samchain/econo-pairs-v1 huggingface dataset:
These efforts have also included working closely with WAIFEM and its technical partners to streamlining the back office functions of the MoF; and enhancing institutional capacity building efforts. Government will continue to keep these measures under constant review, because the process of achieving effective debt management is not like a sprint race, but rather, could be likened to a marathon involving medium to long-term policy thrusts and interventions. Ladies and Gentlemen, Over the past couple of minutes, I have attempted to sensitize you on some of the issues that would be dealt with in detail during this course. Even so, I make no pretensions to any exhaustive analysis. I am aware that the expert faculty assembled by the organizers will do just that. All that is left for me to do is to invite you to take maximum advantage of the opportunity presented by this course to strengthen your competencies in debt data compilation in line with best practices. 4.0  Conclusion  Ladies and Gentlemen, I would be remiss in my duty if I ended this address without expressing the profound appreciation of the Board of Governors of WAIFEM to COMSEC, IMF, and World Bank for their support to WAIFEM in strengthening capacity of countries of its member central banks in the area of debt management capacity building. Before I take leave of you to commence the technical sessions, let me enjoin you to take some time off your crowded schedule to visit some of the tourist attractions in Freetown, and its environs.

Nonetheless, the compiler must be cognizant of the fact that, among others, the nominal value of a debt instrument could be less than originally advanced (face value) if there have been repayments of principal, debt forgiveness, other economic flows, such as indexation. On the other hand, the nominal value of a debt instrument could be more than originally advanced because, for example, of the accrual of interest costs. Appropriate valuation of debt instruments such as loans would minimize incidence of disagreements between the debtor country and the international community over the magnitude of the country’s external debt exposure. Ladies and Gentlemen, Benefits of quality debt data Good quality and comparable external debt data would flow from rigorous application of the principles of debt data compilation. To compromise them risks potential economic costs in terms of vulnerability of the country to solvency and liquidity risks associated with meeting the “true” current and future payments obligations. For instance, the quantum and composition of external debt needs to be measured, valued and monitored in line with best practices. This fosters portfolio optimization and scenario analysis but also identifies potential variability in debt service costs and such other indicators of external vulnerability, notably changes in external prices and terms of trade. Also, good quality data fed into a recording system such as the CS-DRMS would maximize the gains from the use of such a system for improved debt management. At this juncture, let me take the liberty to highlight the institutional arrangements for sound debt management in Sierra Leone.
There have been volte-face, for example, on bank bailouts and the necessity for them, on the need to relax monetary policy in Europe, on the state of the EU financial sector, on the no-state-bailout clause, and on the sufficiency of the current Greek package. In addition, several false myths have been propagated, for example on the consequences of Greek bankruptcy for the German and French banking sectors and on the need for the ECB and central banks to have positive equity. In fact, numerous central banks have negative equity yet have no problems operating if they are credible enough. The real capital of a central bank is its credibility and reputation, not a figure on its balance-sheet. Credibility and reputation are virtues that thrive on consistent and credible policies and communication. Another myth is that the eurozone cannot survive a Greek default. Why not? Is it insolvent? Are there significant trade dimensions between Greece and the eurozone? According to available DTCC data – which is incomplete but very probably covers the majority of cross-border transactions – even CDS that are now so often mentioned should not present a systemic problem for the European financial system. Note that CDS on Greek debt are higher than a year ago, but the euro is stronger than at the peak of last summer’s Greek crisis. The markets do not appear to think that Greece is that fundamental to the survival of the eurozone. Finally, it is implied that if we solve the debt problem, Greece and Portugal are saved.

BIS central bankers’ speeches  11  Table 1: General and central government expenditure as a % of GDP General government expenditure, % of GDP  Central government expenditure, % of GDP  Australia  36  26  Austria  53  27  Belgium  53  30  Canada  44  17  Czech Republic  44  30  Denmark  58  42  Estonia  40  30  Finland  56  28  France  57  24  Germany  48  16  Greece  51  40  Hungary  50  33  Iceland  52  40  Ireland  65  58  Israel  45  39  Italy  50  29  Japan  41  18  Korea  30  20  Luxembourg  44  31  Mexico  23  19  Netherlands  51  31  Norway  45  36  Poland  45  27  Portugal  51  39  Slovak Republic  40  23  Slovenia  49  31  Spain  46  19  Sweden  52  30  Switzerland  34  11  Turkey  40  29  United Kingdom  50  46  United States  43  26  Source: OECD Notes: Table shows ratios of nominal government expenditure to nominal GDP for 2010. 12  BIS central bankers’ speeches
Shifts in consumption patterns, such as the growth of e-commerce, are fueling a steady decline in the use of cash in transactions, while the use of electronic payment instruments and systems is increasing, rooted in the current surge in global digitalization, along with the development of internet-based technologies and multifunctional technological devices. 1/6  BIS central bankers' speeches  However, the decline of cash payments needs to be put into context because, if the downwards trend is undisputable – the volume of banknotes returned by the public to cash processing firms fell by over 10% between 2012 and 2017, -banknotes still dominate face-to-face transactionsparticularly small-value ones. Banknotes remain the main payment instrument in Europe by number of transactions, accounting for 79% of the latter in the euro area and 68% in France (54% and 28% respectively in value). The increase in the use of electronic payment instruments and systems is developing along four different pathways. First, the sophistication of internet technologies and devices for transactions: the number of channels used to initiate and accept payments has increased significantly. Contactless payments and mobile payments are some examples. Second, the availability of payment services at any time: payment services are becoming more available, ignoring physical borders and time constraints to satisfy customer demand for instant, continuous and uniform payment services, as economic agents become ever more mobile. Instant payments in Europe are for example designed to be executed in less than 15 seconds compared to the duration of 24H to 48H for traditional payment orders.

These topics are of particular importance in the current context in which our economies are undergoing significant changes in the credit market as well as in the behavior of consumers and borrowers. Therefore, it is essential to upgrade financial infrastructures, which constitute a central element in the credit risk management system, in order to accompany these changes and help us to meet the challenges we face. Before concluding, I would like to emphasize the invaluable opportunities that the new information technologies can offer us in terms of data sharing, collection and storage. But they also involve major challenges, particularly in terms of cyber security and personal data protection. I wish you a successful and fruitful meeting, and hope that you can combine business with pleasure and allow yourself some time to discover the millennial richness of Rabat, this imperial city which was listed by UNESCO as a World Heritage Site on June 29, 2012. Thank you for your attention. 3
Muhammad bin Ibrahim: The dawn of a new era in Malaysia's payment systems Keynote address by Mr Muhammad bin Ibrahim, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Malaysian E-Payments Excellence Awards, Kuala Lumpur, 22 May 2017. * * * I am glad to be with you at this 2nd Malaysian E-Payments Excellence Awards organised by MyClear. This evening, we are recognising the contributions of the financial industry, businesses and government agencies to the country’s e-payment agenda. The achievements showcased by the award winners today reflect the broader innovations and involvement that we continue to witness in the payment space to make e-payments more convenient, cost-efficient and safe for users. I am encouraged that contactless payments, for example, are gaining greater appeal for smaller value payments. Equally important have been the collective efforts made to educate and inform users. This helps to drive changes in payment habits away from cash and cheques to epayments. Malaysians are increasingly embracing e-payments Malaysia has long recognised the importance of e-payments as a key enabler to drive national efficiency and competitiveness, and as a catalyst to facilitate the creation of new sources of growth. Promising progress has been made in achieving the country’s e-payment targets. In a period of 6 years between 2011 and 2016, the number of e-payments per capita has almost doubled from 49 to 97 transactions per capita. This largely reflects the accelerated adoption of electronic fund transfers to displace cheques.

Significant efforts will be devoted towards increasing the acceptance of MyDebit, particularly among lower-tier merchants to lessen the use of cash to lower the operational costs for businesses. Some of the initiatives that will be undertaken by PayNet include enabling MyDebit to be used on mobile phones and operating a ‘shared token service’ for the local payment industry. In addition, PayNet will also expand the use of MyDebit to pay for transit services, including buses and trains, within the coming year. Supporting more inclusive governance arrangements through the transformation of NPAC While we can look forward to developments that will further transform our payment systems, the process also matters. Since the establishment of the National Payments Advisory Council (NPAC) in 2001 to advise on 3/5  BIS central bankers' speeches  and steer payment system development in Malaysia, we have worked to put in place a more inclusive process for setting the payment agenda. This aims to reflect the changing make-up of the payment industry and better anticipate the changing demands of users. We cannot hope to future proof the system without a good pulse on the expectations, constraints and incentives that drive payment behaviours and decisions to invest in innovation. It also often determines how quickly or slowly we can roll out planned initiatives, or even stay the course on these plans. This led to changes that were introduced last year to broaden the representation of the NPAC to include stakeholders on both the demand and supply sides of the payment market.
That puts the house-price-to-earnings ratio back to its level in 2003. Transactions are running at 2005 levels – a little over 110,000 a month. Looking at the most recent data, there has been a slowing in the monthly pace of increase. In the three months to February this year, prices grew at an annualized rate of 11% and transactions increased at an annualized rate of over 50%. But the very latest figures for March, however, could suggest a pause in the growth in prices and activity – prices were flat on the month and transactions actually fell by 5%. And the latest mortgage approvals numbers, which came out this morning and tend to lead transactions, fell again in March leaving the number of approvals for house purchase down 12% on their January peak. Discussions with the lenders suggest that the checks that lenders now need to do under the FCA’s new Mortgage Market Review rules, about which I will speak later, may be slowing the speed with which approvals can be processed. But just as one cuckoo does not signal spring, it is far too early to say, on a couple of month’s figures, whether this is the beginning of a turning point in the market. Indeed it would be dangerous to ignore the momentum that has built up in the UK housing market since the spring of last year.

The FPC has said that it would take a proportionate and graduated response to evolving housing market risks. Experience suggests that momentum in the market, and an associated increase in indebtedness, can be hard to check, particularly if expectations of a rapidly rising market become deeply entrenched. A number of countries have had to take a series of actions over time to slow fast growth in housing market activity to more sustainable rates. 2  See the Box on page 22 of the May 2013 inflation report. BIS central bankers’ speeches  5  To return to where I started. The Financial Policy Committee of the Bank of England is charged with looking ahead to identify and to counter risks to financial stability. There will always be a number of blinking warning lights – risks generated at home and risks coming from abroad – on our dashboard. The growing momentum in the market is now in my view the brightest light on that dashboard. It has not yet been accompanied by a substantial increase in aggregate mortgage debt, though gross mortgage lending is growing and there are signs that debts are becoming more concentrated. This could fade as affordability and lender constraints act increasingly as a brake on momentum. But other outcomes are very possible and the Financial Policy Committee will need be both vigilant and ready to act. 6  BIS central bankers’ speeches
On this and other topics, the AIG is recommending that a certain degree of flexibility be applied, always taking into account both the material effect of these differences in terms of capital and the regulatory burden for the entities. This implies accepting, where appropriate, one single calculation for specific subsidiaries, resolving the question of the group calculation through aggregation rather than consolidation. However, this flexibility must be limited, strict and responsible; it must provide the smoothest and least costly transition possible, but it should not give rise to arbitrage problems. As I have said, this is a hot topic, and it is not easy, but given the advisability of the principle of having the entire group use a single approach in, I repeat, both subsidiaries and the parent, while ensuring that the overall risk culture and systems remain adapted to  BIS Review 45/2006  3  the sensitivities of each market, it is also advisable to ask host countries to make additional efforts to study and allow, to the extent possible, the application of this principle. This is just one example of the questions on which the AIG is actively engaged. As regards the distribution of tasks and the necessary coordination between home and host supervisors on the efficient implementation of the revised Framework, the AIG, together with the CPLG - the Core Principles Liaison Group, which includes 16 non-member countries as well as the IMF and the World Bank - has prepared a paper on information sharing between supervisors.

Once the phase of theoretical debate and standards drafting had been completed, the Committee’s activities, in particular through its Accord Implementation Group (AIG), focused on implementing the Framework. The time has therefore come to confront this practical reality, with all its difficulties and problems, through a dialogue with the industry and the global supervisory community. This is a major task, given that the aim is to strengthen banking systems and the international financial system, rendering them more robust, more stable, and thus more capable of contributing effectively to the growth and stability of our economies. Despite the importance of Basel II, the proposed agenda also shows us that this is not the only topic currently of interest to the supervisory community. Tomorrow, we will be discussing one of the Committee’s key projects, which, I am convinced, affects all these supervisors gathered here today. I am referring to the Basel Core Principles. With these introductory words, I would like to provide a general overview of the Committee’s work in these areas. First, I will focus on the revision of the Basel Core Principles, before moving on to talk about the implementation of the revised Framework. I will be referring to the necessary collaboration and coordination between supervisors, and will briefly touch on the other implementation-specific issues that the AIG is currently working on. Revision of the Basel Core Principles Looking at recent press headlines, one could easily conclude that the Committee’s activities over the last few years have been almost exclusively focused on Basel II.
I hope that brief overview of the FSB’s work can help our deliberations and exchanges today. Thank you. 4  BIS Review 148/2010

Regulators also need to strengthen their cooperation to minimize possible cross-border spillover risks. On this note, I am glad to report that tomorrow CBRC and the Bank of Thailand will enter into a MoU on Banking Supervision. The third area of cooperation is to enhance financial inclusivity in our region. The financial sector must be aware of its social responsibility and take active roles in promoting financial access and inclusive growth. People at large need to have access to basic financial products at minimal prices, together with adequate financial literacy and financial planning skills. In summary, financial connectivity can be and needs to be enhanced in Asia. AFCA, with its diverse membership, is in a unique position to deepen financial cooperation and promote connectivity among its members. AFCA can play significant roles to strengthen the Asian financial sector and Asian economies by improving productivity, building stronger immunity, and promoting more financial inclusivity. In closing, I would like to congratulate once again the Chinese leadership, CBRC, and AFCA. I wish AFCA very fruitful years ahead. Thank you. 3
The bigger the balance sheet becomes, the more a future rise in interest rates will squeeze the Federal Reserve’s net interest margin. Some worry that this exposure to higher short-term rates could conceivably affect the Federal Reserve’s monetary policy credibility in the future. Some market participants might worry that the Federal Reserve could become reluctant to raise short-term rates in a timely way because this would constrain the amount of revenue that it would earn and remit to the Treasury. I am confident there is nothing to worry about on this score. Even if the Federal Reserve was not obliged to act in keeping with its dual mandate – which it is – with its assets skewed toward longer-duration securities, the Federal Reserve would have every incentive to ensure price stability over the long term. It is true that the larger the size of the balance sheet, the more likely it is that the Fed would ultimately sell assets back into the market, potentially at prices that could result in losses. Although some fear that such losses could compromise the Federal Reserve’s independence, there is no reason why this should be the case, providing we stick closely to our mandate at all times. To date, the Fed’s actions in responding to the crisis have resulted in abnormally large profits that might reasonably be set against any subsequent losses.

The day after the results were published, I remember that Bridgewater Associates – which had said the banks needed considerably more resources – published a paper evaluating the SCAP results. The banner headline was: “We Agree.” So this was important. However, I would note that it is important not to draw too strong a conclusion from just one episode. In the SCAP process, I also think it is important that we had some good luck. First, the banks’ needs were not that great. What people didn’t appreciate going in was that U.S. banks have strong revenue-generation capabilities: the banks had already set aside a large amount of reserves and taken large mark-to-market losses, and the banks had already bolstered their capital resources via capital raises and the sale of ancillary businesses. Second, the economy started to look a bit better in May at the time the SCAP results were released. This made the stress scenario more credible. Third, the capital markets were open to the banks. This was important because, as we saw, private capital was viewed as very much superior to Treasury mandatory convertible preferred shares. Fourth, although we made the correct decision to disclose, this was a difficult and close call. The fact that the loss experiences for the different asset classes varied across the banks helped to bolster the credibility of the results. Going into the spring of 2009, there was a prevailing view that several of the largest banks would have to be nationalized.
If this is a guide to the uncertainty firms feel about returns on new investments then, on the basis of the model in Chart 4, you might expect an additional hurdle of 10% points or more, over and above the normal cost of funding. 2  In steady state, the ratio of capital to investment is 1/(g+δ), where g is trend growth and δ is the rate of depreciation. In advanced economies, and recognising that a substantial proportion of capital is the value of land (which doesn’t depreciate) g+δ is unlikely to be more than 7% - so the value of the capital stock is generally more than 15 times the annual rate of investment. In 2015, according to official ONS estimates, the ratio was 23. 3 Financial options are instruments that give the owner the right to buy or sell an underlying security at a fixed, so-called “strike” price. When the security’s spot price rises above the strike an option to buy is said to be “in the money”. But that doesn’t mean it’s rational to exercise the option straightaway, because there’s a chance the spot price could rise further. The more volatile the series, the greater that chance and the more valuable the option. In just the same way, it’s not enough that the option to make an irreversible investment project be expected to cover its financial cost – it has to cover the value of waiting, and that value is higher the more uncertain the resulting stream of income.

However, this is merely a question of fairly marginal adjustments in the timing of our interest rate decisions. Seen in a longer-term perspective, I believe that these considerations benefit stability both in the real economy and inflation. But I wish to point out that neither house prices nor household indebtedness have any independent significance for monetary policy. The important factors here are inflation prospects and developments in the real economy. Concluding remarks Let me summarize. In recent years we have seen prices soar with regard to both commercial property and housing. The rapid price increase has gone hand in hand with a substantial increase in household debts. At present I am not particularly concerned that these prices will lead to problems for financial stability. But this is a development that is not sustainable in the long term. House prices and household indebtedness cannot increase faster than household incomes in the long run. Otherwise there is a risk of imbalances building up, which may be costly for the economy. We at the Riksbank will therefore be closely watching future developments. Thank you! 6  BIS Review 56/2007