samchain/econo-pairs-v1 huggingface dataset:
Despite this excellent record of performance during a period of unprecedented stress, there still is room for improvement. First, future stresses could be more severe or might come in different forms. This could expose vulnerabilities in FMIs that have, up to now, not been visible. Also, extraordinary interventions in the crisis to backstop market function or rescue key financial intermediaries may have prevented the stress level from reaching the point where FMIs couldn’t perform their functions. Because there can be no assurance that such interventions will necessarily occur in the future, it is important that the stability of the FMI architecture not depend on timely extraordinary interventions. Second, under the new regime of central clearing for standardized OTC derivatives trades, the role of FMIs will become even more important in the future. Moreover, the new regime will lead to the development of new types of FMIs. CCPs for OTC derivatives will become widespread – and trade repositories will be established. Principles are needed to underpin these new institutional arrangements. Third, for FMIs to be resilient they would undoubtedly need to have some ability to access central bank services, including the lender of last resort function. But, if FMIs had access to such services, this would create moral hazard. The best way to address this conundrum is to hold the FMIs to tougher global standards.

Thus, for the system to be safer it is not sufficient to ensure that trades are standardized and that they are mandated to be cleared through CCPs, but also it is necessary that CCPs be “bullet proof.” They have to have the ability to perform and meet their obligations regardless of the degree of stress in the financial system and even if one or more of their participants were to fail in a disorderly manner. Hence, there is a compelling need for tougher principles that are broadly enforced. In addition, to ensure that this all works as well in practice as in theory, the Financial Stability Board, CPSS and IOSCO, and other regulatory authorities have emphasized the importance of four safeguards to ensure that mandatory, standardized clearing through CCPs will make the financial system more robust and resilient. The first safeguard is that the oversight of global CCPs needs to be cooperative – involving the securities regulators and central banks in the country in which the CCP operates (the home country) and the countries for which the CCP may be systemically important. Global CCPs are likely to be established – some are already up and running – that will clear different types of OTC derivatives such as interest rate swaps, credit default swaps, or commodity-based swaps that are traded around the world, both solely within one country or on a cross-border basis. Many regulators have important stakes in ensuring that a global CCP can meet its obligations.
Building an efficient financing and investment union for tomorrow  We need to improve investment financing in the EU. Our efforts should be directed towards financing growth and innovation, and towards finding the right mix between debt and equity financing, while still preserving financial stability and consumer protection. In the EU, the European Commission has launched the Investment Plan – so called Juncker Plan – and the Capital Markets Union (CMU). Until now, these initiatives have shown results, but they are not enough. A more ambitious approach would bring together the CMU, the Banking Union and the Juncker Plan. This is why I suggest to think of a Financing and Investment Union. It is essential to clarify two objectives: (i) the diversification of financing for firms, and (ii) the strengthening of the euro area. As we argued in our joint article with Jens Weidmann in February, this Financing and Investment Union – including more equity financing – seems to be the best way to match the abundance of savings and the lack of appropriate investment financing. First, let’s focus on the diversification of financing. The starting point should be firms’ needs. New financing of business investment, which is one of the keys to innovation, must be enabled. There should be above all, more equity financing. •  It is an essential fact that the equity share of corporate financing in Europe is half as large as in the United States: 52% of GDP in the EA, vs. 121% in the US.

It’s easy to think of the Fed as just setting interest rates, and of course that’s a major part of what we do. But we do so in order to achieve two goals set by Congress: maximum employment and price stability. In Fed-speak it’s called the dual mandate. There are serious debates taking place amongst economists and policymakers about what maximum employment actually looks like, and they probably deserve another speech of their own. But I promised not to deluge you with numbers, so I’ll focus on a few highlights. The unemployment rate last year averaged just under 4 percent, the lowest such annual figure since 1969. The latest jobs numbers also showed very strong growth, with over 2.6 million jobs added last year. The ongoing strength in the labor market has led to encouraging gains in wages. No matter how you cut it, the labor market is strong, consistent with our maximum employment goal. When we say price stability, our goal is to keep inflation around 2 percent.1 Those of you who are of my generation will remember the runaway inflation of the 1970s and early 1980s. Obviously that’s something we must avoid repeating. But the challenge of more recent years actually hasn’t been too high inflation. Instead, it’s been inflation that’s persistently too low. Over the past decade, inflation has more often than not come in below our goal. But things are looking better.
In fact, it appears that in the current environment, higher prices are being passed on more quickly – and are also being more readily accepted – than was the case until just recently. In conjunction with this, longerterm inflation expectations have also been moving upwards slightly over the past quarters. Furthermore, there are clear indications of wage growth gathering momentum. How is the SNB handling this situation? We already made our initial response to the impending inflationary pressure in the final months of 2021. Both inflation and our inflation forecast at that time were still at a very low level. At our monetary policy assessment in December, we announced that we would allow the Swiss franc to appreciate to a certain extent in nominal terms in order to reduce the inflationary pressure from abroad. The Swiss franc gained around 4% in nominal terms between autumn 2021 and spring 2022, making imports cheaper and so countering the general increase in prices. In June 2022, we then raised  Page 4/16  the SNB policy rate for the first time in 15 years, by half a percentage point to −0.25%. At the same time, we signalled that further interest rate moves may be necessary in the foreseeable future. With our policy rate rise, the Swiss franc appreciated further. The need for monetary policy tightening is shown by our conditional inflation forecast of June 2022 (cf. Chart 5).

The companies apparently trusted that the SNB would be able to prevent a sustained decline in the level of prices through its decisive use of unconventional measures. The SNB was able to preserve its monetary policy credibility, even in this difficult environment. The second point relates to the adjustment processes following the sudden upward surges in the value of the Swiss franc. The negative or very low inflation in Switzerland was in fact part of these adjustment processes, since it contributed to reducing the overvaluation of the Swiss franc over time. Thus, the real exchange rate appreciated considerably less than the nominal exchange rate (cf. Chart 3). This helped to cushion the impact of the nominal appreciation on  Page 3/16  the real economy. The economy’s ability to adapt to an environment with low – and in some instances negative – inflation has been better than many expected. The Swiss economy has fared relatively well over the past 15 years. The labour market has remained robust overall, and GDP growth has been good by international comparison (cf. Chart 4). Like most other countries, Switzerland was unable to avoid significant declines in GDP amid the global financial crisis and during the pandemic, but each time our economy quickly returned to a growth trajectory. The SNB was able to ensure price stability in the phase marked by deflationary risks, and thus contributed to a comparatively robust development of the economy.
So if anyone asks why the banks are special, I could reply in the same way as John Dillinger, designated by the FBI in the 1930s as public enemy number one, when asked why he robbed banks: “Because that’s where the money is.” At the same time, problems that arise in one bank can easily spread to other banks. This spread can occur in different ways. Firstly, there can be a direct spread, through the exposures the banks have to one another in the payment systems and in connection with foreign exchange and securities trading. Severe chain effects can arise if the customers of a bank suffering problems have their means of payment tied up in the bank. This makes it difficult to make payments to other households and companies. It can lead to liquidity problems that can in turn give rise to loan losses and payment problems for these customers’ banks. Secondly, the banks are often exposed to the same sorts of risk. This increases the probability that, for instance, a macroeconomic shock may affect more than one bank. The spread of problems between banks can thus also arise as an indirect effect, through expectations that other banks may suffer similar problems to the one first affects, or via more well-founded suspicions of the banks' exposures to one another. The contagion risks mean that problems in one bank can easily lead to problems for the entire bank system. The costs to society of a crisis affecting the entire bank system can be substantial.

We have not yet seen the end of the turmoil that characterised the financial markets during the autumn. Unfortunately it cannot be ruled out that the crisis will be both more profound and longer than we previously believed. Perhaps some hedge funds will be hit in this process. But overall I believe that the hedge funds can contribute to resolving the crisis, not aggravating it. The future will show if the hedge funds can meet these expectations. Thank you! 7  See also Hedge funds and private equity firms – The exposure of banks and insurance companies, Finansinspektionen, July 2007. BIS Review 11/2008  5
Usaha bersepadu di peringkat industri juga perlu dalam pembangunan sumber insan dan dalam merangka pendekatan yang lebih berkesan untuk memasuki pasaran global. Semangat "takaful", iaitu saling bantu-membantu, perlu diperkukuhkan untuk menjadi teras kepada usaha kita membangunkan Malaysia sebagai pusat kewangan Islam antarabangsa yang unggul. It is indeed a pleasure to be here today to commemorate the official launch of "Commerce Takaful Berhad". It was almost a year ago, in April 2005, that we witnessed the emergence of its related company - "Commerce Tijari Bank Berhad". Commerce Tijari has since developed into a new, emerging provider of Islamic banking and financial solutions that successfully leveraged on its strong group structure, thereby contributing towards spurring the growth of the Islamic financial services industry in the country. Alhamdulillah, today, the setting up of Commerce Takaful Berhad is another significant milestone reflecting the Group's strong commitment towards providing a complete range of Shariah-compliant financial solutions, covering Islamic banking and takaful and the capital market, that is competitive, comprehensive and tailor-made to meet the demands of the consumers. For the takaful industry in Malaysia, the emergence of Commerce Takaful Berhad in the Islamic financial landscape is indeed timely. This is particularly so in our efforts to further strengthen the institutional infrastructure of our takaful industry by increasing the diversity and strength of players in the Islamic financial system. These players will be the driving force, accelerating the expansion of takaful business, not only in Malaysia but regionally as well as globally.

On this note, it is my pleasure to congratulate the Commerce Group on the official launch of Commerce Takaful Berhad. Significant potential exists for Commerce Takaful Berhad to achieve a quantum leap by leveraging on the integrated financial services and extensive operating infrastructure of the Commerce Group. I wish the Board of Director and the management of Commerce Takaful Berhad every success in this endeavour and I look forward to its contribution towards further development of the Islamic financial services industry in Malaysia. Dengan lafaz Bismillahirrahmanirrahim, "Commerce Takaful Berhad". saya  dengan  sukacitanya  merasmikan  pelancaran  Terima kasih. BIS Review 31/2006  3
Encik Abdul Rasheed Ghaffour: Optimal balance of paper and digital, cash and cashless; and next page for physical currency Welcoming address by Mr Encik Abdul Rasheed Ghaffour, Deputy Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Currency Conference 2017, Kuala Lumpur, 15 May 2017. * * * Mr Richard Haycock, Chairman, Currency Research, Fellow central bankers, Distinguished participants. A very good morning and a warm Selamat Datang to Malaysia. Paper lives on A lot has changed in the past 10 years. In May 2007, there was no such thing as a smartphone. Tablets did not exist, and the human race had not discovered the fast-expanding universe of mobile apps. Back then, we read the news by leafing through the pages of a large newspaper. We listened to music with CDs, and bought or rented DVDs to watch movies. Today, most of these are streamed through internet devices. When e-book sales increased by over 1,000% in the two years leading up to 2010, many questioned the future of the printed book. The bankruptcy of Borders in the United States the following year solidified these fears. Similarly, there has been much hype about the end of cash. This has been sparked by the rising use of e-payments and the recent proliferation of digital currencies in an increasingly virtual world. However, just as physical books continue to enjoy increasing sales, we have seen cash in circulation rise in many countries, quicker than their GDP growth for some.

The majority of global consumer transactions still take place through cash. As previous Currency Conferences have affirmed, we expect physical cash to remain necessary and relevant. Digital media has significantly transformed the way we experience the world. However, it has not brought us to the closing pages for physical media – including notes and coins. This may appear strange, if one considers the fact that much of our communication, planning and transportation revolve around the internet. As a recent McKinsey report puts it, mobile devices have become the “digital container” of our daily lives. This marks a profound cultural shift. The smartphone is fast becoming an extension of ourselves. Indeed, this digitalisation is altering the way payments are being made. We are not only spending more time online, we are spending more money through online channels. Our familiarity with and dependence on mobile devices is unprecedented. I believe that this attachment has made us increasingly comfortable with digital payments. They now appear more intuitive, more reliable and more convenient than ever before. This trend is evident in the findings of a recent international survey by ING. Most of the respondents are using less cash now compared to a year ago. A third of Europeans surveyed were even willing to go completely cashless if it were possible. We have seen a similar shift here in Malaysia. When internet banking was first introduced in Malaysia back in 2000, most people were sceptical about its safety and reluctant to learn how to use it.
The more recent surge in oil prices has naturally spurred the set-up of new funds in countries where new extraction capacities have emerged as profitable. Non-commodity funds Non-commodity SWFs are mainly born out of foreign exchange interventions, and can be regarded as “spillovers” from international reserves that can no longer be properly managed within the standard framework of official reserve assets. One of the questions to be discussed is whether they correspond to the same rationale as commodity funds, and to what extent they can be considered to have the same sound basis. Comments FX reserves are typically invested in safe and liquid assets such as T-bills, T-bonds or shortterm collateralised deposits. The emphasis on liquidity risk control in the prudent management of reserves logically results from their possible use in foreign exchange interventions. But SWFs are clearly designed to invest in less-liquid and riskier assets that provide higher returns than the typical assets held in official reserves. Whereas the objective of reasonable returns was typically mentioned last, as “subject to liquidity and other risk constraints”, in the IMF Guidelines on reserve management, excess returns clearly feature as a primary  BIS Review 119/2007  5  objective of SWFs. A central reason for this reordering of objectives is of course the much longer-term horizon of these funds, which entails greater tolerance of short-term fluctuations in returns.

Of course, one could argue that central banks are doing their job in taking over foreign exchange positions: naturally, holding foreign assets would expose private agents to currency risk exposure, and in that respect the public holding of foreign assets may be seen as relieving domestic agents from that risk. However, this reasoning raises two objections: -  as taxpayers, domestic private agents are still indirectly exposed to the realisation of the large currency risk that public managers of foreign assets bear, which entails fiscal costs;  -  if the capital account regime had not resulted in the public sector management of these savings in the form of foreign assets, in principle, corporates (and possibly households) would have directly invested their savings in financial instruments of their choice abroad. More realistically, they would probably have unwound their currency exposures and saved in domestic assets. In the absence of official intervention, the exchange rate would have adjusted. However, the fact remains that foreign reserve holdings belong to the nation that has accumulated these assets, hence indirectly to private domestic agents (admittedly including future generations). The public intermediation of these savings naturally leads us to the question of the appropriate manner in which to manage such large holdings. The management of international reserves The facts High current account surpluses mechanically reflect an excess of domestic (private or public) savings, which must be invested abroad. But in East Asia and commodity-exporting countries, these accumulated excess savings appear to be largely held by sovereigns.
The fund raising outlook for impact investing strategies remains strong despite recent challenging months. Managers in Asia can play a meaningful role in creating impact 14.  and capitalise on this opportunity. For example: Impact Investment Exchange, a Singapore-based enterprise whose platforms connect impact investors with underserved communities, issued its second Women’s Livelihood Bond in January this year. The $ million social bond is listed on the Singapore Exchange and a third bond is being planned as part of the $ million series. BlackRock recently launched an actively managed impact fund to invest in firms addressing global challenges like COVID-19 and advancing the UN SDGs. Conclusion 15. In conclusion, the pandemic has raised the importance of the climate and sustainability agenda, and I encourage the financial sector to not lose sight of these issues even as countries and corporates rebuild. This virtual conference, bringing together over 5,000 participants from 80 markets, is timely for us to continue sharing insights and experiences as we work together to address global challenges. I hope that you will form new partnerships and deepen existing ones 3/4  BIS central bankers' speeches  through this virtual conference. I wish you a very fruitful week ahead. Thank you.

MAS announced our green finance action plan last year, which comprises three key thrusts: firstly, building resilience to environmental risks; secondly, developing green finance solutions and markets; and thirdly, leveraging innovation and technology. 8. We have made good progress across all three thrusts. We will issue a consultation paper on MAS’ Environmental Risk Management Guidelines for the banking, insurance, and asset management sectors later this year. These guidelines will set standards on governance, risk management, and disclosure, to enhance the financial system’s resilience to environmental risk. Last year, we expanded the sustainable bond grant scheme to support not just green but also social and sustainability bonds. This year, to accelerate green and sustainability linked lending, we are developing a green and sustainability loan grant scheme, which aims to defray the costs of external review and bank frameworks for such loans. This seeks to increase the ease of loan origination and reduce expenses for small and medium sized enterprises (SMEs), and encourage SMEs, corporates, as well as banks to integrate green and sustainability issues in their financing discussions and decisions. We will also be anchoring centres of excellence in Singapore, to undertake quality green finance research and talent development, with strong customisation and applications for Asia’s transition needs. The theme for the Global FinTech Hackcelerator, in this year’s Singapore FinTech Festival, is “Building Resilience, Seizing Opportunities, Emerging Stronger”. The 9. Hackcelerator will identify solutions that enable financial institutions to respond to the pandemic and climate change.