samchain/econo-pairs-v1 huggingface dataset:
Issuing certificates of entitlement in this way will provide a mechanism for debtholders that do not want to, or due to their mandates, are not able to hold equity to trade out of their positions. And this will have an ancillary benefit for us of providing some sort of shadow market valuation of the firm. But what about other liability holders – depositors, market counterparties, trade creditors etc. – during this interval? Our aim with the announcement of the resolution is to send a strong signal to them that their claims are safe and that the operating companies they are transacting with will continue to perform. Full conversion of internal MREL in the key operating companies around the group and a strong sense that the firm will have access to liquidity will contribute to that. To this end, the Bank has established new arrangements to clarify, first, that a firm in resolution would continue to have access to the ordinary central bank facilities in the Sterling Monetary Framework, subject to meeting the necessary eligibility criteria. And second, those arrangements will be supplemented where necessary by a flexible Resolution Liquidity Framework, designed to provide liquidity, in sterling or foreign currency, in the necessary scale, for a sufficient period of time, and secured against a wide range of collateral to allow the firm to make the transition to market-based funding.

Rather, it is our intention to take several months for the bail-in valuation to ensure that through an independent valuation process, losses as far as possible are bottomed out and tie back to the reorganisation plan for the surviving business. It will be critical to determine the net asset value that had been generated in the bail-in and the liability holders it should go to as compensation. You may ask, what happens in the intervening period? From the perspective of the debt investor, our intention on entry to resolution is to take control of the shares in issue and immobilise all the other external  12  The Bank of England published a consultation paper on valuation capabilities to support resolvability on 17 August 2017. See https://www.bankofengland.co.uk/-/media/boe/files/financial-stability/resolution/boes-proposed-policy-on-valuation-capabilities-tosupport-resolvability.pdf?la=en&hash=4044F91DF1DDE7A131EA3186F66F304380553306 . 7  All speeches are available online at www.bankofengland.co.uk/speeches  7  MREL instruments at the relevant international central securities depository (ICSDs) and central securities depository (CSDs). We will at the same time issue onto the bondholders accounts at the ICSDs a tradeable certificate of entitlement secured by the shares in issue. There will be as many classes of certificate as there are classes of claim. Once the valuation is complete and we have announced the terms of exchange, holders will present the certificates in exchange for whatever equity they are entitled to as compensation. The resulting shareholders will then vote in a new board and the firm will return to private sector control.
That’s why, as we review the issues with open-ended funds, we intend to have in mind not just how reform could promote financial stability, but also how it can promote the supply of productive finance too. Because we all want not just stability in our financial system, but opportunity from it too. Conclusion  We all want a financial system that serves the economy in bad times and good. It’s an ambitious outcome that we’ve been tasked with promoting. But it’s an outcome that households and businesses deserve. They didn’t get what they deserved before the financial crisis and certainly didn’t get what they deserved in the crisis. Instead they saw opportunity constrained and the economy crunched. Now, after a decade of reform, the core of the system is, or is being made, resilient to a wide range of challenges it might face. And with that, opportunities have, or are being, unlocked for finance to better serve the economy. It would be contrary to our mandate and costly to the economy if we were to row back on those reforms. Our focus is instead on the future. On sustaining a financial system that serves in bad times and good; a system offering stability and opportunity. To sustain that in a changing world and changing financial system, we don’t need more or fixed rules. We need agility. Agility to respond to new challenges and ensure stability. And agility to open up new opportunity.

Bwalya K E Ng’andu: Improving the investment climate in Zambia Opening remarks by Dr Bwalya K E Ng’andu, Deputy Governor (Operations) of the Bank of Zambia, at the Foreign Private Investment & Investor Perception Survey 2011 Dissemination Workshop, Lusaka, 22 December 2011. *  *  *  Permanent Secretaries; Chief Executive Officers; Distinguished Participants; Ladies and Gentlemen. I would like to welcome you all, on behalf of the Bank of Zambia, the Zambia Development Agency and the Central Statistical Office, to this Foreign Private Investment and Investor Perceptions 2011 Survey Dissemination Workshop. I want also to take this opportunity to thank the companies that participated in the Survey which was conducted by the three institutions in the third quarter of 2011. The insights and the various valuable revelations on the investment climate in Zambia contained in the survey report were only made possible by their co-operation and support to the process. We want to thank them most sincerely. This dissemination workshop is built around two objectives. The first one is to give representatives of respondent companies the chance to comment on the contents of the report. In this sense, this can be considered as a validation workshop from which inputs into the final version of the report will be received. The second objective is to give the three institutions that commissioned the survey the opportunity to receive feedback on what the community of investors considers to be the main issues in investment.
Jean-Pierre Landau: An international financial architecture for the 21st century – some thoughts Remarks by Mr Jean-Pierre Landau, Second Deputy Governor of the Bank of France, at the 17th Central Banking Seminar of the Bank of Korea, Seoul, 1 June 2010. 17th Central Banking Seminar of the Bank of Korea; Seoul, 2 October 2009 (this text is a revised version: 1 June 2010). *  *  *  International financial and monetary arrangements are currently extensively debated. For many countries, both advanced and emerging, the crisis has shown that there is a close link between internal and international financial stability. In addition, rebalancing of the world economy stands at the forefront of the G20 policy agenda and there is a perception it may be difficult to achieve under current arrangements. In this paper, I would like to discuss the foundations for a future international financial and monetary system. One central point I will make is that “financial” and “monetary” aspects cannot be dissociated from one another. To a large extent, international monetary arrangements, as well as current account imbalances, are the by-products of policy choices made by countries on their capital account regimes and financial development. Therefore, one must try and take a long term view, encompassing all aspects of the financial interrelationships between nations. I will only deal tangentially with exchange rate regimes and their implications for monetary policies. Those have been abundantly analysed and discussed in the literature and the policy debate (Blanchard et al., 2005).

It should be noted that regional pooling is efficient only when countries are facing asymmetric liquidity shocks within the region. Pooling brings no additional benefits when shocks occur on a global scale and all countries are hit simultaneously. Also, regional arrangements cannot avoid the moral hazard problem that all multilateral schemes are facing. Nevertheless, there seems to be considerable scope for regional arrangements to prosper in the future. First, they can act as useful complements to more global schemes and be articulated with (and supported by) IMF facilities. Second, one can expect regional financial integration to progress, especially in those parts of the world where huge pools of savings are available and currently intermediated through financial systems located outside the region. With deeper financial integration, the probability of significant portfolio shifts inside one region increases markedly, creating the potential for asymmetric liquidity shocks. The development of regional liquidity arrangements may appear very useful to underpin the development of regional financial markets. Stores of value One consequence of the crisis has been to cast doubts on the ability of some assets, up to now considered as riskless, to serve as reliable stores of value. The ability of the private sector to create “safe” assets through financial innovation has proved largely illusory (Caballero, 2009). So, in the period to come there may be both an increased demand worldwide for risk free assets and much less certainty on their future supply.
Shifts in income distribution might not happen fast if strong structural forces push in the other direction. Public policies (fiscal, social safety nets) certainly have a role to play, but they take time to redeploy and implement. Finally, consumption patterns differ across countries and are strongly influenced by differences in taste and level of developments. So, global rebalancing in consumption requires a change in production structures. That change will not – and should not – occur overnight. Attempts to speed up the process would only result in major disruptions and increased volatility. Rebalancing will be progressive but should start now. It cannot be achieved without some adjustment in relative prices. In market economies, it is important that producers face the right price environment when they make long term decisions about investing in technology and productive capacity. Countries are free – and should remain free – to choose whatever exchange rate regime and policy suit them best, taking into account their specific national circumstances. Real exchange rate adjustment, however, is an integral part of a global and orderly rebalancing strategy. That wisdom is best embodied in one of Governor Hu Xiaolian’s speeches, last July, where she demonstrated how domestic factor price and exchange rate adjustments are both substitutes and complementary. Many interactions between our economies occur through capital rather than good markets; This is normal in a “multipolar” world given the diversity of countries, with different preferences, demographics and levels of development. Some of us save more than we spend. Others need capital to finance their growth.

To date, though, we do not yet observe trading in these instruments in the secondary market. 15 Importantly, we have succeeded in increasing the stock of outstanding reserve-absorbing operations without depressing interbank activity. As Slide 14 shows, trading volume in the interbank money market even increased temporarily following the rate hike. It has remained solid since then, ensuring a robust calculation basis for SARON. The stock of outstanding repo transactions in the overnight segment is currently close to 10 billion Swiss francs, which is near the year-to-date average in this market segment. The pass-through of our September rate hike has also progressed well in other money market segments. For instance, as we show in Slide 15, overnight rates in the unsecured money market also shifted up significantly during the first business day on which the positive policy rate went into effect. We have also seen a good pass-through to SARON-based swap rates, as the 1-week rate, the green line on the slide, illustrates. Naturally, as swap rates incorporate  15  Some banks, however, do seem to be interested in secondary market trading, as they have begun placing quotes for SNB Bills. Page 8/10  expectations of future overnight interest rates, the 1-week swap rate had already increased before the monetary policy assessment in September. On the slide, we also show the 1-week implied rate from USDCHF FX swaps. This rate is generally somewhat lower than the other Swiss franc money market rates.
8  Contrary to what the party’s name suggests, the Republican Party established by Jefferson in the late 18 century was in fact the forerunner of today’s Democratic Party. 9  Hamilton only served as Treasury Secretary until 1795, after which Wolcott, a fellow Federalist, took over until 1801. But Wolcott is generally perceived as having continued and completed the policies of Hamilton until Dexter took over, for a few months only. Gallatin took office in May 1801. 2  BIS Review 106/2008  th  and, finally, the creation of the first Bank of the United States. 10 The Bank of the United States gave the federal government a tool to manage short-term credit and cash flow and to influence – and thereby help safeguard – the stability of the emerging financial system of the United States. 11 The Bank also significantly extended access to credit for private enterprise. During these extraordinary years, Gallatin first served as a representative in the state legislature of Pennsylvania. He was involved in the adoption and ratification of the state constitution. After a brief period as a senator, Gallatin became a member of the House of Representatives in 1795, where he served until 1801. 12 As a congressman, he established himself as a leading figure in the emerging Republican Party led by Thomas Jefferson. Gallatin quickly gained the reputation of being the member of his party with the most profound understanding of public finance.

15  Jefferson was elected president in 1800, but did not appoint Gallatin until 1801 – even though it had been his intention from the start. See for example Wright and Cowen, op.cit., p. 93, for details. BIS Review 106/2008  3  priorities included a change in Hamilton’s tax structure in order to better reflect the Republican Party’s ideology and its constituencies. He also focused on the need to increase transparency in fiscal policy. He progressed rapidly on both fronts. Internal taxes were soon abolished. The federal government came to rely almost exclusively on import tariffs, which Gallatin saw as luxury taxes that did not burden his farming constituency. 16 Gallatin also convinced Congress to pass the law of 1801, which required an annual report by the Secretary of the Treasury to the President. He submitted the first of these reports later that year. Moreover, the minting of dollars was somewhat scaled back under Gallatin. To compensate, he allowed foreign coins to circulate along with the dollar. These measures were not taken because Gallatin was opposed to the Mint. Rather, the Mint proved to be very costly for the federal purse. Therefore, Gallatin saw the reduction of its operations as a way for the government to save money, in line with his primary objective of fiscal consolidation.
As digitalisation progresses, the quantity and value of such client data are increasing. Established providers of payment services are having to confront the fact that competition at the client interface and competition for client data is intensifying. In the digital age, the wide network of branches which traditionally gave banks’ a competitive edge no longer provides that advantage. Developments in China show how quickly banks can lose their client interface to non-banks in the payments arena: Within a few short years, the online marketplace Alibaba and the news app WeChat have managed to capture more than 90% of the rapidly expanding mobile payments segment. 9 The growing focus on the client interface and client data also represents a challenge for central banks. Gross misuse of data and a lack of reliability could seriously erode trust in payment systems – and ultimately in money itself. Even with the new technologies and 8 9  I covered this topic at our Money Market Event a year ago. I stand by the point I made then – namely, that cryptocurrencies are more like speculative investment instruments than stable payment methods. Financial Stability Board (2019), Fintech and market structure in financial services: Market developments and potential financial stability implications, FSB White Paper, 14 February. Page 6/9  possibilities coming on stream, payment transactions must continue to function and be secure. For payment systems to remain future-proof, in-depth discussions between the main stakeholders in the Swiss financial centre are therefore essential.

This change creates a level playing field within the SIC system for existing and new providers – ensuring that the Swiss franc payment system remains efficient, secure and futureproof. The third challenge concerns the possible application of DLT to payment transactions. Switzerland, in particular, has witnessed the establishment of a fintech ecosystem in recent years, and we are a leading fintech hub. For central banks, DLT raises at least two fundamental questions. First, could it end up replacing current core infrastructure, such as RTGS? Various central banks have been experimenting with this idea, in close collaboration with private stakeholders. The results have yet to demonstrate that DLT is superior to a modern RTGS. Yet, in other areas of core infrastructure, such as securities settlement, it is entirely plausible that DLT-based systems could take hold. The second question is: How should existing systems based on conventional technology and new DLT-based systems interoperate? Should central banks or private sector players establish this link? Specifically, in this context: should central banks offer a digital token for certain DLT applications – such as securities settlement? Here, too, while a number of experiments are underway, there are currently no examples of such tokens having become established. Furthermore, private sector providers can themselves put their money in DLT systems by ‘tokenising’ it (e.g. in the form of ‘stable coins’). 10 As you can see, ladies and gentlemen, there are a lot of questions still to be answered, and they will require careful analysis.
The Riksbank now publishes a twice-yearly report analysing the stability of the Swedish financial system. In a crisis situation, the central bank plays a very important role. It may then need to go in and act as lender of last resort, that is, to grant emergency liquidity assistance (ELA) to banks and financial companies if this is considered necessary to prevent the financial system from collapsing. The two objectives of price stability and financial stability are related to each other in different ways, in addition to both being important components of an efficient payment system. The stability of the financial system is of course a necessary condition for a policy aimed at price stability, as the latter is fairly meaningless if the country is threatened with economic collapse. The financial stability objective can therefore in one sense be said to be superior to the objective of price stability. At the same time, it is very probable that price stability in the long run promotes financial stability, for instance, by making the price system function better and thereby reducing the risk of bad investments. However, price stability is no guarantee of stability in the financial system, which is illustrated, for instance, by the problems in the Japanese banks at the beginning of the 1990s. There is thus no reason for central banks to focus solely on the price stability objective and thereby assume that financial stability will follow automatically – both objectives are important. Other objectives than price stability and financial stability?

High and fluctuating inflation, on the other hand, disrupts the signalling function of the pricing system and can more easily lead to bad economic decisions. In an environment with low inflation, the price system can do a better job in allocating resources to uses where they will do most good. In a broader sense, one could see an efficient pricing system as part of an efficient payment system – it ensures that the transactions made are based on the best information possible. Price stability can also be justified for reasons not immediately connected with the efficiency of the payment system, such as the fact that high and fluctuating inflation tends to give rise to undesirable distribution effects. For instance, inflation appears to hit poor people hardest as the rich usually have better opportunities to protect themselves, or even to benefit, from the effects of inflation. 2 This could be because, for instance, poor people often have no other opportunity than to retain a large part of their limited assets in the form of money or because they are to a greater extent than the rich dependent on public subsidies that are not fully indexed. Keeping inflation low and stable is currently the most obvious – and definitely the most noticed – task for modern central banks. The reason for the focus on price stability is of course the negative experiences of the high and fluctuating inflation many countries experienced in the 1970s and 1980s.
Gent Sejko: Build your future, be smart about money Address by Mr Gent Sejko, Governor of the Bank of Albania, at the opening ceremony of the Global Money Week 2022 "Build your future, be smart about money", Pristina, 24 March 2022. * * * Honourable Minister of Education and Sports, Dear Chairman of the Albanian Association of Banks, Dear students, teachers, friends and banker colleagues, I have the pleasure to welcome you to the launching ceremony of the Global Money Week 2022. For more than a decade this global awareness-raising campaign brings together pupils, students, teachers and bankers. Each March, the Bank of Albania in cooperation with the Albanian Association of Banks, and the outstanding support of the Ministry of Education and Sports, organises educational and awareness-raising activities tailored to different age groups of pupils and students. Last year, due to the difficult situation caused from the COVID-19 pandemic, the launching ceremony and all the programmed activities in the framework of the Global Money Week, took place virtually, in compliance with the social distancing protocol. Notwithstanding these circumstances, the programme was successfully accomplished. Meanwhile, this year, the physical presence of participants, makes our educational activities more productive. For this reason, I am very happy we are back to normality, and welcoming you, as traditionally, in our historic hall, the Bank of Albania’s Museum premises. The Albanian public and particularly, young people are familiar with the Global Money Week.

In fact, the closure of domestic output gaps – i.e., the difference between actual and trend growth – that a year ago we expected to occur over the course of 2011, took place in the first part of the year. The unemployment rate has fallen rapidly and is now below its historic average. Inflation, meanwhile, has concluded a process of convergence to the 3-percent target. Inflation fears resurfaced during the first quarter of this year, but subsided after the Board’s monetary policy decisions and the changes in the external macroeconomic scenario. We have thus arrived at a situation where the monetary policy interest rate (MPR) stands within a range that is considered normal. However, the events of 2008 still cast their shadow over the world economic outlook. Despite the time elapsed and the economic and financial measures adopted by economic policymakers around the world, we are still seeing the aftereffects of this episode. The underlying problems that caused the disaster have not been totally resolved, and continue to hold back the recovery of private demand. Added to this is the erosion of trust in the public finance management in some Eurozone members and in the U.S., which prompted a new episode of financial stress in early August, and still another one a few days ago. The world economy is going through an extremely complex situation. Certainly, Chile has tools to soften the impact of adverse external conditions.