samchain/econo-pairs-v1 huggingface dataset:
Nonperforming loans rose moderately in the second quarter of this year (to 11.9% of total private sector credits), but the growth is continuously slowing, and they are fully covered by loan loss provisions (RM is within the group of countries with largest LL provision coverage ratio). Profitability is lower but positive, and profits are being used largely to strengthen capital buffers. The euroization of deposits continues to decrease gradually to below pre-crisis levels (44% of total deposit are FX deposits or with FX clause). Even though the banking sector is in overall sound shape, the credits developments are not favorable and supportive to companies. The reasons for deceleration of the credits growth are on both sides, but mostly relay on supply side. Banks are likely to remain risk averse in an environment of low interest rate margin and the group strategies limit the credits’ growth potential. Thus, although the banking system mainly relies on domestic sources of funding, the consolidation of the Euro zone banking system and the EC pressure on troubled European banks that have received international bailout to sell their subsidiaries in the region, are the potential source of risks. The slow realization of this process could cause confidence shocks in our economies, thus endangering financial stability. The latest Deleveraging and Credit Monitor well notes this process, it says -while past efforts were focused on raising capital on the market, future efforts are expected to emphasize the sales of assets and affiliates.

Given the similarity of the financial systems, the SEE region as a whole faces similar challenges also sharing the common concerns. This raises considerations for stronger regional cooperation as important tool to effectively address future challenges. The recent Bank of Albania’s initiative for region’s joint participation within Vienna Initiative 2.0, advocated by the Bank of Albania as Steering Committee member, can be considered as a huge step forward in building consistent cooperation framework. In it’s very first joint initiative, the region focuses on homehost coordination including the confidentiality, cooperation and exchange of information between supervision authorities in the home and host countries, the need for EU banks to adequately adapt their strategies to local needs in host countries as well as some coordination issues among non EU host countries and ECB/SSM. The NBRM strongly welcomes this joint cooperation initiative hoping for it to highly contribute toward strengthening region’s effectiveness in tackling various future problems that concern as all. BIS central bankers’ speeches  3
Wang, Mei, Marc Oliver Rieger and Thorsten Hens (2011), ‘How time preferences differ: Evidence from 45 countries’, NHH Discussion paper, FOR 18. 16  BIS central bankers’ speeches  Appendix Chart 1: Equity market volatility and CDS premia for major UK banks Basis points 350  Average 5yr CDS for UK banks (RHS)  90  VIX (LHS)  80  300  70  250  60 50  200  40  150  30  100  20  50  10 0 2003  2005  2007  2009  2011  0  2013  Source: Bloomberg. Notes: Equity market volatility is shown using the US VIX index. Major UK banks include: Standard Chartered, Santander UK, RBS, Barclays, LBG, HBOS, and HSBC. Chart 2: Household views of the Bank of England’s 2% inflation target is too high  or too low  or about right Percentages of respondents  70 60 50 40 30 20 10  1999  2001  2003  2005  2007  2009  2011  2013  0  Source: Quarterly Bank of England GfK/NOP Inflation Attitudes survey. Notes: Respondents were asked the following question “The Government has set an inflation target of 2%. Do you think this target is too high, too low or about right?”. Respondents who answered “no idea” are not shown on the chart. On average, around 14% of respondents answer in this way. Data are to 2014Q3.

Thus, the human and societal cost is very real. It is pervasive and destructive, rippling across society, and if left unattended, will accumulate over time. Imagine the thousands of schools that could have been built, numerous hospitals with the best care and the strongest social safety nets that can help those most in need. The persistence of financial crimes will disproportionately impact the most vulnerable section of society. It erodes trust and leads to a breakdown in society. We in the financial sector have an instrumental role to play in this area. Our job involves the intermediation of money flows. We have the ability to prevent and facilitate investigations and prosecution of these crimes. In light of this, allow me to make three points on how we can achieve greater governance and transparency in the financial sector, which will reshape Malaysia’s future for the better. Shared responsibility to enhance compliance and prevention The first point that I would like to make is that combating financial crime is a shared responsibility. It is not the sole responsibility of central bank supervisors, financial intelligent units, banks or even the compliance function within financial institutions. Just as individuals, all of us have a collective responsibility to contribute to nation building, it is the responsibility of each player in the financial system, law enforcement agencies, prosecution agencies and the judiciary to look out for potential abuses, stamp out financial crimes and not let the perpetrators get away. For financial crimes do not occur in isolation.
I would go so far as to talk of threefold independence: from national governments of course, but also from short-term trends in the media or financial markets, and last from entrenched camps (the hawks and the doves) or schools of thought, even if all three of them had their own well-established economic background. Consequently, they have been able to take a pragmatic approach to innovation: for example, when Jean Claude Trichet addressed bank liquidity risk through the fixed rate full allotment policy in 2008 or introduced the first security purchases with the SMP in 2010; and of course when Mario Draghi gave his famous “whatever it takes” speech in July 2012 or began expanding non-standard instruments in 2014. 3. The spirit: general European interest These three men have also upheld the European spirit, through their culture and their convictions. Far from being a technocratic arrangement, initially the euro was actually a political aspiration advocated by Helmut Kohl, Jacques Delors and François Mitterrand among others in parallel with German reunification [slide 4]. And it is now supported by 75% of euro area citizens – the highest approval rating since 2003 – and as many as 77% of Portuguese and 81% of Germans. This popular support is our greatest success and our greatest asset. And it proves that the concept of Europe is popular as long as it stops being abstract and takes the form 2/6  BIS central bankers' speeches  of concrete projects.

It was compiled using your perspective as a school student, as an elder of the village, as a hard working stay at home mother and as a danceloving-father when he gets his paycheck without his wife knowing; or to put simply, as an everyday Samoan citizen. MoneyPACIFIC has produced the Guide and made it easy to understand, and made it accessible to everyone so that you can plan, measure, prioritise or just to be aware of how  BIS central bankers’ speeches  1  much you are spending for everyday necessities. Again the intension is not to dictate how much your wallet is crying but to ensure that your wallet is happy to deliver a well sought out purpose for you and your families. To round up my remarks, I would like to take this opportunity to thank the New Zealand and Australian Governments for the support afforded to the MoneyPACIFIC iniative as we have benefitted greatly from the work it carries out for the Pacific communities. I would like to thank each and every one of you for making the time to attend today’s MoneyPACIFIC Money Guide launch.
As we strengthen diversity internally, we are also doing more to improve the diversity – in its broadest sense – of our external engagement with market participants. A key part of my team’s role is to act as the Bank’s ‘eyes and ears’ in the financial markets: gathering the best possible intelligence on market developments to support the decisions of our Monetary and Financial Policy Committees. As those markets evolve, so too we must adapt and change those we engage with to keep our finger on the pulse. Different and broader types of firm, using different technology. Different people within firms, as those who matter for decision making change. And a different and more open style to that engagement, more open to challenge and different perspectives on what makes markets tick. Just as embracing diversity is no longer a choice for success in your business, so it is no longer a choice for us in ours. Unless we ensure we are speaking to a broad, diverse set of market participants who are truly reflective of the diversity in the market, and feeding that input into our policy decisions, we will not be doing our job. 18  https://www.bankofengland.co.uk/speech/2019/mark-carney-women-in-banking-and-finance-22nd-annual-awards 9  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  9  To deliver on that goal, we are working with a wide range of financial market stakeholders and external networking organisations.

Modern communication tools allow much more flexible working, in time and space: unheard of in traditional trading environments, but eminently feasible in a world of e-platforms and algorithmic trading, even in a market that trades 24/7. And that opens the industry to a much wider talent pool, with different skills and thought processes, improving productivity and retention. Companies that fail to offer flexible working arrangements underperform their peers. 11 And that is relevant to both men and women: 89% of those responding to a 2017 survey of British businesses12 said flexible working was a key enabler for productivity. The second key change is the profound broadening in FX market participation. In part that reflects a sharp reduction in the costs of entry to, and use of, the FX market, driven by those same technological trends I’ve just outlined. Retail banks, asset managers and corporates can now access the market directly. And there is a much wider range of service providers, stretching well beyond the traditional investment banks: indeed, some of the biggest, or fastest-growing, firms in the market were unheard of 5-10 years ago. The rapid development of previously emerging economies, and progressive capital account liberalisation, has also substantially increased the geographical reach of the foreign exchange market, bringing different customer needs and perspectives.
Instead, the complement to that fraction – that which is due to excessive financial sophistication, abnormal risk tolerance and shortcomings in risk management – should be gone for ever. That is why my conjecture is that risk premia in a number of markets will continue to be reduced – but they are unlikely to reach the compressed levels that we saw prior to the crisis. Normalcy will probably be reached at a permanently higher level of risk compensation in a number of markets. In order to build an effective system of crisis prevention, we will all need to take on board this simple fact: compensation for risk will need to be appropriate. We shall prevent “pure” speculative activities from becoming the dominant force on the markets. And we shall build financial infrastructures with sufficient buffers to make them bulwarks against instability and resist shocks. Let me mention some striking facts about the power of such buffers. There is a widespread perception that banking crises in times when money was convertible into gold had apocalyptic consequences for bank depositors. This is not true. The estimated average loss on assets born by depositors in banks that were closed down as a consequence of financial  6  BIS Review 29/2010  crises was minuscule. Taking a yearly average between 1865 and 1920, it was six cents for every one hundred dollars of deposits. This time-frame covers five of the most severe episodes of financial panic in recorded history, most notably the 1907 crisis.

The financial structures that we thought were in place to assess, absorb and neutralise risk were either dysfunctional, or worked – perversely – to magnify volatility. This is how financial risk was created, transmitted to the real economy and eventually became systemic. Key factors in creating this risk were opaque financial structures, particularly vulnerability to contagion and domino effects, and pro-cyclicality in financial markets. The lack of transparency in many financial instruments meant that market participants did not know who was exposed to what kind of risk. In this state of incomplete knowledge, some market players could exploit – for their own, private benefit – information that was not generally available. 2  Neil Wallace (1981) has an early theorem on the ineffectiveness of open market operations. Gauti Eggertson and Mike Woodford (2003) prove the irrelevance of liquidity measures at times of zero interest rates. See Wallace (1981), “A Modigliani-Miller Theorem for Open Market Operations”, The American Economic Review, Vol. 71 No 3, pp. 267–274, and Eggertson, G. and M. Woodford (2003), “The Zero Bound on Interest Rates and Optimal Monetary Policy”, Brookings Papers on Economic Activity, 1, pp. 212–219. 2  BIS Review 29/2010  Pro-cyclicality acts as a formidable accelerator of financial trends. Demand for finance increases and declines in tandem with the cycle. But the supply of finance does not simply accommodate demand: it often amplifies the cycle. Where does pro-cyclicality stem from? To my mind, distorted incentives and herd behaviour are key explanatory factors.
Over time, this variable has provided substantial impetus to productivity growth. But as the chart shows, a lower contribution from TFP is also the main factor behind the decline in productivity growth in recent decades. In the first decades after the war, Norway was able to make use of many of the solutions that had already been developed in other countries. Today, we have caught up with the technological front line in many areas. However, the front line is now advancing more slowly, which will make it harder to grow at the same rate as before. The future growth path for Norway and other advanced economies will to a large extent be determined by technological advances, structural changes and international exchange and cooperation. In some areas, such as meteorology, we have been pioneers. Modern weather forecasting is largely based on the principles laid down by Vilhelm Bjerknes over a century ago. But the results achieved by the “Bergen School” and other meteorologists since then would not have been possible without other innovations. Weather balloons, aircraft and now satellites have helped make it possible to measure atmospheric conditions ever more accurately. And modern computer technology has given us almost instant access to up-to-date weather forecasts. As more and more countries join the technological front line, technological advances may take off again. Good ideas are not confined by national borders, and the conditions for efficient knowledge sharing have never been better.

While the transport sector faces a carbon tax of more than NOK 400 per tonne of CO2 emissions, other sectors are exempt from all or part of this tax. When it comes to agriculture, domestic shipping and manufacturing, business policy and climate policy are pulling in different directions. In order to promote eco-friendly technology, it may be necessary to reinforce climate policy with funding for basic research and for the development and deployment of climate-friendly processes and products. At the same time, we should be on our guard against attempts to abuse the “green” epithet to qualify for public subsidies. The climate challenge will not be 6/9  BIS central bankers' speeches  resolved by having the authorities designate the “winners” in the transition to green technology. Regulations and subsidies in areas subject to emissions trading or carbon taxes often entail a waste of energy and money. The efforts to reduce global warming will provide a seedbed for new production methods, new businesses and new jobs. Some of these will be in Norway. But it is difficult to see how we have an advantage over other countries in this area. The transition to a low-carbon society is necessary but is unlikely to take over as a new engine of growth. Oil revenue spending needs to be reined in It may give cause for reflection that Norway, as a nation, has gained so much from a resource that is an important source of global warming.
The fourth principle is creating regulatory framework that promotes agility and innovation while preserving financial stability. Regulators must continually review and ensure that their governing frameworks remain relevant in the context of the fast-changing digital world. Outdated and inflexible laws and regulations need to be amended accordingly. With the advancement of technology, financial innovations usually start off small and scale up quickly. Regulators must therefore keep in mind the concept of proportionality, allowing themselves to be more tolerant towards low-risk financial activities and more scrutinizing towards activities that might pose risks to the financial system. We also need to keep in mind that financial products and activities are expanding across jurisdiction of different agencies. Regulatory framework must shift from entity-based regulations, which have formed the core of our regulatory framework, to activity-based ones. Most importantly, the regulations must be agile and able to adapt to the everchanging environment of the digital world. To give you an example, our regulatory sandbox scheme that was introduced less than two years ago might be too slow and out of sync with market requirements today. In response, we have decided to allow financial institutions to develop their own sandbox and move from the approval concept to registration concept, with a view to reducing time-to-market and increasing flexibility for innovation and investments. We have also amended our regulations governing banks’ IT-related services with the aim to facilitating 4  partnerships between banks and tech companies, and enhancing connectivity between banks and the digital world.

I wish you a productive and joyful conference ahead. 5
Opening Remarks BOT’s Policy Direction on FinTech Development Bangkok FinTech Fair 2018: SME and Consumer Financial Solutions Dr. Veerathai Santiprabhob Governor of the Bank of Thailand Monday 19 March 2018 Bank of Thailand Learning Center  Distinguished guests Ladies and gentlemen Swasdee krub, A very good morning to you all. Welcome to the inaugural Bangkok FinTech Fair and welcome to the Bank of Thailand Learning Center. This Learning Center was first opened to the public in December of last year. It is not only Bangkok’s newest learning center and public library but also an open space for individuals and entrepreneurs to collaborate and exchange ideas. So, it is fitting that our very first Bangkok FinTech Fair is held at this venue. Over the next two days, we will be joined by some of the top minds from Thailand’s fintech and financial industry as well as regional and global leaders in financial innovation. The main discussion panels will present various issues surrounding fintech ecosystem with the focus on SME financial solutions, retail payments, and technology infrastructure; the cybersecurity room, which is in the library, will underscore the importance of cyber-awareness and highlight key security issues, ranging from emerging threats to defensive strategies; and the technology talk room and various presentation booths all over the venue will showcase some of the latest technologies and initiatives Thailand’s fintech and financial industries are working on. 1-7  Ladies and gentlemen, On the program, this morning I am supposed to talk about Bank of Thailand’s policy direction on fintech development.

[11]  The upshot is that more firms have been protected and more jobs have been saved. Without the ECB’s policies, we estimate that over one million more people would have lost their jobs. [12]  But we are not out of the woods yet. With the tremendous progress made on vaccine technology, we can now see the light at the end of the tunnel. But we still cannot see exactly how long that tunnel is. We will continue to face a period of high uncertainty until more people have been vaccinated against the virus. In this setting, it is crucial that the bridge for SMEs remains in place for as long as needed. The ECB will help ensure that firms and families can access the finance they need to weather this storm – and that they can do so in the confidence that financing conditions will not tighten prematurely. That commitment is the best way to provide certainty to all sectors of the economy and to bring stability back to the euro area swiftly. And this, in turn, is the best contribution we can make to delivering on our mandate of price stability. 5/8  As Goethe said, “Im Idealen kommt alles auf die élans, im Realen auf die Beharrlichkeit an.”[13] Reality is currently hard for many firms and the future remains uncertain. And so we will persist and persevere until the pandemic emergency has passed.