samchain/econo-pairs-v1 huggingface dataset:
Hence, the group’s credit risk model might be developed in the parent bank, while the group’s liquidity is managed through a foreign subsidiary, and the group’s derivatives trading is done in yet another subsidiary. That is why integration gives rise to a structure that often seems to be in conflict with the present regulatory structure. But the problem is not integration – the problem is that our regulatory framework is not designed for a single market for financial services. Let me give you a concrete example of this. In the Nordic and Baltic countries – excluding Iceland – there are six banking groups with significant cross-border activities. Each one of these cross-border groups has regulatory contacts with seven supervisors and eight central banks.2 It is commonplace to  1  Banking Supervision Committtee (2004), “Cross-border banking and its possible pol-icy implications”, December  2  The Bank of Lithuania also has supervisory responsibility. 2  BIS Review 35/2005  note that Western Europe is over-banked. It would not be outrageous to say that it is also over-crowded with regulatory authorities. Our conclusion is that we, as national authorities in the EU, must solve the issues that integration gives rise to, rather than stopping integration. This might sound very obvious, but some of us authorities still only pay lip service to the idea of the single market. Or we love the idea of the single market as long as it means that our own banks survive as national champions and are able to expand abroad.

As I have stressed many times recently, and in particular over the last few months during the COVID crisis, the key to understanding the degree of success of policies or the occurrence of potential unexpected consequences is to proceed with proper and timely evaluations based on sufficient background information. This is the only way to ascertain to what extent policies are working or need adjustment in terms of their timing, magnitude and focus. Global authorities are now in uncharted waters in terms of the dimension of the crisis and its multiple ramifications, and it is very difficult to calibrate the response of economic policy. Only good and timely data can allow us to design an optimal policy reaction in such a complex context. The present crisis has also stressed the importance of having data in real time: in the last few months, information on the use of payment cards, traffic on roads and at airports, electricity consumption, mobility, Google searches and so on has been fundamental for assessing the magnitude of the economic slump and the subsequent timid recovery. These indicators will hardly join the compact and methodologically sound realm of official statistics; but I think we should also pay attention and invest some resources in understanding them, familiarising ourselves with their use and incorporating them into our forecasting models. Probably, some of these indicators could be temporarily considered “experimental statistics”, a label statistical institutions may use to explore new fields and to convey to users the as yet not fully sound nature of these data.
By improving the quality of banks’ public reporting of their risks and the measures they take to control them, we intend to strengthen the ability of other market participants to understand a bank’s risk profile. When investors, customers, and even other banks have access to better information on how well a bank is managing its risks, they are better able to make business and investing decisions relevant to that bank, which can create a powerful incentive for bank management to improve their handling of those risks. Together, the three pillars of minimum requirements, supervisory review, and market discipline are intended to ensure that banks understand their risks and take adequate precautions to protect themselves against those risks through their control structures and their holdings of capital. But most importantly, banks will have incentives to find better ways to identify, measure, and manage their exposures. Current status of New Accord This past summer, we concluded our third round of public consultations on the proposals, and I’d like now to give you a sense of the current status of the New Accord, which is the second topic I will address today. By now you may have read that the Basel Committee reached an agreement last month to address the final issues raised in public consultations over the summer and to complete the new rules by mid-year 2004. This was no easy task, as the Committee received over 200 comment letters on the Third Consultative Paper, or “CP3”.

There is some similarity with what the G20 has been aiming at with its “Framework for growth”, a process through which countries identify shared objectives, the policies needed to reach them, and the progress toward them … although we can obviously be more ambitious for the euro area. •  In a decision phase, the euro area Finance Minister would propose a strategy, consisting of the collective objective and – as far as necessary – its country specific translations in terms of reforms and policy stance. This proposal would be subject to formal opinions from the Fiscal and Competitiveness Councils. It would then have to be adopted at simple majority by the Eurogroup, and further to be endorsed by the European Parliament. In case of a stalemate, it would be for Heads of States and Governments – the European Council in a euro format – to adopt the collective strategy, on the basis of an adapted proposal by the EA Finance Minister. We should of course bear in mind the rationale for subsidiarity. Euro area outcomes will remain dependent on national policies. Many areas of policy-making and all implementation will remain decentralised. Yet full coordination will require that economic policy stance and spillovers be collectively agreed upon, and that Member states work consistently to achieve the common objectives. 6  BIS central bankers’ speeches  B. Which tasks for a euro area Finance Minister? First, the Minister would be in charge of preparing the euro area-wide collective strategy to fulfill the mandate I already described.
But, as I said, this is a vision and nothing that lies just around the corner. 27 Among other things, this has led the European Central Bank (ECB) to develop a pan-European system for instant payments, Target Instant Payment Settlement (TIPS). 14 [21]  If history provides us with any guidance, I do not believe it is appropriate to completely cede the design of the monetary system to the private sector. Furthermore, a design of “fiat money” and an inflation target require some form of legislation. To sum up Let me round off with a short summary. I have gone through three aspects of developments in Sweden since the financial crisis: That the Riksbank is probably the only central bank that, at least for the time being, has needed to abandon the strategy of “leaning against the wind” due to weakening confidence in the inflation target; that the policy we have had to conduct to bring inflation back to target has been lively debated, despite its aim merely being to fulfil the Riksbank’s de facto remit; and that cash use is declining more rapidly in Sweden and today is lower than in any other country. As regards the first aspect, I noted that, although I myself think that a policy of “leaning against the wind” can very well be justified under normal circumstances, it is also a policy that in practice is difficult to maintain when confidence in the inflation target is under threat.

In this context, the BIS envisages 5 different scenarios on how the fintech explosion might impact banks that range from a scenario where the incumbent banks digitize and modernize themselves to retain the customer relationship and core banking services, leveraging the technologies to change their current business models (which is not far away from the currently observed trends) to a scenario where banks have become irrelevant as customers interact directly with individual financial services providers as the need for balance sheet intermediation or for a trusted third 2/4  BIS central bankers' speeches  party is removed and banks are displaced by agile platforms and technologies. Following the example of the European Banking Association, early this year, we made a short survey of domestic banks to obtain information regarding their experience with modern-day technological solutions. The results of the survey indicate that almost two thirds of domestic banks do not have any experience with fintech companies and even surprisingly, they do not have plans to establish any relationship in the near future. The banks that have some experience with fintech companies point that it is rather a commercial partnership with existing fintech firms for launching new products or services. In addition, a few banks answered that they prefer to develop in-house fintech solutions without formal cooperation with external parties.
I have therefore maintained that the lower repo-rate paths that I advocated between April 2009 and February 2010 would have stabilised both inflation and resource utilisation better than those adopted by the majority of the Executive Board. 3  2  Bill 1997/98:40. BIS Review 60/2010  The repo rate and the repo-rate path are means, not ends Are there other aspects of the repo-rate path to consider apart from the fact it should stabilise inflation and resource utilisation? It is important to realise that the repo rate and the repo-rate path are means and not ends in monetary policy. “A normal repo rate” is not a target for monetary policy. There is no support in the provisions or the preparatory work of the Sveriges Riksbank Act for using a too high or a too low repo rate as a reason to stabilise inflation and resource utilisation less effectively and in this sense set aside the objectives regarding price stability or the stability of resource utilisation. Consequently, I cannot see any situation when monetary policy should set aside price stability and the stability of resource utilisation so as to “normalise” the repo rate and the repo-rate path in order, for example, to get away from a “crisis rate”, or to attempt to influence credit volumes or house prices, or because the economy has bottomed out and economic activity has begun to pick up. The focus of monetary policy should always be on achieving the best stabilisation of both inflation and resource utilisation.

This would entail prejudicing, or setting aside, the price-stability target. Without prejudicing the price-stability target, monetary policy cannot aim at a higher level of resource utilisation than the normal level. It is thus a misconception, and unfortunately a common one, that the stipulation to not prejudice the price-stability target means that monetary policy should only aim to stabilise inflation around the inflation target irrespective of what happens to resource utilisation, what is usually referred to as strict inflation targeting. The stipulation means instead that monetary policy should also stabilise resource utilisation, but around a normal level, not a higher level. As far as I can judge there is now general agreement about this interpretation of the provisions of the Sveriges Riksbank Act and its preparatory work. So, at every monetary policy meeting we, that is the members of the Executive Board, have to decide what repo-rate path will best stabilise inflation and resource utilisation. The Riksbank usually expresses this by saying that monetary policy should be well balanced. If there is a conflict between stabilising inflation on the one hand and stabilising resource utilisation on the other, then a well-balanced monetary policy entails a reasonable compromise between the two. Such a conflict is in fact regarded as the normal situation, but a conflict does not always exist. In my view, there is no such conflict at present.
Of course, we should also support projects that foster excellence and value added in our work by not only harnessing all talent, but also by including environmental and social risks in our vision as a central bank. 8  I am personally championing the analysis of environmental risk and sustainability at my organisation. Like the promotion of equality, this is an unquestionably innovative project that requires empathy and a long-term vision. Undoubtedly, it also requires an unprejudiced ear and a very open mind to achieve patient learning and progress. Both topics are of great significance to society and may encounter resistance at first, often out of ignorance. Hence the importance of bringing together as many people as possible to address these challenges and, of course, of good communication to help raise awareness. Does my gender have a hand in this? I’m not sure, because the Banco de España’s commitment is unanimous. That said, this is perhaps a topic where women demonstrate greater awareness. Indeed, it was a woman, the biologist Rachel Carson, who is said to have sparked the modern environmental movement. She sounded the first scientific alarm about the death of the planet at the hands of human activity. It is also true that in Europe the European Commission and the ECB are leading the charge against climate change. Both institutions are led by women. Furthermore, according to a survey conducted by the Elcano Institute, women are more environmentally conscious.

Broadly speaking, the innovation, empathy, tact and care displayed by these leaders in their pandemic communication and management contrast sharply with other stances. I believe those studies suggesting, increasingly clearly, that female leadership can be distinct and beneficial are being borne out by the facts. 1  Gender Gap Report 2018 published by the World Economic Forum  3  According to the World Economic Forum’s Global Gender Report 2020, which covers 153 countries, Iceland ranked as the most gender-equal country in the world for the 11th consecutive time, followed closely by other Nordic countries such as Norway, Finland and Sweden. Despite being very different culturally, Spain managed to achieve eighth position. This is not a bad result, but there is no room for complacency. Public and private institutions and listed firms must drive this revolution. The CNMV recently published its new Good Governance Code, in which it recommended that women occupy at least 40% of the seats on IBEX-35 listed firms' boards by 2022, up from 30% previously. I have already mentioned the Banco de España's research in this area. I would like to single out the research paper by one of our economists (Laura Hospido) together with two economists from the European Central Bank, studying the gender gap at the ECB. I will also briefly mention a second study from our Structural Analysis and Microeconomic Studies Department, in which a similar assessment is conducted for the Banco de España.
That counterparty bids more aggressively for funds – something that is immediately observable from the pattern of bids (Table 2 and Chart 6). These examples highlight how the new ILTRs can provide an “early warning indicator” of stresses in the market, at both an individual and aggregate level. That information can be used to determine the size of and frequency of subsequent ILTRs (hence solving one important problem with the old LTRs). The ILTR supply curve The Bank’s supply curve is pinned down by its preferences – namely to provide liquidity insurance to the banking system at a price that doesn’t undermine the incentive to prudently manage liquidity. The Bank summarises its preferences using a Relative Supply Schedule (RSS). The RSS dictates how the proportion of each auction allocated to the wider collateral set responds to changes in the bids submitted, and specifically the difference between the clearing spreads on the narrow and the wider collateral set (known as the stop out spread). Chart 7 below shows some illustrative examples of an RSS. A larger stop out spread increases the proportion of the auction allocated to the wider collateral set, so the Bank’s “supply schedule” is upward sloping. Consider two simple examples. With a perfectly inelastic RSS, the Bank essentially pins down the quantity of funds it would provide against wider collateral, regardless of the bids submitted. With a perfectly elastic supply curve, the bank would, once a certain price threshold is exceeded, be prepared to allocate against all the wider collateral bids.

As we have already discussed, the first component of the insurance aspect of the framework is the reserves averaging mechanism itself, which permits banks, within reason and without penalty, to vary their reserves account balances day-to-day in the face of small and/or short-lived liquidity shocks – provided they hit their reserves target on average over the maintenance period. The second component is the OSFs which allow banks to cope with larger, expected (frictional) payments shocks day-by-day. A third component comes through longer-term OMOs to which we now turn. Longer-term Open Market Operations The most routine method for ensuring there is the correct amount of sterling in the system, consistent with reserves targets, is via short-term OMOs. Prior to the start of QE, the Bank carried out weekly short-term reverse repo operations (STRs) against a pool of “narrow” collateral comprising highly liquid sovereign or near-sovereign bonds from a small selection of countries. At that frequency, the scale of the operations could be judged fairly precisely so as to offset any autonomous factors which affected the net supply of sterling to the market. But relying solely on short term OMOs could have meant carrying out very large repo operations every week. To avoid that degree of churn, some longer term reverse repos (LTRs) were also used precrisis – at maturities from 3 to 12 months.
In the 2/5  BIS Central Banker's Speeches  former, we aim to provide an accommodative and stable macroeconomic and financial environment, so that the ongoing recovery is supported by ample liquidity and not interrupted by excessive volatility. In the latter role of development, we aim to put in place more efficient financial infrastructure in order to facilitate business activities and thereby enhancing their competitiveness. Let me elaborate on each role one by one. Recent experiences have demonstrated to us just how volatile the financial environment could be – both in terms of risks to economic growth and the policy responses that follow. Unfortunately, the journey ahead is paved with similar challenges, if not greater – financial stability risks and economic rebalance in China, the growing monetary policy divergence, the lower-for-longer interest rate policy and perhaps a more widespread use of unconventional measures by central banks of Advanced Economies. As a small open economy, we must therefore ensure that there is sufficient policy room to mitigate the potential adverse impacts or events that could unfold in the future. In this context, the Monetary Policy Committee’s  decision to maintain the policy interest rate should be viewed as a preference to preserve the limited policy space for rainy days ahead. The Monetary Policy Committee expected headline inflation to return to the target band later this year, while core inflation has stayed positive at around 0.8% since the beginning of this year.

Stories of destitution among retirees is one but many of the sad stories, I would like you to avoid. Guard the assets that you have acquired in your working life jealously, because retirement does not give you multiple chances to make amends when you make unsound business decisions. It is for this reason that the Bank, through Human Resources Department, has engaged Future Search a Consultancy firm to give you tips on how to live in retirement, I urge you to attend the upcoming workshop. I therefore wish you God’s blessings as your pursue the challenges of life in retirement. Thank you. BIS Review 1/2007  1
And now, we are truly challenged by the further increase in the bank competition, and deeply confident that this process will considerably accelerate very soon. The experience, however, shows that the best come only in well regulated financial sector, in a banking governed by regulations based on the European directives and the world best practices. In this light, the forthcoming new Banking Law allows for further strengthening of the bank corporate governance; minimizing or eliminating all possibilities for non-transparent shareholder structures; increasing the efficiency of the procedure for exclusion from the banking system in the Republic of Macedonia, of shareholders that lack reputation and integrity, thus compromising the stability not only of their bank but across the banking system. Therefore, it allows for establishing proper risk management systems and internal control systems, thus facilitating the gradual migration to risk-based supervision, which is already encompassed in the assignment related to the implementation of the New Capital Accord (so-called BASEL II), over the next several years. All things considered, we could send a message, without any hesitation, to the potential investors and providers of financial services and products that the Republic of Macedonia is a safe place to invest and fructify the capital and that the creation of good, friendly business environment, with competitive advantages compared to others, has been permanently improving. I wish the European Fund for Southeast Europe a successful business and good cooperation with our financial intermediaries.

Dear guests, The fact that the leaders of this Fund offered to present their financial services in the Republic of Macedonia, the Central Bank certainly encouraged and supported this initiative, shows that these important partners consider the Republic of Macedonia a friendly environment for launching various mutually beneficial business initiatives and projects. Yet, we do not forget though, that some of these institutions had no doubts whatsoever about the Republic of Macedonia even in the most difficult periods for us after gaining the independence, since when nobody else was coming, they were here. We certainly appreciate that. Regardless of all above, we still have many reasons that urge us to notice and convince others why is it good to invest in the Republic of Macedonia and to develop partnership with our economic agents and, of course, to inform on the activities that all of us in our country perform, directed towards increasing the attractiveness of the Republic of Macedonia as investment destination. Hence, we definitely need such financial offers. The economic growth could be accelerated by more investments, competitive offer of financial instruments and products, which are likely to eventually bring about lower costs for borrowing capital. The potential investors should be aware that the Macedonian financial sector is booming, but that the room for investments is yet to be opened. The gross national savings is low, not more than 12-17% of GDP, over the recent several years.