samchain/econo-pairs-v1 huggingface dataset:
Already, several factors, such as the search for yield driven by a low interest rate environment, new regulatory constraints on the banking system, and digitalisation, are changing the way in which financing is designed, produced, distributed and managed. This transformation is  leading to a more diversified financing structure for our economies. Is this diversification desirable? Is this diversification sufficient? 1. A desirable diversification of financing modes to spur growth and innovation, which must be further supported My answer to the first question is yes because too strong a reliance on bank financing may constitute a source of vulnerability for business development in the event of a shock affecting the banking system. However, the relatively slow pace of development of this diversification  shows that it is not so simple to achieve, and that it should be further encouraged. A. In the short term, the efforts made to adapt the regulatory framework and standardise the alternative sources of financing to bank lending should be pursued. In recent years, public authorities have made significant efforts to adapt the regulatory framework in order to support the development of alternative sources of financing to bank lending. These efforts must be pursued and matched by those of private players to standardise the market. Thus, since 2017, the European Union has established a set of new rules for the development of sound securitisation, i.e.

It can and will be deployed all the more efficiently that the rest of the policy environment remains sound. 4  BIS central bankers’ speeches
Remember that your personal liability, will also be at stake in case of failure and such loss can be quite substantial if you have not taken the right steps. So, take the interest; take the time to study, and, be diligent in your activities. Actually, if you do that, you will find that it is much better for your Company, much safer for yourself, much easier for the regulator, and much easier for the market. My dear friends, risk can be a sudden occurrence. Risk can, at the same time, be slow in coming. You don’t know which risk is there, but you have to be alive to risk. Today, management is all about risk management. What are the risks in doing something? What will be the repercussions? What will be the dangers? You have to think-safety first, just like how it is said at some of the modern construction sites. When you go to some construction sites, you see a large sign that says “safety first”. Why? Because you have to survive before you are able to construct, and accidents can be both painful and costly. In looking at safety, in the case of financial institutions, the important factor is to focus on liquidity management. You may be profitable. You may be having a very good plan for the future. But if you do not have liquidity, i.e., if you do not have cash to meet your obligations, you cannot survive. It is like a very fit athlete who can run very fast.

But, if the athlete cannot breathe for some reason, he will soon be dead notwithstanding his fitness. Your liquidity, or your cash inflows and cash outflows is also like breathing in and out. These cash flows have to be monitored very carefully. Liquidity management has to be practised diligently. The board members of finance companies must also learn and appreciate the principle of liquidity management. Don't think that it can only be left to the executives of the company. In the final analysis, the executives may not even be responsible in a legal sense. The legal responsibility will rest with you! BIS Review 55/2008  3  I am sure the other speakers will expand on all these aspects that I touched upon. So, I will now conclude with a few overall thoughts. My dear friends, take your responsibilities as Directors very seriously. Keep abreast of what is happening. Keep abreast of the markets. Keep abreast of the risks that are taking place, both globally and locally. Watch the world and environment carefully. Be alive to new techniques. Take the interest to do all that, because if you do, then we can all have a healthy market. That is what we at the Central Bank, are hoping you would discharge your responsibilities diligently. The last thing we would like to do is to call you up and to say that your business is not run properly. We don’t want to do that.
May I take this opportunity to commend ZICA for the tremendous progress it has made in the development of the accountancy profession in Zambia. I am aware that the number of qualified accountants in the country has continued to grow with ZICA boasting a total of 3,606 members as at December 2009 compared to 2,938 in the previous year. This is no doubt a testimony to the growing number of institutions that are offering quality accountancy training courses. The growing number of accountants is also a reflection of the economic achievements the country has scored in the recent past. It is worth noting that as the economy continues to post positive economic growth, the country’s need for accountants will also increase. Distinguished Members, allow me at this moment to briefly highlight the performance of the economy in 2009. Although projections of GDP growth for 2009 had been revised downwards to 4.3% on account of the effects of the global financial and economic melt-down, preliminary data indicates that the economy posted a real GDP growth rate of 6.3% compared with the 5.7% recorded in 2008. Almost all key sectors of the economy recorded positive growth except for restaurants and hotels which saw negative growth due to lower tourist and business travel arrivals during the financial crisis. Annual overall inflation slowed down, reverting to single digit level of 9.9% in December 2009 from the 16.6% recorded in December 2008, and was in line with the original end-year target of no more than 10%.

All these elements will ensure that bank managers are conscious of how risk-drivers change through the cycle and in stress conditions, and that they incorporate these elements into their decision-taking processes and capital strategies. Let me move now to the work under way to implement the new framework. I’d like to highlight two areas in this respect. 3. Catalytic role in promoting supervisory co-ordination and convergence  The effective implementation of Basel II will depend to a large extent on the ability of “home supervisors” and “host supervisors” of internationally active banks to co-operate efficiently. Certainly one of the goals for any international framework is to foster a more level playing field for internationally active competitors. The Basel Committee wishes to ensure that competition between internationally active banks is driven by each bank’s individual strengths, rather than by differences in each country’s rules. Basel II is intended to promote a more level playing field for internationally active banks. Yet Basel II cannot and should not be expected to create perfect harmonisation across all jurisdictions. Differences in legal systems, market practices and business environments in each country make it an extremely difficult task - and, indeed, an impossible one - to even out all distinctions across all borders. Our goal should instead be to facilitate the application of minimum standards and to work together, across borders, to promote a more consistent implementation and application of the new framework. This enhanced co-operation is a process that will promote consistency and convergence of supervisory practices.
Norway has not experienced a pronounced economic downturn since the crisis around 1990, when a cost crisis, an employment crisis with a sharp increase in unemployment and a decline in output, a currency crisis, a fall in property prices and a banking crisis all occurred around the same time. A long upturn followed in the period from 1992 to 2008. National income rose by an annual 5.4 per cent in this period, far higher than the rate of output growth in the mainland economy. Income growth has been higher than in the 1950s and 1960s. 4  BIS Review 15/2010  Behind these favourable developments were the major structural reforms of the 1980s and 1990s that resulted in higher production capacity in the Norwegian economy. The Norwegian business sector experienced a long period of high productivity growth. Shifting forces have otherwise driven the economy – during the crisis around 1990, labour costs decreased to a low level compared with Norway’s trading partners and wage settlements were moderate. In 1995, the cost level was 10–12 per cent below Norway’s average for the oil age from 1970 to today. In addition, real interest rates in Norway fell markedly through the 1990s from high levels. This was because the fixed krone exchange rate regime maintained through the crisis period managed to bring down inflation and inflation expectations. BIS Review 15/2010  5  Moreover, growth in public spending was rapidly reduced once business sector activity had recovered. Norway experienced an economic shift in the 2000s.

Two questions in particular tend to arise: Do we only take into account inflation, or do we also care about the real economy, for instance, the employment situation? And what do we think of the rapid increase in household indebtedness and in property prices? The aims of monetary policy To understand the monetary policy decisions, it is of course essential that there is no uncertainty regarding the objective of monetary policy. There is only one statutory objective for monetary policy and that is to maintain price stability. We at the Riksbank have then chosen to specify this objective in terms of an explicit inflation target. This entails an annual change in the consumer price index (CPI) of 2 per cent with a tolerance interval of ± 1 percentage point. One might ask why we allow a certain measure of inflation when Parliament has given us the task of maintaining price stability. One reason why we have chosen not to set the inflation target at zero is that an inflation target that is too low can under certain circumstances create adverse conditions for employment. There is an inbuilt resistance within the economy to nominal reductions in prices and  1  See “Monetary policy in Sweden", Sveriges Riksbank (this document can be downloaded from the Riksbank’s website, www.riksbank.com, or ordered as a booklet). BIS Review 84/2006  1  wages and a certain measure of inflation can therefore make it easier to implement necessary changes in relative prices and wages.
In the rapidly growing Turkish economy, the ratio of current account deficit to gross national product became 6.4 percent in 2005. The rapid increase in the share of long-term capital inflows and direct investments in the financing of the current account deficit, which is expanding due to high growth rates, is deemed favorable for the sustainability of the deficit. As it is known, in parallel to changing interest rate policies of Bank of Japan, the Federal Reserve and the European Central Bank in recent periods, uncertainty about interest rates has increased globally, leading to capital outflows from emerging markets. Nevertheless, reinforced macroeconomic fundamentals, tight monetary and fiscal polices, the shock-absorbing function of the floating exchange rate regime, the reduced ratio of short-term foreign credits to international reserves and disciplined implementation of the current economic program minimize the adverse effects of outflows on the Turkish economy. 2  BIS Review 68/2006  The rapid rise in the consumption tendency despite the relatively low increase in disposable income increases the indebtedness of households. Therefore, close monitoring of likely risks for the household that may arise from the increasing demand for housing loans, which is still low compared to other countries, is of great importance. Indeed, as seen in (other) country experiences, asset prices can rise rapidly in periods of expansion to be followed by slumps in housing prices, which would simultaneously push down the value of the collateral for the financial sector and decrease household wealth.

c.  Highlights of development in delivery channels and payment system infrastructure  As banks serve various segments of the economy, it is important to widen the accessibility of e-payment services through various channels to cater to the needs of different consumer groups. The industry should continuously identify and address any gaps in the current e-payment infrastructure and services by improving their product offerings. For instance, building on the wider penetration of online banking services which now have a total of 17 million subscribers (of whom 7.5 million are active users), banks have also provided alternatives to consumers to conduct electronic funds transfers using either the Interbank GIRO (IBG) or the Instant Interbank Fund Transfer (IBFT) via 9,410 ATMs and 2,475 selfservice Internet kiosks nationwide. While the fees imposed for IBG and IBFT are differentiated, consumers are given choices that suit their preference. To promote infrastructure sharing and reduce cost and enhance online bill payment facilities in Malaysia, there is currently an ongoing industry initiative led by the Malaysian Electronic Clearing Corporation Sdn. Bhd. (or MyClear in short) to develop a national bill payment scheme known as JomPAY. JomPAY leverages on shared infrastructure to significantly expand the scope and utility of bill payment facilities. At present, customers can only use the online channel of a bank to make bill payments to merchants who maintain banking relationships with the same bank.
Figure 1a shows how labour force participation has increased steadily from around 71 per cent just after the financial crisis to more than 73 per cent today. This positive development can probably be explained in several ways. The high population growth, which is to some extent due to a high level of migration, could be one factor. A large proportion of the immigrants who have come to Sweden in recent years have been in the age range 25 to 54 years of age, which is a group with a high labour force participation rate. Another factor could be various economic policy reforms that have increased incentives to participate in the labour force. 4 [24]  Another less positive development is the deterioration in matching efficiency. This could be a sign that companies’ requirements and the job seekers’ abilities do not match – for instance because of structural change or deficiencies in the educational system – or because the search and recruitment processes have declined in quality. It therefore becomes more time-consuming and costly for companies to recruit staff. Matching efficiency fell heavily in connection with the financial crisis, see Figure 1b. 8 This need not necessarily be a problem. During economic downturns, some types of competence become outdated at the same time as other and new competences are in demand. For the individual, this can mean that some form of further education becomes necessary. The problem is that matching efficiency appears to have become entrenched at around the same levels as in 2010.

All in all, this recent recommandation from the Governing Council is testimony to its ability to smoothly adapt its internal governance to the challenges posed by enlargement. Strategy of the single monetary policy The Maastricht Treaty clearly defines the ultimate objective of the single monetary policy, that is to say maintaining price stability. However, for attaining this goal, it is essential to clearly define price stability: we define it as a year-on-year increase in the overall Harmonised Index of Consumer Prices (HICP) of below 2% in the whole euro area. Bearing in mind this objective, our monetary policy strategy is based on two “pillars”. We have first assigned a key role to the monetary aggregate M3. This “pillar” is based on a reference value which is set at 4.5% for the annual growth rate of the broad monetary aggregate M3. The concept of a reference value does not mean that the Eurosystem is committed to automatically correcting deviations in monetary growth in the short term. Naturally, we also follow the components and counterparts of M3 closely. In this regard, the development of loans to the private sector, as well as the evolution of government finance and capital flows with the rest of the world, deserve a particular attention. However, it is common sense to say that monetary developments do not account for all the risks to price stability.
Finally, the concerns of non-euro area Member States that the European Central Bank’s capital key would be used as a reference for raising fund contributions have been addressed by the decision to make them proportional to bank liabilities, less own funds and guaranteed deposits, which significantly reduces the participation costs of countries with relatively lower degrees of financial intermediation, such as Romania (34.8 percent of GDP in 2013) or even Poland (53.2 percent of GDP). Still, I think there is one particular issue where equal treatment of euro area and non-euro area members of the Banking Union is not ensured, namely the access to euro liquidity. Unlike euro area countries, which have access to financing from the European Central Bank, in non-euro countries liquidity will have to be provided by their respective central banks, including in euro. I believe there is a need to start discussions with the European Central Bank on short-term access to euro liquidity against non-euro collateral of appropriate quality for domesticallyowned credit institutions. Of course, I see this access as an emergency facility, which can be tapped only under severe or imminent stress to non-Eurozone host country financial stability. The issue is relevant for Central and Eastern European countries, among which Romania, where a significant degree of currency substitution in euro persists from before 2008 in terms of the stock of both loans and deposits (in Romania, more than 50 percent in the case of loans and 30 percent in the case of deposits).

I do think that the severity with which the crisis hit the European Union and the scramble for solutions that followed do not indicate that the European Union is an intrinsically flawed project, but rather an incomplete one. In other words, going only halfway does not pay off. Thank you for your attention. 6  BIS central bankers’ speeches
Thus, growing banking disintermediation might diminish the general effectiveness of such instruments, if other participants in the financial system, to which these tools were not applicable, were to engage in activities similar to those of banks. 5/7  To mitigate this risk, the forthcoming creation of a Spanish Macroprudential Authority will provide the appropriate forum in which all financial system supervisors may share their analysis of risks and coordinate the most suitable response, without leaving “gaps” that might restrict effectiveness Private risk mitigation measures in the Economic and Monetary Union In any event we should be mindful that, to ensure greater stability in European financial systems, it does not suffice to adopt measures at the national level; it is also necessary to push through a greater level of development and integration of European capital markets so that, in conjunction with the Banking Union, the risk-sharing and mitigation mechanisms at the level of the euro area as a whole are strengthened. In this connection, allow me to dwell on the importance of private risk mitigation measures. The crisis highlighted the scant power of these channels in the Economic and Monetary Union, compared with other monetary unions. It also became evident that these channels diminish, or even disappear, precisely when they are most needed. It is estimated that in the United States the cross-border ownership of capital across states enables 40% of the asymmetric shocks affecting a State to be diluted among the rest through private capital markets.

In combination with transparent processes, including recurrent evaluations by national parliaments or in other arenas, this could put pressure on politicians to act. Is the Stability and Growth Pact not sufficient in itself? After all, it is designed to ensure fiscal discipline in the member countries. The answer here is clear; it could have been had the Pact only been followed. But now the situation is different. As the Pact has not been followed by the larger euro countries, there is a risk that the newcomers will take the same attitude. However, this could be a dangerous conclusion. It would be wiser to look at the issue the other way round. Both Germany and France attained the 3 per cent mark for the public deficit criterion by the narrowest of margins despite what was a global upturn. But they clearly did not do enough afterwards in terms of consolidation, despite intense pressure from many of the smaller countries. Today, this is a significant problem not only for the euro area as a whole; the countries themselves are also paying the price in terms of a deeper and longer downturn. This, if anything, is a warning to new euro adopters. Conclusions Having raised these complex issues, let me be very clear about my sentiments. I do not wish to see any new obstacles or separate rules for the new member states; equal treatment is essential.