samchain/econo-pairs-v1 huggingface dataset:
Few companies have robust risk management frameworks that incorporate measures of how their products and services affect the well-being of consumers or if consumers are being treated fairly, as long as legal exposures are contained. And efforts to adopt triple bottom line approaches to reporting firm performance are only beginning to gain traction. Within Asia, fewer than 10 banking institutions today subscribe to the Equator Principles for assessing and managing the environmental and social risks for projects. Clearly the gap between the existing risk management practices and a whole-of-business approach which fully embraces broader aspects of risks remains large. Regulation and greater shareholder activism will remain important drivers of change, and in my view, so will a new breed of risk managers who effectively integrate traditional and emerging risk perspectives, and who can speak to these perspectives in a compelling and cohesive way to an organisation’s key stakeholders. A third observation that I want to make today relates to the increasing importance of viewing risks over a longer-term horizon, and imagining the unthinkable. I mention these together for a reason. When one is focused on looking both backward and forward over a reasonably long horizon, the universe of what is unthinkable becomes smaller and our vision is less likely to be blinkered by limited experiences of only the most recent past. We are also likely to become more open to broader possibilities of new and emerging risks on the horizon.

In the world of creative arts, it is often said that we are limited only by our imagination. I think the same can be said of risk management. If we can stretch our imaginations a little further, then there is a higher chance that risk management will be more proactive in anticipating future problems, especially problems that we may have never encountered before. This requires risk managers to go beyond estimating the probability of risk events occurring, and allowing a greater role for uncertainties, no matter how remote, to feature more prominently in risk management approaches. While easier said than done, innovations like reverse stress testing and the increasing degree of internal and external collaboration that goes into  2  BIS central bankers’ speeches  constructing stress testing scenarios are positive indications of how firms are responding to this challenge. On this score at least, risk management is increasingly proving to be more of an art than an exact science. Organisations also continue to face significant challenges in efforts to break down risk silos and achieve an integrated view of organisational risks that adequately takes into account operational dependencies and common exposures that can significantly amplify risk outcomes. A key challenge often overlooked is the failure to effectively integrate human resource management strategies with enterprise-wide risk management goals. This can create significant inertia, with organisations often falling back to managing risks in silos as the default position. Successful organisations have recognised that silos are fundamentally a cultural phenomenon.
Such a spiral in Spain would only exacerbate the pernicious effects of the current shock, since, in the present context, a simultaneous rise in prices and wages would erode our external competitiveness vis-à-vis other euro area countries and would aggravate the already harmful effects of the current shock on competitiveness, employment and economic growth. Further, were it to spread across the euro areas as a whole, such a feedback loop would require a more aggressive normalisation of the ECB’s monetary policy to ensure compliance with our price stability mandate. In my view, an incomes agreement, like the one I have been advocating since October, is warranted in order to ward off these scenarios. But what shape should this cost-sharing agreement take? In my view, this burden-sharing should be set out in an agreement forged under the framework of social dialogue (which we have termed an “incomes agreement between firms and workers”). However, I believe it should be defined based on certain general principles. I will specifically mention five that I feel are particularly important. First, the costs must be shared among all agents. In an extreme scenario in which firms attempt to keep their unit profits intact, a reduction in household purchasing power would ultimately translate into lower demand for firms’ products. At the other extreme, maintaining workers’ full purchasing power would pose a threat to firms’ capacity to generate sufficient funds to conduct their investments and, ultimately, would jeopardise their survival, to the detriment of employment and welfare.

In addition, the latitude of changes in regulation is much more limited than that of interest rates. A more constructive approach may be to design rule-based countercyclical regulation with a clear purpose to minimize the risk of financial crisis. Nevertheless, we still need to learn more about the interactions between monetary and financial policies. Final remarks A natural reaction to a crisis is to think that everything is wrong and that all must be changed. Emerging markets, and in particular Chile, performed well during the crisis, and above all during the recovery. Therefore, a first lesson must be on the factors that produced these good results, and macroeconomic management was certainly central to the rapid recovery. The financial system was resilient, which shows that the regulatory framework was appropriate. However, our role is not to congratulate ourselves for our achievements in the past, but to look at strengthening our macroeconomic framework. As development proceeds, new challenges arise due to financial innovation, and it is extremely important to look for lessons while the crisis unfolds, to take advantage of financial development without risking financial stability. There is a need to study the interactions between monetary and financial policies further, especially given the challenges stemming from the global outlook. Implementing monetary policy in a flexible inflation targeting framework has shown its benefits; incorporating financial frictions and the appropriate policies should help us to navigate better in a very uncertain world.
As the MPC has learnt more about the labour market, the trough in unemployment has been revised down in successive forecasts over the last year (Chart 4). However, such is the weakness of demand from the recession in activity that unemployment is forecast to rise from the start of 2023 throughout the three years of the forecast. The sustained labour market tightness seen to date, together with the influence of much higher inflation, have led to nominal pay growth increasing materially through 2022, at a consistently faster rate than expected in successive forecasts (Chart 5). Annual growth of private sector regular pay reached 6.6% in the three months to September. It is forecast to rise further in the near term before falling back as unemployment rises, spare capacity opens up and as inflation falls. See Shocks, inflation, and the policy response − speech by Dave Ramsden | Bank of England See Treasury Committee oral evidence: Bank of England monetary policy reports May 2022 6 The Government announced a review of labour market developments in the Autumn statement. 7 The MPC will be undertaking a supply stocktake in coming months to explore these issues in more detail. 4 5  Bank of England  Page 8  Sources: ONS and Bank calculations  Increasing Inflation expectations Increasing evidence of second round effects in wage and price setting has been a key focus of the MPC over the last year.

When completed at the end of next year, we expect that these changes will substantially improve the stability of the market. Indeed, the work completed to date has already reduced the amount of activity being financed on an intraday basis from 100 percent to about 70 percent, and we project that intraday credit usage will decline to no more than 10 percent by the end of next year. By removing the clearing bank from the role of substantial intraday lender, and making tri-party repurchase exposures truly bilateral, we expect that market participants will have better incentives to manage their liquidity and credit risks more prudently. While these changes represent positive developments that will enhance the stability of the triparty repo market, an important challenge remains. Current reforms do not address the risk that a dealer’s loss of access to tri-party repo funding could precipitate destabilizing asset fire sales, whether by the dealer itself, or by the dealer’s creditors following a default. Industry participants have yet to fully embrace the role they must play in finding a solution to this problem. As a result, I would urge industry participants to begin work on this issue without further delay. In fact, this is one of the motivations for convening today’s workshop – to start the dialogue. As several of the speakers will discuss in greater detail today, when fire sales occur they can undermine the stability of other markets beyond the tri-party repo market.
On recommendation of the IMF, World Bank and EBA, the  1  James Riddle (“Jimmy”) Hoffa (1913–1975), a famous American labour union leader who in the 1960s was charged with and then convicted of ties with organised crime, corruption and financial fraud. 4  BIS central bankers’ speeches  Banking Supervision Department is now already working to assess the compliance of the supervisory practices in Bulgaria with the “Basel Core Principles”2 for effective banking supervision as a first stage of the FSAP. In addition, the BNB has already drawn up and proposed to the Members of Parliament a draft of amendments to the Law on the BNB and the Law on Credit Institutions, designed to rectify some weaknesses in the legal framework and to allow the BNB Governing Council to have more control over the banking supervision functions. Because all of you here are well aware of the facts, but they were cunningly ignored and avoided by those who were attacking the BNB. Since June 1997 by law the BNB Governing Council has been the body that adopts all banking regulations (i.e. the ordinances defining the norms and requirements for banks’ activities). However, supervision is exclusively entrusted to the deputy governor in charge of the Banking Supervision Department (no matter what his or her name is), who acts separately and independently. The crisis with KTB, and not only that one, clearly demonstrated that such immense concentration of power and responsibility in one official is a mistake of legislation. And we want to change this.

2  BIS central bankers’ speeches
However, with weaker economic activity abroad and at the same time continued high and broad inflationary pressures, it is important to be prepared for the tightening to be severely felt by many households and companies. High inflation and, at the same time, ever higher interest rates on mortgage loans, consumer credit and corporate finance will be tough for many households and companies, not least those with small margins. But, we cannot allow inflation to become entrenched at high levels. By raising the interest rate now, we will bring inflation down again. This is our mandate from the Swedish Parliament; low and stable inflation will result in better economic development for all. The frameworks we have built are worth defending, but we have built up vulnerabilities that we need to manage. Today, I would particularly like to highlight the question of investments: How can we ensure sufficient investment to build longterm resilience without further increasing household and corporate indebtedness? Does the fiscal policy framework contribute to a lack of investment in defence, infrastructure, education and climate transition? Can it be reformed so that we maintain budgetary discipline but at the same time open up for long-term investment that will improve the functioning of the economy, which also helps alleviate inflationary pressures by reducing supply side problems. 14 [16]  The Riksbank will act to bring inflation back to the target. But, monetary policy is affected by the functioning of the fiscal policy framework and the labour market.

SPEECH DATE:  31 August 2022  SPEAKER:  Deputy Governor Anna Breman  VENUE:  Sveriges Riksbank  SVERIGES RIKSBANK SE-103 37 Stockholm (Brunkebergstorg 11) Tel +46 8 787 00 00 Fax +46 8 21 05 31 registratorn@riksbank.se www.riksbank.se  From 500 per cent to −0.5 per cent to − what is next? * On the afternoon of 16 September 1992, my teacher Conny came into our class and exclaimed: “The Riksbank has raised its policy rate to 500 per cent”. I said spontaneously “no” – I did not believe him. I studied the science programme at upper secondary school and thought I was good at maths, and an interest rate of 500% was something no one could pay. I started to contradict him. But the teacher insisted he was right - and so he was. The Riksbank had raised its policy rate to 500 per cent in an attempt to defend the fixed exchange rate. This sparked an interest that led me to study Economics at university a few years later. The so-called 1990s crisis fundamentally changed Sweden. It led to a series of reforms that we are still living with today: the inflation target, the fiscal policy framework and the Industrial Agreement. At present, the economic policy framework, and not least the inflation target, is being put to the test.
Jaime Caruana: Reflections on financial information from the standpoint of a banking supervisor Speech by Mr Jaime Caruana, Governor of the Bank of Spain, at the 13th XBRL International Conference, Madrid, 16 May 2006. *  *  *  Introduction Good afternoon. I would like to begin by thanking the organisers of this 13th XBRL International Conference for their kind invitation to participate. I am delighted to have this opportunity to close today’s session by sharing with you some reflections on financial information from the standpoint of a banking supervisor. And it is, of course, a special pleasure for me to be able to address this audience in my home country. I guess that, looking from the outside, it might seem somewhat strange that banking supervisors and other regulators are taking such an active interest in a computer language. But I think that all of us here are very well aware of the role that tools such as XBRL can play in promoting the effective and efficient flow of financial information, and it is on this wider objective that I want to focus my intervention today. I will begin with a brief introduction to recall the important role that information plays in financial markets from a macroeconomic perspective.

While national supervisory authorities are free to decide on the technical transmission specifications to implement the new reporting frameworks, CEBS considers that XBRL can be a helpful tool in constructing a harmonised European reporting mechanism, and is therefore developing an XBRL platform which will be available free of charge to national authorities and supervised institutions. XBRL taxonomies are being developed for both frameworks. Of course, we all recognise that it is not cheap to develop these technologies. But I do believe that the benefits will greatly outweigh the costs in the medium to longer term, and I would encourage every effort to be made to harness those benefits. Conclusions Let me finalise my intervention by briefly recapitulating the five elements that I believe are important for progress: First, convergence of the underlying regulation that affects financial institutions and markets. Second, convergence of reporting requirements on the basis of this more harmonised regulation. Third, increased use of internal information, generated for business purposes, for external reporting purposes. Fourth, increased feedback and information to the reporting institutions. And finally, the use of new technologies. I think the examples I have given from the banking perspective show that we are already making some good progress, although there is of course more that could, and should, be done. In closing, I would like to thank you for your attention and wish you a productive and enjoyable time here in Madrid. BIS Review 47/2006  5
BIS central bankers’ speeches  5  Preparedness to implement normalization Extensive testing of ON RRPs and other supplementary tools have provided policymakers with confidence that they will be able to maintain control over interest rates – that is, that rates will move up with increases in the IOER rate – during the normalization process. 12 An important determinant of the effectiveness of an ON RRP facility is whether a sufficiently wide set of nonbank counterparties has access to it. The New York Fed currently executes RRPs with 163 counterparties comprising many of the major cash lenders in secured and unsecured money markets – including money market funds that manage about 70 percent of the total U.S. money market fund assets under management and account for more than a quarter of total tri-party repo lending against government collateral. 13 This provides a high degree of confidence that we are transacting with an adequate set of counterparties to achieve our policy execution objectives. 14 Throughout the testing regime, the Desk has varied the settings and design of the reverse repo operations, with operational results informing subsequent changes. We’ve operated at different times of the day, increased the maximum bid limit per counterparty, and introduced an aggregate cap of $ billion and a single-price auction mechanism to allocate awards should the sum of submitted bids exceed the cap. We’ve also adjusted the offering rates and tested ON RRPs in conjunction with term RRPs at quarter-ends.

Simon M Potter: Money markets and monetary policy normalization Remarks by Mr Simon M Potter, Executive Vice President of the Markets Group of the Federal Reserve Bank of New York, at the Money Marketeers of New York University, New York City, 15 April 2015. *  *  *  I would like to thank Julia Gouny, Deborah Leonard, and Eric LeSueur for their excellent assistance in the preparation of these remarks and colleagues in the Federal Reserve System for numerous insightful comments and suggestions. Accompanying charts can be found at the end of the speech. It is a pleasure to speak again at the Money Marketeers. Much has happened with the implementation of monetary policy in the sixteen months since I last addressed this audience: •  Recognizing a substantial improvement in the outlook for the labor market, the Federal Open Market Committee (FOMC) concluded its outcome-based asset purchase program in October 2014, having completed a total of $ trillion in Treasury and agency MBS purchases over nearly two years. •  The Federal Reserve has continued to test operational tools that it can use to control interest rates with a large balance sheet, through a continuation of the overnight reverse repurchase agreement (ON RRP) exercise that began in September 2013, as well as through term RRPs and the Term Deposit Facility. •  The FOMC revised and augmented its communications around the approach it intends to implement when it becomes appropriate to begin normalizing the stance of monetary policy.
It could possibly be claimed that the stricter budgetary discipline  BIS Review 18/2002  1  is a rather last-minute conversion, as countries with large deficits are often forced to borrow on the international markets and there submit to the requirements made, in only to keep down the loan costs. Large, growing budget deficits also reduce the possibilities for parties other than the central government to assess the future and increase their costs. Borrowers are forced to pay high and varying risk premiums to borrow on the bond markets, as financial investors want to be paid for the uncertainty regarding the inflation rate or exchange rate. In addition, there is always a risk that if the debt becomes too large the central government will be forced to implement large savings that will in themselves lead to increased unemployment and poor profitability for domestically oriented companies. Large international efforts have been made and are being made to create new regulations and standards that will reduce the risk of financial instability in a deregulated environment. The Basel Committee's new capital adequacy rules are an example of this. Financial supervisory authorities in most countries have been strengthened considerably, although the complexity of the markets always threatens to increase more rapidly than the competence to supervise them. Quantitative deregulation of the financial markets is largely complete and the adaptations have been made. Increased experience of acting in a deregulated environment should in itself have reduced the risk of financial crises.

In this time perspective, it is structural factors, such as demographics and long-term growth rates, that affect developments. One striking feature over recent decades is the downward trend in real interest rates around the world. Various explanations have been put forward for this, including demographic trends. 3 One theory that has attracted major attention is that the decline is a sign of secular stagnation, where different factors have driven up saving but dampened the propensity to invest. This has led to a chronic A more detailed description of the decline in global real interest rates and feasible explanations can be found in my speech at the Swedish Economics Association in 2017. 3  4 [13]  condition of “excessively low” demand in the economy, which has contributed to a lasting decline in real interest rates. Others think that it is not necessarily a question of secular stagnation, but that the situation can, for example, be better described as a deep recession following excessively high debt accumulation in many countries. An environment with a lower average repo rate The major question is what we can expect going forward. For a small, open economy like Sweden's, the interest rate on a global level is important as it affects domestic rates. With free movement of capital, it is difficult to have real interest rates that deviate a great deal from the global level in the long run, even if differences in demographic trends or long-term productivity growth can naturally play a part.