samchain/econo-pairs-v1 huggingface dataset:
This degree of interconnectivity between the UK and the rest of the world is such that the IMF noted in 2011 that, “the stability and efficiency of the UK financial system is a global public good due to potential spillovers and thus requires the highest quality of supervision and regulation” 4. As a major host to international financial services activity, we are highly attuned to the importance of international trade and international banking to a successful world economy. Openness and trade support economic dynamism through many different channels. They promote efficient allocation of capital and risk, support greater competition, utilise comparative advantage, expand the size of the global market, and build economies of scale. 1  Why is the UK banking system so big and is that a problem? ; Bush, Knott, & Peacock; Bank of England Quarterly Bulletin 2014 Q4. 2  Prudential Regulation Authority Annual Report and Accounts 2015. 3  Foreign Banks in the US: A primer; Goulding and Nolle; November 2012. 4  Spillover Report on the United Kingdom for the 2011 Article IV Consultation; Country Report No. 11/225; IMF; July 2011. 2  BIS central bankers’ speeches  International wholesale banking has a critical role in facilitating these flows, contributing to the efficient allocation of capital globally, and so developing the world economy. Trade finance is of course essential to support trade. Deep global capital markets benefit savers and borrowers from around the globe. International banking also brings benefits, such as diversification of risks, efficiency, competition, and the advantages of specialisation.

And there is, of course – a limited liability company is basically a means of protecting its owners from the private consequences of the company becoming bankrupt. Being able to fund a business operation through borrowing is, of course, necessary and, in most cases, effective. In efficient markets, lenders’ risks are handled by means of interest rates and contract clauses. The limited liability company is thus a historically wealth-generating social institution. Nevertheless, the example illustrates that the higher cost of funding through equity is more a matter of private than social costs. Another factor that separates the costs for own and borrowed funds is the tax system. Companies may deduct interest on loans, but pay corporate tax for profits on equity. But this is just a private economic difference – from the social perspective, the only difference is the subsidisation of debt-financing in preference to equity. This specifically applies to banks that may be systemically important – it would be socially costly to allow them to file for bankruptcy. So the market often expects that the state will save a bank that is on the ropes, one way or another. These so-called implied guarantees create even greater differences between social and private costs, and risk leading the banks to take even greater risks. Banks are vulnerable, contagious and sometimes systemically important. There are great differences between private and social cost-benefit calculations. Economic theory and empirical experience gives us good reason to regulate banks.
This option should become widespread, especially for those companies that have not participated in the negotiation of industry-wide or national agreements. BIS Review 43/2009  3  In addition to containing dismissals, these reforms should check the ongoing closure of firms. We should not lose sight of the fact that companies going to the wall entails sizeable decapitalisation costs. This is because it is companies that build up technological know-how and that have far-reaching knowledge of markets and of customer and supplier relationships. And this without prejudice to lifting administrative obstacles and thus ensuring that firms can be created swiftly and easily, so that when the recovery begins the momentum of demand translates into increases in activity and employment, and does not feed through to price rises. To improve the labour market situation, there is also a pressing need to promote new hiring to the full so that workers who have lost their jobs promptly find a way back into employment, avoiding the prolonged periods of unemployment that had such adverse effects in the past. True, creating new jobs depends above all on companies' expectations improving in respect of the demand for their products. But current hiring arrangements fall short on a series of characteristics which, at times of uncertainty such as at present, have adverse effects on recruitment decisions.

BIS Review 43/2009  5  Nonetheless, the answer to restoring the flow of credit is neither publicly funded policies to purchase “troubled” (impaired or toxic) assets nor global and indiscriminate bank recapitalisation plans. While these measures have admittedly been adopted in many developed countries, they are not the most suitable measures for maintaining the flow of credit to the private sector, even if they have been of use in those countries that had to bail out systemic financial institutions. That does not mean they should be totally ruled out. But I am convinced they are of no use for resolving the problem of credit restrictions. The credit-boosting measures best suited to the current situation of the Spanish economy are those aimed at improving the risk profile of both consumer and corporate transactions. This effect may be achieved through different means: e.g. loans subsidised by the Official Credit Institute, credit insurance or the deferral of social contributions. These measures, though not immediately effective and needing complementary action, will help gradually restore lending to companies and consumers. A second challenge for the Spanish financial system is its orderly restructuring in the coming years. The soundness of our financial system, whose behaviour in terms of both solvency and profitability has been patently better since the onset of the crisis than in other developed countries, does not preclude the need for restructuring.
Irma Rosenberg: Monetary policy and financial stability – the Riksbank's two main tasks Speech by Ms Irma Rosenberg, First Deputy Governor of the Sveriges Riksbank, at Statistics Sweden, Stockholm. 2 October 2008. *  *  *  Many countries are currently in the midst of a financial crisis that has repercussions throughout the global financial system. Headlines referring to problems in large US banks, to rising risk premiums, poorly functioning markets and other consequences around the world have been prominently featured on the first pages of many newspapers. Sweden has so far been spared the worst. But now the financial markets here are also clearly affected by the uncertainty and lack of confidence, which thus also affects the Swedish banks and other financial agents. The Riksbank is working intensively on dealing with these events right now, like most other central banks. The Riksbank’s task is to safeguard both price stability and financial stability. I am going to talk today about current monetary policy and the deliberations at our most recent monetary policy meeting in September. But the recent drama in the financial markets gives me reason to devote some time to explaining what our task of safeguarding financial stability concerns and to our assessment of the current situation. Two tasks – monetary policy and financial stability Some of the questions that have been the focus of attention are what the Riksbank and other central banks can and should do about what is happening in the financial markets right now.

If it should suddenly become difficult or very expensive for the bank to borrow money, it may experience difficulty in meeting its payments. The terms for the more long-term lending are largely restricted. In such a situation the Riksbank can help to manage the bank’s financing problems by granting liquidity assistance. But we only do this on condition that the terms I recently mentioned are met and if our assessment is that the stability of the financial system would be jeopardised if the bank in question failed. Another fundamental function that it is important to mention in this context “to keep the different tasks separate” is that the Swedish banks can borrow overnight from the Riksbank against collateral at an interest rate of 0.75 percentage points above the repo rate. They always have this possibility and this is not what we mean by liquidity assistance. But what if the bank suffering problems does not have larger assets than liabilities? Should the Riksbank provide liquidity assistance? No, in such a situation it is a question for the government, not the Riksbank, to decide. What the Riksbank can do is provide additional liquidity under certain conditions. We do not have the task of managing a bank’s problems with its creditworthiness. Even in this hypothetical reasoning it is important to point out, that in principle all those who have deposited money in the bank are protected by the deposit guarantee in the event that a Swedish bank should default.
The connotation that people attach to the term “Nullzins” will likely be different from, say, “geldpolitischer Impuls” – although both terms in essence describe the same thing. Worse, monetary policy can quickly become overburdened if national fiscal and economic policies fail to internalise the effects they have on the common currency. The temptation to freeride is always present in a monetary union. It is easy to see that if fiscal policy is loosened during an expansion, or tightened during a recession, the burden on the central bank to stabilise the economy increases mechanically. Even today, euro area growth still relies too much on monetary policy support. According to ECB staff estimates, the contribution of our easing measures to annual euro area GDP growth was half a percentage point in 2017 and will still be around one-third of a percentage point in 2018. And monetary policy can do little to lift the long-term growth rate of our region. All of this means that our currency union needs further reform – both at Member State and euro area level. I believe there is wide agreement on this. Where we still lack agreement, however, is on how these reforms should look in practice. I have described elsewhere the requirements of reform from the perspective of the single monetary policy. 1 As the central bank of the euro area, we have a stake in the success of the current discussion.

For example, ASEAN has concluded Free Trade Agreements (FTAs) with Australia, New Zealand, China, Korea, Japan, and India. The ASEAN-China FTA alone covers over 1.9 billion consumers and an estimated trade volume of $ trillion. As Asia grows and comes together economically, global companies that aim to have a share of the pie will have to develop strategies and production models that are customised for Asia. Singapore exists at the confluence of these emerging trade routes within Asia and as well as between Asia and other regions. We have positioned ourselves as Global-Asia hub to take advantage of Asia’s growth. Our strategic location and affinity with other Asian countries made us the location of choice for companies from the West to grow in Asia. In 2011, IBM Services set up an Integration hub here. GlaxoSmithKline too has set up their Emerging Markets & Asia Pacific HQ here to serve the Asian market. At the same time, Asian companies expanding globally often opt for Singapore as their international base. Tata Communications from India has its HQ in Singapore, as do many Chinese companies. To aid these efforts, Singapore has initiatives to attract and develop talent that can thrive globally. For example, in 2010 we set up the Human Capital Leadership Institute to bring talent together to interact with one another and to prepare for the future. Urbanisation and sustainability Second, sustainability challenges will loom larger as the growth of the global economy puts more stress on the environment.
Ladies and Gentlemen, The global financial crisis that erupted in 2008, or 2007 if you count the U.S. sub-prime crisis as its first incidence, has brought fundamental changes to how central banks approach economic and financial stability. In particular, the crisis has led to a general reorientation of central bank policies in three major directions. The first is the reorientation of monetary policy to take into account financial stability concerns. The second is the shift from “deregulation” to “re-regulation”. And the third is the supplementation of traditional microprudential regulation with macroprudential one. In the realm of monetary policy, the pre-crisis consensus was that the attainment of price stability, or low and stable inflation, was enough to ensure a smooth progress of the economy. While central banks were well aware that financial disruptions could have a serious negative impact on the economy, they were of a view that financial stability was the job of prudential regulation and that monetary policy should focus on inflation and output stabilization. The dichotomy between monetary policy and financial stability policy was well observed across the central banking community. Central banks like the Bank of Thailand, which also looks at financial imbalances when making monetary policy decisions, represented only a small minority before the crisis. The global financial crisis has prompted a fundamental rethinking of central banks’ monetary policy conduct. Now it is recognized that price stability alone does not guarantee economic and financial stability and that there exists an intricate relationship between monetary policy stance and financial stability.

This will strengthen its position as a global leader in wealth management. BIS Review 110/2008  1
When this spread is high, it’s telling you that, unless you think rental prices are going to weaken, it’s prospectively cheaper to buy a house than rent one. You might in that environment expect the purchase price of housing to grow faster than usual. The blue line, which is average growth in house prices over the following five years, shows that this is what has tended to happen. For example, the house price boom in the early years of the millennium was preceded by a steep fall in longer-term real interest rates (driven, I would suggest, by a decline in the neutral rate of interest), through the second half of the 90s. That raised significantly the spread between rental yields and those on indexed government debt – when the spread was at its widest, in 1995, the gap between the two was 10% points. But that boom in house prices, in its turn, depressed rental yields significantly – to such an extent the spread over gilt yields fell to less than 4% points. Relative to gilts, houses were as expensive as they had been in the late 1980s. Even without the intervention of the financial crisis you might have expected much weaker growth of purchase prices over the following few years, and that’s what happened. However, we should be careful not to extend this pattern too unthinkingly.

Denny H Kalyalya: High performance leadership Opening speech by Dr Denny H Kalyalya, Deputy Governor of the Bank of Zambia, at the Opening of the High Performance Leadership Workshop, Lusaka, 9 August 2010. *  *  *    Chairperson    Workshop facilitators from MCA International    Directors and Assistant Directors    Other Participants    Ladies and gentlemen  On behalf of Bank of Zambia Senior Management and indeed on my own behalf, I wish to welcome you all to this important workshop, on High Performance Leadership, organized by our Human Resources Department in conjunction with MCA International. I commend the Human Resources Department for taking the initiative to organise this workshop, which is intended to facilitate exchange of information and views on appropriate leadership attributes to help us enhance our performance as leaders in our respective positions. Ladies and gentlemen, as you are aware, our key role as a central bank is to deliver low and stable prices and maintain financial system stability. In spite of the global economic downturn, our country is enjoying relative economic stability, with good prospects for the future following the recent and on-going significant economic transformation of our economy. Due to implementation of appropriate macroeconomic policies: i. The country has registered positive real GDP growth for the past 10 years and over the last five years, real GDP growth rate has averaged 6% annually;  ii. Inflation and exchange rates developments have also been favourable.
It may be stated, on the other hand, that financial globalisation may have contributed to the discipline of central banks and to “forcing” them to conduct a monetary policy focused on low and stable inflation 21 . At the same time, a significant risk related to the financial markets integration is the possibility to shift economic problems of one country upon other countries, which is greater than before (the contagion effect). Between 1997 and 1998, countries of South-East Asia experienced this effect, when all of a sudden capital flew out, bringing about financial crisis in economy after economy, which could not be prevented by either the monetary or exchange rate policy. Re 4) One of the vital dimensions of globalisation is the fast spreading of knowledge, technology and knowhow. The flow of know-how also applies to the public sector, including the central bank. One of the features of modern central banking is gradual homogenisation of the strategies applied to the monetary policy. Since 1990, when for the first time the central bank of New Zealand started to implement the strategy of direct inflation targeting (DIT), over 20 central banks followed and adopted that strategy. As a result, the DIT strategy (applied since 1998 by the NBP) is now the dominating strategy of the monetary policy, applied by the majority of central banks in developed countries 22 , and more and more, by central banks of the developing countries (such as Turkey, the Philippines, Ghana, Romania and Armenia).

Furthermore, a QR Code payment system is safe and reliable since it was developed on existing payment infrastructures of banks and payment service providers such as PromptPay or credit and debit card infrastructures, which are highly secure, compliant with international standard and subject to regular examination. The forth is facilitating further innovations. This open infrastructure will lead to further development of various financial innovations in the future. E-Payment will not only facilitate payment flows but also provide solid foundation for SME’s financial data collection. Data from retail electronic payments can be effectively used to support credit granting, which will provides more alternatives for SME financing. Financial Institutions in many countries have started to provide information based lending instead of traditional collateral based lending. These four important criteria of QR Code will lead to an expansion of QR Code payment services to all merchants in our daily life such as department stores, fresh markets, coffee shops, and convenient stores. QR Code payment services are accessible for all type of merchants, including brick and mortar stores and e-Commerce. Moreover, it can easily be rolled out to various locations such as business districts, tourist destinations, or rural areas. To promote standardized QR Code payment, BOT has allowed banks and payment service providers to propose their projects for consideration in the central bank’s  4  Regulatory Sandbox.
Given the Federal Reserve’s experience in the agency MBS market over the past eight years, it is important to consider what role—if any— agency MBS transactions may have in the policy implementation toolkit of the future. 1 SOMApurchased agency debt from 1971 to 1981, so participating in one of the agency markets was not entirely  new in 2008. In addition, in 2011–12 a maturity extension program extended the maturity of Treasury securities in the SOMA portfolio, although it did not expand the size of the SOMA portfolio. 2 The share is calculated as of October 12, 2016, see System Open Market Account Holdings. 3 Since the start of the year, these purchases have averaged approximately $ billion per month. In addition to 7 / 10  BIS central bankers' speeches  conducting these transactions, the Desk reinvests maturing proceeds from Treasury securities, though the Treasury reinvestment transactions take place at auction rather than in the primary market. 4 The accommodative monetary policy stance of the European Central Bank (ECB) rests upon three nonstandard  instruments: a series of targeted long-term refinancing operations, a negative deposit facility rate, and an asset purchase program that includes private and public sector securities. The Bank of England (BoE) currently sets the Bank Rate at 25 basis points and is currently purchasing £ billion in gilts over a 6-month period; the Asset Purchase Facility will have £ billion in gilts when the purchase round ends in February 2017.

Prepayment is especially attractive when interest rates fall and homeowners are able to refinance their loans into new loans at a lower interest rate. Investors demand an extra return to bear the risk of prepayment, which is incorporated into the yield of agency MBS. By purchasing agency MBS, the Federal Reserve can bear a considerable amount of this risk, removing it from the portfolios of private investors and thereby lowering mortgage rates. This outcome, in turn, stimulates additional demand for housing, and promotes increased refinancing activity. In the current environment, the Federal Open Market Committee (FOMC) has directed that principal payments from SOMA’s agency debt and agency MBS portfolio be reinvested into agency MBS. Therefore, SOMA reinvests the monthly paydown of principal on an ongoing basis. As a result, the Federal Reserve maintains a regular presence in the agency MBS market with near daily purchase operations. 5 / 10  BIS central bankers' speeches  Review of the Federal Reserve’s Two Agency MBS Purchase Programs Since 2008, two LSAP programs have included the purchase of agency MBS. The primary goals of the two programs differed, reflecting the distinct market conditions and economic environment that existed at the time each was initiated. In LSAP 1, announced in November 2008, agency MBS purchases were chiefly designed to provide support to mortgage and housing markets and to foster improved conditions in financial markets more generally. In LSAP 3, launched in September 2012, the agency MBS purchases were primarily focused on providing overall policy accommodation.