samchain/econo-pairs-v1 huggingface dataset:
As a logical consequence, a question arises about how the monetary policy should be conducted in these circumstances, and in particular, whether it should respond to the increase in asset prices despite the fact that inflation of consumer goods and services remains low or very low. Another vital question arises about the appropriate level of central bank interest rates when long-term interest rates remain low, possibly as a result of globalisation. A hot debate accompanies the issue, both among the central 26 27 bankers and among academics. The Chairman of the Federal Reserve, Ben Bernanke, in his address 28 last month, presented possible diagnoses regarding the sources of low interest rates on the bond market despite as many as fourteen increases in the central bank references rates. There are at least two explanations of such situation. If the long-term interest rates remain unchanged and the short-term ones increase, this means that either the markets pessimistically assess the perspectives of economic growth or the risk premium related to forward rates decreases; here this may be the inflation risk premium or real interest rates volatility risk premium. Another explanation may be the very effect of global imbalances, i.e. the result of large purchases of sovereign bonds by Asian central banks and oil- exporting countries. Depending on which hypothesis is true, the implications for the monetary policy are different. If the long-term rates go down as a result of poor growth prospects, the current short-term interest rates should be lowered  23  See e.g.

Krzysztof Rybiński: Globalisation and its implications for monetary policy Speech by Mr Krzysztof Rybiński, Deputy President of the National Bank of Poland, at a series of seminars by the Centre for European Regional and Local Studies and the UNESCO Chair, Warsaw University, Warsaw, 6 April 2006. *  *  *  Ladies and Gentlemen, Globalisation is a term used frequently in the economic debate nowadays, and it would be difficult to find an area of economic research that is “globalisation-free”. However, its meaning is so broad, that when globalisation is referred to in a discussion, various people understand various things. For this very reason, a discussion on globalisation and the monetary policy should commence with an attempt to define the term. One of the definitions of globalisation is provided by the International Monetary Fund (IMF) 1 , where it is construed as “the growing interdependence (integration) of national economies, in particular as a result of the growing international trade and financial flows”. Moreover, an element of globalisation that is worth mentioning is the fast flow of information and knowledge, which is the driving force behind globalisation processes. One should keep in mind that globalisation is not a completely new phenomenon 2 . In view of the existence of political barriers to international trade, the flow of capital and goods was equally as possible one hundred years ago as it is today.
It is worth noting that the new square meters available have been reflected in more vacant office space, at more than 10 percent now. Therefore, the rents have dropped, a tendency that is expected to continue in the coming quarters (figure 12). About the financial situation of households, aggregate indicators (i.e. borrowing and financial burden) show slight changes lately. At June 2015, household debt amounted to 61.6 percent of income, 0.8 percentage points more than at end-of-2014, remaining on an upward trend. The financial burden remained stable, closing at 14.7 percent. The latest Survey of Household Finances showed an increase in the financial burden of medium- to upper-income households with respect to 2011 (figure 13). This occurs in a context where household default indicators remain stable. However, credits from family clearing houses (which represent a low fraction of household debt, at 3.4 percent) continue to increase nonperformance. This situation, coupled with flawed management, drove one of these institutions to default on its financial and social commitments, triggering intervention by the supervising entity and starting a restructuring process. These events motivated an increase in the premiums on the debt issued by these institutions, but their effects on the rest of the financial system have been limited. Still, we believe that steps must be taken to boost the convergence of the supervision models of these houses, among others, in order to enhance their corporate governance and their credit risk management, to reduce the probability of new instability episodes.

In November of 2013, the Bank outlined proposed regulatory reforms for the financial advisory industry which formed part of the “Life Insurance and Family Takaful Framework” or in short the LIFE Framework, which we published for consultation. An important aim of the reforms is to support the Bank’s desire to further diversify insurance delivery channels as one – although not the only – way to improve the quality of advice, and enhance choice and value for consumers based on their specific needs and circumstances. This in turn would contribute towards increasing the insurance and takaful penetration rate to 75 percent by 2020 as targeted under the Government’s Economic Transformation Programme (ETP). We received positive feedback from the financial advisory industry on the proposed reforms and while specific elements of the LIFE Framework remain under review to take into account the comments that were received, we have moved ahead to implement several changes proposed which concern the financial advisory industry. The Bank has lowered the minimum capital requirement for financial advisers to RM50,000 which will take effect from 1 January 2015 to encourage more advisers to enter the industry. This follows an increased focus on professionalism, innovation and quality of advice as the hallmark of those who are admitted to the industry.
SPEECH  This Is the Way May 09, 2023 John C. Williams, President and Chief Executive Officer Remarks at the Economic Club of New York, New York City As prepared for delivery  Thank you for that kind introduction. As chair of the Economic Club of New York, I often have the honor of introducing speakers to our forums. It's a special privilege for me to speak to the Club today. I'm also pleased to be here during my favorite month of the year. The weather is warmer… Baseball season is well underway… And it's the month when people around the world celebrate "Star Wars," one of the all-time great franchises. I am often asked whether I am fan of "Star Trek" or "Star Wars," and my definitive answer is, "yes." Now, I promise I won't spend my time talking about the weather or baseball. What I do want to talk about is inflation. Inflation remains too high, and high inflation is hardest on those who can least afford to pay higher prices for food, shelter, and transportation. The Federal Reserve is committed to bringing inflation down. As the Mandalorian would say, "Price stability. "This is the way." Before I continue, I need to give the standard Fed disclaimer that the views I express today are mine alone and do not necessarily reflect those of the Federal Open Market Committee (FOMC) or others in the Federal Reserve System.

The rapid changes that are taking place in our environment thus demands new skills and ability to manage new challenges and capitalise on the new opportunities. Indeed, the role of leadership has changed. Leaders not only must able to see the new emerging opportunities, but also to be able to deal with the high level of unpredictability. The industry leaders need to  BIS Review 37/2008  3  be visionary and comprehend future trends, chart strategic directions and adapt to change. Effective leaders in this era, will be those who are continuous learners, who are on the cutting edge of excellence, and who have the humility to recognise the need to reinvent themselves and inspire their organization to adapt to the new environment. The investment in human capital development is thus important for future survival. Human capital development has become of strategic importance and is integral to the success of an organisation. This needs to occur at all levels of the organisation. Senior executives need to take the lead and devote a considerable amount of their time to this initiative. Human resource development functions is integral to the talent management process and in supporting the human capital management strategy. Let me conclude my remarks. The inclusion of women into mainstream economic activity is no longer an option, but a prerequisite for sustained economic development. The strive therefore has to be to provide the enabling environment and to set the standards so that the new multi-polar world will be a more inclusive one.
And this resilience had a reason. It created the confidence for banks to finally get lending again …  It has allowed some turbulence to be withstood too. Cast your minds back to July 2016. In the wake of the referendum, markets were pricing in a severe downturn in the UK economy and property markets. 3  Financial crises often lead to a long run reduction in GDP, with a persistent decline in output relative to pre-crisis trends. Bank estimates based on the impact of historical financial crises in a sample of advanced economies, reported in Brooke et. Al. (2015), suggest that the average cost of a financial crisis has been 73% of GDP, which translates to a cost of roughly £ per capita if a financial crisis had taken place in 2016. 3  All speeches are available online at www.bankofengland.co.uk/speeches  3  Bank and property company share prices were consistent with a rise in unemployment to 7.5%, falls in residential and commercial property prices of 15-20% and a cumulative 4% reduction in GDP growth. But banks had been tested – in public – against a shock twice as severe as that. So confidence in the banking system was maintained. Remarkably by past standards, banks’ funding costs moved very little. We were able to do the opposite of what regulation had typically done in the past: we could release, rather than build, bank capital. Banks didn’t need to rein in. And credit continued to flow.

2  BIS central bankers’ speeches  Next-generation SIC payment system The thoroughly redesigned SIC payment system known as “SIC4” came on stream in April 2016. Based on cutting-edge, forward-looking technology, this new system reinforces the principles of security, reliability and high performance that have proved their worth for more than 30 years. It is particularly crucial for Switzerland’s finance industry that transactions can be effected with the highest possible levels of security. The SNB therefore welcomes the fact that the former security infrastructure for accessing the SIC system has been overhauled and that a tailor-made security solution will be used from now on. A large proportion of cashless payment transactions in Swiss francs is settled via the SIC system. In 2015, SIC settled a daily average of approximately 1.7 million transactions worth CHF 154 billion, including both client and interbank payments in Swiss francs. Moreover, SIC is an important system through which the SNB implements its monetary policy. We therefore have a keen interest in the ongoing development of the SIC system to ensure that it is able to meet changing technical and professional requirements. BIS central bankers’ speeches  3  4  BIS central bankers’ speeches  BIS central bankers’ speeches  5
Caleb M Fundanga: Increasing access to financial services in Zambia Remarks by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the official opening of National Savings and Credit Bank, Lukulu Branch, Lusaka, 27 May 2009. *  *  *  The Guest of Honour; the Honourable Minister of Finance and National Planning; Dr. Situmbeko Musokotwane, MP The Honourable Minister for Western Province; The Deputy Permanent Secretary for Western Province; The Honourable Members of Parliament for Lukulu East and West; The Acting Ngambela Imbua Imwaka representing the Barotse Royal Establishment; The District Commissioners for Lukulu and Kaoma; The Board and Management of National Savings and Credit Bank; Distinguished invited guests; Ladies and gentlemen. 1. On behalf of the Bank of Zambia Governor, I would like to thank the Board of Directors and Management of National Savings and Credit Bank for inviting us to the occasion of the opening of another rural branch in Zambia, this time in Lukulu. 2. National Savings and Credit Bank (also commonly referred to as NATSAVE) was established on 1 April 1972 by the National Savings and Credit Bank Act of 1972 and it commenced business operations in March 1973. The amendments to the Banking and Financial Services Act of 2000 extended the supervisory authority of the Bank of Zambia to NATSAVE which was until then, supervised by the Ministry of Finance and National Planning (MoFNP). 3.

The same can be said for the public and business community in these economies. The economies enjoying a favourable fiscal position also faced the crisis without impairing their long-term fiscal sustainability. The situation seemed slightly more complex in some developed European economies. Seeking to find a balance between deleveraging and fiscal consolidation, euro area authorities demanded setting up a protective wall against the possible fire bursting into from the outside. But, as noted, this fire had already burst out and was spreading inside the euro area walls; therefore, setting up this “protective wall against fire” was pointless at this point. The European Union and its institutional structures, along  BIS central bankers’ speeches  1  with the international financial institutions and partners, are undertaking a number of reforms to put this “fire” out. However, it is still unclear how long this “agony” will last and likewise is its impact on the euro area and its trading partners. The exhaustion of fiscal and monetary policy incentives failed to increase economic activity and, moreover, it further aggravated the sovereign debt situation and financial stability. Consequently, the sovereign debt sustainability and banking system credibility-related issues were added to the concerns about economic growth. The question facing many countries today has the form of a trade-off between stability and sovereignty. Currently, the latter two are intertwined in an endogenous relationship (of mutual impact on one another), in which the multi-dimensional need for stability (implying the maintenance of price stability, macroeconomic stability, financial and fiscal stability) requires taking balancing measures.
10  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  10  For what it’s worth, as a matter of terminology, I think this would more accurately be described as “financial repression” than “monetary finance”. Either way, I don’t really see how it’s possible to do this, not least because of the open, global capital markets in which all borrowers, public and private alike, now operate. If the claim is that even variations in the financial conditions facing the private sector have no bearing on inflation, one wonders how monetary authorities (including the MPC) are able to control it to begin with. It’s surely not a coincidence that inflation has been stable only when there’s been a stable regime for monetary policy. That wouldn’t be possible unless policy routinely had an effect on it. Chart 4 is informative in this respect. Financial repression might be more feasible if it were possible to depress the yield on government debt alone (i.e. to raise its price), leaving untouched financial conditions facing the private sector. But if that artificial gap were to endure for any length of time it would require quantitative restrictions of some kind, to prevent people selling domestic government debt for some other (relatively under-priced) asset. And because holders of UK assets live abroad as well as at home, those restrictions would have to cover international capital markets as well11. Yet we know such restrictions don’t exist.

I mention this only because some of the commentary claims not so much that QE is potentially fuelling too much inflation, and helping governments that way, but that it’s doing so by artificially depressing the cost of new debt issuance in a manner that does not (somehow) have any impact on inflation. 9  Broadbent (2014). Note that, while the impact of QE is arguably detectable in Chart 7 – the launch in 2009, for example, in the UK and the US, and again this year – it’s not as if bond yields are (or were) otherwise static. They moved around just as much beforehand, generally downwards over this period and especially so during global downturns. They might reasonably have been expected to do so in response to the pandemic, even without QE. Nor are these changes well correlated with fiscal news. As I said earlier, a model of bond yields that has them responding only to government debt and/or QE performs poorly in the data. For more on what’s depressed long-term “neutral” interest rates, see for example, Vlieghe (2018), Broadbent (2014) and the August 2018 Inflation Report. 10 If the perceived risk were that the authorities would try to “inflate away” the debt, it would be priced into conventional bonds alone (and therefore into the “breakeven” spread between the yields on conventional and indexed debt); if people worried about formal default yields on both would be affected.
We set the main scenario that the banks must use, and the banks were required to apply the stress test in the manner they deemed appropriate in assessing their capital adequacy. Supervisors used independent quantitative techniques both as a check on firm estimates and to assist in their evaluation of the firms’ tools and processes. We evaluated their efforts in terms of: 1) how the stress test is applied, 2) what this implies in terms of capital adequacy, and 3) their capital plans and requests to pay dividends and/or conduct share repurchase programs. Our evaluation of their capital planning processes and their requests to make capital disbursements was based mainly on three factors: 1) capital adequacy, 2) the quality of the capital planning process, and 3) the credibility of their plans to meet the Basel III capital requirements. Elements of a good planning process include: 1) description of risk appetite and capital targets, 2) robust internal controls, 3) incorporation of stress testing and stress-test results into the decision making process, 4) good governance with respect to the role of senior management and the board of directors, and 5) well-articulated capital distribution policies that describe how decisions are made relative to the expectations of future outcomes. Some outside observers ask why supervisors would ever want to use bank-run stress tests rather than supervisory stress tests. The answer is that they serve different purposes.

Since summer 2005, the key policy rate has gradually been raised again to a more normal level in order to prevent inflation from becoming too high. As mentioned, external interest rates are again moving down and the interest rate differential against other countries has widened recently. This may lead to a stronger krone, but there are also opposing forces in the foreign exchange market. In the long run, the krone exchange rate is determined by changes in the terms of trade and permanent differences between domestic and external inflation and productivity. But the krone exchange rate also shows monthly and yearly fluctuations. The krone was strong towards the end of the previous cyclical expansion, but depreciated when interest rates declined in 2003. Thereafter, the krone appreciated again as growth in the Norwegian economy recovered. Over the past two years, the krone has appreciated by close to 5 per cent. Inflation has nevertheless picked up and is now fairly close to 2½ per cent. 3  3  Norges Bank uses different measures of underlying inflation. In January, the twelve-month rise in the CPI-ATE was 1.9 per cent, a weighted median showed a rise of 2.4 per cent and a trimmed mean 2.9 per cent. The twelve-month rise in the CPI was 3.7 per cent following a sharp increase in energy prices. 4  BIS Review 18/2008  The sizeable basic balance deficit may result in a renewed depreciation of the krone.
In the United States and this country, on the other hand, which both grew strongly last year on the back of domestic demand, the emphasis was on a need for vigilance - as always - to stay on a non-inflationary path so that sustainable growth can be maintained. The IMF’s analysis of this country’s position, Mr. Chairman, is in fact very similar to our own. We both recognise that aggregate demand growth needs to moderate quite sharply if inflation is to be held to the Government’s target over the next two years or so. We are already clearly seeing a weakening of net external demand in response to the sterling’s exaggerated appreciation - particularly against other European currencies - since the autumn of 1996 and now in response to the Asian crisis. However undesirable that may be in terms of the balance of the economy - and I am very sensitive to the hammering being taken by the internationally exposed sectors - it does provide a little more time to bring about the necessary moderation of the strength of domestic demand growth, which we expect to occur as a result of both the fiscal and monetary tightening already in place, and in the absence this year of “windfalls” from demutualisations. The critical judgement relates to the precise timing and pace of this moderation of domestic demand growth, and whether it will be sufficient to prevent a pick up in inflation as the dampening effects of the strong exchange rate and weaker external demand wear off.

Caleb M Fundanga: International financial reporting standards for banks and other financial institutions Speech by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the official opening of a workshop on “International financial reporting standards for banks and other financial institutions”, organised by the Bank of Zambia in conjunction with the Zambia Institute of Chartered Accountants, Lusaka, 17 February 2005. * •  The Chief Executive, ZICA  •  Distinguished Resource Persons  •  Distinguished Participants  •  Ladies and Gentlemen,  *  *  I wish to welcome you all to this important workshop on International Financial Reporting Standards (IFRSs) and International Auditing Standards, (ISAs) organised for finance officers and auditors from commercial banks, non-bank financial institutions and the Bank of Zambia. This workshop is organised by the Bank of Zambia in conjunction with the Zambia Institute for Chartered Accountants (ZICAs) out of the recognition that the International Financial Reporting Standards (IFRSs) and International Auditing Standards (ISAs) are critical not only to the integrity of our financial system, but also to the Bank of Zambia’s efforts of ensuring effective supervision and regulation of banks and non-bank financial institutions. As you may be aware, three important factors have heightened the relevance of accounting and auditing standards to bank supervisors. These, include: •  First, IFRS and ISAs are a set of high-quality, transparent and globally renowned accounting and auditing standards that the Financial Stability Forum (FSF) has included in its 12 Key Standards for Sound Financial Systems.