samchain/econo-pairs-v1 huggingface dataset:
Liquidity is lent against sufficient collateral and is subject to an interest rate that is higher than the policy rate. 2/4  BIS - Central bankers' speeches  SNB's contribution to managing Credit Suisse crisis This brings me to Credit Suisse. Credit Suisse has long struggled to cope with a loss of confidence and with outflows of client funds. The collapse of Silicon Valley Bank in the US triggered a swift deterioration of the situation in mid-March, despite the fact that there was no direct link between the bank in California and Credit Suisse. Credit Suisse's counterparties cut credit limits and clients withdrew deposits at a rapid rate. If Credit Suisse had collapsed, many Swiss households and SMEs would no longer have had access to their deposits, and payments via Credit Suisse would no longer have been executed. Furthermore, SMEs in particular would no longer have been able to benefit from existing credit limits at Credit Suisse and maturing loans would not have been renewed. The economic fallout would have been enormous. But there was even more at stake here. The collapse of Credit Suisse would have sent a shockwave through the global financial system. The consequences for the real economy, both in Switzerland and abroad, would have been dramatic. This extremely demanding situation required quick and decisive action. The federal government, FINMA and the SNB worked together under high-pressure conditions to find a solution that was viable and as market-based as possible in order to safeguard financial stability and protect the Swiss economy.

Thomas Jordan: Price and financial stability - a demanding year for the Swiss National Bank Speech by Mr Thomas Jordan, Chairman of the Governing Board of the Swiss National Bank, at the 115th Ordinary General Meeting of Shareholders of the Swiss National Bank, Berne, 28 April 2023. *** Madam President of the Bank Council Dear Shareholders Dear Guests It is a pleasure for me to welcome you to our General Meeting today. I see many familiar faces, but also a large number of new shareholders. A warm welcome to you all. I am delighted that so many of you have responded to our invitation. We are living in extremely turbulent times. Our last General Meeting was marked by Russia's invasion of Ukraine, and the General Meetings in the previous two years by the coronavirus pandemic. This year we have witnessed a shock to the Swiss financial sector, namely the crisis at Credit Suisse and the takeover of the bank by UBS. Today, I would like to give you some more detailed information about the role of the Swiss National Bank in managing this latest crisis. I will also set out how we have been combating inflation with our monetary policy since the last General Meeting. Let me start with the second topic. Tighter monetary policy to ensure price stability The SNB is obliged by Constitution and statute to pursue a monetary policy that serves the interests of the country as a whole.
Third and not least, national reflexes are still present, with countries reasoning vis-à-vis “their” banks and “their” financial centre. The result is that each European country, and the EU as a whole, are losing to the benefit of London and the United States – or to the benefit of foreign Bigtechs tomorrow. All in all we have to accept the idea that instead of a single European financial centre, we will have a polycentric network of financial centres – all the more since the digital era encourages it. And accept that there will be no winner-takes-all country, but several pan-European cross-border financial players. In this early 2022 nevertheless, there are at least four reasons to believe that we can breathe new life into Banking Union and CMU: There is growing awareness that European strategic autonomy matters and that financial sovereignty is part of it. This shift started with the Covid crisis but it is being underlined even more starkly now by geopolitics. The two “great transformations” ahead of us, digital and ecological, will require massive investments. This calls for common financing from not only public but also private sector. We should rebrand the CMU in a way that better reveals its goals: financing our two major transformations. I proposed some time ago to rebrand it “Financing Union for Investment and Innovation”, or “Financing Union for Sustainable Investment” – Christine Lagarde suggested a “Green Capital Markets Union”.

A few days ago, on 7 February, we celebrated the thirtieth birthday of the European Union and of the Maastricht Treaty. I was personally present during the signature of this Treaty, which promoted “the strengthening of economic and monetary union, ultimately including a single currency”. We have successfully established a monetary Eurosystem, however a real financial Eurosystem must now develop. Let me therefore share some proposals on the Banking Union and the Capital Markets Union (CMU), which are the two cornerstones for such a financial Eurosystem. We are all aware the Banking Union is for 19 countries, and tomorrow 21, while the CMU is for 27. But allow me to mix them today with a common core – the euro area – and a common purpose – the right funding of our economies. I will quote two thriller books today. You may rightly think of The postman always rings twice: Andrea Enria and myself already conveyed this message quite plainly regarding the Banking Union during the last Eurofi session in September. You may also think that these projects are more or less stuck. It is true that there has been deadlock and I will list the bad reasons for this. But there are also good reasons why we can break this deadlock now and give the projects of Banking Union and CMU new momentum (I). I will then describe the new possible steps for the Banking Union (II) and the CMU (III). I.
The sector is in a phase of downsizing and structural change that will inevitably affect financial intermediation going forward. To think about how this will impact European and global growth, I think it is useful to recall an ancient Chinese fable. The fable is about a boy who lived near China’s northern borders, and whose horse one day wandered off into the territory of the northern tribes. Everyone commiserated with him for his misfortune. But not his father, a well-practiced Taoist. “Perhaps this will soon turn out to be a blessing,” he said. Then, a few months later, his horse returned, accompanied by a fine horse from the north. Everyone congratulated him for his luck, but his father was more sanguine. He remarked, “Perhaps this will soon turn out to be a curse”. The boy quickly became fond of riding the fine new horse, then one day out riding, he broke his leg in a nasty fall. Everyone again commiserated with him. But once more his father disagreed. “Perhaps this will soon turn out to be a blessing,” he said. Soon after, the northern tribes invaded the border regions. All able-bodied young men took up arms to fight the invaders, and nine out of ten died. Due to his broken leg, however, the boy did not join in the fighting. He and his father therefore survived.

10  Adelino, M., Song, M. and Robinson, D. (2014), “Firm age, investment opportunities and job creation”, NBER Working Paper 19845, January. 11  The Financial Stability Board defines shadow banking as “credit intermediation involving entities and activities outside the regular banking system”, a definition which ranges from more transparent and regulated entities such as institutional investors and money market funds to highly complex and unregulated entities such as structured investment vehicles and special purpose entity conduits. 12  “Finance for Growth”, Report of the High Level Expert Group on SME and Infrastructure Financing, December 2013. 6  BIS central bankers’ speeches  quality securitisation in Europe, which the ECB and the Bank of England have been jointly pushing.13 Securitisation has the double benefit that it not only encourages existing originators to extend more SME loans, but to the extent that it partially removes credit risk from bank balance sheets, it may also help smaller, less diversified originators to enter the SME loan market. In this way, it could also mean that SME lending is less dependent on a few large banks in each country. It is worth reflecting, however, on what the new normal should be once the credit cycle picks up. On the one hand, there clearly benefits to having a more balanced financing mix. It is useful not only to provide a cyclical cushion in bad times, but also to increase market contestability and reduce over-banking in normal times.
Indeed, employment held up well during the recession, declining by less than 2 percent over a brief period in early 2009, and has averaged a nearly 3 percent annualized growth rate since then. Job growth has been particularly strong at retailers, hotels and restaurants, and also service firms ranging from advertising to engineering. That said, the employment picture does have some difficulties. For example, there is concern over some well-paying health sector jobs given the financial strain at Long Island College Hospital and Interfaith Medical Center and the pressure to close those institutions. Brooklyn’s economic vitality is also reflected in the commercial real estate market, as both office and retail vacancy rates have fallen steadily over the past few years. In fact, office vacancy rates are now lower in Brooklyn than in Manhattan. The strength in the housing market is also evident, with the median home price up by roughly 10 percent in each of the past two years, and the rental market has shown similar strength. 2  BIS central bankers’ speeches  However, these increasing prices also raise two other issues that acutely afflict many in Brooklyn and New York City more broadly: housing affordability and poverty. Despite Brooklyn’s economic renaissance and growing affluence, a large swath of the Borough’s population – one in four residents – still lives in poverty, and many struggle to pay their rent or mortgage. Even with the strong pace of job creation, Brooklyn’s unemployment rate has remained high, averaging more than 9 percent in 2013.

India has acceded to the Treaty of Amity and Co-operation in Southeast Asia (TAC) and adopted the Joint Declaration for Cooperation to Combat International Terrorism, signalling its strong commitment to ensure peace and security in the region. India is now a dialogue partner with ASEAN at the Summit level. Last year, the leaders adopted the suggestion of Indian Prime Minister Vajpayee and signed the ASEAN-India Framework Agreement on Comprehensive Economic Cooperation, an interim step towards an eventual ASEAN-India FTA. Both sides have agreed to start negotiations on trade in goods this year, including an ?early harvest programme? to boost trade in selected sectors. Singapore supports this far-sighted initiative and will work actively with India and other ASEAN members to fulfil this vision. The India-Singapore CECA Bilaterally, India and Singapore are already negotiating a Comprehensive Economic Co-operation Agreement (CECA), which will be a firm basis for expanding the India-ASEAN relationship. The rewards are not only economic, but also strategic. Singapore naturally hopes to gain freer access to the Indian market. But the benefits extend well beyond this. Singapore wants to strengthen its economic ties with many different centres of prosperity and growth, and not be overly dependent on one or two major trading partners. A strong relationship with India will complement our rapidly growing links with China, and help us to realise the strategy of growing two external wings in the region, with the two emerging economic giants.
Let us have a step-by-step look at these channels of influence of globalisation on the monetary policy. Re 1) The growing share of international trade in the global output as well as the increasing international capital flows cause a situation, where the growth rate of a national economy depends increasingly on the developments of the global economy. To illustrate the impact of globalisation on the economic prospects, attention should be drawn to the hot topic in the macroeconomic policy, namely the problem of global imbalances. To give you some facts, the US current account deficit had been growing gradually over the past years to exceed USD 800 billion, i.e. 6.5% of the U.S. GDP, last year. This deficit, which represents import of savings from the rest of the world to the USA, is financed by the Asian central banks, for example the Peoples Bank of China, and by oil-exporting countries. The available forecasts show that the deficit will continue to grow. An animated debate is currently underway to determine whether this is a steady situation that simply reflects the new principles in the global economy 5 , or whether this trend is bound to stop and reverse sooner or later, which may entail a significant increase in the US long-term interest rates, a strong depreciation of the US dollar and a serious slowdown in the global economic growth. The majority of empirical and theoretical studies indicates a growing probability of the latter scenario, especially if no due steps are taken in many countries.

To recapitulate this train of thought, Kohn was very sceptical whether the three above-mentioned conditions can be sufficiently met; however, he did not preclude that in the future, the understanding of economic processes will improve as much as to enable running the extra action policy where reasonable. Numerous statements following the presentation have indicated that the proper supervision is much better a response to the asset bubbles and many people have stressed that this is why the financial markets supervision should be independent of politicians, as it may be necessary to take actions aimed to restrict the speed of the speculative bubbles build-up , when this does not suit certain politicians due to the elections cycle. The majority of lectures which are delivered over the series of seminars by the Centre for European Regional and Local Studies and the UNESCO Chair at Warsaw University apply to the issues vital for local communities. The title of today’s seminar might suggest that we have discussed problems vital for the global economy and not for a local community, a city, a region or a university/higher education institution. This is not the case, however, as in the years to come the globalisation of manufacturing, services, investments, finances, the labour market and knowledge will progress, irrespective of the scale of national protectionism. The globalisation results will be thus felt by all: countries, regions, local communities and individuals. If we want to succeed, both as a country and as each and every one of us, we must be well prepared for globalisation.
The forum is designed to encourage active dialogue and deliberations from the different perspectives, notably between the service providers and the users. The dialogue will also serve as a platform to discuss how the industry may effectively operate in the context of the prevailing regulatory environment, policies and practices. From the regulators'perspective, the aim is to develop an enabling environment to facilitate and foster greater use of more efficient payment mechanisms in Malaysia. Ladies and Gentlemen An efficient, reliable and secure electronic payment system is critical to the soundness of the financial system, the efficiency of the financial markets and the economic growth and development process. With the rapid technological advancements and increasing consumer demands for more efficient delivery services, the Malaysian financial landscape has continued to transition towards the increased significance of an electronic payment systems and channels. Despite the progress that has been achieved, Malaysians however, remain high users of currency notes and coins, with the currency-incirculation amounting to about 6.4% of GDP. In contrast, the average ratio for high users of electronic payments such as in the Scandinavian economies is only 2.9%. The use of cheques is also dominant in our financial system, accounting for 96% of the total value of non-cash payment instruments. These indicators suggest that measures to encourage more active use of e-payments would need to go beyond building the electronic payment infrastructure.

Resolution would naturally go hand-inhand with a greater reliance on instruments such as contingent capital. And there would be enormous challenges in resolving global banks that span countries with different legal jurisdictions. Extending resolution procedures to large institutions is a necessary but not sufficient condition for stability of the banking system. 7. More radical reforms  All of these potential reforms would be steps in the right direction. They would all help to put more of the costs of maturity mismatch on the shoulders of those who reap the benefits. But taxes, the Basel capital requirements, special arrangements for systemically important financial institutions and enhanced resolution procedures all have drawbacks and are unlikely to do the job perfectly. So, if we cannot rely solely on these types of measures, are there more fundamental directions in which we could move that would align costs and benefits more effectively? One simple solution, advocated by my colleague David Miles, would be to move to very much higher levels of capital requirements – several orders of magnitude higher. A related proposal is to ensure there are large amounts of contingent capital in a bank’s liability structure. Much more loss-absorbing capital – actual or contingent – can substantially reduce the size of costs that might be borne outside of a financial firm. But unless complete, capital requirements will never be able to guarantee that costs will not spill over elsewhere.
On the other hand, having tightened its monetary policy sooner and more strongly than its peers, Turkey has become one of the few economies that have offered a substantial real interest rate since the beginning of 2021. Along with a better current account balance, risk premiums affecting borrowing costs will also continue to improve as we make progress in our efforts on inflation and reserve accumulation. In addition, as of May 2021, short-term external debt is down USD 25.7 billion from USD 144.9 billion to USD 119.2 billion thanks to our recent work on compiling debt statistics. This will have positive implications for our external debt indicators. Some developed countries have large external debts and many have high budget deficits, but their risk premiums and policy rates remain low. Due to fiscal, monetary and financial policy responses to the pandemic and its negative effects on households and the corporate sector, indebtedness rates have surged in many countries. Amounting to USD 289 trillion globally, debt exceeded 360% of the world’s income (GDP). In the coming months, both public and private sector indebtedness will become a growing issue worldwide. In this context, among sectors of the economy, the public sector and households have a very high debt burden across advanced economies. In terms of indebtedness, Turkey diverges quite positively from advanced economies in all categories. Compared to other developing countries, I can say that Turkey is in a relatively good position in terms of public and household indebtedness.

Norges Bank became a member of the NGFS in December 2018. The primary objective of this network is to create an arena for central banks and financial supervisors to exchange experiences and share best practices in developing environment and climate risk management in the financial sector. We consider this network to be an important meeting place to arrive at a well-considered understanding of the role and activities of central banks in this field. 3/3  BIS central bankers' speeches
That might not matter were the consequences limited to the party-goers. But they are not. When the party ends, some innocent bystanders may lose their homes altogether. Moreover, the party-goers aren’t just deposit-taking banks. A wide range of financial institutions, including investment banks, monoline insurers, even hedge funds, have the potential to cause significant damage to the rest of the economy in the wake of their demise. Are they all to be helped to get home safely when the party ends? If so, will they all be regulated in the same way as banks? If not, how can we limit the potential cost to the taxpayer? Add to this the problem that many of these institutions are global in scope, but the responsibility for both regulation and rescue remains firmly at national level, and you can see why policy-makers get headaches as bad as the party-goers’. No individual bank, or indeed the authorities, can easily find a way out of this because their incentives are to continue in the same manner. There is, therefore, no point blaming anyone for the outcomes. But together we have to find an answer. Of course, excessively strict and detailed regulation would mean that there were no parties worth going to and the economy as a whole would suffer from a suppressed and inefficient financial sector.

The prize will be an integrated framework, covering all our lending to the banking system and one that I hope, by making clear the terms on which liquidity will be provided in times of stress, will focus the minds of banks long before those stresses emerge. During my second term as Governor I would like to see us establish a framework for financial stability that is on as sound a footing as the one we have successfully established for monetary stability. The measures I have described would go a considerable way to achieving that. But just as no framework for monetary policy can prevent shocks from hitting the UK economy, we need to think carefully about why financial crises have been both persistent and damaging. That leads me to one final thought on which I want to end. For reasons of historical accident we have created over many decades a financial system in which the incentives to monitor risk-taking have been sharply reduced. It is often said that the role of a central bank is to take the punch bowl away just as the party is getting going. That approach has served us well in monetary policy. But all those efforts will come to naught if the opposite applies to the financial sector. If banks feel they must keep on dancing while the music is playing and that at the end of the party the central bank will make sure everyone gets home safely, then over time the parties will become wilder and wilder.