samchain/econo-pairs-v1 huggingface dataset:
An encouraging aspect of subsequent developments, however, is that the banks have begun to extend the maturities of their foreign borrowing, so that the gap between their short-term and long-term liabilities has narrowed in recent weeks. This is crucial, because it may be imprudent to place excessive faith in the availability of shortterm funding. In its letter, the Central Bank echoed cautionary remarks from the agencies that award credit ratings to the Republic of Iceland and other Icelandic borrowers in foreign markets. Ratings agencies have stated that their chief concern and the main constraint on upgrading Icelandic ratings - or even a potential reason for downgrading them - is the high external debt position of the economy. Since the Treasury has been retiring its foreign debt over the past few years, the ratings agencies’ comments are addressed elsewhere, in particular to the banks. Cautionary remarks based on such arguments should of course be heeded by all the banks in Iceland that have been borrowing abroad recently. It is in everyone’s interest to safeguard Iceland’s credit ratings and, where possible, strengthen them. Payment and settlement systems At the Central Bank’s annual meetings in recent years I have outlined the work it has undertaken in development of payment and settlement systems. Two types of payment system are in operation in Iceland, both of them settlement systems, i.e. the Central Bank’s real-time gross settlement system and the netting system operated by Fjölgreiðslumiðlun hf. Settlements of securities transactions are processed by the former system.

The main shock to financial stability and monetary policy would be if asset prices were to drop sharply at the same time as the growth of real disposable income slows down at the end of the aluminium-related investment boom. Lending developments As I mentioned before, lending growth is a cause for concern, both for financial stability and the Central Bank’s inflation target. Domestic lending grew at a brisk pace in 2003 and this development appears to be heading in the same direction this year. Total domestic lending by deposit money banks over the twelve months to the end of January increased by about 23%, which is above a rate consistent with longterm price stability and economic stability. The period 1998 to 2001 provides a recent example of the consequences of heavy credit growth. Both arrears and loan losses rose in the wake of the credit boom, leading to a temporary tightening of the commercial banks’ and savings banks’ foreign funding. While the recession and the ensuing strain on the financial system are now over, it can be partly ascribed to relatively favourable economic conditions and the consequently sharp turnaround in the exchange rate of the króna that financial companies only sustained minor setbacks. Proportionally, the highest growth in deposit money banks’ lending has been to foreign borrowers, but foreign currency-denominated lending to domestic entities has also surged, by more than 45% over the past 12 months.
It wasn’t the first flash event we’ve seen in core financial markets, nor the most violent, but it was certainly the closest to home. Combined with the evidence from the US Treasury event of 2014, it suggests growing potential for flash events to occur in core markets, where we might previously have expected the depth of liquidity and breadth of participation to provide some protection against such stresses. So while recent events fortify my confidence in the ability of core financial markets to process identifiable risks, I equally expect flash moves in the self-same markets to continue to surprise us, even if I cannot hope to predict precisely when or in what instrument or currency pair the next significant flash event will occur. 6  Section 2 – The Bank of England’s corporate bond operations Of course, the referendum result prompted a lot more than an exchange rate reaction. An important consequence was the MPC’s re-evaluation of the likely prospects for the economy and decision in August to take a number of steps to ease monetary conditions. Some of these steps were familiar – reducing Bank Rate and initiating further gilt purchases. Some were more novel – providing term funding to banks in order to support Bank Rate pass-through, and purchasing corporate bonds. 7  The sterling corporate bond market is relatively small and concentrated in nature, with limited trading in the secondary market.

The way to do it is to set up a state-administered system to which all the banks pay a fee in relation to their risks, much like an ordinary insurance policy. Sure, the state still stands the risk in the event of a large failure. But in this system, it is duly compensated for the risk. And the financing is robust. If implemented widely, this solution will also make for a more level playing field between banks from different countries competing partly on the same markets. I therefore hope that the proposal will get more international attention than it has so far. There must be a strong negotiating position for the government even when financial stability is threatened The above set up is a good set up to be able to handle the average bank failure. But, again, in some situations a different regime may be needed. In particular, this may be the case when it comes to larger and more complex banks in a situation of markets turmoil, when there is a systemic threat to the financial system. In this situation, it may not be possible to immediately revoke the licence for a bank which is in serious violation of the supervisory regulations. The focus will need to be on maintaining the key operations in the financial system. To secure this, the bank may need to stay open, at least for a while.
Muhammad bin Ibrahim: ASEAN financial integration, collaboration with Myanmar and other challenges for Malaysia Speech by Mr Muhammad bin Ibrahim, Deputy Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Maybank Myanmar Grand Opening, Yangon, Myanmar, 2 October 2015. *  *  *  A very good evening, it is an auspicious occasion. Congratulations to Maybank on the opening of its branch in Yangon, Myanmar. I am very confident that the launching of this first branch marks the beginning of a productive, innovative and meaningful journey for Maybank in contributing to the economic transformation of Myanmar and in particular the development of its financial sector. I am confident that this branch will be the first of many to come. My remarks today will touch on three subjects: Firstly, the importance of ASEAN financial integration; secondly, the close and long-standing friendship between Myanmar and Malaysia; and the role of financial institution as a responsible corporate citizen. ASEAN: Story of the future that begins today Members of ASEAN have adopted an ambitious, unique and comprehensive vision for an economically and financially integrated region. I term it as unique since we are embarking on this process in a phased and gradual manner. Each member country is given the flexibility to progress towards integration based on its state of readiness. It is an inclusive approach and a long term strategic plan to unlock the growth potential of our region in the coming decades. The case for integration is self-evident.

Through this program, several opportunities for collaboration on training have been identified, particularly in the context of existing plans for human resource development at the central bank, the CBM’s strategic plan for onsite and offsite supervision, and a future CBM training institute. And today, with the opening of this Maybank branch, marks another milestone in the relationship between Myanmar and Malaysia. The granting of a banking license to Maybank provides Malaysia with yet another avenue to participate and contribute towards the economic development of Myanmar. Being a responsible corporate citizen It is in the interest of financial institutions to be a responsible corporate citizen and contribute to the flourishing and wellbeing of society. Financial institutions must adapt to their domestic environment and be mindful of the needs of the community in which they operate in. Access to financial services for all segments of society is important for inclusive and sustainable growth for an economy. The low and moderate income households must be served as they represent the future. There are at least two dimensions to being a responsible corporate citizen. The first dimension is to design and grow business responsibly, by providing ethical and sustainable financial products and services to all segments of society. Part of this essential component is promoting greater levels of financial literacy and understanding of financial products among the local community. Banks need to strive to deliver the highest standards of service to all. The second dimension is the act itself of giving back to the community.
However, while regulatory capital is important and may represent an overall constraint, research and discussions with banks actually suggest that, when determining the price of a loan, banks consider all of the economic risks associated with a particular borrower. It seems that factors such as “economic capital” and the level of competition are much more influential in individual loan pricing than regulatory capital. That finding should be no surprise to any banker or supervisor – banks that are managing their risks appropriately are already considering the risks that they face when they lend to higher-risk borrowers, and thus lower credit quality is already priced into a loan, even under the existing less risk-sensitive capital rules today. Furthermore, there are additional elements in Basel II that can contribute to alleviating concerns about the impact on capital flows to emerging markets. Let me mention the reduction in capital charges for retail lending, residential mortgages, small and medium enterprises (exposures below € 1 million) and well-provisioned past-due loans. Also, the recognition of credit risk mitigants, such as collateral and guarantees, is significantly better in the new framework of Basel II. If we take a medium or longer-term perspective, the different channels that I mentioned before will ensure better access to financial flows for the same risk.

It may be that Basel II raises new issues and requires a lot of work to be implemented. However, it is my view that Basel II cannot be assessed in a static way. BIS Review 8/2005  9  I believe that we will need some time to be able to fully judge the real benefits of Basel II. In my opinion, the main strengths of the framework do not come from its quantitative regulatory requirements, although these are certainly important. Neither do I believe that the most fundamental aspect is when exactly the new framework will be implemented in different countries. This will just be a transitional issue. One of the essential strengths of the incentive-based approach of Basel II is the dynamic way in which it will contribute to financial stability by promoting risk sensitivity and strong risk management practices across banks, reinforcing market discipline and enhancing cooperation. These are key elements, because, in the end, no regulation in itself can prevent problems in badly-managed banks. And Basel II represents a tremendous opportunity for banks themselves. By stimulating them to upgrade and improve their systems, business models, capital strategies, risk management systems and disclosure standards, Basel II should improve their overall efficiency and ability to compete globally. It is my view that, if supervisors and banks in 2046 look back at the evolution of financial regulation over the years, they may well think in terms of "before Basel II" and "after Basel II". 10  BIS Review 8/2005
Heng Swee Keat: A review of Singapore’s economy and financial system Opening remarks by Mr Heng Swee Keat, Managing Director of the Monetary Authority of Singapore, at MAS' Annual Report 2008/09 Press Conference, Singapore, 16 July 2009. *  *  *  Backdrop on global financial and economic crisis The world economy has witnessed one of the most tumultuous and challenging times. Global GDP is expected to contract in 2009, the first time in the post-War period. 1 The tremors that shook the financial markets surpassed the most extreme stress scenarios. Bank losses have now exceeded $ trillion and further writedowns are expected. In the six months following the collapse of Lehman Brothers, from September 2008 to March 2009, stock markets worldwide fell by almost 40%, wiping off about $ trillion in capitalisation. Singapore’s Straits Times Index (STI) also fell by close to 35%. In the fixed income markets, the rally in government bonds was offset by the sell-off in the non-sovereign sectors such that global bond markets in aggregate also declined over this period. Many institutional and individual investors were affected negatively. These shocks to the international financial system severely disrupted credit flows and led to dislocations in economic activity globally. The US – which was the epicenter of the crisis – as well as the EU and Japan, fell into a deep recession. The collapse in G3 demand, in turn, had a cascading effect on the emerging economies.

In response to announcements by jurisdictions in the region of blanket government guarantee on deposits, the Singapore Government announced on 16 October 2008 a guarantee on deposits of individuals and non-bank customers of banks licensed in Singapore. This was aimed at ensuring a level international playing field for banks in Singapore and demonstrated the Government’s confidence in the soundness of the financial system. It has also had the effect of maintaining the confidence of investors and depositors in our banking system. State of the financial System The measures taken around the three pillars of maintaining sound financial institutions, ensuring well functioning markets and maintaining confidence of investors, as well as the way in which institutions and market players responded to the crisis, have helped our financial sector weather the crisis. A healthy and functioning financial system has continued to support credit and capital intermediation to the economy. Compared to the Asian Financial Crisis, the moderation in bank lending has been milder. While credit conditions have tightened, there has not been disruption of credit flows to corporates. A total of $ billion 2 was raised by SGX listed companies in the first half of 2009, which accounted for 65% of  2  2  Source: SGX & Thomson Reuters. BIS Review 91/2009  total rights offerings in Asia in this period. More than 7,300 Government-backed loans amounting to $ billion have since been approved in the first half of 2009.
This improvement in the functioning of payment systems represents a huge step for liquidity circulation. Third, a broader range of participants: the payments market has expanded to include competition from big techs and major retailers, which are following a wide range of strategies in this respect. The flipside of this trend is that the increasingly global nature of the market is raising sovereignty issues, including those relating to the control of data when the providers are located outside the region or jurisdiction where they offer their services. Last, the crave for blockchain technology: all around the world, market participants and big techs have launched or are preparing to launch new projects for tokens designed to serve as means of payment or settlement using the blockchain technology. We all have in mind firstgeneration crypto-assets like Bitcoin and Ethereum, but there are now many others coming or foreseen, like the JP Morgan Coin, the UBS’ Utility Settlement Coin or The Facebook’ Libra. 2- The development of crypto-assets are part of the innovations fueled by these underlying trends affecting payment instruments and systems, combining the search for anonymity, management of non-intermediated peer-to-peer payments and the use of entirely web-based technologies. But they also have their specificities. Actually, they have unique financial, monetary and  technical features which set them apart from the currencies and payment instruments issued by financial institutions and central banks.

In October 2019, according to CoinMarketCap, total outstanding crypto-assets represented EUR 205 billion globally; in comparison, the euro area’s M3 monetary aggregate amounted to EUR 12.5 trillion in August 2019. In addition, the diversity of views on the contributions that crypto-assets can make to the efficiency and safety of our payment systems mirrors the one in their forms. Some see crypto-assets as a disruptive innovation poised to radically change the way our monetary and financial system operates, and changing it for the better. Others believe that for the time being they do not provide a new and attractive answer to the classical trilemma payments solutions face between low cost, high execution speed and low risk, and would change the way our monetary and financial system operates for the worse. To share with you a few thoughts on this debate, speaking from the perspective of a central banker and a supervisor mindful of the benefit of innovations but also of the risks they could bring to financial and monetary stability, I will focus my remarks on: 1- whether and how crypto-assets can contribute to improve our payment systems, 2- the public policy challenges they raise, in particular for central banks, and how to address them. I – Crypto-assets and the future of payment systems 1- In the payment instrument landscape, there is currently a twin trend: the share of cash  payments dwindles while cashless payments undergo a transformation driven by behavioral changes and technological innovation.
What should we do about this? Based on the analysis and evidence we have reviewed, we think we need to take some steps now to guard against these problems with the MA leading to an insurer getting into trouble in the future. As part of the wider package of reforms under consideration, we think those steps should also support the government’s investment objectives. This should occur in one or both of two ways. First, our analysis indicates to us that the combined effect of the reforms – in particular loosening the risk margin while tightening the MA – should free up a significant amount of capital for insurance companies across the sector, which they could choose to re-deploy into investment if their boards support that course of action rather than returning it to shareholders. [11] We think that on recent economic conditions – specifically, those at both year-end 2020 and yearend 2021 – the amount of capital released would be equivalent to 10-15% of the current capital held by life insurers, which could support between £ and £ in additional investment in the economy. In higher interest-rate environments the figure would be a bit lower, simply because the risk margin in its current form shrinks as interest rates go up and therefore the large cut we propose releases less capital when rates are higher. But we think it is still a material release – for instance we estimate it would be 5-7% under one long-run 'rates up' scenario.

BIS Review 64/2006  1  where savings and investment needs are matched through the exchange of assets or instruments on financial markets. In the last decades, in industrialized and, more recently , in emerging economies, financial markets have played a growing role in the allocation of savings, a process commonly designed as "disintermediation". Has disintermediation increased or decreased the efficiency of financial markets? Or, in other words, is there a superior type of financial structure, an optimal mix of financial intermediaries and markets for promoting long-run economic growth? This “century old debate”, to quote Ross Levine, has received conflicting answers 3 . •  According to the “intermediary-based” view, banks are more growth-enhancing than markets, particularly in the early stages of development, because they are better at monitoring firms and better equipped for reducing moral hazard. According to the “market-based” view, markets are inter alia more suited than banks to finance innovative and high-risk projects. •  Against this background, it could be tempting to establish a link between the acceleration as from the mid 1990s of productivity growth in the United States, in line with gains arising from the production and use of ICT (information and communication technology) and the marketdominated American financial system. During the same period, productivity growth slowed down in two major bank-dominated areas, Europe and Japan. •  However, empirical research argues that distinguishing countries by financial structure does not help in explaining cross-country differences in long-run economic growth 4 .
Here, China’s informed policy of supporting poor Asian and African countries is definitely worth mentioning. Perhaps some of you think that China and India are far countries, and for that reason pose no challenge for us. This is far from being true, as technological progress and lower transportation costs have in many instances rendered distance immaterial, with many economists speaking of ‘the death of  5  R Freeman, The Great Doubling: labor in the new global economy, Georgia State University, Usery lecture in labor policy, 2005. 6  Examples can be found in a book written by T Friedman and entitled The World is Flat. A Brief History of the Twenty-First Century, Farrar, Straus and Giroux, Nowy Jork, 2005. The analysis of services that may be subjected to the global competition can be found inter alia in a paper by B Jensen, L Kletzer Tradable Services: Understanding the Scope and Impact of Services Offshoring:, Institute for International Economics working paper 05-9, September 2005. 7  See the European Commission’s paper Globalisation: Trends, Issues and Macro Implications for the EU, EUROPEAN COMMISSION, DIRECTORATE-GENERAL FOR ECONOMIC AND FINANCIAL AFFAIRS ECONOMIC PAPERS, No 254, July 2006. 8  P Romer, Increasing Returns and Long-Run Growth, Journal of Political Economy, October 1986; P Romer, Endogenous Technological Change, Journal of Political Economy, October 1990. 2  BIS Review 97/2006  distance’.

As citizens, we have every right to demand that decisionmakers, regardless how they differ in their assessment of the past, create and support a common vision of strong and competitive Poland in the global economy of the 21st century as fast as possible. Thank you very much for your kind attention. 4  BIS Review 97/2006