samchain/econo-pairs-v1 huggingface dataset:
Like this Fintech Week, that event will also use available technology to bring together delegates from around the world. So stay tuned for further details of the event. 50. Also in the first half of 2021, we will be announcing details of our first Regtech challenge. 51. And then looking ahead to the second half of 2021, we expect to set up the “Regtech Knowledge Hub”. 52. Around the same time, we also plan to release a Regtech Adoption Index that will visualise our progress in increasing Regtech adoption over time. In the meantime, we are also working hard to flesh out our thinking behind the other recommendations. For example, we would explore the benefits of providing appropriate incentives and other assistance to stimulate Regtech solution innovation in Hong Kong. Conclusion 53. So to conclude, I hope that through this presentation, I have sent a clear message to the audience that the value of Regtech in banking is coming to the fore in Hong Kong. Industry stakeholders should realise that Regtech and its underlying technologies are the way of the future. 54. The HKMA strongly believes that Hong Kong has the right foundations to support a thriving Regtech ecosystem, and ultimately become a Regtech hub. Our city already enjoys broad fintech capabilities, strong support for technology businesses, a significant and wellestablished financial services sector, and most important of all, very supportive financial regulators. 55.

I presume that the audience is conversant with the idea of Regtech. But it remains good to define upfront what we are dealing with. So, by Regtech, which is a subset of fintech, we are referring to a specific focus on technologies that can facilitate more effective or efficient regulatory compliance or risk management by financial firms. The benefits of Regtech 6. So, why do we need Regtech adoption? That’s because we believe that Regtech solutions offer clear benefits to banks, customers, and regulators alike. 7. For Banks, they can leverage on Regtech solutions to enhance risk management quality and reduce costs. For example, in the area of financial crime and transaction monitoring, some banks still have teams dedicated to the manual remediation of false positives. But others have already used Regtech solutions to put automation in place. In doing so, not only have their alert outputs become more accurate, the process also freed up precious resources to focus on higher value tasks, including in particular their interactions with customers. 8. For Customers, Regtech delivers improved customer experience and drives financial inclusion. Several years ago, opening a bank account in Hong Kong could be timeconsuming. You often had to take time off work in order to visit a branch and physically verify your identity. By contrast, with the help of Regtech, today I can open a bank account in the comfort of my home or office in a matter of just minutes. 9. There are also benefits to banking supervisors and regulators.
As an academic at heart, I have a self-confessed bias toward research. But in this case, there’s real value in understanding the full breadth and depth of these issues. One of the most important reasons is that we can debunk some of the myths that have acted as a security blanket to the industry. Too often, when things go wrong, business leaders blame a single “bad apple” as the cause of the problem. But focusing on an individual bad actor can obscure a culture in which people feel that misconduct in the pursuit of profit is tolerated, or even condoned. The “bad apple” theory acts as an excuse for not doing the hard work of cultural reform. In this process of blaming bad apples, leaders fail to look at what’s happening to the rest of the barrel. What kind of environment has let the rot set in? Understanding the full complexity of what forms a culture is important, but our unique position within the financial system means the Federal Reserve Bank of New York must do more. Our Role in Achieving Progress Three principles—“connect,” “convene,” and “catalyze”—guide my thinking in this area. Connecting people with the latest data and research—and sharing experiences—gives them the insights and tools they need to make change. Conferences like this one are critical—as is our online research hub, which acts as a clearing house for the latest information and initiatives from a wide range of organizations. But, that’s not enough.

What Do We Do to Get to a “Good” Culture? 1/3  BIS central bankers' speeches  The second thing is we need to understand what contributes to a good culture, and what allows a bad one to flourish. What fosters an organizational culture where people feel empowered to speak up? And what leads to a work environment where employees feel emboldened to commit fraud? That’s one of the things I’m most looking forward to in today’s conference. I can’t wait to hear the insights from such a variety of voices. Looking beyond our own narrow frame of reference to other fields of study, like organizational psychology, will help us understand how to achieve the progress that’s so desperately needed. Behavioral science really gets to the root of how human nature interacts with an organization’s processes. Everything from how we set goals to how we motivate our staff to achieve those goals has an effect on culture, for better or for worse. This is where the rubber hits the road for most organizations, in the financial services industry, and beyond. We’re also going to hear from experts on the role technology plays, including the ethics of data handling, and what artificial intelligence means for relationships with customers. And I’m particularly looking forward to hearing about how diversity, something that’s a strategic priority for me and this Bank, affects cultural norms. This includes diversity not only in terms of race and gender, but diversity of thought and experience, which also affects an organization’s culture and decision-making.
In my opinion, among the transforming effects of digitalisation in the financial sector, one stands out: the far-reaching change payment services are undergoing, both as regards the characteristics of the services per se, and the technology and players taking part. Undoubtedly, this is a significant phenomenon for central banks, given our responsibilities for promoting and ensuring the smooth functioning of payment systems. It is also significant in that digitalisation affords us new opportunities to redefine our role as providers of safe settlement assets. Indeed, as you know, within the Eurosystem we are, like many of our international counterparts, painstakingly analysing the possibility of issuing digital currency: a “digital euro” in our case. The digital euro would be a new form of central bank monetary liability which, like cash, would be conceived to be accessible both to households and non-financial corporations. As you can imagine, the introduction of such an instrument would be enormously complex and important. Accordingly, beyond the stimulating intellectual debate that opens up around its future possibilities, a thorough analysis is needed of its various implications and its possible configurations. Further, our role in this area obliges us to be technically ready should developments warrant its placement in circulation. The initiative to study the advantages and disadvantages of a digital euro stems from an ECB Governing Council decision to set up a high-level task force to further the analysis and 12  extend the knowledge of the Eurosystem in this field.

The ECB’s strategy review is very ambitious; not only does it analyse matters such as possibly adopting make-up strategies for past deviations of inflation from its target, but it also addresses additional topics such as the design and optimal use of the various monetary policy tools; the measurement of inflation; the interactions between monetary policy and macroprudential policy; the institution’s communication policy; and the impact of climate change, digitalisation and globalisation on monetary policy. All these facets and others covered by the strategic review may be relevant when delivering on our price stability mandate. 8  See, for example, Bernanke et al. (2019). See Box 2 of the “Quarterly report on the Spanish economy”, Economic Bulletin, 3/2020, Banco de España, for a description of this announcement and an assessment of its effects on financial markets. 9  10  Indeed, one of this review’s key topics will be the definition of the ECB’s price stability target. The current inflation target, aiming at inflation rates of below, but close to, 2%, may be reformulated. First, it may be necessary to clarify the specific level of inflation targeted, to make it easier for economic agents to understand. Second, making this target more symmetrical could also be possible, clarifying that the ECB would be as tolerant of overshooting as of undershooting.
See, for instance, Brunnermeier and Sannikov (2013). BIS central bankers’ speeches  3  I think that the division into these three main views provides a good reflection of the current debate. But there are of course no sharp dividing lines between them, rather the dividing lines are relatively fluid. And where one finds oneself on the scale ultimately depends on which argument or arguments one allocates the greatest significance. It will probably come as no surprise to those of you who follow the monetary policy debate in Sweden that I myself have great sympathy for the principle that monetary policy needs to support macroprudential policy. I would therefore place myself fairly close to the second view in Smets’ description. So what has led me to this view? Allow me to begin by giving my interpretation of what a monetary policy that leans against the wind entails. What does it mean that monetary policy leans against the wind? There are different ways of illustrating how and why financial imbalances and risks should be included in the monetary policy deliberations. Essentially it is a question of avoiding scenarios where the imbalances will lead to very negative effects on GDP, unemployment and inflation. So in principle it is a question, as usual in monetary policy, of stabilising inflation and the real economy.

Investments into the GCC are being driven by several positive factors: infrastructure development to cater for its hydrocarbon sector, rapidly-growing populations, market liberalisation and diversification beyond oil and gas. A 2014 industry survey 1 by Mergermarkets highlighted that investments from Asia into the GCC would soon equal that traditionally sourced from Europe, as Asian companies become more active in the Middle East. The converse is also true. Attracted by Asia’s good growth prospects, GCC investors have increased their investments not just in energy markets, but also in telecommunications, finance, and other industries in Asia. For instance, GCC state-owned oil firms have been investing in ASEAN energy sectors, while GCC Sovereign Wealth Funds (SWFs) are also showing interest in the agriculture sector across ASEAN. 5. Thirdly, continued growth of GCC and Asian economies, and an expanding network of Free Trade Agreements, will reinforce connectivity between the regions. Notwithstanding more volatile and lower oil prices, the IMF expects the GCC to expand 3.4% in 2015 2, and 3.2% in 2016. Asia will remain the world’s fastest growing region, recording 5.6% growth in 2015, before easing slightly to 5.5% in the following year. Trade and investment linkages will be strengthened with the conclusion of trade discussions between GCC and China, Korea,  1  Gulf Cooperation Council (GCC) Investment Outlook 2014, Mergermarkets. 2  IMF Regional Economic Outlook Update for Middle East & Central Asia, May 2015. BIS central bankers’ speeches  1  India, Pakistan, Malaysia and ASEAN.
It is these risks that are particularly relevant for risk management in banks, following an economic dictum that has been attributed to several people over the years, including an author of science fiction novels and an American General. The general was Leonard Porter Ayres, who also worked as a statistician and economist. When asked by a group of reporters to impart some words of wisdom gathered from his long years of economic study, Ayres replied: “It is an immutable economic fact that there is no such thing as a free lunch.” I am pretty sure that everyone in this room has used that phrase at least once. Translated into the language of finance, it reads: whoever wants to make a profit has to take a risk. The returns, however, are mostly generated right away, whereas the risk might only materialise in the future. This is where good risk management comes into play. Banks and the entire banking system have indeed become much more resilient to shocks. Nevertheless, good risk management is still necessary. It should enrich decision-making by providing a medium and long-term view, and it should highlight the downside to every upside. In a way, risk managers have to be the spoilsports. The same is, of course, true for banking supervisors. One of the tasks of banking supervisors is to ask questions when things are going well, and to intervene when they are not. Therefore, risk managers, as well as banking supervisors, explicitly advocate a forwardlooking, risk-based approach.

On the other hand, we must make a CBDC available on these infrastructures to match market demand for tokens, so that our settlement asset is not substituted by private assets – which would be riskier. ***  The two projects of a wholesale and retail CBDC are two faces of the same “mountain”, which is the ambition to offer a digital form of central bank money to combine innovation and trust in the payment system. I spoke at the start about the 'existential' monetary partnership between central banks and commercial banks. The trust/innovation nexus is just as existential. It does not entirely coincide with the former: commercial banks can rightfully inspire confidence; central banks are capable of innovation, the CBDC is proof of that. But one thing is for sure: it is together that we can succeed in strengthening Europe's strategic autonomy. Thank you for your attention. Page 7 sur 7 References i  François Villeroy de Galhau, Central banks and finance in the face of a triple revolution, speech, November 2021. ii François Villeroy de Galhau, Roads for the future: central bank digital currency (CBDC) and innovative payments, speech, June 2021.
In our assessment, the supply capacity of the economy is expected to be around 1¾% lower than it otherwise would have been in the absence of Covid by the end of our forecast period. But, of course, there are risks on both sides of this assessment. The third point is that, although those sectors which are growing may require new capital, elevated uncertainty is expected to continue to reduce investment other things equal, weighing on the capital stock and productivity growth. I have just used the phrase “other things equal” to describe the likely path of investment. However other things ought not to be equal going forward in my view. I mentioned earlier that we have had a decade or more of slower growth and weaker productivity growth. And, as Chart 5 shows, although business investment did recover from a low base following the global financial crisis, it too was weak in the period prior to the Covid pandemic. This was only partially offset by growth in government investment, which has also generally been weak over the same period (Chart 6). The effect of this weakness in investment can also be seen by looking at capital services – a measure of the value of the flow of services which are derived from the capital stock, including machinery, equipment, software, structures, and land improvements. This may better capture the drivers of supply growth than looking at growth in investment alone.

In particular, the flow of new mortgages slowed considerably in the second half of 2022, falling 5.4% year-on-year in Q4, in line with the moderation in house purchases and prices. - The stock of lending to non-financial corporations and sole proprietors fell by 1.5%, with a more marked drop in the sectors hardest hit by the pandemic (6.9%). This despite new loans growing 15.2%, while the principal drawn on available credit lines rose by 23.3%. 4  - The average interest rate on loan portfolios increased during 2022, particularly in the last quarter of the year. However, the pass-through of the changes in reference rates (around 30%-40%) was lower than that implied by the historical sensitivity to the cycle. Credit quality  - In 2022 the non-performing loan (NPL) ratio4 fell by 0.8 pp to 3.5% at December, the lowest level since 2008, with cumulative declines since the start of the pandemic of 1.6 pp for the corporate sector and 1.4 pp for households. In the sectors hardest hit by the pandemic, the NPL ratio fell by a lesser degree (0.3 pp in 2022, to 5.6%). 4  The faster decline in NPLs in 2022 was driven both by smaller inflows and larger outflows. 5  - Stage 2 loans likewise declined, falling by 0.9 pp to 7.1%, as a result of both lower inflows and larger outflows to performing status. However, the stock of Stage 2 loans remains 24.5% higher than pre-pandemic levels.
The current account deficit can now be financed through foreign direct investments (FDI) and long-term capital inflows. The FDI inflows were in excess of USD 20 billion in each of the last two years, putting Turkey among the top 5 developing countries in FDI inflows. Fourth, Turkey is one of the few countries with a “convergence story”. Negotiations with the European Union over the full membership status provide a major stimulus to policy makers to put Turkey’s huge potential into life and complete the reform agenda. This agenda consists of next generation policies and reforms that focus on removing structural bottlenecks and improving the economy’s capacity for labor absorption, innovation, and competitiveness. Dear Guests, Turkey has had a heavy structural reform agenda since 2001. However, continuation of structural reforms is of vital importance for the sustainability of economic gains achieved in recent years and for the resilience of the economy to further shocks in the future. The most important structural reform in the pipeline is the social security reform that is expected to significantly improve Turkey’s fiscal balances in the medium and long term. It is also expected to contribute to our domestic savings rate.

From my discussions with my supervisory colleagues in the region I know that they are serious in their efforts and I wish them every success. The lessons for Hong Kong 16. This sentiment recognizes that it is also in Hong Kong’s interest that financial stability returns to the region. As I have already indicated, one of the special features of the Asian disease is that it has been extremely contagious. And although the Hong Kong economy and financial system have remained in pretty good health, they have not been totally immune. This suggests that we too have lessons to learn from the crisis. 17. Hong Kong’s supervisory system does indeed compare well with international standards. A review which we conducted last year showed that we had addressed all the areas covered by the Basle Committee’s Core Principles and that we fully complied with all but a few of them. In the latter cases, we are in partial compliance. This does not however mean that we can be complacent for the following reasons: • First, the Basle Core Principles are, as I have indicated, minimum standards and we should where possible be aiming for best practice • Second, the environment being faced by banks is changing at an accelerating rate and we need to be sure that our supervisory system keeps pace with this • Third, even our robust monetary system can be subject to external shocks and the banks need to take this into account in the way in which they manage their business.
So, to conclude on the moral hazard topic, I would say that, in order to draw meaningful conclusions, it is important to distinguish between the very different possible types of financial crisis management measures available to central banks. When assessing and choosing among these different measures, it is necessary to take into account the implications for both the central bank and for its counterparties, including the future incentives of the latter, in order to achieve, overall, the most efficient allocation of resources. BIS Review 143/2007  7  Separation of liquidity management and the monetary policy stance Finally, a frequent focus of our communication during the turmoil has been the importance of distinguishing between interventions related to liquidity management and changes in monetary policy stance. It is very important for the public to understand that the implementation of technical measures related to liquidity management during the current turmoil has been completely separated from any considerations on the monetary policy stance. Contrary to the occasional public perception, these operations have had no effect on the overall liquidity supply to the banking sector. Overall, the amount of liquidity provided within the various maintenance periods since the start of the turmoil has remained unchanged. Instead, the liquidity provision has been to some extent simply brought forward in time within each period, thereby simply representing a shift in the time path of liquidity supply within the reserve maintenance period.

In the international arena, INCEIF has also established strategic alliances with the Islamic Research and Training Institute (IRTI) of the Islamic Development Bank, Lembaga Pengembangan Perbankan Indonesia (LPPI) of Bank Indonesia, National Institute of Banking and Finance (NIBAF) of State Bank of Pakistan and Ceylinco Sussex Business School, Sri Lanka, among others. INCEIF is also in the midst of finalising its collaborative efforts with organisations in the United Arab Emirates, Kuwait, Bahrain and Qatar. Initiatives have also been taken to enhance the pool of talent is in the field of Shariah. This has been done by awarding research grants and scholarships to deserving outstanding candidates. This initiative will be funded by the Shariah Endowment Fund which was announced in August this year. The applications for the Shariah Scholarship Award and the Shariah Research Grant for 2006 are still open to qualified candidates until the end of the year. Apart from this, many other initiatives have been taken by the relevant bodies in Malaysia to strengthen talent development at all levels in Islamic finance. At the strategic leadership level, Malaysia has established the International Centre for Leadership in Finance or ICLIF as part of an effort to spearhead the development of a new generation of world class leaders in the financial services sector including Islamic finance towards high performance and excellence.