual increases in the policy rate associated with the recovery of the domestic economy.
The Riksbank has a target for inflation, not for the krona exchange rate – but the exchange rate affects inflation The krona and the role it plays, and will play, for inflation in the future is an issue that has been in focus in the economic debate. The Riksbank discussed this in connection with our decision in February. In brief, our assessment was that the weakening of the krona towards the end of last year is contributing to raising underlying inflation to some extent now at the beginning of 2023. But given that the krona has weakened over a long period of time, it is at the same time uncertain how companies take the exchange rate into account and how great the impact will be on inflation in the period ahead. Another reason why we talked a lot about the krona in February was to dispel the myth that the Riksbank is now completely disinterested in the exchange rate. We wanted to emphasise that the Riksbank actually follows the development of the krona closely. At the same time, I pointed out that this does not mean that we have an explicit or implicit target for the exchange rate. The Riksbank has an inflation target and we adjust monetary policy to stabilise inflation around this target. But there is, as I said, a link between the development of the krona and inflation. If the exchange rate weakens substantially, this leads to higher inflation prospects, which requires adjusting monetary policy. This is true.

A credible 2 per cent inflation target acts as an anchor Thus, when inflation is high, there are self-reinforcing mechanisms that allow our expectations to adjust and this contributes to keeping inflation high. But an environment with low inflation can also become self-reinforcing in a similar way. Firms are then more likely to let temporary price and cost increases reduce their margins rather than pass them on to customers. The effects on other firms' prices and costs will then be smaller. Businesses and households recognise that inflation remains low and adjust their expectations accordingly. This means people do not need to worry or even think about inflation in their everyday financial decisions. An inflation target of 2 per cent creates good conditions for such an environment, as it acts as an anchor for the expectations of households and companies and also avoids inflation becoming too low. Households and companies assume that inflation will remain around the 2 per cent target going forward, even if it happens to be higher or lower at the moment. But this presupposes that there is confidence that inflation will eventually return to the target. The longer inflation remains above the target, the greater the risk that households and companies will be more inclined to focus on what inflation has been and set their expectations on it continuing to be above the target. Inflation needs to come down significantly this year This is one of the main reasons why the Riksbank has a low tolerance for continued high inflation at present.