samchain/econo-pairs-v1 huggingface dataset:
It is constantly developing its skills to understand and assess the impact of relevant risks – including those linked to climate change – on the economy and the stability of the financial system. It also integrates these considerations into its balance sheet risk management in order to guarantee the value of its reserves over the long term. Here, the SNB applies ESG criteria to its asset portfolio, while respecting the requirements of monetary policy. Given the rapid  13  IMF Global Financial Stability Report (2019), October. Cf. also Krüger, P., Z. Sautner and L.T. Starks (2019), ‘The importance of climate risks for institutional investors’, Finance Working Paper No. 610/219, September. Page 11/12  pace of developments in environmental economics, the SNB is closely monitoring developments at both national and international level. Ladies and gentlemen, it is now my pleasure to invite you to a round table. This will give us a chance to broaden the debate beyond central banking and to hear what other players have to say about the impact of climate risks on the economy and the financial system. Page 12/12  Climate risks and central banks: an SNB perspective Andréa M. Maechler, Member of the Governing Board Thomas Moser, Alternate Member of the Governing Board Swiss National Bank Money Market Event Geneva, 14 November 2019  Sources: SNB, Baker, Bloom and Davis.

Notably, some studies have shown that the ratio of Asian exports for final consumption within Asia has risen, though varying among individual countries. For example, approximately 70 percent of Indonesian exports to China are for final consumption in China. Such ratios for Singapore and Korea are 50 and 40 percent, respectively. That said, it is wise not to jump quickly to conclusion because Asian economies and trade remain critically linked to the G3 economies. While this negative spillover from advanced economies to Asian economies could be partially cushioned on the trade side, I have greater concern on the potential spillover through volatility in international capital flow and financial market movements. In addition to the risk aversion in time of market stress, emerging market economies have tried to live with spillover from exceptionally easy monetary policy in advanced countries. Such practices have created excess global liquidity leading to volatile capital flows into emerging market countries  BIS central bankers’ speeches  1  including Thailand. Moreover, excess global liquidity has been an important factor behind the rapid rise in oil and other commodity prices. Unless the advanced economies manage to get themselves out of sluggish growth path, all of us have to be vigilant and cannot rule out the possibility that the US may need to find creative policy actions to stimulate its economy.
In this regard, I wish to congratulate the banking institutions for completing the chip-based ATM cards migration, and introducing EMV-compliant credit cards and terminals to combat fraud, a technology leap that was indeed a challenging task. While the conversion of the credit card infrastructure to be EMV-compliant is an ongoing effort, I wish to commend the industry players, the issuers, acquirers and the affected merchants, particularly the petrol industry, for their positive response towards meeting the migration deadline. Ladies and Gentlemen, The desired migration to an electronic payments environment will not only be engineered through secured system architecture and active promotional programmes, but also induced by greater transparency. Banks need to be more transparent in the delivery and pricing of financial services, and highlight the underlying motivation and activities that banks undertake in prescribing financial services. Pricing will affect consumers’ preference and behaviour. In this regard, banks need to understand their own cost structure and price the payment services accordingly, to provide the incentive for the shift to electronic payments to take place. To foster greater efficiency in the payments system, its charges relative to other means of payments need to be structured accordingly to encourage greater use of the electronic channels as the preferred mode. These moves also need to be complemented with ample provision of electronic payment methods that are comparable to the other means of payments in terms of its reach and convenience.

Ladies and Gentlemen, Bank Negara Malaysia attaches great importance to payment system efficiency and will also continue to promote its security, reliability and efficiency, together with the industry and payment service providers, to foster an innovative payments industry. The FPX platform is an excellent example of this collaborative effort, and I wish to commend MEPS, and the pilot group of banks and corporations for their tremendous effort and commitment in developing the FPX solution. The launching of the FPX marks an important milestone in the development of Malaysia’s payments system. Thank you. 2  BIS Review 63/2004
If, as seems likely, resources in different sectors are highly specialised – the physical and human capital suitable for one area aren’t as productive in others – the effect of this shift on aggregate supply is immediate. This is what the MPC was getting at when it said in the last Inflation Report that a “reduction and reorientation of trade and supply chains… may result in some existing supply capacity becoming obsolete.”  The second point involves the importance of expectations, something else the MPC has emphasised. At least until the formal date of departure, and possibly for some time afterwards, the effects of Brexit will depend centrally on what people expect it to do over the future. Those expectations are neither fixed nor uniform – some people are optimistic about its effects, others less so. It’s partly these differences in expectations that can lead to independent moves in demand and the exchange rate. In particular, you can see the current inflation we’re experiencing as the result in part of a more pessimistic view of Brexit in financial markets – above all in the foreign exchange market – than among consumers. This gap in expectations helps to explain why, in Chart 2, the latest figure for the real exchange rate – the diamond towards the right of the graph – is well below the line for domestic demand growth.

The estimated regression line has clearly shifted to a lower position since the crisis and the period of weaker productivity growth that has ensued. However, if people come to accept the implications of that weaker productivity trend for the real wage increases they can expect to receive – the “norm” for real pay growth being one thing that determines the position of the Phillips curve – that’s precisely what you’d expect to see. It would also shift leftwards if structural improvements in the labour market had lowered the equilibrium rate of unemployment. The MPC reduced its estimate of that equilibrium rate, from 5% to 4½%, in February. In real time, as it’s happening, it’s statistically  Chart 10: Phillips curve: down but not out  difficult to distinguish a shift from a flattening and there is clearly room for caution about our forecasts for growth of wages and unit costs. But, over time, I think the evidence looks more in favour of the former. The curve still seems to have a slope – all else equal, a tighter labour market is likely to mean faster wage growth. Conclusion  Sources: ONS, Bank of England, and Bank calculations. I was in Aberdeen earlier this year and, when asked by a wily reporter what I planned to vote at 11  the following MPC meeting, fobbed off the question by referring to a number of “imponderables” . I’ve talked about some of those today.
And they bring to the forefront French scientific expertise and technology: artificial intelligence, cryptography, distributed ledger technology, etc. Regardless of how they are integrated into the financial sector – via cooperation or direct competition with established players – they make the industry more dynamic. This is also true with regard to the entry into financial services of the Bigtechs, which are often less keen on competition. I’m not just saying this to please the Fintechs that are here with us today. It is a deeply-held belief and a commitment, on my part and on that of the entire ACPR. But what, I hear you ask, are you doing concretely to help the Fintechs in their development? Let me start by reminding you that the Banque de France is working with Fintechs on two levels: via its mission of providing services to the economy – to businesses and SMEs – and via its mission of safeguarding financial stability. Our role as a central bank and supervisor, is to reconcile confidence and innovation. If you would allow me to borrow a metaphor from the history of the railroads – which were originally a major innovation in the 19th century, but also one that was not without its risks – our role is to prevent the train from derailing and to make sure the passengers aren’t afraid to get on board. We therefore need to encourage innovation but also ensure that people trust innovations. At the Banque de France, we have taken various steps to promote innovation.

François Villeroy de Galhau: The digital payment revolution Speech by Mr François Villeroy de Galhau, Governor of the Bank of France, at the Fintech Forum, Paris, 7 October 2020. * * * Mr Minister, Ladies and Gentlemen, I am very happy to welcome you here to the Banque de France’s premises this morning. I would also like to welcome those joining us remotely. We are all aware of just how important new technologies are in ensuring continuity and stability in this crisis. My dear Cédric, you’d clearly be the first to say so. I would also like to welcome Alain Clot, President of France Fintech, and of course Robert Ophèle, Chairman of the AMF, with which we have organised this Forum. Your presence among us, Mr Minister, is proof of public authorities’ commitment to Fintechs. And that is my first message this morning: the Banque de France and the ACPR are also fully committed to supporting Fintechs. I shall then go on to tell you how we intend to act in the digital payment revolution. **  I. The Banque de France and ACPR’s support for Fintechs Let’s start with a question I consider particularly important, and on which there should be no shred of ambiguity between us: why do the Banque de France and ACPR regard Fintechs as important? Because they are an essential element for the financial sector: they deliver creativity and they understand new needs rapidly.
In some cases, the extreme private sector solution – winding-down of the troubled institution – would probably be the preferred approach. The Law on Credit Institutions together with the Bankruptcy Act provides central bank and other authorities with all necessary powers for closing down the business and letting trustees to take care of the practical aspects. The Deposit Insurance Fund will immediately reimburse all depositors within legal limits. BIS Review 63/2001  3  Of course, in other situation, different approach must be taken and a strict adherence to the former rule is not feasible. Nevertheless, the initial response would still be the private solution. One option would be the central bank to take the lead as an honest broker and bring together all private and official parties concerned. Ideally, that would result in design of ad hoc private solution in a form of merger, acquisition or emergency support. The role of central bank would effectively be the application of moral suasion, without committing public funds. However, one can and should not wholly dismiss the need for direct public intervention should it become necessary. What will be different in our case is that in case of serious trouble, the dividing line between liquidity support and capital injection would be rather blurred or these operations may even take place simultaneously, after writing down capital of the troubled institution. The need for very close coordination between the central bank, the government and supervisors is characteristic feature of this approach.

This is an important discussion, in which the decline of the natural real rate of interest plays a central role. Its measurement, an understanding of its drivers and its relevance to monetary policy are crucial issues that are in the spotlight of academic research and central bank discussions. See, amongst others, Brand, C., Bielecki, M. and Penalver, A. (2018), “The natural rate of interest: estimates, drivers, and challenges to monetary policy”, Occasional Paper Series, No 217, ECB; Bauer, M. D. and Rudebusch, G. D. (2019), “Interest Rates Under Falling Stars”, Federal Reserve Bank of San Francisco Working Paper 2017-16; Kiley, M. T. (2019), "The Global Equilibrium Real Interest Rate: Concepts, Estimates, and Challenges", Finance and Economics Discussion Series 2019-076, Board of Governors of the Federal Reserve System; and Clarida, R. H. (2019), “Monetary Policy, Price Stability, and Equilibrium Bond Yields: Success and Consequences”, Speech at the High-Level Conference on Global Risk, Uncertainty, and Volatility, Zurich, 12 November. I will discuss the drivers of the low level of rates in another speech later this week. [5] Modelling and interpreting the level and the shape of the yield curve is an active field of research. Since Irving Fisher’s “Appreciation and Interest” and John Hicks’s “Value and Capital”, which are sometimes referenced as the earliest formalisations of the expectations hypothesis of the term structure, hundreds of research papers on the joint dynamics of bond yields of different maturities have been produced.
Other financial sector issues Your Excellency, distinguished guests, one of the major limitations to investment in Sierra Leone is the non availability of medium to long term funds. The Bank in the context of the FSDP intends to address this issue in consultation with insurance companies, NASSIT and other potential medium to long term fund holders to see how such funds could be mobilized. Also, the establishment of the stock exchange could serve as a source of funds through the collective investment scheme. In the mean time, the Bank is working closely with the Ministry of Finance and Economic Development for the issuance of long term bonds to assist Government in financing its development programmes. We hope that when these bonds are issued, the public will respond positively to our development initiatives. Another area of concern is the absence of specialized institutions that finance activities in key sectors that contribute to growth. This is being addressed by the Bank in consultation with the relevant ministries. Furthermore, the Bank is also considering options on how funds from the formal sector can be used to assist the informal sector. Strengthening the regulator Your Excellency, distinguished ladies and gentlemen, the Bank has made notable progress in strengthening its governance structure and corporate management system. There is also broad harmony and genuine cooperation among all stakeholders of the Bank as well as among the various regulatory bodies of the commercial banks. In the area of human resource management, a more open and transparent system has been introduced.

Permit me to pay tribute to all other former Governors who have contributed immensely to our institutional development over the years. I want to take this opportunity to thank them all for their contributions in reforming the Bank and upholding the dignity and effectiveness of our noble institution. Your Excellency, distinguished guests, the recent global economic and financial crisis was a wake-up call to the realisation that low and stable inflation, a sound banking system, as well as high and sustainable economic growth, though necessary, are not sufficient conditions for financial stability. As you are aware, the Bank had developed the Financial Sector Development Plan (FSDP) which was approved by cabinet in 2009, to address the shortcomings in the financial sector. It is expected that funding for the FSDP would be provided under a basket fund arrangement with development partners, including KfW, GTZ, and AfDB, with the World Bank assuming a leading role. The Bank is in the process of setting up a secretariat for successful implementation of the FSDP for which the Head has been appointed. Your Excellency, distinguished ladies and gentlemen, permit me to proceed with the discussion on the highlights of the reform policies to reposition the Bank and the current state of their implementation. Strengthening the supervisory role of the Bank of Sierra Leone Your Excellency, distinguished guests, even though the Bank was granted legal sanction by the Bank of Sierra Leone Act 2000, its powers and operational autonomy are limited.
Recent developments in these indicators have been mixed. The labour market remains tight on traditional indicators, with employment growth expected to be more resilient and unemployment rates lower than expected a few months ago. But wage developments – particularly higher frequency indicators of current momentum – appear to be easing, even as services price inflation surprised to the upside, albeit largely on the back of components typically though to be erratic on a month-to-month basis. The mixed character of developments in these key indicators makes it all the more important to keep a structural framework in mind on which to form judgements about the overall implications for inflation persistence and monetary policy. For the reasons I have developed above, the evolution of energy prices plays a key role. Now that that terms of trade shock is being at least partly reversed by the large and rapid fall of  Page 11  wholesale gas prices – both in absolute terms and relative to the path of futures upon which the MPC’s February macroeconomic forecast was conditioned – developments are moving in a more favourable direction. Relative to where we were a few months ago, the difficult ‘trade-off’ facing monetary policy as a result of the adverse terms of trade shock – that is to say, rising inflation in concert with a squeeze on domestic real incomes and spending – has eased. The MPC should be cautious about ‘looking a gift horse in the mouth’ by viewing better prospects for activity as something inherently inflationary.

Consistent with that, a further 25bp hike – smaller than the 50bp increases seen at previous meetings – was announced in March. Given the lags in monetary policy transmission, there is a lot of policy-in-the-pipeline still to come through. Nevertheless, on balance the onus remains on ensuring enough monetary tightening is delivered to ‘see the job through’ and sustainably return inflation to target. Although headline inflation is set to fall significantly in the course of this year owing to a combination of base effects and falls in energy prices, caution is still needed in assessing inflation prospects on account of the potential persistence of domestically generated inflation. I hope my remarks today have given some insight into how I am thinking – and will think – about the role inflation persistence will play in coming to monetary policy choices: focusing on intrinsic persistence through the lens of an interpretation of the incoming data using a structural story about  Page 12  price and wage setting behaviour. Of course, the evolution of inflation persistence against the background of the terms of trade shock stemming from Russia’s invasion of Ukraine is only one of many challenges facing monetary policy makers at present. It needs to be seen in the context of other economic disturbances, not least the recent turmoil in the financial sector. We have been told by our colleagues in the Financial Policy Committee that the UK financial system remains robust and resilient.
Nor Shamsiah Mohd Yunus: Innovation in a disruptive era Remarks by Ms Nor Shamsiah Mohd Yunus, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Malaysian Insurance Institute (MII) Summit "Innovation in a Disruptive Era", Kuala Lumpur, 28 September 2018. * * * I would like to congratulate the Malaysian Insurance Institute for organising this summit. This is my inaugural engagement with the industry and it gives me great pleasure to be able to address all of you today. In line with the theme of this conference, my remarks today will cover three things: 1. Firstly, the role of insurance within the context of key developments that are shaping our economy; 2. Secondly, how the Bank views and is responding to innovation in the insurance sector; and 3. Finally, some perspectives on our regulatory and supervisory focus moving forward. Role of insurance in an economy Insurance plays a core function in the modern economy and the financial system. There is a positive relationship between economic growth and insurance development. This is borne out by studies which have shown that more developed markets have a higher share of insurance in the economy. The role of insurance in the economy is worth restating, particularly given the economic and social challenges that we face today. A core purpose of insurance is providing protection against individual and business risks through risk transfer and pooling. This improves individual welfare, and supports consumption and investment activities.

Banks should take advantage of opportunities to raise lossabsorbing capital, and should recognise the importance of using profits to rebuild capital rather than pay out higher dividends and compensation. But we must not forget the principle underlying the Basel approach: asking banks to maintain a buffer of capital above the minimum requirement allows them to run the buffer down in circumstances like the present. Rebuilding the buffer is a task for the future. So even though the Bank of England would have preferred an agreement to set capital ratios at higher levels in the long run, we have no intention of asking UK banks to adopt a faster timetable for implementation of Basel III. That logic should apply to any reforms we choose to implement. We should not expect to change the financial system for the better overnight. Rather we need radical reforms that will give us a much more robust system in the long run, accepting that it may take a period of many years to get there. As with a bank levy, it is no criticism of Basel III to say that it is not a “silver bullet”. The difficulty of identifying and calibrating the difference between the private and social costs of maturity transformation means that there is merit in having a basket of different measures to rein in excessive risk-taking. In the area of financial stability, it makes sense to have both belt and braces. 6.