samchain/econo-pairs-v1 huggingface dataset:
However, a bank that does not use a realistic measurement of potential future exposure to decide how much collateral to require can later find its collateral holdings to be grossly insufficient. We expect the industry to develop more effective ways to measure and manage potential future exposure, and supervisors will closely monitor progress to ensure that this occurs. Stress Testing The Committee’s report also shows that banks must develop measures that better account for credit risk under extreme market conditions. This can be achieved through what we call “stress tests”, where a bank conducts “what if” analyses of how credit exposures to a single counterparty could grow under these market conditions. These might include a large rise or fall in interest rates or a major change in an exchange rate. More rigorous stress testing could have given banks at least some warning of the types of exposures they faced last fall. The critical importance of stress testing is noted very explicitly in our new supervisory guidance. Sound Practice Recommendations in the Basle Committee Report The Basle report is accompanied by a sound practices document that sets forth an important set of standards that will guide both banks and their supervisors.

There are studies indicating that domestic cost components may comprise as much as 75 per cent of the end-price.2 Arguing that the Riksbank cannot affect imported inflation is therefore simplifying rather too much. On the other hand, it may be the case that during the prevailing changeover process it may be quite reasonable to allow inflation to be below (or in a different situation, above) the inflation target for a period of time. This lies within the boundaries of the flexible inflation targeting the Riksbank conducts. A policy of flexible inflation targeting means that we always consider how large a deviation from the inflation target might be acceptable, and whether we can allow a little more time before bringing inflation back in line with the target. Another challenge is the low interest rates. At present, the Riksbank’s key rate is at an historically low level, although we are in the upturn phase of the economic cycle, at least this appears to be the case in our view of recent growth and our forecast for future growth. At the same time, one cannot rule out the possibility that inflation might remain low for a long period of time. If economic activity should  2  Burstein, Ariel, Martin Eichenbaum, and Sergio Rebelo (2005), "Large Devaluations and the Real Exchange Rate", Journal of Political Economy, Vol. 113, No. 4, August 2005, pp. 742-784. 6/7  decline substantially, the problem will be that there is little scope for further stimulation using monetary policy.
To further enhance clarity, monetary policy is guided by a principle according to which the aim is normally to bring inflation back to target within two years after a deviation has occurred. The two-year horizon makes it possible to bring back inflation to the target gradually and in this way to avoid excessive fluctuations in the real economy. The target horizon thus allows flexibility in monetary policy, while helping to anchor inflation expectations. BIS Review 51/2008  1  The policy rate’s path to inflation takes time The Riksbank’s target is to maintain a low and stable level of inflation. We can influence inflation by means of our steering interest rate, the repo rate. Through the steering system, the Riksbank aims to keep the shortest market rate, the overnight rate, close to the repo rate. The overnight rate in turn affects the interest rates faced by the general public, and thereby activity and prices in the economy. So, the repo rate expresses the level at which the Riksbank wants the overnight rate to lie. Interest rates with a slightly longer duration, for instance 3 months, are determined in the financial markets, partly by expectations of what the repo rate will be on average during this period. Banks’ lending rates to households and companies and interest rates on securities with different durations are affected therefore by both the actual and expected repo rate. In the slightly longer term there is greater uncertainty and it may be difficult to form an opinion of the future repo rate.

But potential measures must be balanced against the risk that the interbank market will cease functioning more quickly if there are signs of financial turmoil in the future. There is also a risk that a temporary extension of the collateral a central bank accepts can reduce the banks’ incentives to hold sufficient amounts of what are normally considered eligible assets. If the central bank takes over some of the functions of the shortest interbank market, there is also a risk that banks which are essentially creditworthy will suffer liquidity problems as the access to short-term financing in the interbank market will disappear. Although there is still the possibility to borrow from the central bank, collateral is required, while the interbank market usually provides loans without collateral. Even though we have not needed to take a stand in these considerations in an emergency situation, we do of course discuss the issues and monitor developments closely. Conclusion The financial turmoil has meant that several central banks have had problems stabilising the overnight rate at the target levels. The uncertainty has also contributed at times to difficulties for some banks in obtaining funding on the interbank market. Several central banks have therefore taken measures beyond the normal to stabilise the overnight rate and to reduce the pressure on the slightly longer interbank rates. In Sweden there has been no reason to take any extraordinary measures. The Swedish interbank market has on the whole functioned smoothly.
Speaking on behalf of the Thai people, I believe our history has played a big part in influencing our actions and our mindsets, allowing us to cope with new challenges. Specifically, Thailand’s long history as an open trading nation—having limited resources and military strength, and operating under the landscape of continued foreign threats—has implanted the mindsets of the Thai to be open-minded and receptive to new opportunities while flexible in our approach to adversities. It is with this mindset that has allowed our nation to adapt to changing environment and withstood various threats. Looking ahead, our resilience will certainly be tested by disruptive changes brought about by technological advancement. Thus far, the Thai people have shown that they are able to adapt and be receptive of new opportunities that have come with new technologies. This can be seen in the remarkable rate of adoption of the PromptPay faster-pay service since its launch just over two years ago, with now over 47 million subscribed accounts, a large number considering the total population of Thailand is just over 66 million. During that same period, usage of digital  7/9  payment almost doubled, reaffirming receptiveness of the Thai people to new payment channel. Moreover, the Thai population is digitally engaged, ranking among top countries with the highest number of social media users3. This has created opportunities for new platforms to emerge and innovations to prosper. Besides the people, increasing number of Thai businesses have incorporated new technologies into their work processes.

Speech at the Press Conference: Collaboration on Adopting Standardized QR Code for e-Payment Dr. Veerathai Santiprabhob, Governor Wednesday 30 August 2017 Bank of Thailand ……………………………………………………… Executives from American Express, JCB International, Mastercard, VISA and UnionPay International President of Thai Bankers' Association President of Government Financial Institutions Council President of Association of International Banks President of Thailand Electronic Payment Trade Association President of the Telecommunications Association of Thailand under the Royal Patronage Press members and distinguished guests, I am very pleased that all payment service providers in Thailand are here to announce their collaboration on adopting QR Code standard for payments. This is considered an important milestone for which the standardized QR Code has been implemented in Thailand. It is also the first time that five international payment card network providers and Thai financial service providers have mutually agreed to adopt the same QR Code standard in providing payment services in Thailand. It is recognized that electronic payment (e-Payment) is a crucial component in driving a digital economy, where technologies have been utilized to deliver better services for consumers and businesses, to increase financial inclusion, to raise efficiency and to reduce costs; thus, enhancing the country’s competitiveness and supporting ‘ease of doing business’ principle.
Second, the crisis revealed severe shortcomings in banking regulation. Banking and financial sector regulation is now being reformed in many countries. Norwegian banks have become more solid in recent years. This is a positive development. Banks’ capital, in particular that of the largest banks, should be increased further in order to satisfy the new regulations. 6  BIS central bankers’ speeches  The forthcoming regulatory framework for banks in the EEA includes a countercyclical buffer – a capital requirement that can be increased in upturns and turned off in downturns. When banks are required to build up an additional buffer, they are better equipped to cope with periods of rising losses. The buffer will strengthen the resilience of the banking sector during an upturn. It may also counteract the build-up of financial imbalances, although the effect is uncertain. Thus, Norges Bank cannot disregard taking financial imbalances into consideration when setting the key policy rate. The criteria for the conduct of monetary policy remain firm, also after the introduction of a countercyclical capital buffer. Later this year, Norges Bank will provide advice to The Ministry of Finance on the size of the countercyclical buffer. An integrated analysis and set of forecasts form a common basis, both for this advice, and for the Bank’s monetary policy decisions. The Norwegian economy is also vulnerable Structural adjustment in the business sector is the key to economic progress. Over the past 40 years, the oil and gas industry has been an engine of innovation and growth in Norway.

Tarisa Watanagase: Inflation targeting – a reflection on Thailand’s experience Opening remarks by Dr Tarisa Watanagase, Governor of the Bank of Thailand, at the Bank of Thailand’s International Symposium on “Challenges to Inflation Targeting in Emerging Market Countries,” Bangkok, 13 November 2006. *  *  *  Honorable Guests, Distinguished Participants, Ladies and Gentlemen, First, I would like to extend a very warm welcome to all of you here today. This is the second time that the Bank of Thailand organizes a symposium at an international level. Our first international symposium, “Practical Experiences on Inflation Targeting,” was held in October 2000, a few months after we had adopted inflation targeting as a new monetary policy framework for Thailand. But this symposium today is the first one that brings together central bank governors, senior central bank executives, world-renowned academics and policy experts from leading international organizations. Many of you have extremely tight schedules and some have to travel a very long distance. I would like to express our great appreciation for your presence and very much hope that what we will learn together in this symposium is beneficial to all of us. Ladies and Gentlemen, Thailand formally adopted inflation targeting as a monetary policy framework on May 23, 2000. The change in policy regime was a result of our search for an appropriate nominal anchor after the floating of the Thai baht in July 1997. In the interim period, we used monetary aggregates as our policy target.
The quality of mortgage lending is crucial for the quality of our banks’ assets and, ultimately, for their solvency and stability. A deterioration in the quality of mortgage assets would affect the conditions on which financial institutions themselves are funded, since it might lead to a downgrading of mortgage market securities and that, in turn, might ultimately worsen borrowing conditions for households and firms. That said, Spanish banks are better placed today than one or two years ago to cope with the increase in the demand for credit that our economy will see with the recovery in activity and higher growth. This is due to three interrelated factors. First, the improvement in financial markets, in particular in the euro area. The monetary policy measures adopted by the European Central Bank and the reforms to the institutional framework of the euro have made a decisive contribution here. Second, the recovery in the Spanish economy, one component of which has been underpinned by the reforms already pushed through, which are contributing to correcting the imbalances built up during the upswing that ended in 2008. However, and this is the third factor, the favourable developments in the Spanish banking sector cannot be understood without considering the transformation it has undergone.

Second, the legislative amendments must strike an appropriate balance between the rights of creditors and those of debtors, especially the socially excluded, and I should like to highlight the advisability of concentrating efforts in the field of social policies: a country as economically, socially and institutionally developed as Spain has sufficient resources to face up to and resolve the most dramatic and unacceptable situations of exclusion and need without affecting financial stability in the process. All these issues have been duly discussed in this Congress, which is why I shall focus on the situation of our banking system and on our economic outlook. BIS central bankers’ speeches  1  Role and situation of Spanish banks I should first like to highlight the crucial importance of banks in resource allocation and their role of intermediation between those supplying and demanding financing. Mass access to owner-occupied housing would be almost inconceivable without their intermediation. Mortgage lending is a very important segment of the financial intermediation in which credit institutions engage. As at December 2014, mortgage loans for house purchase extended by credit institutions to households amounted to slightly over € billion, more than 40% of total bank lending. The number of outstanding mortgage loans for house purchase is at present 5.8 million, a large percentage of which (82%) are at floating rates, which has allowed for the transmission of the Eurosystem’s more accommodative monetary policy to household financing conditions.
The Hong Kong dollar and the Renminbi continue to circulate as legal tender in Hong Kong and the mainland respectively. The Hong Kong dollar is treated as a foreign currency in the mainland. Likewise, the Renminbi is treated as a foreign currency in Hong Kong. 15. The Basic Law has provided for the legal status of the Hong Kong dollar. The Renminbi is still not yet freely convertible. However, even if it becomes freely convertible, it will only be one of the many foreign currencies traded in Hong Kong’s forex market. As for the cross-border circulation of the banknotes of the Hong Kong dollar and the Renminbi, this is a natural consequences of the close relationship between the two places. This phenomenon was in existence long before the handover. The legal status of the Hong Kong dollar will not be affected and the Hong Kong dollar will not be replaced as a result. 16. The issuance arrangements for the Hong Kong dollar remain independent. Hong Kong dollar bank notes continue to be issued by the three note-issuing banks under the authorisation of the HKSAR government. Under the linked exchange rate system, the note-issuing banks provide 100% backing in US dollar according to the fixed rate of $ to $ In order to ensure that all the Hong Kong dollar notes and coins in circulation comply with the monetary rule of the Currency Board System, we have improved our coins issuance mechanism so that it operates in exactly the same way as the notes issuance mechanism.

To further enhance the competitiveness of our banks and step up our supervisory efforts, the HKMA commissioned a large-scale consultancy study of the local banking sector. The study was completed in 1998 and the recommendations contained in it are being carefully considered by the HKMA. (E) Hong Kong continues its participation in international financial activities in accordance with the provisions in the Basic Law  BIS Review 39/1999  4  19. The Basic Law provides that the HKSAR may, using the name of “Hong Kong, China”, maintain and develop financial ties with different countries and regions. This includes entering into and implementing multilateral and bilateral financial agreements, setting up overseas official and quasiofficial financial representative offices, and handling external financial relations. 20. Following the handover, Hong Kong has become even more active in the international financial scene. In addition to further developing co-operation with regional central banks, the HKMA has strengthened its ties with multilateral and international financial institutions. In September 1997 the Annual Meetings of the International Monetary Fund/World Bank were staged with great success. As the first major international event in Hong Kong after the handover, the Meetings became an important landmark in Hong Kong’s financial history. In 1996 both HKMA and the PBOC were admitted to the Bank for International Settlements (BIS) in their own right.
It is accordingly conceivable that the Swedish economy will move into a process with accelerating productivity growth but let us wait until that happens before incorporating it in our expectations and policy decisions. Our economy is developing favourably enough as it is. A growth process driven by rising investment and productivity can result in good circles. To some extent, that can be said to have been the case in recent years. It accordingly helps to explain the favourable economic developments in Sweden. Another cause lies in the various deregulations that have been implemented. 1  BIS Review 87/2000  Inflation this year improved by deregulation and competition Thus, it is other positive supply side effects that have helped to achieve the rapid output growth without generating inflationary impulses. The effects have come from the deregulation of electricity and telecom markets, as well as from the EU’s agricultural reform. Meanwhile, the temporarily lower rate of inflation has meant that real wage growth has exceeded expectations and thereby acted as a general demand stimulus. On the whole, however, the effects are of the one-off kind that lower the price level and stimulate demand for just a limited period. But if these effects have a gradual impact on different segments of the economy, their overall impact on inflation may be spread over many years. Another explanation for the favourable overall price trend is the generally stronger competition.

Fourth, on asset bubbles and the linked exchange rate system: the monetary policy objective of Hong Kong is exchange rate stability, rather than to target asset prices or inflation. Asset bubbles are not unique to economies with fixed exchange rates. Economies with floating exchange rates experience similar problems. In any case, it is difficult to tell ex ante whether there is an asset bubble. On the other hand, most research studies find that monetary policy is too imprecise and blunt to be used as a tool for targeting asset prices. Fifth, on the Hong Kong dollar being undervalued: there is no evidence. Recent empirical research by the HKMA and the IMF show that there is no evidence of currency misalignment for the Hong Kong dollar at present. Given the flexible and adaptive nature of the Hong Kong economy, wages, prices and other economic variables would adjust so that any misalignment in the real effective exchange rate would be corrected. Even a flexible exchange rate is not immune to sustained currency misalignment. Exchange rate  BIS Review 139/2007  5  movements are affected not only by economic fundamentals but also by market dynamics. A flexible exchange rate is arguably more prone to currency misalignment, particularly for small and open economies which are more vulnerable to changes in capital flows. Sixth, on widening the exchange rate band: the simple answer is no. It would only serve to undermine the credibility of the linked exchange rate system and invite speculation on the likelihood of further band-widening.
The legal terms and conditions of these collateral arrangements are increasingly nonstandardised and opaque, resulting in collateral recapture processes which remain inherently untestable until the event of an actual stress. 3. Funded reinsurance also introduces material wrong-way risk, in that the performance of the counterparty and the collateral posted are likely to be positively correlated. Page 5  In an increasingly competitive market place, with limited capital to support a rising volume of new Bulk Purchase Annuity (BPA) transactions, we are alive to the potential for growth in the use of funded reinsurance. This may result in a greater concentration to a limited number of lessdiversified, asset-intensive reinsurers. Moreover, indirect exposure to foreign credit markets also adds to cross-jurisdiction complexities and introduces contagion risk. This is a developing part of the market with each incremental change bringing more complex valuation, operational and legal risks that need to be carefully assessed and managed. Funded reinsurance is small at present, but it could pose a risk to our objectives if it were to become routine. High levels of funded reinsurance would render the payment of a significant value of UK pensions dependent upon the strength of a concentrated and correlated group of reinsurers. These reinsurers are held to standards set outside the UK. Given our own ongoing efforts to tailor prudential standards for annuity business, standards elsewhere may well not have been designed with UK annuity risks in mind – and so may not yet handle them as effectively.

One possible solution I think is that of making all contracts on AFET U.S. dollar denominated. This way, the arbitrageurs are not exposed to any foreign exchange risk and they can manage their positions across markets with ease. Of all the commodities listed on SICOM, only one contract namely ribbed smoked rubber sheet no. 1 is Singapore dollar-denominated and coincidentally, it is also the least liquid contract on the SICOM. All other contracts are denominated in U.S. dollar. Moreover, commodity prices in the world are generally quoted in U.S. dollar, therefore, corporate buyers and sellers are already aware of their costs and revenues in terms of U.S. dollar. If we aim to establish futures price of, for instance, white rice on the AFET as a benchmark, it is logical for this reference price to be denominated in an international currency such as the U.S. dollar. That way, the price quotations would purely reflect all relevant information relating to demand and supply conditions of the products and are not influenced by exchange rate fluctuations. Some may express concern, however, that by eliminating foreign exchange risk for foreign arbitrageurs, we in turn, expose our local producers and end-users to the very same risk. I feel, on the contrary, that local buyers and sellers are already accustomed to commodity prices being quoted in U.S. dollar in the world market and manage the risk in a proficient manner.