samchain/econo-pairs-v1 huggingface dataset:
Pre-determined trigger events do not only have to be weather–related risks 5. Travel, power outage, cyber threat and business interruption risks caused by supply chains may also benefit from pre-determined payouts. There are thus ample opportunities for the industry to test or pilot such innovative offerings. On our end, the Bank is committed to provide a more enabling environment for the industry to explore, test and introduce innovations. For areas that may require regulatory flexibility, we plan to enhance the Regulatory Sandbox with pathways to accelerate time-to-live testing by simplifying the gatekeeping process for institutions with strong risk management capabilities. We expect to announce more details on this later in the year and hope to see greater participation by the industry to offer innovative protection solutions through the enhanced Regulatory Sandbox. Expanding the horizons for the future of insurance – augmenting protection with prevention Lastly, it is also imperative to augment the future of insurance to include risk prevention. Insurers and takaful operators have always played this role. For years, the industry has provided consumers with loss prevention advice for commercial lines. Ways and demands on risk prevention, however, are evolving. We expect to see a collective shift in the role of the industry from loss reimbursement to loss control and prevention in the upcoming years.

The highly fragmented banking system and relatively weak risk management systems within the domestic financial institutions which prevailed in Malaysia prior to the financial restructuring and reforms that were undertaken from 2001 would have rendered the implementation of Basel II extremely difficult, if not impossible to achieve without risking disruptions to the intermediation process. The financial reforms that were undertaken to strengthen the underpinnings of our banking system are therefore instrumental in facilitating the smooth transition to the adoption of Basel II in Malaysia without adverse market outcomes. In the more recent period, the Asian region as a whole has made significant strides towards strengthening market structures and institutional arrangements for financial stability. Two developments deserve mention, in view of their important contributions towards mitigating some of the concerns surrounding Basel II for emerging economies. First, in the decade following the Asian crisis, the emerging economies in Asia have extensively developed their bond and equity markets. Measured in terms of market capitalisation, East Asia's equity markets have more than trebled since 1997. The bond markets in the East Asian region have also seen significant growth during this period with significantly improved liquidity conditions in these markets. There is therefore now a more diversified structure in the financial system. Second, within Asia, the regional cooperative framework has been substantially strengthened to support financial sector development, surveillance, crisis management and capacity building.
Setting regulatory standards and collecting data is only the start of the supervisory process. Working out what the data mean is a second stage. Recent research has demonstrated how machines can now outperform doctors in the diagnosis of certain forms of skin cancer: machines can be taught to recognise cell clusters more accurately than the human eye can. This does not, however, imply there is no role for doctors in the treatment of cancers; quite the opposite. By using technology to perform certain roles, doctors can free up time to focus on cancer treatment and patient care7. This is an example of what is sometimes referred to as human-centred automation “… which considers where humans can often do tasks or make better judgements than machines, and designs automation around these strengths”8. In a similar way, by introducing ML to perform complex tasks, we ought to be able to free up and focus supervisors’ time where it is most needed. Take the case of credit unions. Of the 570 or so U.K. domiciled credit institutions, about 450 are credit unions. These are very small and simple providers of credit facilities that between them account for 0.07% of the assets of the UK deposit taking sector. Because none of these lenders is sufficiently significant to the stability of the financial system as a whole, we supervise these entities in a proportionate manner.

To August, the central government, Social Security and regional government budget outturn evidenced a deficit of 4.3% of GDP, a 0.3 pp improvement on the same period the previous year. To meet the deficit target requires an improvement of 0.8 pp of GDP over the year as a whole; accordingly, the increase in revenue and/or the containment of spending in the final four months of the year will need to be greater than that recorded between January and August. This greater effort should be concentrated at the regional government level where, on the information available, the risks of slippage are located. For 2015, the Budgetary Plan sets a budget deficit target of 4.2% of GDP, 1.3 pp of GDP below that for 2014. In terms of the different agents, the reduction in net borrowing would amount to 1 pp of GDP in the case of central government and the Social Security system, while the regional governments should adjust their fiscal imbalance by 0.3 pp of GDP and local governments should run a balanced budget. In 2015, the improvement in the cyclical position and the reduction in government debt yields will contribute to enhancing public finances. On the estimates available, meeting the deficit target for the coming year will require a budgetary adjustment drive, measured by the change in the primary structural balance, that is appreciably less than that made in previous years. Overall, what we have is a more favourable macroeconomic scenario for the adjustment than that in place in 2012 and 2013.
However, one can argue that there is something wrong in the level of profits shown if the latent credit risk in the loan portfolio is not properly taken into account. Intrinsically every loan has an expected (or potential) loss that should be recognised as a cost by means of an early provision. Otherwise, the picture of the true profitability and solvency of the bank over time could be distorted. More dangerously, the overvaluation of profits might lead to an increase in dividends that could undermine the solvency of the bank. Therefore, the acknowledgement of latent losses is a prudent valuation principle (similar to the mathematical reserves set aside by insurance companies) that contributes to correcting the cyclical bias that currently exists in the profit and loss account. The management of credit risk in the banking sector has perhaps something to learn from insurance practices. Theoretical papers on bank credit risk management also go in the same direction, stressing the importance of proper pricing (i.e. the interest rate charged should cover expected losses as well as the cost of holding capital for unexpected losses). Estimating expected losses when the bank assesses the borrower is the first step for sound risk management. Proper risk management is obviously a primary task of bank managers and shareholders. But we, as bank supervisors, should evaluate the effectiveness of a bank’s policies and practices for assessment of loan quality and provisioning practices.

Economic perspectives Address by Governor Øystein Olsen to the Supervisory Council of Norges Bank and invited guests on Thursday 15 February 2018  Analyses and charts are based on information up to and including 9 February 2018  Thursday 15 february 2018  Economic perspectives 2017  Norges Bank Economic perspectives 15 february 2018  Introduction “All things will pass, even a crisis. After the darkness comes the dawn.”1 With these words, former central bank governor Nicolai Rygg summarised the turning point in the 1930s. The advanced economies have emerged from another challenging period. Ten years ago the world economy was hit by a shock and thrown into the deepest recession since the 1930s (Chart 1). Chart 1 Economic growth following the financial crisis. GDP per capita. Index. Value in year recession started = 100 120  120  Euro area (2007=100) US (2007=100) Previous recessions 1)  110  110  100  100  90  90  80  80 −5 −4 −3 −2 −1  0  1  2  3  4  5  6  7  8  9  10  Number of years before and after recession 1) The first year of a recession is defined as a year where per capita GDP growth turns negative. Previous recessions are defined as the median of all recessions in the period 1920 – 2002, based on the Jordà−Schularick−Taylor Macrohistory Database. The database covers 17 countries.
In Sweden, the banks have operated in a competitive environment since the deregulation of the 1980s and have been forced into a process of considerable rationalisation. Capitalisation is also satisfactory. There is reason to believe that the Swedish banks would be able to take advantage of the less expensive borrowing conditions in a single currency market and that they would be able to spread their risks over a greater number of counterparties, which would be positive for stability. In the long run, the banks’ customers may find it easier to come into contact with other European banks. This is an important aspect of increased  6  BIS Review 29/2003  competition, although wise lenders nevertheless respect the “church tower” principle, namely to lend only to those that you know well - those that you can see from the local church tower. I do not believe that a single currency in itself would increase credit risk in the banks. If monetary union in the long run were to result in a more integrated market for financial services, the current Swedish banks would most likely be rather small participants in this market, and each bank would be less important for the effective functioning of the payment system. Their significance for financial stability would decrease and the need for public intervention to safeguard stability in the financial system would therefore also be reduced.

During that time, the Riksbank was legally responsible for the exchange rate regime, and the reasons therefore for considering ERM participation were quite simply to prevent the regime of floating exchange rates from constituting a formal obstacle to Swedish participation in monetary union, in the event this was to become a possibility. When the government then decided that there was insufficient popular support for Swedish participation in monetary union, the question of changing the exchange rate regime was dropped. In connection with the Riksbank being made formally independent in 1999, new legislation on exchange rate policy was also introduced. Nowadays, it is the government that decides upon the issue of our exchange rate regime, although the Riksbank determines how it is to be implemented. In other words, it is the government that would decide whether and when the krona should join the exchange rate mechanism ERM2. Following that, the ministry of finance and the Riksbank would decide what rate between the krona and euro we assess to be consistent with a stable development of the economy. There are very good reasons to agree upon a common line of action. This is why we are holding discussions already among toplevel officials about an appropriate line of reasoning, the results produced by different estimation methods, etc. If we do not reach agreement, it is likely to be difficult to hold effective discussions with our European partners.
We know that the UK’s terms of trade have improved substantially since the mid 1990s, as the price of our imports has fallen more than the price of our exports, boosting domestic spending power. But this seems to be partly an IT story, much of it concentrated in capital rather than consumer goods; and lower prices may be related to exchange rate changes, which could be temporary. Clearly new technology is playing an increasing part in helping consumers to search out bargains as well as to make purchases. While the total value of on-line sales remains relatively small, it is clearly growing very rapidly. Comprehensive data is still hard to come by, but one source suggests that on-line sales have risen more than ten fold over the last four years. Several recent reports have pointed to a sharp acceleration in the second half of last year, as the habit of e-shopping spreads. Structural changes within the retail sector are also part of the story. High street retailers are facing stiff competition from the major supermarket groups across a wider range of products. BIS Review 11/2004  5  What is driving these changes? No doubt there are many factors at work, but I find the Agents’ picture of an increasingly demanding consumer quite thought provoking. We live in a consumer society, and shopping, in one form or another, is what many people do much of the time; helped by technology, why wouldn’t they learn to do it rather well?

Prudential limits on banks’ FX balance sheets, in the form of specific LCR and NSFR in FX, have been imposed. In practice, this will greatly limit the size of their FX balance sheets and the associated maturity mismatch that was the proximate cause of the demise of the old banks that failed during the crisis. Finally, a tax or other equivalent measure of the type I just mentioned is being contemplated. 3 Taken together, this will amount to a very different paradigm for economic management than the one prevailing before the crisis. History will tell whether it is sufficient to preserve monetary and financial stability in the rougher seas of freer capital movements that we intend to embark upon. In any case, we need to strike a balance between dynamism and freedoms, on the one hand, and stability, on the other. Thank you very much. 3  4  Further details on these proposals can be found in Central Bank of Iceland Special Publication no. 5: Monetary policy in Iceland after capital controls, December 2010, and no. 6: Prudential rules following capital controls, report of the Central Bank of Iceland to the Minister of Economic Affairs, August 2012. www.cb.is. BIS central bankers’ speeches
This cooperation has already 6  become a reality thanks to the CNIL's (National Commission for Information Technology and Civil Liberties) presence in the Artificial Intelligence Task Force led by the ACPR, which will publish a report in the coming months. I hope that this cooperation will deepen further in the coming years. As a result, data are more than ever a strategic asset. In these circumstances, faced with the risks of cybercrime, it is imperative to ensure security. The digital revolution has been accompanied by the emergence of IT attacks, which have been increasingly publicised. The insurance industry, where information systems play a major operational role, has not been immune to such cyber-attacks. Insurers now need to manage and guard against this risk, which, in their case, is increased by the criticality of data (medical, personal, financial, etc.) handled and stored in their information systems. Public authorities are seeking to address these challenges and have undertaken major initiatives to raise awareness among insurers as to this new type of operational risk, as the IT systems of the insurance sector are still too vulnerable. It is primarily up to the market to design efficient security schemes compatible with the opening-up of information systems and innovation. This is a huge challenge, but it is in this spirit that the ACPR works.

The market share of Islamic banking assets of total banking industry has grown from only 6.9 percent in 2000 to 22 percent in 2011. The contribution of Islamic finance to the Malaysian economy has also been growing significantly, accounting for 2.1 percent share to the country’s GDP in 2009, as compared to only 0.3 percent in 2000. This has led to greater job creation where employment in Islamic financial industry accounts for 11 percent of total employment in the financial sector. On the international front, greater liberalisation of the Islamic financial system has seen greater foreign presence and participation in our Islamic financial system. There has also been an increasing trend in foreign participation in the domestic Islamic banking and takaful industry, as well as the Islamic capital market. Moving forward, it is envisaged that Islamic financial institutions in Malaysia will also expand beyond national boundaries to increase economic and financial linkages with other parts of the world. This rapid internationalisation of the financial system and technology advancement will demand a corresponding increase in quality skills and expertise of the industry. Talent upscaling will be even more important in the next decade, to steer the industry’s advancement in the increasingly complex and competitive financial ecosystem. A strong and dynamic workforce will be one of the important pillars for the industry to remain stable and competitive. It will also serve as a catalyst to spur innovation.
These factors have slowed the recovery in primary issuance, and suggest that ABS markets are likely to be much smaller in future. Indeed some markets that were at the epicentre of the crisis, such as those for structured collateralised debt obligations (CDOs), may be permanently gone. 5  Just in the past couple of weeks we have seen the first European CMBS to be issued since August 2007. In the United Kingdom, some corporates have issued long-dated fixed-rate bonds secured on real estate as part of sale and leaseback transactions. Market participants, however, tend to regard these transactions as corporate debt, rather than CMBS. 4  BIS central bankers’ speeches  Chart 6 10-year sovereign bond yield spreads to German Bunds Basis points 1400 Portugal  Italy  Ireland  Greece  Spain  United Kingdom  Chart 7 Selected European sovereign CDS premia Basis points 2000  1200  1000  1800 1600 1400  800  600  400  Ireland Italy Portugal Spain UK Greece (LHS)  Basis points  0 Jan.  Mar. May. Jul. 2010  Sep.  Nov.  Jan.  Mar. May. 700 600  1200  500  1000  400  800  300  600  200  400 200  800  100  200 0 Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. 2009 2010 2011  0  2011  Sources: Bloomberg and Bank calculations.

In most cases, these branches or outlets are located in urban centres, with rural areas having few if any branches. Conversely as at June 2010 the three mobile phone operating networks in Zambia had a total of about 4.6 million subscribers. Distinguished participants, this situation grants us an opportunity to develop innovative approaches of extending financial services. It will no doubt involve remodelling of traditional  BIS Review 144/2010  1  products, service delivery channels and regulatory frameworks. It is important that all possible alternatives are critically examined for viability, safety and efficiency. Some of the alternatives that need urgent examination include bank partnerships with non-bank agents to provide wider distribution outlets for payments and other financial services, and leveraging new technologies such as a common national switch to extend financial services. Mr Chairman, the Mobile Money Transfer has the potential to act as the fulcrum of branchless banking, which allows provision of transactional banking services without the need of a “brick-and-mortar” branch. Individuals are allowed to remotely access cash using different technologies, which may include automated teller machines, point of sale devices, mobile phones, payment cards or other smart technologies. To ensure that payment service providers take full advantage of the benefits that come with implementation of a Mobile Money Transfer, they must develop and embrace new business models. These models may be built around the existing large financial flows such as remittances, salary and wage benefits, pensions and other government social benefits transfer system.
To make an effective contribution to the development of payments & settlements and also to increase trade and investment flows nationally and regionally, it is necessary to identify the common themes in the form of public policy goals. In this context, the central banks are called upon to take certain minimum actions to further these goals. 6.2 However, the manner and intensity of the current involvement of central banks in payment systems development differ from one country to another. The roots of each central bank’s specific pattern of involvement lie in the different institutional structures and traditions of each country. The central banks may accordingly decide on appropriate action, beyond the minimum, which depends on the national and institutional background. 7. Importance of regional efforts  7.1 By and large, central banks in the SAARC region and elsewhere are currently involved with payment systems in three main ways, namely, in an operational capacity, as payments system overseers, or as catalysts or facilitators of market and regulatory evolution. 7.2 As all central banks are aware, markets may encounter persistent impediments to payment systems development and may become unable to produce efficient and safe services. The existence of such impediments would give rise to policy issues for central  2  BIS Review 35/2008  banks, especially due to their responsibility in achieving the core objectives, such as price stability and financial system stability.

These impediments can take the form of legal and regulatory inefficiencies, structural and performance weaknesses of the markets, the outmoded standards and infrastructure used, or the lack of attention by the central banks and regulatory authorities. While it is important for the national central banks to address these issues and find remedial action early, given the increase in trade, investment and crossborder financial flows, it is essential for the region to have a common understanding and apply, where possible, common standards. 7.3 The design of every payment system requires a series of trade-offs between the different elements of its objectives. The precise outcome of these trade-offs will vary, because they will be closely based both on national realities and international best practice. This emphasizes the need for close and continuous consultation in each country between the suppliers of payment services and the central banks as the overseer and regulator of the systems. The ultimate target of these consultations is to ensure the easy availability in each country of a payment system that meets the needs of its users, that enables the suppliers to cover their costs, and that does not absorb an excessive proportion of the national resources. That is why many regional payment system development initiatives have sprung up over the last few decades. For example, South African Development Community (SADC Payments Initiative – 1996), the Western Hemisphere Payments Initiative (1999); the Commonwealth Independent States Payments Initiative (2004); and the Arab Payments Initiative (2005) are some of the well functioning regional payment Initiatives.