samchain/econo-pairs-v1 huggingface dataset:
11 Moreover, domestic banks that compete with foreign banks exhibit more interest in introducing new accounting standards and financial reporting requirements, so that better quality of information on the companies financed allows them to extend more profitable loans. Domestic financial institutions are becoming more efficient, due the new technologies and best practice provided to the market by foreign companies. Integration of financial markets worldwide enables better risk diversification. Residents do not have to invest their savings in their own country and thus they are not exposed to the business cycle risk. They are free to invest in many countries and could obtain a better ratio of expected return to assumed risk. Globalization of financial markets also entails new challenges and threats. The lack of transparency, resulting from asymmetry, raises the risk of speculative bubbles and herd behaviour of investors. Uneven access to information in the global markets environment may lead to a negative selection in the financing of the enterprise sector and the moral hazard in a situation where the bankruptcy of a given institution would jeopardize the banking sector. 12 Economic reforms and opening the country to international trade in the emerging markets attract foreign capital, which, however, in the case of deteriorating economic situation, is withdrawn quickly. This invokes FX crises, which, as a result of an increase in interest rates, may turn into bank crises. 13 Additionally, international links of institutions and the speed of transmission of information among markets streamline the spreading of such crises over other economies.

MAS estimates that there will be more than 9,400 new hiring opportunities for permanent roles in the financial sector in 2022 [4] . More than 3,000 jobs will be in technology. Software developers and engineers continue to have the highest demand, with more than 700 opportunities. They support a wide range of exciting activities, such as designing and developing digital finance services; applying blockchain technology in trade finance; and using artificial intelligence to detect fraud and money laundering. There will also be interesting new roles in sustainable finance. These range from execution of ESG transactions to advisory services and product development. Many of these jobs will draw on traditional finance expertise such as product structuring, risk management, reporting and pricing, but layered and infused with new knowledge on sustainability. The competition for talent is global. The skills in many areas of finance – especially technology and sustainability – are scarce everywhere. This is why supporting our financial institutions to access the talent they need to grow and thrive is a key priority for MAS. To continue growing as a leading international financial centre in Asia, we need a future-ready workforce – comprising a strong Singaporean Core complemented by a pool of deep and diverse global talent. Let me highlight our efforts in the two limbs of our strategy: first, growing a strong local talent pool; and second, attracting high quality global talent.
Zeti Akhtar Aziz: ASEAN – towards a more integrated market Keynote speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the 19th ASEAN Banking Conference 2012 “ASEAN – towards a more integrated market”, Kuala Lumpur, 7 November 2012. *  *  *  As we enter a new phase of globalisation, Asia’s role in the world economy is being significantly transformed both in terms of its significance and influence. ASEAN economies are very much a part of this process. This trend has become more pronounced following the global financial crisis. Five years into the crisis, the world economy continues to be challenged to hold a sustained recovery. The financial sector restructuring and reforms, and the structural adjustments being undertaken by the crisis-affected economies will not only take time to produce results, but in the more immediate term, these efforts will involve costs to the economy. While emerging markets such as those in the ASEAN region are not insulated from these developments, the region has displayed remarkable resilience during this period. The region has benefitted from the decade of restructuring and financial reforms following the Asian financial crisis. In addition, structural adjustments undertaken during this period and have resulted in more diversified economies, in which domestic sources have become increasingly important in sustaining growth performance. The region’s more favourable growth prospects are also underpinned by the relatively sound fundamentals that include strong external and fiscal positions, stable macroeconomic conditions, low unemployment and resilient financial systems.

That includes: implementing decisions; monitoring market developments; identifying and, where appropriate, addressing risks to resilience and effectiveness. In many ways the November MPC decision was a historic change in policy – the first increase in Bank Rate in over a decade (Slide 9). I remember the previous increase in Bank Rate well as the July 2007 MPC meeting was the first I attended as the Treasury’s representative. A lot else has happened in the intervening 10 years, but from an operational perspective it was a relatively straightforward change for the Markets area of the Bank to implement. Bank Rate, which is the rate paid on reserve accounts held at the Bank by 183 financial institutions, was changed immediately after the MPC’s decision and used as the basis for calculating interest due for that day. Because reserves held at the central bank are the ultimate liquid and risk-free asset in any currency, the rate paid on them serves as the reference point for all other overnight interest rates in the money market. As a result a range of key overnight market rates increased on the day of the MPC’s decision including the Sterling Overnight Index Average (SONIA, a key benchmark for unsecured overnight borrowing and lending) and the Repurchase Overnight Index Average (RONIA, a key benchmark for overnight borrowing and lending secured against gilt collateral). In the period since the change in Bank Rate, both SONIA and RONIA have been on average 25bps higher than in the month preceding the decision (Slide 10).
The large increase in household debt over the past fifteen years coincides to a large degree with the rise in housing prices (see Figure 7). One important reason for this is that the supply of housing has been small in relation to demand. After the crisis in the 1990s, housing construction in Sweden has been remarkably low, lower than in most comparable countries. The reasons are not entirely clear, but there are a number of explanations that are usually given, such as high construction costs, demanding regulations and regulated rents. I do not  11  Jeremy Stein at the Federal Reserve’s Board of Governors has expressed it as the advantage of monetary policy being that it “gets in all of the cracks” (Stein, 2013, p. 17). The Riksbank has also raised this argument in various contexts, see for instance, Ingves (2010) and Nyberg (2011). 12  In a study of 18 OECD countries over the period 1921–2011, Bordo and Landon-Lane (2013) show that expansionary monetary policy has a significant effect on asset prices, particularly during periods when asset prices have increased rapidly, followed by a later severe downward adjustment. Maddaloni and Peydró (2013) find in a study of data for the euro area that banks ease their credit conditions during periods with low policy rates, even when the borrowers’ credit risk is held constant. 13  See, for example, Blanchard, Dell’Ariccia and Mauro (2013), Borio (2013), Carney (2013), Smets (2013) and Stein (2013).

What macroprudential policy can do, with the possible support of monetary policy, is to bridge over the problems – try to ensure that the situation does not worsen while waiting for the supply side of the housing market to begin functioning better. To make a slightly drastic comparison, one might say that what macroprudential policy can do is to give first aid on site while awaiting the ambulance. A first aid effort may be necessary to save the patient’s life, but without continued nursing it is still uncertain whether the patient will survive. Low housing construction is of course one of the “fundamentals” explaining why prices have increased so much. But this is no real comfort. A large part of the problem is, as I mentioned earlier, that we appear over the past couple of decades to have been in a process where housing prices and debt only slow down slightly during economic downswings and then continue upwards again when times improve. This makes households – and thus the economy as a whole – gradually more vulnerable, and this is simply not sustainable in the long run. Several policy areas must collaborate To change course, or reprogram the system, I believe a lot of helping hands are needed. One major challenge is to take measures in a way that avoids as far as possible a rapid and dramatic adjustment of debt and housing prices.
As Figure 1 indicates, it was shall we say an interesting time for researchers from Japan to ask such a question. However, when I inquired about the rapid increase in real estate prices in their country, I always received the same answer – Japan is an island nation and had limited buildable lots, and that prevented real estate prices from declining. This view was very widely held. However, as you can see in Figure 2, that widely held financial myth was soon shattered. Unfortunately, the result of this belief was eventually the crippling of some of the world’s largest financial institutions, a long period of subpar economic growth in Japan, and eventually a problematic deflation that Japan struggles with to this day. A second example is provided by the growth of the Internet, and in particular the growth in “dot-com” stock valuations, in the late 1990s. As Figure 3 shows, there was a substantial run-up in stock valuations during this period. At the time I had conversations with a variety of financial professionals in Boston who made the argument that traditional valuation measures no longer applied. The view assumed by many was that valuation of firms should be based on clicks of a computer mouse rather than earnings, either current or expected in the future. As Figure 4 shows, such enthusiasm for a new way of valuing companies was short-lived. But importantly, the substantial decline in Internet-related stocks did not create a financial crisis.

Many of the positions were equity financed – so, while significant wealth was lost, financial institutions and financial markets did not suffer severe repercussions. That loss in wealth helped ignite the 2001 recession, but it was a much more mild downturn than the one we have experienced of late. With the financial infrastructure not significantly damaged, the impact was much less severe than if individuals and firms had taken highly leveraged positions. 2  BIS central bankers’ speeches  Financial myths in the recent crisis Now I’d like to describe, and present some charts that illustrate, four financial myths that played a role in the recent crisis. Myth 1 – Diversification eliminated the risk of declines in residential real estate holdings Despite the experience of Japan’s real estate in the 1990s, and substantial declines in real estate prices in many regions of the United States throughout history, many commentators argued that a significant, widespread housing-price decline in a country as large and varied as the United States had not happened historically and was very unlikely to occur. That logic was based on what you see in Figure 5, which highlights that there had been significant declines in some regions of the country – but the declines were coincident with increases elsewhere. As Figure 6 shows, there had not been recent, sustained declines in national real estate prices.
However, Japan has also become an important market for Norwegian products. From the considerable deficits of earlier years, trade in traditional goods with Japan has moved into near balance. Strong growth in Asia is probably one of the prominent factors contributing to high oil prices in spite of low growth in the OECD area in recent years. China accounted for close to 50 per cent of growth in world oil consumption in 2002 and 2003. Trade in Asia has stimulated Norwegian shipping. The Chinese economy could continue to expand at a brisk pace for a longer period, which would open a large market that can also be entered by Norwegian enterprises. Norwegian exports to China have increased, but are still limited. Over several years, enterprises in Central European countries have been a source of competition for Norwegian jobs. Integration is also opening new markets and providing new sources of income for Norwegian enterprises. At the same time, tender requirements and the freedom of establishment have increased the competition facing Norwegian industries that were previously sheltered. A steadily larger share of Norway’s consumer goods imports come from China and Central European countries. Growth in imports from China was provided with an additional impetus after China became a member of the World Trade Organization in 2001. Imports from Eastern Europe have also continued to grow. There are many economic agents in Norway that are benefiting from globalisation. Consumers are enjoying lower prices for goods and services.

The sector, in the banking and insurance industries, now provides employment to more than 123,000 Malaysians. Despite conditions that have remained challenging for a large part of the decade, the banking system remained consistently on solid financial ground with a risk-weighted capital ratio of over 13%, low NPL ratios, and continued profitability for eight consecutive years. Substantial progress has been made towards consumer retail finance and access to banking services. Such consumer lending has increased from RM134 billion to RM343 billion while loans disbursed to small and medium enterprises have increased from RM71 billion in 2000 to RM108 billion in 2007. Domestic banking institutions are also building on their strong domestic performance to expand beyond Malaysian borders. Today, six domestic banks have presence in 10 countries around the region. The current encouraging state of the banking system, however, should not make us complacent on the need to continually transform and reinvent. The road in front of us is likely to be significantly different from the one we have traveled on. As our previous experience has shown, we need to constantly recognize that strategies that serve well in today's environment would not necessarily be a formula for success in tomorrow's environment.
The MPC, thus, lowered the 1-day repurchase rate, the policy rate, to 4.75 on 17 January meeting and a further 25 basis points reduction on 28 February and expect to pursue a downward path of interest rate in a cautious manner. This accommodative monetary policy stance will help stimulate domestic demand by supporting economic sentiments, cutting down financial costs and preparing the stage for private investment recovery once confidence has returned, most likely in the 2nd half of this year. Having considered the recent economic conditions and monetary policy, we will now turn to the prospects and challenges of the Thai economy as we move forward, and how we are going to deal with them. Ladies and gentlemen, for this year, we expect the economy to continue facing a number of important challenges both internally and externally. Internally, political uncertainties, which have adversely affected private sector's decision to invest, are likely to stay until the next general election. Externally, the threat of an impending global imbalance remains high, while the global economy is expected to slow down. Moreover, the risk from volatile global financial markets lingers, while the baht could continue to appreciate against the US dollar. It may be a great concern to you whether the Thai economy will be resilient enough to withstand such an adverse environment. However, we believe that sound fundamentals and the appropriate policy stance would prepare the economy well in the long term. Facing internal challenges, the monetary policy stance has become more accommodative as mentioned earlier.

Tarisa Watanagase: The prospects of the Thai economy and monetary policy Speech by Dr Tarisa Watanagase, Governor of the Bank of Thailand, at the Japanese Chamber of Commerce (Bangkok) Dinner Talk, Bangkok, 16 March 2007. *  *  *  President Banno, fellow bankers, distinguished business leaders, ladies and gentlemen, good evening. "First of all, I would like to thank the Japanese Chamber of Commerce (JCC) for inviting me to speak at this dinner." Japan's relationship with Thailand has a long history and encompasses many aspects – as a trading partner, investor and major contributor to Thailand's economic development. Japan is ranked as Thailand's number one trading partner and investor. In 2006, Japan contributed 16.3 percent to Thailand's total trade, while net foreign direct investment (FDI) from Japan constituted 32.6 percent of Thailand's total net FDI inflows. It is therefore my pleasure to be here and share my views on the Thai economy – the outlook and challenges, as well as our monetary policy, with all of you. I would like to structure my talk to cover three key areas. First, I will touch briefly on the overall condition of the economy. Secondly, and in relation to the first one, I will elaborate on recent monetary policy decisions. Finally, before concluding, I will share my views on the prospects and challenges facing the Thai economy. Let me begin with the economy. The past year was one of the more challenging times for Thailand, in terms of both political and economic aspects.
Of the firms we spoke to, even those with strong market access showed a marked reluctance to rely on that access as their only source of liquidity, particularly to meet projected needs in the initial days of a liquidity stress. For that, they preferred to hold reserves. Taken together, these two factors make up what I will call a ‘preferred minimum range of reserves (PMRR)’ for firms. Chart 9 illustrates the aggregate PMRR for the market as a whole, defined as the region where reserves begin to become scarce. We expect market interest rates to be relatively stable around Bank Rate in this region. This range will naturally include any buffers that firms are holding above their true minimum needs to deal with uncertainties over potential stressed outflows, access to wholesale markets and so on. Chart 9: Locating the Preferred Minimum Range of Reserves  The third driver of demand is the rate of return firms can earn on reserves relative to other liquid assets. In the current environment of very low bond yields, for example, reserves look quite attractive relative to gilts and other liquid assets, encouraging firms to hold reserves well in excess of their minimum preferred levels.15 But QT, when it comes, may imply a steeper yield curve than we see today. And that would incentivise firms to term out their liquid asset holdings towards gilts and other securities and reduce their reserve levels back towards their individual PMRRs.

The CRIB is totally dependent on these institutions for reliable information and given the objective of looking after its client institutions, the CRIB would fix negative labels on defaulting borrowers. The CRIB is not in a position to verify or go into details of the operations of any credit institution and establish the class, creed or social status of the customer. It only fix labels according to what is reported by the credit institution. On the other hand, the Bank Supervision Dept. and Non-Bank Supervision Dept. of the Central Bank of Sri Lanka, within their own regulatory ambit, can detect the non-reporting by institutions to the CRIB, but these departments are not mandated to share such information with the CRIB or vice versa. Hence, the injustice continues and often some of the deserving borrowers are denied access to credit institutions. In such a situation, how can the CRIB ensure social justice and equity in terms of public policy? The CRIB can be fair only if the credit institutions resolve to report on all defaulting customers with no exceptions. This situation clearly indicates that the decision to groom, retain or eliminate a customer rests largely with the bank or the credit institution. The injustice begins when the reporting institutions do not report defaults of all segments of borrowers. The extent to which the banks and credit institutions have done a disservice to some of the deserving borrowers, is known only to the banks and credit institutions themselves.
It also appears that in most countries the lower real interest rates are the main reason for the fall in nominal interest rates during this period. During the 1990s, when a number of central banks introduced inflation targets, lower inflation expectations also contributed to the fall in nominal interest rates. Secular stagnation or debt adjustment? An international discussion has been going on for some years now with regard to the causes of the fall in the global real interest rate. In simpler terms, one can say that two main explanations have been put forward in the debate.3 According to one explanation, the fall is primarily due to factors determining the long-term trends in investment and savings, such as demographic developments. This is partly connected to the discussion on secular stagnation initiated by Lawrence Summers, amongst others.4 In this view, long-term trends in saving and investment have pulled down the interest rate level compatible with full employment. The fall is so great that this interest-rate level is below zero. 1  See IMF (2014). 2  See King and Low (2014). 3  See Armelius et al. (2014). 4  See Summers (2014). 2  BIS central bankers’ speeches  Representatives of the other explanation, for instance Kenneth Rogoff,5 put greater emphasis on more short-term factors directly linked to the financial crisis, such as high indebtedness and increased uncertainty, which have held back investment and got households to save more.

Philipp Hildebrand: Setting the course for the Swiss economy – challenges for the Swiss financial centre and outlook for the future Summary of a speech by Mr Philipp Hildebrand, Chairman of the Governing Board of the Swiss National Bank, to the Zürcher Volkswirtschaftliche Gesellschaft, Zurich, 17 May 2010. The complete speech can be found in German on the Swiss National Bank’s website (www.snb.ch). *  *  *  The Swiss banks face two major challenges. First, sooner or later, they will have to carry out their core business – asset management for foreign customers – in a tax-conform environment. Second, the big banks will be required to operate under more stringent regulatory requirements. These challenges are likely to lead to structural changes in the financial centre. How are such changes likely to affect the Swiss economy? An empirical analysis shows that, although the financial centre plays an important role in the Swiss economy, it also entails considerable risks. In the case of cross-border asset management, the relationship between the risk to the economy and the income earned is acceptable. However, this is hardly the case for the banks’ own trading activities. Consequently, current regulatory efforts could not only improve the stability of the financial sector, but also increase both the profitability of banks and the benefit which the Swiss economy derives from the financial sector over the long-term period.