samchain/econo-pairs-v1 huggingface dataset:
They will also conduct peer reviews of national supervisors and issue recommendations on the basis of the outcomes. In the regulatory area, they will be able to issue non-binding guidelines on the implementation of EU law. The second pillar – macro prudential supervision The second pillar is the establishment of a new European body responsible for macro prudential supervision. The European Systemic Risk Board (ESRB) will be mandated to identify and assess systemic risks on a European-wide basis. Having a common body that provides a “birds-eye view” of financial system risks will help to avoid repeating the mistakes made during the current crisis, where both regulation and supervision focused too much on individual institutions and markets. Also, by looking at risks arising from macro economic trends, as well as from developments within the financial system, the ESRB can identify threats to financial stability coming from both endogenous and exogenous factors. On the basis of its analysis, the ESRB will issue specific risk warnings as well as recommendations for policy action to address the identified risks. These will be directed to those institutions that have the power to take corrective action. This could include memberstate governments or authorities, the European Commission or other EU bodies. Warnings and recommendations will not be binding. Instead they are expected to be followed on a “comply or explain” basis. On a case-by-case basis the ESRB will decide if warnings and recommendations should be disclosed to the public.

I should note that the remaining vulnerabilities in non-bank finance are perhaps the exception, as on the whole the post-crisis reforms have left a financial system that has stood up well to the acute stress of the Covid period. In order to create a framework for reforms, it is important to set out clearly the principles that should shape the changes. The following principles – while not intended as prescriptive rules – are I think helpful in this respect: 1. As a general principle for all funds – investment and money market – redemption terms should be aligned with the underlying liquidity of assets. 2. Where investors regard funds as cash-like, they should be made resilient so they can operate as such at all times, which means running minimal maturity mismatch risk. 3. Money market funds should not hold less liquid assets on a scale that would make them more suitable to be traditional investment funds. 4. Money market funds should not be designed with regulatory thresholds or cliff-edges which create adverse incentives and amplify first-mover advantage behaviour. 5. Reforms should improve the ability of funds to support short-term funding markets, including by making them more resilient. These principles may sound obvious; indeed, I hope they do. But I would emphasise that they are not obvious in the sense that the current landscape is some way from meeting these principles. I think there are three big picture changes which follow from these principles, and should form the basis of the necessary reforms.
To create value for their clients in this challenging business environment, private banks need strong teams of professional staff, from the front end to the back office. Both technical competency and ethical standard form the basic components of the professionalism of our industry practitioners. The HKMA encourages the industry to promote a competency framework for new entrants and on-going professional training. The financial market is very dynamic and rapidly changing. The industry therefore should ensure that staff are well-equipped with the necessary technical and market knowledge and skills in performing their jobs. It is also fundamental for private banks to act in the best interests of clients at all times. The HKMA therefore encourages the industry to promulgate a set of professional and ethical standards that are designed specifically for the private banking practitioners. I know that the industry is moving towards this direction. HKIB has been providing professional qualifications like Certified Financial Management Planner. In 2011, the Hong Kong Securities Institute (HKSI) also introduced the Certified International Wealth Manager programme. These are well-organised programmes that help enhance the technical competency of industry practitioners. On a separate front, we very much welcome the industry’s proposal to set up a new industry body called “Private Wealth Management Association”. I also support the initiative to further upgrade the professional standards of industry practitioners by developing a new competency framework for wealth management.

Having said that, you may rest assured that the HKMA is committed to continue its collaboration with the SFC and the industry to make sure that our regulatory framework and rules remain friendly to users without compromising investor protection as we go forward in the months and years ahead. The third and final question is: are private banks fully equipped and ready to capture the rapidly growing business opportunities? The answer to this, I would say, is again “yes” followed by a “but”. This is because much more needs to be done by the industry if it wishes to realise Hong Kong’s full potential in the medium and long term. As I said earlier, the adoption of a portfolio approach in private banking would be a move welcomed by private banks and their customers, but private banks must ensure they have the proper systems and controls in place. A portfolio based approach cannot be taken as an excuse to compromise investor protection. For instance, when more Mainland clients open private banking accounts in Hong Kong, our banks must have in place sufficient number of account managers who are professionally competent and linguistically proficient. It is hard to imagine that quality service can be provided to a Mainland customer who does not speak English or Cantonese if the account manager cannot communicate in Putonghua. Moreover, it would also be helpful if important contracts or documents are written in bilingual forms so that Mainland customers find it easier to understand what they have signed or bought.
I met with government officials to discuss the Commonwealth’s economic plan and pandemic recovery. I also heard from executives about how the banking sector is faring. And I met with leaders of cooperativas to hear about what they're doing to help residents improve their access to credit and financial services. I took a short flight here from San Juan after a full day of engagements yesterday, and I spent the earlier part of this morning at the Aeronautical and Aerospace Institute of Puerto Rico, where I learned about this growing industry. Needless to say, the views from the ground and the air have been delightful. The U.S. economy has experienced a tremendous rebound since the darkest days at the onset of the pandemic. But now, inflation is sky-high, and it is the number one danger to the overall health and stability of a well-functioning economy. The war in Ukraine and the recent lockdowns in China, on top of the ongoing supply challenges and demand shifts, have led to inflation rates we have not seen in four decades. The priority for monetary policy is clear. The Federal Reserve is strongly committed to bringing inflation back down to our 2 percent longer-run goal. Price stability is absolutely essential for the economy to achieve its potential and sustain maximum employment over the medium term. I want to be clear: this is not an easy task. We must be resolute, and we cannot fall short.

This decision was a critical step in moving monetary policy expeditiously away from the very accommodative stance that we put in place early in the pandemic. The Committee is strongly committed to returning inflation to its 2 percent objective. In determining how quickly and how high to raise the rates in the future, we'll watch closely to see how the economy responds to tightening financial conditions and how inflation, inflation expectations, and the economic outlook evolve. As always, we will be data-dependent and nimble in our approach. With tighter monetary policy in place, supply and demand will be brought back into balance, and inflation will return to our 2 percent longer-run goal. This may take some time and may well be a bumpy road. Closing I'll close with this: Inflation is far too high, and price stability is absolutely essential for a strong economy. We have the tools to get the job done and are one hundred percent committed to achieving our goals. Thank you. 1 See Federal Reserve Bank of New York, “Regional Economy Profiles: Puerto Rico;" Federal Reserve Bank of New York, “Puerto Rico Economic Indicators." 2 Ruchi Avtar, Rajashri Chakrabarti, and Maxim Pinkovskiy, “Was the 2021-22 Rise in Inflation Equitable?," Federal Reserve Bank of New York Liberty Street Economics,  June 20, 2022. 3 Board of Governors of the Federal Reserve System, Federal Reserve Issues FOMC Statement, June 15, 2022.
BIS central bankers’ speeches  1  So if the narrowness of my scope disappoints, I would invite you sit back. Literally. Admire the Sheldonian’s ceiling. Marvel at how Wren’s original design bridged such an expanse with neither beams that could individually span its width nor floor-to-ceiling columns that could support it. Reflect on the allegory in the paintings that shows Truth descending upon the Arts and Sciences, expelling ignorance from the University. While you do, I will attempt my more meagre exam question. The Bank’s very great – yet rightly circumscribed – responsibilities are formalised in the remits of the three major policy-making bodies of the Bank – the Monetary Policy Committee (MPC), the Financial Policy Committee (FPC), and the Prudential Regulation Authority (PRA). The MPC’s remit requires it to achieve price stability, formalised as 2% CPI inflation, and subject to that to support the Government’s economic policy including its objectives for growth and employment. The FPC works to remove or reduce systemic risks with a view to protecting and enhancing the resilience of the UK financial system as a whole, and is subject to the same secondary objective as the MPC. And finally, the Bank of England’s PRA is required to promote the safety and soundness of individual firms; to contribute to securing an appropriate degree of protection for insurance policyholders; and, subject to that, to facilitate effective competition.

Greatly increased financial openness, in part associated with EU membership, has made the UK financial system larger, more complex and more exposed to shocks from abroad. These developments reinforced domestically generated vulnerabilities in the run up to the Global Financial Crisis. The UK, along with many of its main international partners, lacked the institutions and tools for managing and addressing them when they crystallised. As a result, when the crisis hit, global shocks were transmitted virulently across borders, doing great damage to the financial systems and real economies of many countries. The UK was particularly affected given its high degree of financial openness. Most recently, challenges arising from European Monetary Union (EMU) have been particularly evident. Our ties are close. 40% of our exports go to the euro area, and major UK-owned banks have financial exposures to the euro area totalling almost twice their capital, worth a quarter of UK GDP. These figures underscore the importance to the UK of further building the resilience of the euro area as part of a strengthened European Union.9 In this regard, the progress made in recent years is particularly welcome. Nonetheless, as highlighted in the European Commission’s “Five Presidents’ Report”, the euro area remains “unfinished business.”10 Actions to complete European Monetary Union should be taken with regard to their impact on all members of the European Union. From the Bank of England’s perspective, steps to ensure financial stability for those within the euro area should not impede the achievement of financial stability for those without, including the United Kingdom.
Any one who travels outside the United States today returns with an appreciation about how rapidly public infrastructure is improving in many parts of the world, relative to what is evident in many parts of the United States. As global markets become more integrated and companies and capital can move more freely across borders, policymakers will face new challenges in the design of regulations. They will have to look more carefully at the balance of benefits and costs, when companies have more choice about where to invest. They will have to find ways for regulations to evolve more quickly in response to developments in markets. They will have to explore ways to cooperate more closely with other governments, where national approaches alone cannot be effective. We need to get used to a world in which we will see, in many areas, less willingness to adopt a U.S. model or to defer to a U.S. view on the appropriate global standard. You can see some of these dynamics in the financial arena, and concern about the erosion in the relative position of the U.S. financial system. Financial markets outside the United States are now deeper and more liquid than they used to be, making it easier for companies to raise capital domestically at reasonable cost. These financial markets are at an earlier stage in the process of capital market development, and they will therefore experience rapid growth in securitization and the role of derivatives.

What is more, the Swiss franc has only seen a moderate rise against the euro. As Swiss households and companies are on a solid financial footing, they are shielded – so to speak – against a tightening in credit conditions. Lastly, the stronger Swiss franc vis-à-vis the US dollar has limited the impact of higher commodity prices. Several other factors, like a robust labour market and a competitive industrial sector, could cushion the negative repercussions of the financial crisis in Switzerland. Against this backdrop, the SNB is expecting real GDP to grow between 1.5% and 2% this year. Inflation should be below the 2% mark again in the course of 2008. These forecasts still involve substantial uncertainties. Given the present state of the economy, the current interest level seems to be appropriate. However, the SNB will keep a close eye on further economic developments and inflation so that it is able to identify when action needs to be taken and react in a quick and flexible manner. BIS Review 51/2008  1
On the subject of the fundamental value of the exchange rate. It’s true that this concept is employed by many experts, and so too by us; we have expressed this on several occasions. However, this concept must be treated with great care. My view is that this is a very conditional concept. We at the Bank of Russia have a number of models to measure this basic reading of the exchange rate. It would be fair to say that we estimate this deviation to be much smaller than does the Ministry of Finance. According to other models these deviations appear smaller. But in any case, what exactly is the fundamental rate of exchange? This is the rate of exchange necessitated by the current balance of payments, current account and capital outflow combined. Yet it is anyone’s guess to gauge the exact influence of basic and short-term drivers on this value. This is, as I have previously stated, a very conditional concept. As we see it, in a floating exchange rate environment, as we see it, no matter what deviations are in place, the impact from objective factors will ultimately result in an equilibrium which brings the interests of exporters, importers and borrowers into balance. In our view the issue should be addressed in this way. Second. Our reserve replenishment policy.

Our special focus is currently on information coming in from regions using our network. Leaders of the Bank of Russia’s regional branches are invited to each of our rate-setting meetings. They update us on the situation in their regions; ultimately, our estimates and outlooks are not solely based on the data provided by Rosstat. Rosstat data should indeed be treated as a reliable source of information, considering that alongside authorities virtually all market participants also use them. So, the more trust in Rosstat’s professionalism and independence the better. There are a variety of options on how we may address this. At the end of the day I believe this is up to the Government. I would rather reserve my judgement here. Thank you. QUESTION from Bloomberg: Two questions, again, please. One, following up on the question from my colleague, we heard both the economic development minister and the finance minister mention that the ruble is stronger than its fundamental values. In this connection, what does the Bank of Russia make of this; is the ruble close to its fundamental values, or is it actually stronger? And my second question, which is in some way related to the first. You mentioned that purchases of foreign currency are a possible means to replenish reserves, provided these purchases do not do damage to inflation targets. All indications are, we are on track to meet the 4% inflation target by mid-year. Can the Central Bank launch foreign currency purchases to replenish its reserves? Thank you. ELVIRA NABIULLINA: Thank you.
Bilateral investment is also gaining importance, notably with the two recent Government-to-Government agreements, involving the establishment of an industrial park in both countries. The cornerstone to the strength of our bilateral economic relations is the ability to continually harness the synergies and economic complementarities that exists between our economies. The use of renminbi for trade settlement provides a natural hedge for businesses with renminbi obligations. It also generates cost savings and minimises exchange rate risks, in particular, it reduces the exposure to exchange rate fluctuations of a third currency. While the dollar will continue to remain an important currency for settlement of trade obligations, the availability of renminbi would provide companies an additional currency for such trade settlement. BIS central bankers’ speeches  1  The benefits to be gained can be significant given the large and increasing trade base with China which stood at RM167 billion in 2011. By undertaking the transactions in local currency, exporters and importers in China would be able to eliminate the hedging and conversion costs. The reduction in transaction costs for the exporters and importers will contribute towards more competitive pricing for both exporters and importers. The full potential benefits are however expected to be realised in stages. The benefits will rise as the trade volume settled in renminbi increases and reaches a critical volume in terms of size which will in turn allow for the realisation of economies of scale.

For the renminbi to be considered an option for both exporters and importers to settle their trade obligations in addition to the major currencies. There needs to be an efficient and cost-competitive source of financing in renminbi and a diversified investment avenue. In particular, it is recognised that discernible progress in three areas are needed to be put in place at an early stage to support the use of renminbi, that is, to improve access to renminbi liquidity, to have the supporting infrastructure and framework and to provide information on the use of the renminbi for trade and productive investment transactions. More than three years ago, in early 2009, the Bank entered into a Currency Swap Arrangement (CSA) Agreement with the People’s Bank of China, which was renewed early this year with an expanded amount of Renminbi 180 billion. The objective is to ensure a ready supply of renminbi in the domestic financial markets to meet the demand by businesses. An important piece of the infrastructure that was put in place in 2010 was the provision of direct quotes between renminbi and ringgit in the interbank foreign exchange market on the China Foreign Exchange Trade System (CFETS). Efforts were also made to enhance the transparency in the exchange rate between renminbi and ringgit for the trade-related settlement transactions. In March this year, the real time gross settlement system in Malaysia was expanded to include settlement services in renminbi.
5  In this regard, given that more analysis is needed before we have better answers for the implications of climate change on the economy and on monetary policy, our first objective should be to step up our efforts, as both the Banco de España and the Eurosystem are doing, to develop the tools and models needed for such an analysis. In addition, fully incorporating climate risks into our internal risk management may well collaborate to expand our ability to deliver on our price stability mandate. Climate change will indeed affect the risks of the assets held on our balance sheets. Monetary policy implementation exposes us to such risks directly through holdings of assets and indirectly through collateral pledged by counterparties. Therefore, and very much related to my previous comments on the implications of climate change for the financial sector, we should take due consideration to the appropriate assessment of climate risks in the overall risk management of our stock of assets and also on the specific criteria for new purchases in asset purchase programs. For example, one step would be to introduce climate-related disclosure requirements in order for an issue or issuer to be eligible for purchases. Another one would be to expand the use of ratings that adequately include in their methodologies the impact of climate risks in the financial profile of issuers or specific issues.

Firstly, lower productivity growth leads agents to expect lower income growth in the future, prompting them to moderate their spending in the present. The resulting increase in saving exerts downward pressure on interest rates. Secondly, the increase in life expectancy in advanced economies has led households to increase their saving so as to finance their retirement period. Thirdly, rising demand for safe saving instruments in a context of high and growing economic uncertainty, coupled with a relatively scarce supply of such instruments, has put further downward pressure on equilibrium interest rates. Whatever its source, the decline in natural rates has shrunk the space for interest rate policy owing to the existence of a lower bound on nominal interest rates, thus making it harder for central banks to achieve our inflation aims. Climate change will likely affect the natural interest rate, but it is not obvious in which direction. On the one hand, it could further depress natural rates through negative effects on productivity, such as the impact of higher temperatures on labour supply and the destruction of capital stemming from natural disasters. Moreover, increased economic uncertainty associated with the impact from climate-related risks could lead to higher precautionary saving and further pull natural interest rates down. On the other hand, the transition towards a more sustainable economy will require substantial investment in green technologies, which may push equilibrium interest rates up. And if such investment succeeds in raising trend productivity growth, it could partially undo or even reverse the decline in natural interest rates.