samchain/econo-pairs-v1 huggingface dataset:
We have received more than 30 applications from financial and research institutions. We have now put out five calls for applied research proposals: in econometrics and data science, back-testing methodologies, quantum computing for the financial sector, and explainable AI. Last year, MAS and the industry also began collaborating with MIT Media Lab to do serious FinTech R&D. MAS, industry professionals, and MIT researchers have come together towards developing prototypes that look into applications of AI and distributed ledger technology in the financial sector. They include use cases in smart contracts, trade finance, and central bank digital currencies. And earlier this year, the Intellectual Property Office of Singapore established a FinTech Fast Track initiative for patents. 7/9  BIS central bankers' speeches  Under the Fast Track, FinTech patents can be granted in as quickly as six months, compared to the industry convention which can be up to two years. Once patented in Singapore, applicants can leverage on our global patent highways to expedite the registration of their patents in more than 30 overseas markets. Platforms for Innovation The final piece in FinTech ecosystem - platforms for innovation. Innovation does not occur in isolation. We need platforms to connect people and ideas; problems and solutions; and foster collaboration. One such platform we are excited about is AFIN – the ASEAN Financial Innovation Network. Let’s begin with the problem statement. There are about 1.7 billion adults globally who are unbanked.

If we don’t address these concerns, we will not have the consensus that is necessary to achieve the many benefits of technology. What do we need to get right in data governance? Data must be protected – we must safeguard privacy, confidentiality, and security. Data must be used in a responsible, transparent, and ethical manner. We must be able to explain the results of data driven algorithms. We cannot hide behind the black box. Humans, not machines, are accountable for decisions driven by AI or data analytics. We must ensure that outcomes of data or AI driven processes are ethical, free of bias, and socially acceptable. Only then, can we create an ecosystem where data flows seamlessly in a trusted manner. MAS has been actively working with the industry to develop principles to guide the responsible use of data in financial services. We are pleased to release today a set of principles to promote Fairness, Ethics, Accountability & Transparency, or FEAT, in the use of AI and data analytics. I’m told this is the first of its kind in the world – where the regulator and industry have come together to set guidance on the responsible use of AI and data analytics. And I am sure this is a living document that will be continually updated as we learn more. Next, on the international front: we need more data connectivity, and less data localisation. This is a serious risk. Data localisation measures are on the rise around the world.
We were just sitting there passively, on settlement day, waiting for the banks to give us the Hong Kong dollars that they had sold to us - Hong Kong dollars that they did not have. 22. In the circumstances, the banks had only two alternatives. First is for them to borrow Hong Kong dollars from the HKMA at the end of the settlement day, through the Liquidity Adjustment Facility (LAF), Hong Kong’s version of a discount window. This would obviously not be cheap, particularly for repeated borrowers, as the HKMA is not in the business of providing cheap Hong Kong dollar funding to those shorting the Hong Kong dollar. And this would only be for overnight money. Second is for the banks to obtain Hong Kong dollars more permanently from the HKMA by selling US dollars back to the HKMA, which the HKMA again takes passively in accordance with the discipline of the currency board system. This is exactly what happened on 23 October 1997 and the speculative capital outflow then was as quickly reversed as it had started, in a matter of only two days, with the system operating very much on auto-pilot. Interest Rates 23.

This situation was rectified in 1988 through the so-called Accounting Arrangements which required the Hongkong and Shanghai Banking Corporation Limited, as the Management Bank of the Clearing House of Hong Kong Association of Banks, to maintain a clearing account with the then Monetary Affairs Branch of Government for the account of the Exchange Fund. Thus the monetary base was only clearly defined then. The Accounting Arrangements were subsequently replaced by another arrangement, on the occasion of the introduction of Real Time Gross Settlement for interbank transactions in Hong Kong BIS Review 19/1998  -6any change in the monetary base has to be matched by a corresponding change in the amount of US dollar reserves held by the HKMA, and the change brought about by the HKMA rather passively converting Hong Kong dollars in the monetary base into US dollar reserves and vice versa at much the initiative of the banks. 19. The advantage of such a requirement is that whenever there is capital outflow, which would take the form of the sale by the banks of Hong Kong dollars to the HKMA for US dollars at the fixed exchange rate, there will, on settlement of the deals, be a shrinkage of the clearing balance of the banking system. This will lead to Hong Kong dollar interest rates in the interbank market increasing. The greater the outflow, the larger will be the fall in the clearing balance of the banking system and the higher will be the interest rates in the interbank market.
Chart 4 shows a slight increase in the share of lending to younger customers, aged 65 or younger. Average loan-to-value ratios for these borrowers have also increased a little. We would expect risk functions to be monitoring these trends and keeping boards informed. As well as loosening of lending standards, another concern might be if insurers are making more loans outside those standards. Chart 5 plots loan-to-value ratios against age for equity release mortgages sold by life insurers in 2017. The pink swathe shows insurers’ risk limits. The great majority of mortgages are within risk appetites, but some loans exceed the limits. This may or may not be a problem. For example, it could be explained by medical underwriting of the mortgage that justifies a higher loan-to-value ratio for a younger customer if their life expectancy is impaired. Again this an area that risk functions should be watching. The most important risk factor, however, is the long-term path of UK house prices. Plausibly the risk of a long-term correction in UK house prices has increased as houses have become less affordable and rental yields have fallen. In England and Wales the ratio of median house prices to median individual annual  3  Equity release rebooted: the future of housing equity as retirement income, Rob Thomas and Dr Louise Overton, April 2017  4  All speeches are available online at www.bankofengland.co.uk/speeches  4  4  earnings has increased from 3.6 times in 1997 to 7.6 times in 2016 .

In particular, to quote Solvency II directly, “the Matching Adjustment must not include the Fundamental 9  Spread, reflecting the risk retained by the insurance or reinsurance undertaking” . Since the credit rating is the main driver of the Fundamental Spread, this means the credit rating must reflect the risk retained by the insurer. One key characteristic of illiquid assets is that they are not usually externally rated. Instead, Solvency II permits insurers to use internal ratings to determine the Fundamental Spread. Since illiquid assets will often not have market valuations, insurers will often also base the asset valuation on the internal rating by mapping to equivalent traded assets of the same rating. The internal rating may therefore drive both determinants of the Matching Adjustment: the spread over risk-free rates and the Fundamental Spread. Getting it right is important! The PRA set out its views on this subject in a supervisory statement (SS 3/17) last year. 10  We said that  internal ratings must lie within a plausible range of the ratings that would be given by external rating agencies. Individual ratings may vary, depending on credit judgements, but there should be no overall upward bias in internal compared to external ratings. Supervisors are reviewing insurers’ internal ratings and may seek greater assurance where assets have spreads that look large for the rating, leading to a large matching adjustment in absolute or relative terms. We will also consider the complexity of the assets and their materiality to the overall solvency position of the insurer.
Monetary policy was used in conjunction with fiscal policy and supported with various forms of direct control to pump up demand, when the economy declined and unemployment rose, until inflation and the balance of payments threatened to get out of hand, at which point all the policy levers were thrown into reverse. It was a recipe for short-termism throughout our economies. We gradually learned from experience - perhaps more slowly in this country than some others - that there is no trade-off between growth and stability in the medium and longer term, and that, in managing demand - which of course we continue to do - we needed to pay far more attention to the underlying, supply-side, capacity of the economy to meet that demand. We came to recognise that direct controls merely addressed the symptoms of instability rather than its causes. We realised increasingly that fiscal policy was not well suited to the task of short-term demand management, and needed to be constrained within prudent limits if debt levels were to be sustainable in the medium- and longer-term. And this left a more distinctive and clearly defined role for monetary policy as the primary instrument for maintaining broad balance consistently over time between aggregate demand and underlying supply. All this has become the accepted wisdom just about everywhere. "Stability is a necessary condition for sustainable growth" has become the universal central-banking credo - though that doesn't necessarily make it any easier to achieve!

Last year, due to a confidence crisis and doubts on the Brazilian public debt and the Brazilian economy the exchange rate depreciated strongly and, as a result, we have observed an increase in the current inflation rate and a contamination of future inflation expectations. The conduct of monetary policy will have as strategic priority the avoidance of this transitory hike in inflation being perceived as permanent. We will fight, unrelentlessly, against the expectation of an increase in the level of inflation and the indexation of the economy. The goal is to bring inflation back to the trajectory defined in the targets already set by the National Monetary Council (CMN). The Central Bank will pursue a path of convergence to the already defined inflation targets, taking into account that this convergence will not occur instantaneously. It is a common practice among Central Banks in the world to dilute the convergence of inflation to the targets over a period longer than a year. This is particularly important when an inflationary bubble arises due to a supply shock, as has been the case in Brazil. Therefore, we will proceed by aiming at an inflation rate that takes into account the inertia inherited from inflation in 2002, and the supply shocks stemming from the increase in administered and monitored prices in 2003. Therefore, monetary policy will maintain the goal of ensuring that inflation will return to its target path within a time period that does not result in unnecessary costs to the economy. Transparency in the process is essential.
Most of the time this should not  8  BIS central bankers’ speeches  happen, as both aggregate demand and credit market shocks will tend to push the two policies in the same direction. Differential movements are more likely to arise in the face of supply disturbances. For instance, a beneficial supply shock will tend to push inflation below target, warranting a looser monetary policy, while it may also encourage a credit boom, warranting tighter macroprudential policies. But in any case, it is not clear that is such a problem. The instruments address different distortions, so one should expect them to move in different directions from time to time. Moreover, it is likely that the regulatory dials will be adjusted much less frequently than policy rates, so co-ordination should not be that significant an issue7. My concluding observations relate to the broader context within which macroprudential policies are conducted. Credit booms are times when everyone feels good and risks seem slight. Taking the credit punch bowl away before the party gets out of hand will be controversial, and banks and borrowers will be quick to claim “this time is different”. That is a good reason for delegation to a separate committee or agency with a longer perspective, much as we do with monetary policy. Even so, the pressures not to take action may be intense. Making macroprudential policies rule-based would be one response.

Looking at your coverage of our policy one might be inclined to think so. Between 2001 and 2005, for example, the Swiss National Bank was mentioned three times less in the Financial Times than in the period 1996 to 2000. However, let me emphasise that more transparency does not mean that monetary policy will always be simple to predict. Remember that the inflation forecasts published by central banks are always based on expectations of future economic developments. Hopefully, these expectations will be accurate most of the time. However, during certain periods of the economic cycle, particularly at turning points, our expectations will be prone to correction. I am therefore confident that, despite transparency, there will remain some news to report about monetary policy. I do believe, however, that central bank transparency may change the nature of media reports on monetary policy. In the old days of secrecy and unexpected monetary interventions, journalists obviously debated the objectives of central bankers and what this meant for the future. With increased transparency, such discussions have become obsolete, as objectives seem to be clear and future policy is easier to predict. In return, central bank transparency now gives journalists the opportunity to question the consistency of our monetary policy decisions with our stated objectives. This leads me to believe that, in future, media coverage of monetary policy may concentrate on scrutinising the congruency of our actions with our goals, rather than debating about what central banks are trying to achieve.
This positive growth performance has been broad-based, extending beyond the recovery of the mining sector and withstanding adverse shocks, such as droughts and record increases in oil prices. In 2006, real GDP growth was largely driven by the mining, agriculture, construction, transport and tourism sectors. Last year, Zambia achieved single-digit inflation in 30 years. What were the main contributing factors to this achievement? Bringing inflation down to single digits has been Government’s goal for a long time. It is, therefore, pleasing to note that last year, inflation fell to its lowest level in 30 years. At the end December 2006, the annual rate of inflation had fallen to 8.2 % from 15.9% achieved in 2005 and was well below the target of 10%. This positive development in inflation was due to continued implementation of prudent monetary and fiscal policies, coupled with increased food supply. This was despite the persistent rise in oil prices on the world market. This year so far, inflation has been in double digits. What are the reasons for such a development? What is the outlook for inflation at end of the second quarter? During the first quarter of 2007, containing inflation pressures was a challenge. Inflation rose to 12.7% in March 2007, reflecting both higher food and non-food inflation. Higher food inflation was explained by increased cost of most fresh vegetables, typical during this period.

I am reliably informed that the number of branches has increased from 17 at the beginning of April last year to 55 at the end of November 2007. What is even more impressive is that these branches are found in areas which were previously not serviced by commercial banks. This indeed is a bold move and for this we must commend Barclays Bank Zambia. I am aware that the expansion programme is backed by a capital injection of approximately K40.0 billion which will make it possible for Barclays Bank Zambia to increase its services in the country, particularly to the SMEs sector. Ladies and Gentlemen, the 2005 Finscope Survey undertaken by FinMark Trust confirmed that levels of access to financial services in Zambia are low. Fewer than 15% of adult Zambians are reported to have had access to commercial banks. The reasons given for this low accessibility varied but some of the critical reasons included the distance to banks, the time spent getting to a bank and the cost of getting a bank service. With Barclays Bank Zambia opening branches closer to the people it is our conviction that the number of Zambians to have access to banking services will increase. We therefore encourage as many Zambians as possible to use these facilities. To the residents of Chilenje, I urge you to utilize the services offered by Barclays Bank, otherwise the bank may opt to close its branch due to lack of business and you will be left with no bank in your area.
In the short and medium term, the crisis will have desinflationary effects that are already noticeable, with inflation temporarily falling in August by 0.2% in the euro area, and by 0.1% in Germany. For a year as a whole, we are expecting a slightly positive inflation of 0.3% in 2020 and 1.0% in 2021. As you know, we unfortunately remain well below our inflation target of "less than, but close to 2%". The other aspect of the response to the health crisis are fiscal measures, primarily at the national level. Germany clearly made greater use of the financial leeway it had built up since the 2009 crisis. Its fiscal stimulus package (as a percentage of GDP) is at this stage greater than France’s. The effectiveness of its stimulus package is still difficult to anticipate: in particular, the 2/4  BIS central bankers' speeches  temporary reduction in VAT appears costly. The French government also announced a EUR 100 billion stimulus package last week. I wish to mention three positive features. It focuses on business supply and investment, and not household demand. This is fully justified, since households, protected by short-time working measures, except for the most vulnerable ones, will have saved nearly EUR 100 billion this year. This plan also has a strong focus on transformation, including ecological reconstruction - a third of the funds are allocated to this area.

Jiří Rusnok: Currency, taxes and other institutes of financial law Welcome speech by Mr Jiří Rusnok, Governor of the Czech National Bank, at the Currency, taxes and other institutes of financial law conference, Faculty of Law, Charles University, Prague, 20 September 2018. * * * Good morning, everyone. It is an honour and a pleasure for me to welcome you to today’s conference on the currency, taxes and other institutes of financial law. The 100th anniversary of the foundation of the independent Czechoslovakia is a good opportunity to look back and identify the main features of our national economic history. As you know, we have been through four periods since 1918 – the period of political and economic emancipation from Austria-Hungary, the wartime economy, the era of central-planning-based totalitarian communism, and finally almost three decades of democracy and a market economy. So, more than enough has happened in our country over the last 100 years. Although these periods could not have been more different, two common features have appeared in various guises. I would characterise them on the one hand as economic moderation, prudence and discipline, and on the other as a struggle for economic independence and a willingness and ability to bear the consequences. Let me give some examples of both. Czechoslovakia’s founding fathers Tomáš Garrigue Masaryk, Karel Kramář and Alois Rašín were well aware that nurturing a sound financial environment was crucial to the prosperity of the young nation.
However, it is possible to limit the demand for e-krona, for instance through interest or volume limits. It is interesting to note that the fears expressed at present about the e-krona are almost an echo of the debate conducted around 100 years ago when the Riksbank was to be granted a monopoly on issuing banknotes. Even then, there were “fears of severe disruptions in the business world”. 20 It was also thought that the reform would make the Riksbank “much more powerful than before and with greater  17  For more detailed information, see the special edition about the e-krona in Economic Review No. 3 2018. 18 The money that banks have in accounts with the Riksbank can only be used for payments between banks and  not for payments in ordinary shops. 19 For example, Brunnermeier and Niepelt (2019) have shown in a theoretical model that state digital currency need not have negative consequences fro financial stability. 20 See Fahlbeck (1900). 9 [35]  powers of decision over the entire Swedish economy”. 21 It all turned out well 100 years ago, but even if we do not consider that an e-krona would be as revolutionary as some people seem to think, it is appropriate that the Riksdag should also look into this question. The inquiry into the role of central government in the payment market, which has recently started up, has been tasked with taking a stance on whether an e-krona is needed.

If cash is needed as a means of payment in a crisis, it must also be possible to use it in normal circumstances. The Riksbank will continue to work to reinforce the position of cash. E-krona can complement cash without major consequences for financial stability and monetary policy In addition, the Riksbank has also been investigating for a few years now whether it would be possible to offer the general public a safe electronic alternative that could function in largely the same way as cash; an e-krona. This could be a means of ensuring that the general public in Sweden, which has had access to central bank money since the 17th century, can continue to do so even in a digital age. 16 The model we have had, where the Riksbank's cash has co-exited with private means of payment, such as deposits in bank accounts, has functioned well. By introducing an e-krona, we can ensure that the function that cash has historically had as anchor for payments can live on in a new technical form. An e-krona can, like cash, contribute to increased competition and robustness on the market by offering an alternative to private sector payment services. If the Riksbank is present in the market with its own supply of money to the general public, it will also be easier for the Riksbank to ensure that basic payment services are made available to all, including the vulnerable groups I mentioned earlier.