samchain/econo-pairs-v1 huggingface dataset:
Similarly, banks should address the technology risk stemming from the impact of the adoption of new technologies on, for example, the probability of suffering cyberattacks, with extremely high potential effects on operational risk and banks’ own reputation. Lastly, climate change and the transition towards a more sustainable economy pose another key challenge. Although this affects all economic agents, it is particularly important in the financial sector. Banks face two types of risks in this area: “physical” risks linked to the direct effect of climate change on their asset values, and “transition” risks linked to the process of technological and regulatory transition to a more sustainable economy. In coming years, identifying, quantifying and mitigating these risks will require considerable effort, although the notable development of green sustainable financial markets in Spain in recent years should be highlighted. 2. Low interest rates and banks’ risk appetite In a low interest rate setting, there are greater incentives for economic agents to take on greater risk. The work of the macro- and microprudential authorities consists in ensuring that this greater risk-taking is not excessive and does not ultimately generate problems for financial stability. The authorities should use the various prudential instruments at their disposal to prevent this from occurring. The longer interest rates remain low, the more likely it is that risk-taking may become excessive. Clearly, deposit institutions are not immune to this, especially when profitability is low. Let us now assess the situation in this respect in the case of the Spanish banking sector.

As is well known, this guardianship and scrutiny constitutes the core of the Central Bank’s legally mandated role, and the fact that the Bank should be assigned the task of containing inflation is not absurd, nor is it a function of obsession or blind fundamentalist belief that a particular aspect of economic policy implementation should take absolute priority over all others. Both in Iceland and in most other countries, there is abundant experience to support the conviction that inflation is extremely harmful if it becomes immoderately high. It becomes a serious problem if deviations persist, and it will cause important damage if it continues to grow and the Central Bank cannot contain it through conventional measures within a reasonable period of time. It is possible to advance theoretical support for the idea that the Central Bank alone could hold inflation down, but in order to do so the Bank would have to implement its measures with such force and rigidity that its actions might have an extremely negative effect on many other aspects of people’s lives. It is therefore vital that those who are most influential in determining Iceland’s financial and economic development pull together as one in order to fight rising inflation. Short-term interests and viewpoints must yield in favour of the greater goal.
Ardian Fullani: Recent economic and monetary developments in Albania Speech by Mr Ardian Fullani, Governor of the Bank of Albania, at the joint press conference with the Albanian Minister of Finance and the IMF Mission Chief for Albania, Tirana, 22 June 2011. *  *  *  Dear media representatives, In the last two weeks, a team of the International Monetary Fund (IMF) led by Mr Gerwin Bell, Mission Chief, visited Albania. During this visit, we had intensive discussions on the current economic developments, the economy’s expected performance and appropriate orientation of macroeconomic policies. This visit in the framework of Article 4 Consultation focused also on structural issues of the Albanian economy, highlighting the steps to be made for ensuring sustainable long-term growth. Brief overview of key issues discussed First, the 2010 and early 2011 economic and financial developments showed that, overall, the Albanian economy overcame the global crisis effects with success and has the prerequisites to generate economic growth in the period ahead. Foreign demand was the main contributor to the 2010 economic growth, while the current year is expected to be characterised by a resurgence of domestic demand and slower growth rates of Albanian exports. Overall, the macroeconomic situation is balanced, characterised by low and controlled inflation; safe, liquid and well-capitalised financial system; improving financial markets; and improved current account position. These developments reflect, inter alia, the relevant policies, which have proven effective in buffering large shocks from the global crisis.

M R Pridiyathorn Devakula: Thailand's Monetary Policy - its obstacles and challenges An address by Mr M R Pridiyathorn Devakula, Governor of the Bank of Thailand, at the Seminar on "Where does Thailand stand now?" Bangkok Post – Tradex Economic Forum Bangkok, 26 September 2001. *  *  *  Your Excellencies, Distinguished Guests, Ladies and Gentlemen, The tragic terrorist attack in the United States, and the repercussion on the financial markets all around the world, reinforced what we already witnessed in the 1997 Asian crisis – that the financial world has become closely inter-twined, globalised and integrated. Disturbances in one market readily spread to and affect all the others. This is the kind of challenge facing policymakers in setting monetary policy these days. Past Achievements Ladies and Gentlemen, Let me briefly review the economic developments. Thailand has faced a number of difficulties and fought hard in the last four years. We have gone through unprecedented adjustments and improvements on both economic and financial reforms. The Thai economy has gradually recovered. The growth rate of GDP, which was a contraction close to 11% in 1998, has now been maintained in a positive territory for more than two years; 4.2% in 1999, 4.4% 2000 and would highly likely be positive again this year, even though at lower percentage of growth. Macroeconomic and financial stability has been restored.
At the macro-economic level, concern has been expressed that greater use of fair values could have a procyclical impact. Banks’ assets might be marked up in booms, as perceived credit risk declined, so boosting banks’ capital base and capacity for further lending. However, for the concerns about intensifying economic cycles to be realised two linkages would need to operate. First, the impact on bank capital would have to increase the volume of bank lending and, second, the increase in bank lending would need to have significant implications for real activity. Neither linkage can be taken for granted, and in any case discretionary policy action, whether monetary or prudential, by the authorities may mitigate any pro-cyclical effects. As I have indicated, we do, however, need to avoid accounting rules which introduce spurious volatility. An example, to which I will return in a moment, is the hedge accounting under IAS 39. The “mixed attribute” model The drawbacks of fair values in some contexts have led to widespread support in the banking industry for retaining the current “mixed attribute” accounting approach. While IAS 39 requires trading instruments, derivatives and many securities to be measured at fair value, bank loans generally continue to be measured at historic cost. However, the debate about IAS 39 has highlighted some difficulties with this mixed approach as it is presently formulated. The area of greatest difficulty has proved to be hedges which straddle the two measurement bases, where so-called hedge accounting comes into play.

“Own-credit risk” arises from the “fair value option” in IAS 39, which allows an entity to fair value not only its assets but also its liabilities. On that basis, the value of liabilities, including deposits, should fall as an entity’s creditworthiness deteriorates. Here we find a difference of perspective between shareholders on the one hand and debt holders, including depositors (and by extension regulators and central banks), on the other. In an economic sense, given that the equity interest in a company cannot fall below zero, as net worth diminishes debt holders bear a growing proportion of reductions in asset values. But this approach is in tension with the understandable concern of bank depositors and regulators about the capacity of banks to repay liabilities at par when due, and who therefore want measures of net worth constructed on that basis. A separate issue arises in arriving at a fair valuation of sight deposits. For such deposits, there is typically a difference between the contractual maturity (zero) and the behavioural maturity (the time over which sight deposits are held in practice). Since the interest paid on such deposits is almost always less than the market discount rate, once any maturity greater than zero is admitted the fair valuation of the deposit will be less than par. But once again, depositors are likely to be more interested in the financial strength of a bank assessed on the basis that deposits are ascribed their full  BIS Review 71/2004  1  nominal value.
Even though users do not cover costs directly, the costs involved in using these schemes are high, making these solutions an expensive alternative for banks. Eventually, banks’ customers foot the bill one way or another. Cheaper alternatives are on their way. The new solutions could also result in faster payments. National payment card schemes, such as BankAxept in Norway, might provide an alternative to the international card schemes, including access to the new services. New regulations have been introduced to lower the costs related to international cards. A new EU regulation also provides for direct bank-to-bank payments, bypassing the card schemes entirely. Technological innovation has given us not only new methods of payment, but also new forms of money – so-called e-money. E-money is electronic money issued by non-bank entities, but in existing currencies. Paypal customers can make payments through their Paypal account. Facebook has recently applied for a Europe-wide e-money licence. If large providers offer an attractive, user-friendly solution, this method of payment could become widespread. A key issue related to e-money is the question of consumer trust. E-money is a claim on the issuing company. E-money is not backed by a deposit insurance scheme or any authority. Other companies are offering new forms of money – often in the form of a new currency – on closed platforms such as social networks and online games. Examples of such platform currencies are Amazon Coins, the virtual currency used in the online game World of Warcraft and Chinese Q Coins.

Nonetheless, probably the most important factor is that the banking sector is one of the most highly regulated sectors in society and is subject to strict supervision. A bank cannot operate without a licence, and banks are required to satisfy a number of requirements relating to capital adequacy and liquidity management, all of which limit bank lending and money creation. Norwegian banks cannot behave as Stockholms Banco did in the 1600s. By ensuring that banks are solid and sufficiently liquid, regulation and supervision also underpin trust in the money we use. The financial crisis in autumn 2008 was triggered by the collapse of an under-regulated financial institution – the Lehman Brothers investment bank.10 In the years preceding the crisis, Lehman’s equity was less than two percent of its assets. With so little capital supporting loans, it does not take more than a puff of wind to bring down a house of cards. New forms of payment and new forms of money Trust is necessary, though not sufficient, for money to function as a universal means of payment. It must also be efficient and safe to use. When you make a payment in a shop using a bank card, one of the largest systems we have is set in motion. Payments move back and forth between banks. Banks settle the payments by transferring money between their accounts at Norges Bank. Your payment then becomes available in the recipient’s account, normally a few hours after the payment process was initiated.
This picture of how the economy functioned was modified in the 1970s. The economies in many western countries at that time evinced both high inflation and high unemployment. In fairness it should also be mentioned however that the oil price shocks also contributed to the high inflation that decade; not all problems were a consequence of the failures of stabilisation policy. Now most economists and political decision-makers accept that only in the short term is there a trade-off between inflation and employment. Real wages can be reduced owing to unexpected inflation and employment will thereby be stimulated. But when this pattern is recognised – as will very likely happen after a while – inflation expectations adjust to the new, higher inflation rate. Then the positive effect on growth disappears and employment reverts to its previous level. All that remains is a higher rate of inflation. In other words, in the long term there is normally no positive relationship between employment and inflation. Instead employment in the long term is decided by such conditions in the real economy as technological and population developments or labour market efficiency. However the temptation to use monetary policy to stimulate employment still exists. Even for a government that knows that the long-term effects of increasing demand a little too much are undesirable, it can be tempting in the short run. The very fact that this possibility exists has made it more difficult to instil confidence in a policy of low inflation.

Ranee Jayamaha: The significance of payment reforms in financial system stability Opening address by Dr Ranee Jayamaha, Deputy Governor of the Central Bank of Sri Lanka, at the seminar on “Payment systems and cheque imaging” organised by the Royalist Bankers’ Club, Colombo, 25 May 2006. *  *  *  Let me thank the President and members of the Royal Bankers’ Club for inviting me to deliver the opening remarks at the seminar on ‘Payment Systems and Cheque Imaging’. I am honoured to be speaking to this distinguished group and it is encouraging to note that the subject is of interest to a good cross section of the financial community. In my opening remarks, I will give an overview of the significance and rationale of payment reforms in financial stability and then set out the impact of payment reforms on the financial system, institutional arrangements that are in place, and the need to change payment practices of banks and the public. It may also be important to note that the term “Payment Systems” covers payments, clearing and settlement systems. As you are aware, the Central Bank’s role in the payment system stems from its primary function of providing payment, clearing and settlement service. Economic policy reforms, the ever increasing complexities in the financial system and the changing role of central banks have resulted in central banks to be at the center of payment reforms which, from the Central banks’ point of view, is helpful in achieving the objective of financial system stability.
Hong Kong’s competitive edge in hard power and soft power has been a hardearned success made possible through the cumulative effort of successive generations. But I think the most crucial factor lies in the “can-do” spirit of the people of Hong Kong, a drive to always look for a solution, agilely and tirelessly, with no fear of obstacles or competition. Our economic transformation and development in the 1960s and 1970s, migrating from entrepôt trade to light industry and then finance, is a story of constant change and innovation. And, especially since the Mainland’s reform and opening up, we have always been a testing  BIS central bankers’ speeches  3  ground, a buffer zone and a springboard. When Hong Kong’s manufacturing base moved to the Mainland, we changed to trade intermediation and focused on logistics management and offshore trade. We also developed our services industries, especially high value-added and modern services including professional and financial services. Our economy has always adapted and transformed itself in response to the constantly shifting economic landscape of the Mainland and the rest of the world. Conclusion: levering the Mainland while engaging the world 12. The pivot of the Mainland’s economic growth is expected to shift to domestic consumption, innovation and efficiency enhancement, as well as market opening. There will also be more Mainland companies investing abroad.

Gent Sejko: The importance of studying technological and demographic developments disrupting labour, finance and markets Welcome remarks by Mr Gent Sejko, Governor of the Bank of Albania, at the 13th SEE Economic Research Workshop, Tirana, 5 December 2019. * * * Dear Ambassador Maître, Dear guests and speakers from academia, central banks and research institutions, Dear participants, It is a great pleasure for me to open the proceedings of the 13th SEE Economic Research Workshop, in which we present and open for discussion research projects undertaken by the Bank of Albania in the current year, and have the opportunity to get feedback from colleagues from academia, central banks and research institutions worldwide. This is a very important event for the Bank of Albania, since all the projects that will be discussed during the two days of the workshop are designed to help the analysis, decision making and implementation in the areas of monetary policy and financial stability as well as other central bank aspects. Based on this careful formal analysis, our policies have been successful in preserving monetary, macroeconomic and financial stability. Despite hardships, our economy has registered positive growth rates, and our banking system’s performance has been stable. The banking sector is well capitalized and profitable, non-performing loans have decreased and banks continue to support economic activity with credit, while managing potential shocks originated from the external sector of the economy. The agenda is rich and covers the most important areas of research related to traditional central bank activity.
Every year since then, as a savings plan, the government has let a substantial share of current income from oil and gas remain as deposits in the fund. At the end of the first quarter of this year, the fund’s market value stood at NOK 2 763 billion. See chart “The fund’s market value” at the end of the speech. As the fund increased, the need for a plan for the phasing in of oil revenues became evident. In 2001, the Government and the Storting adopted the fiscal rule, which is based on the deposit of government petroleum revenues in the oil fund. An amount equivalent to the expected real return on the fund, or 4 per cent, as an annual average over time, is transferred back to the central government budget to cover current expenditure. The transfers increase as the fund rises in value. Along the way, the name of the fund has been changed from the Government Petroleum Fund to the Government Pension fund Global. There are prospects that new annual transfers to the fund may be made over the next 10 years or so. This implies further growth in the fund, perhaps up to twice the size of today’s  3  See NOU (Official Norwegian Report) 1983:27 “Petroleumsvirksomhetens framtid” [The future of petroleum activity]. 2  BIS Review 78/2010  fund, which corresponds to one and half to two times annual GDP for Norway. Public expenditure accounts for about half of GDP.

25 (1973–74) to the Storting: “Petroleumsvirksomhetens plass i det norske samfunn” [The role of petroleum activity in Norwegian society]. 2  The Paradox of Plenty. Oil Booms and Petro-States by Terry Lynn Karl (1997) provides a good overview of oil nations’ problems. BIS Review 78/2010  1  From time to time, I meet representatives of the diplomatic corps in Norway. They seldom fail to mention the high cost level in Norway and their bewilderment over aspects of our way of life. A 17th century Moroccan ambassador was even more critical in his account of the wealthiest nation at that time: “…the Spanish nation today possesses the greatest wealth and the largest income of all Christians. But the love of luxury and the comforts of civilization have overcome them, and you will rarely find one of this nation who engages in trade or travels abroad for commerce as do the other Christian nations […]. Similarly, the handicrafts practiced by the lower classes and common people are despised by this nation, which regards itself as superior to other Christian nations. Most of those who practice these crafts in Spain are Frenchmen [who] flock to Spain to look for work … [and] in a short time make great fortunes.” See chart “Petroleum production” at the end of the speech. The oil age in Norway has now spanned about 40 years and there are prospects that it will continue for some time ahead.
This can be exemplified by the United States, where one-third of the import measured by value takes place by air, as is the case with 25% of export value of Africa 9 . (2)  What areas of Poland’s economic strategy call for changes in order that globalization can lead to a visible improvement in Poles’ living standard? Globalization is not a zero-sum game where some people gain, however at other people’s expense. Globalization has already enabled billions of consumers across the globe to enjoy enhanced living standard, as can be exemplified by lower prices, enhanced quality and increasingly diversified product and service offerings. Millions of Polish consumers also experience these benefits. Simultaneously, more than one million of Poles, the so-called euro 300-gross-pay generation, have obtained better paid jobs in other EU countries, following Poland’s accession to the EU. New jobs are created in Poland thanks to foreign direct investment and investment projects implemented by Polish companies that increase export production. Consumer optimism continues to grow, whereas fears related to the labour market subside. Poles enjoy an enhanced living standard and voice fewer concerns about their future. Undoubtedly, after our accession to the EU, Poland has achieved great success in the global economy. Does this mean that we can rest on our laurels and there is no need for rapid and farreaching changes? It is not quite right, however, as there are a number of areas where Poland ranks the very last.

By forcing all of the banks that participated in the SCAP to have sufficient capital to help them withstand a stress environment, this process improved confidence and increased the willingness of banks to engage with each other. It also made it easier for the banks to be able to tap the capital markets. The SCAP exercise made a bad state of the world less likely, helping to create a virtuous circle rather than a vicious one. The SCAP exercise was developed and conducted in response to the crisis and a specific need. Now, we need to figure out how to conduct these types of exercises on a systematic basis. Such exercises may even need to be hardwired into the supervisory oversight of the financial system. Transparency In some critical segments of our financial markets, both before and during the crisis, limited or ineffective disclosure undermined market discipline and this contributed to the accumulation of risk. In the years leading up to the crisis, the lack of transparency contributed to increased risk and leverage in off-balance sheet vehicles, structured credit products and in over-the-counter securities such as asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), residential mortgage-backed securities (RMBS) and collateralized debt obligations (CDOs) and their associated derivatives. Once the crisis was underway, the opacity of many of these vehicles, structures and securities contributed to the concerns about counterparty credit risk. This uncertainty exacerbated the erosion in market liquidity conditions and further intensified the crisis.