samchain/econo-pairs-v1 huggingface dataset:
To the extent that these markets and counterparties are important for the functioning of the financial system and for the real economy, problems transmitted can have adverse consequences for economic growth and financial stability. The market channel Let’s start with the market channel. Here excessive or poorly-managed leverage increases the potential for forced asset sales in the face of shocks, with adverse implications for market functioning and so the real economy. Feedback loops and amplification mechanisms can arise in two ways – through unexpected liquidity strains (most obviously as a result of margin increases) or through large, concentrated positions. I’ll cover liquidity strains first. Banks and CCPs typically require their counterparties to place collateral, in the form of margin or haircuts, to protect against counterparty risk. And sharp changes in asset prices, high volatility or correlated shocks affect the amount of counterparty risk to which they are exposed. As market prices change and as risk rises, the bank or CCP can request more collateral. (Variation margin to reflect the change in market prices; and higher initial margin to reflect greater risk in a given position.) And meeting those collateral demands creates liquidity risk for the leveraged institution that needs to be managed. This more widespread collateralisation of derivatives has been an essential part of the package of reforms to address fault-lines exposed in the Global Financial Crisis. Initial margin requirements are vital to limit cascading counterparty credit risks, as I will cover later.

Jaime Caruana: Consequences of Basel II for SMEs Address by Mr Jaime Caruana, Governor of the Bank of Spain and Chairman of the Basel Committee on Banking Supervision, to the European Parliament Workshop on the "Consequences of Basel II for SMEs", Brussels, 10 July 2003. *  *  *  Introduction Good afternoon. I would like to thank the European Parliament for organising this important workshop on the New Basel Accord and its implications for small- and medium-sized enterprises in Europe, and for inviting me to participate. I’m privileged to join you as the new chairman of the Basel Committee on Banking Supervision, and I welcome this opportunity to offer our views. As you know, the Basel Committee was founded almost thirty years ago to help promote safety and soundness in the banking sectors. We believe that, when banks are adequately capitalised and wellmanaged, they are better able to promote growth by providing credit to consumers and businesses alike. But more broadly, when banking systems worldwide are adequately capitalised and wellmanaged, the international financial system becomes more stable, better able to promote sustainable growth, and more resilient during periods of distress. Of course, simply providing credit does not guarantee growth. Indeed, how credit is applied matters greatly to the development of an economy. And in every economy, small businesses have long been the true engines of economic growth. Small and medium-sized enterprises traditionally produce much, or even most, of the technological innovations in business and industry.
Kevin Stiroh: A microprudential perspective on the financial risks of climate change Remarks by Mr Kevin Stiroh, Executive Vice President of the Financial Institution Supervision Group of the Federal Reserve Bank of New York, at the 2020 Climate Risk Symposium, Global Association of Risk Professionals (delivered via videoconference), 10 November 2020. * * *  Introduction Good morning and thank you for the opportunity to participate in GARP’s2020 Climate Risk Symposium. As shown by the strong turnout today, attention on climate-related financial risks is clearly growing within finance, both for the private sector and the public sector. Today, I’ll speak about these risks from a microprudential perspective—that is, the impact on specific financial institutions, particularly banks, and how firms are managing those risks. I’ll also provide a short update on some of the work under way through the Basel Committee’s Task Force on Climate-Related Financial Risks—the TFCR. Before proceeding, I’ll emphasize that I am speaking only for myself and not necessarily the Federal Reserve System or the Federal Reserve Bank of New York. Risk Management Perspective From a supervisory perspective, a primary focus is to ensure that banks operate in a safe and sound manner and manage risks so they are resilient to a range of shocks. As you know, the core of effective risk management includes identifying, measuring, and managing traditional banking risks like credit risk, market risk, operational risk, or liquidity risks. These risks can materialize from a range of shocks—a recession, a geopolitical event, or a bad actor. And climate change.

In particular, I think it will require ongoing collaboration between the private and public sectors to push the industry toward greater resilience to the financial risks of climate change. Discussions like this one are a critical step in that direction. Thank you for your attention. 1 Federal Reserve Board of Governors, Supervision and Regulation Report, November 2020. 2 Stiroh, Kevin J., The Basel Committee’s Initiatives on Climate-Related Financial Risks, October 14, 2020. 3 Basel Committee, Climate-Related Financial Risks: A Survey of Current Initiatives, April 30, 2020. 4 David J. Snowden and Mary E. Boone, “A Leader’s Framework for Decision Making," Harvard Business Review,  November 2007. 2/2  BIS central bankers' speeches
And with the recent introduction of the Mandatory Provident Fund schemes, the demand for bonds has been building up quickly. In 1991, the bond market has a size of only about 4 per cent of GDP. This has grown to 35 per cent last year, and the share of private sector debt is now at around 77 per cent. We have come a long way but there is still a lot of room for expansion, as evidenced by comparisons with bond markets in the G-3 economies. But our bond market has grown big enough and has been robust enough for it to provide some meaningful back-up in times of financial stress. In 1998-99 when, as property prices fell sharply and the financial turmoil led to deteriorating asset quality, the banks adopted a conservative stance in their lending, corporate bond issuance increased significantly. Positioning for the future Our present pre-occupation in the development of the Hong Kong bond market is to bring in the international dimension. As an international financial centre, we of course aspire to play a role in international financial intermediation. To achieve this, our efforts have been concentrating on two fronts. First is the establishment of bilateral linkages of the appropriate elements of our financial infrastructure with those of other jurisdictions wherever it is compatible to do so, and whenever the counterparts are willing. This basically is for the purpose of facilitating the cross border investments in debt securities.

Many senior managers and specialists view their student days as a pivotal time in their lives, so the quality of teaching has a major impact on both economy and administration. Universities make a direct contribution to a country's prosperity by maintaining the necessary capabilities and developing and imparting knowledge that is useful for the economy and society. But their indirect contribution is just as important: Universities must enable their graduates to understand and appreciate the significance of the Swiss model for success. This model is based on the pillars of direct democracy, the rule of law, federalism and an awareness of the value of stable institutions. The terms 'markets' and 'competition' are key to understanding basic economic relationships, and are fundamental to ensuring prosperity, as well as to acquiring and applying new scientific knowledge. One of the tasks of a university is to provide its graduates and the general public with a realistic picture of the functioning and importance of markets and competition. Only in this way can the Swiss model for success endure in a world of constant change. 1/1  BIS central bankers' speeches
The interest rate differential shows the difference between Swedish and German 10-year government bond yields. Sources: Macrobond Financial and the Swedish National Debt Office. The overall picture is that the reforms implemented have benefited Sweden well. Both companies and households have benefited greatly. The economy has functioned better and prosperity has increased. Let me highlight three lessons from the crisis and subsequent reforms: First, well-functioning frameworks make crisis management easier. Sweden was well equipped to deal with the economic consequences of both the financial crisis and the pandemic. Both fiscal policy and monetary policy could contribute to counteracting the economic slowdown and help the recovery in the Swedish economy on these occasions. Sweden therefore managed the economic effects of both the financial crisis and the pandemic better than many other countries in the western world. Second, one must be careful about declaring that things will look a certain way for all time, even if that has been the case for a while. Too much consensus on the possibilities of the fixed exchange rate thirty years ago meant that it took too long to embark on a more favourable economic path. More recently, we have seen that inflation was not ‘dead’ as some commentators argued not very long ago, and a monetary policy with low interest rates and bond purchases was not something that lasted forever (‘low for long’ and ‘QE infinity’). Third, reforms are painful in the short term, but often produce faster and greater results than expected.

As such, there is a great need for policy coordination among them to ensure an orderly supply of global liquidity. In the worst-case scenario, the multi-polar system could be more unstable especially during crisis periods. This is because the reserve currencies are close substitutes among themselves. As such, deterioration in the financial position of one reserve-issuing country could lead to severe capital flight, causing volatility in both exchange rates and asset prices. At this point, it is difficult to foresee if the management of global liquidity in the multi-polar system would be easier or more difficult than the current system. 8. As the multi-polar system is not immune from capital flow volatility, I would like to make a brief comment on recent IMF framework on capital flow management measures. While we support the work of the IMF in conducting empirical study on country experiences in managing surges of capital inflows, we do not support any rules-based approach in dealing with capital flow issues. Policymakers should be able to respond to such challenge in a pragmatic rather than rules-based manner. 9. Let me finish my talk with some comment on the SDR. In theory, there are many good reasons to enhance the role of SDR as one of its distinct advantages is the possibility of managing global liquidity without affecting the value of currencies in the basket. In addition, the basket also has the diversification advantage as the system will be less exposed to shocks in any of its constituent economies.
To do that, it has involved not only the stakeholders in the euro area, but also those in other countries of the European Union, Poland obviously included, as well as Iceland, Liechtenstein, Norway and Switzerland. Communities outside the euro area will thus have the opportunity to participate in euro payment systems, and will be able to adopt SEPA standards and practices, thereby contributing to the establishment of a single market for payment services. The EPC plans first SEPA products to come on the market at the beginning of the next year. Therefore, today’s Bank Forum is an excellent opportunity for an in-depth discussion on the role and place of the Polish payment infrastructure in the SEPA world. Ladies and Gentlemen, I am pleased to present you the discussants of our panel, in alphabetical order: Mr. Ryszard Drużyński, Vice President of Raiffeisen Bank Polska, Mr. Krzysztof Kalicki, President of the Management Board of Deutsche Bank Polska, Mr. Ronnie Richardson, President of the Management Board of Kredyt Bank, Mr. Witold Zieliński, Vice President of the Management Board of Citibank Handlowy. I would like this discussion to be broad and dynamic, that's why feel free to join it. First, I would like to draw your attention to the fact that changes ahead of us are needed to move towards a more integrated payments market, which will bring substantial economic benefits. The SEPA will not only introduce more comparable services, but will also foster competition and drive innovation.

Institutions that are able to embrace new technological developments and offer customers additional services will benefit from this new integrated market. In a competitive and integrated economy, a forward-looking view is required so that retail payments have a level of safety and efficiency that is comparable with the best national systems in place today. Undoubtedly, this approach will considerably influence the balance of power on the European market of payment services, as well as on our local market. The proposed mechanisms will favour consolidation processes in the sector of payment infrastructure providers, and possibly also in the banking sector itself. SEPA stands for (S)Speed, (E)Efficiency, (P)Positiveness and (A)Automatisation. It is important that the SEPA project is not viewed just as a “one-shot operation”, but rather as a continually evolving project that fosters European integration, seeking to improve all aspects of the euro area retail payments market on an ongoing basis. The SEPA will also make a notable contribution to the socalled Lisbon Agenda, which aims at fostering competitiveness and ensuring the continuous development of the European economy. The National Bank of Poland, as a forward-looking and acting institution, which supports development of the Polish banking sector, has been participating, for two years now, in the TARGET system, and is now proceeding with intensive preparation for the transition  BIS Review 29/2007  1  to the new platform – TARGET2.
These issues need to be addressed on the ground, with proper enforcement by management to prevent misselling practices, unclear documentation or explanations by agents and marketing staff, and contract terms and exclusions that are unreasonable. Wide gaps have also been observed between companies in the level of competence of staff selling the products, and in the quality of training provided to staff and agents. There is a need to achieve greater, as well as more consistent, progress in this area. Bank Negara is determined to improve standards in the area of market conduct, and we will continue to actively engage the industry in this effort. I hope that all insurers will throw their support, at the highest level, behind the various initiatives that are being implemented by both the Bank and industry associations to achieve this. As a newly-formed alliance, the Tokio-Marine-Asia Group has a valuable opportunity to set the correct tone at the outset in this area for your Group’s priorities in the Malaysian market. I trust that you will use the opportunity wisely to set a new benchmark in responsible market conduct for the industry. On that note, let me once again congratulate Tokio Marine and Asia on the official launch of TM Asia Life Malaysia Bhd. I look forward with great anticipation to your positive contribution to the further development and growth of the Malaysian insurance industry. BIS Review 24/2007  3

Eurostat, the US Department of Commerce and the Riksbank  BIS Review 18/2005  9  7.UND1X: outcome and forecast in the main scenario Annual percentage change  4.0  4.0  UND1X Inflation Report 2005:1 Inflation Report 2004:4  3.5 3.0  3.5 3.0  2.5  2.5  2.0  2.0  1.5  1.5  1.0  1.0  0.5  0.5  0.0  0.0  -0.5  -0.5 -1.0  -1.0 97  98  99  00  01  02  03  04  05  06  07  Sources: Statistics Sweden and the Riksbank  Table 1. GDP by expenditure Annual percentage change  GDP by expenditure  2003  2004  2005  2006  2007  Private consumption Government consumption Gross fixed capital formation Change in inventories Exports Imports GDP at market prices  1.5 0.8  1.8 0.3  2.7 1.2  3.0 1.4  3.3 0.6  -1.5  5.1  8.0  5.8  4.5  0.2 5 4.9  -0.3 10.2 6.7  0.0 6.6 7.5  0.0 6.1 6.6  0.0 6.0 6.7  1.5  3.5  3.2  3.2  2.8  Sources: Statistics Sweden and the Riksbank  10  BIS Review 18/2005
G20 Leaders and Finance Minsters need to keep our We may not be able to abolish the occasional waves of optimism that grip humanity and the tendency to excess they set off. But we can and must dampen their effects on the financial system and economy. This must include changing the incentives that bankers face. It will include a simplification of the capital markets; and constraints on the effects of exuberance through policies on leverage, capital and liquidity – applied beyond banking where warranted. And it must include macroprudential regimes that help us to refresh the microregulatory regimes and enable the authorities to take away the punchbowl when the party threatens to get out of control. Markets will, in time, forget about the risks, but the system will be safer if we succeed in building official institutions that do not forget. Parliament can underpin that by holding us to account in this endeavour, as it does on monetary policy – incentives matter in the official sector too. That will make for a safer and sounder financial system that can meet the abiding needs of the economy as a whole. And, to those of you here today, I would say that the Bank believes what it always believed: that sound and honest finance is not only essential for the economy, it will be good for the City too. 8  BIS central bankers’ speeches

Institutional structure that is determined by the legal and administrative framework is the first pillar of competitiveness. The ability to execute financial transactions efficiently, with  2  BIS Review 117/2009  sufficient certainty and enforceability, and a clear process for resolving ambiguities and possible breaches of the contract will enhance competitiveness, both at the institutional level as well as for the financial system as a whole. In Malaysia, Islamic finance disputes are adjudicated in civil courts and not the Shariah courts where the jurisdiction is limited to matters relating to Muslim individuals. If the dispute concerns a point on the ascertainment of Shariah, the courts and arbitrators are required to refer to the Shariah Council at Bank Negara Malaysia to facilitate the ruling. The Shariah Council’s authority is the ultimate body responsible for Shariah in banking and financial matters that is within the purview of Bank Negara Malaysia. This referral system provides an enabling platform for preserving consistency and predictability in interpretation and application of Shariah principles for financial transaction in Malaysia. Concluding remarks Allow me to now conclude my remarks. The inherent strengths of Islamic finance amid the global financial crisis has heightened interest in Islamic finance across the world. The level of innovation, scale and complexity of Islamic financial transactions is also increasing at a tremendous pace. Going forward, it is envisaged that the legal services in Islamic finance will become even more significant in the continued advancement and efficiency of Islamic finance.
The only way to  2  BIS Review 18/2003  fix the exchange rate while still retaining an independent currency is to return to the old regime and introduce currency controls, but who would want to return to such an arrangement? Exchange rate volatility is best prevented with economic policies which promote economic stability, but this does not only depend on the Central Bank. It is essential to take a long-term perspective. However, it should be noted that since September last year the Central Bank has been regularly purchasing currency in the foreign exchange market in order to boost its external reserve. The Bank’s purchases of currency have amounted to more than 13 b.kr. since that time, and have undoubtedly weighed somewhat against the appreciation of the króna in the short run, although the long-term effect is negligible, if any at all. The Central Bank’s main monetary instrument is the interest rate on its repo agreements with credit institutions. In response to anticipated overheating of the economy the Central Bank began to raise its interest rates as early as 1997 and raised them rapidly in 1999 and 2000. In the beginning of 2001 the policy rate was up to 11.4%. Since then the Central Bank has lowered its policy rate 13 times and it now stands at 5.3%. Admittedly this is a higher level than among neighbouring countries such as the euro region, which have to tackle the problems of persistent economic weakness and high unemployment.

or above as soon as the deposit in the payer’s account allows this to be done. The system thereby transfers payment orders, which are above the minimum needed to qualify for the RTGS system, directly to or from participants’ current accounts with the Central Bank. The RTGS system has a triple function. Firstly, the Central Bank uses the system for the implementation of its monetary policy; secondly, it is used in transactions by credit institutions with the Central Bank; and thirdly, it is used for gross settlements between credit institutions. The security and functionality of this system are thereby preconditions for enabling the Central Bank to achieve its objectives for both price and financial stability. Consequently, operation of the RTGS system has been assigned to the Central Bank, a familiar arrangement from many other countries. The Bank’s duty is to strengthen the security, efficiency and independence of the system. At the end of 2002 agreements were made with all system participants specifying payment authorisations and collateral security for settlements. This represented a major step towards bringing arrangements for the credit institutions’ transactions with the Central Bank into harmony with best international practices. Automatic Central Bank guarantees for settlements in the RTGS system are thus a thing of the past. Work is still in progress on developing the system. This year it is expected that the rules governing it will be revised, its independence be enhanced, collateral security amounts for settlements be reviewed, handling times be shortened and settlement limits be lowered.