samchain/econo-pairs-v1 huggingface dataset:
When the National Bank intends to absorb more liquidity it could make the interest rate more attractive for the banks. But, if it considers that it should not sterilize such excess liquidity, it will make the interest rate less attractive or will restrict the amount allowed for the banks to subscribe. Distinguished ladies and gentlemen, At this very conference last year, I also said that the National Bank will not build its relations with the banks from the position of arrogance. Quite contrary, the banks are our partners. Therefore, the National Bank will keep on informing and consulting with the commercial banks about the regulatory measures. In this respect, presently we analyze the latest request of the Banking Association concerning the treatment of foreclosures and we will soon launch a dialogue to find solution in favor of the Macedonian economy. Hence, there should not be any doubt that in future the National Bank will “hear the voice” of the banks. But, also, it should be clear that the National Bank does not discuss the monetary policy measures with anybody, not even the banks, before it makes a decision to adopt them. They are at the absolute discretion of the National Bank. This is a worldwide practice. Neither the European Central Bank, nor the Czech Central Bank, nor any other central bank throughout the world consults or informs the commercial banks on the monetary policy measures before it makes the decision.

Concerning the overrating of Denar exchange rate, I have presented, on several occasions, data on Denar real effective exchange rate that indicate quite the opposite. On this occasion I will only refer to the market. It is the market that determines whether a commodity is overrated or not. Since the beginning of August last year, the National Bank has only once sold euros on the foreign exchange market in the amount of Euro 4.5 million, and has purchased euros, approximately twenty times, on the foreign exchange market in the amount of Euro 170 million. Even countries that apply floating exchange rate much frequently intervene by selling foreign currency on the foreign exchange market, in order to defend their currency. 2  BIS central bankers’ speeches  Distinguished ladies and gentlemen, Euro area debt crisis is our greatest challenge in the period ahead. Due to the large scale trade, the recession in the euro area which is very likely, has adverse effects on the real sector of our economy. In such circumstances, other than the maintenance of inflation rate at the level of the euro area, we will use the monetary policy together with the macro-prudential policies to preserve the balances in the external and the banking sector. In a medium run, the challenges of the banking sector again arise from the euro area, related to the implementation of Basel 3 standards. It is very likely that it will cause “deleveraging” in the European banks, hitting seriously the lending activity of banks in the South East Europe.
This will be made up of eight systems that enable real time payments in a safe, secure, reliable and efficient manner and are ready for FinTech deployment. Internally, we are re-engineering all processes in regulations to enhance data gathering and analysis, and fully digitizing processes in all supervisory functions. This will be a pre-requisite for our future implementation of artificial intelligence and SupTech. Central Bank of Kuwait - Public ‫ عام‬- ‫بنك الكويت المركزي‬  - 17 -  In addition, we are working on other initiatives such as the Open Banking Framework, which will provide clients with comprehensive information on their financial standing across multiple banks. We are also in the process of rolling out our E-KYC framework, which will allow anyone to open an account electronically, easily and efficiently. In 2014, Kuwait issued the Electronic Transaction Law, which provides the legal foundation for electronic payments and made digital signatures legally binding. In terms of collaboration, the CBK has undertaken a number of initiatives to increase cross-border cooperation with other regulators in the region. For example, we are working with more than 20 countries on developing the Arab Payment System, in addition to the GCC Real Time Gross Settlement System. In addition, the CBK is spearheading a GCC-wide cybersecurity framework to allow for seamless security information-sharing across the region, in order to safeguard GCC banking institutions and mitigate cyber threats.

Central Bank of Kuwait - Public ‫ عام‬- ‫بنك الكويت المركزي‬  - 16 -  But as the industry goes through its transformation, we the regulators must also consider how we should operate in the future. We need to take a proactive and dynamic approach to promote innovation, and act as a catalyst for the industry. We need to promote collaboration and share our experiences with each other to develop frameworks that will fit the needs of our societies. And we need to focus on capacity building to ensure that our staff can meet the future challenges of the industry. We at the CBK firmly believe in innovation, collaboration and capacity building; principles that are the driving force behind many of our recent initiatives to fulfil our role as an enabler and catalyst for the industry. In terms of innovation, the CBK is playing its part to support the banking industry. Last year, we launched our FinTech Regulatory Sandbox. Globally, 36 innovation labs and 48 regulatory sandboxes have already been introduced by different regulators. Regulators are using these tools to create a safe space for experimentation in innovative products and services, thus ensuring the safety and soundness of the financial system but without stifling innovation.16 We at the CBK are also preparing the infrastructure for future aspirations that would enable a truly digital economy. We are developing a state-of-the-art infrastructure project, the Kuwait National Payment System.
Furthermore, the SNB is obliged to give full account of its actions. This serves to make its decisions readily understandable for the general public, and to show whether and to what extent the targets have been met. The phrase ‘the overall interests of the country’ means that monetary policy is to be focused on the economy as a whole, rather than individual interests. It does not provide a basis for pursuing other objectives with monetary policy, even if the desired goals – as in the case of climate protection – are right and important for society. The SNB will remain committed to maintaining the current institutional framework in the future. Price stability is the most important contribution monetary policy can make with regard to growth and prosperity. This can also be seen in the current situation. High inflation has quickly pushed other important problems down the list of societal and political priorities. Ensuring price stability is thus also a prerequisite for successfully tackling other challenges facing society. Page 11/16  V. Concluding remarks The environment in which we conduct our monetary policy has changed. In recent years we have been concerned about inflation being too low; now we are concerned about it being too high. In this difficult and changing environment, a narrow mandate and a definition of price stability that anchors inflation expectations at a low level while at the same time allowing a certain amount of leeway with regard to the accepted level of inflation are important factors for a successful monetary policy.

So let me make it more real for you by giving some concrete examples of issues we have been working on in this broad area. As we mark today the 150th birthday of the BSA, an obvious place to start is the UK housing market. For deposit-takers including banks and building societies, this is the biggest single loan exposure, and it is also the biggest liability of UK households. And in insurance, firms are taking on more exposures to housing in response to the developing financial needs of consumers. So this will always be an important asset class for the PRA. But there are a number of areas to which we are paying particularly close attention currently. First, as all borrowers and lenders are well aware, we have seen something of a price war in the mortgage market over the last couple of years. This may be good news if you are, for instance, a young supervisor in the PRA looking to buy your first property. But it is less good news if you are a lender concentrated in mortgages, given the impact on net interest margins. The response of such lenders has been entirely unsurprising: a material move up the risk curve. You can see this absolutely clearly in several ways: a dramatic fall in spreads demanded over the risk-free-rate; a marked shift in the high-LTV share of new lending by building societies; and a significant increase in firms’ appetite for higher LTV and higher LTI lending (see Charts 1 to 4).
It would also render it more difficult to extend the lender of last resort function to its own credit institutions. •  Finally, the country would also lose seigniorage revenues. In short, unilateral euroisation is not a panacea. Its benefits are uncertain, whereas the costs are real, and the risks serious. In particular, it should be stressed that euroisation is not a “quick-fix” for structural problems or external pressures. Admittedly, euroisation would provide some shelter against adverse winds coming from the outside. In a way, the euro can be likened to the armours worn by knights during the Middle Ages. Of course, an armour provides a shield against external hits. However, an armour can also limit the freedom of action and restrain flexibility. It can give a false sense of security. The effects of euroisation are similar. It can attenuate external pressures in the short run. But it does not solve the problems underlying these external pressures. If no action is taken to solve these problems, the pressures will be building up. What about a partial euroisation sponsored by the private sector, as opposed to an official euroisation? I will not dwell much on this issue. Clearly, the potential benefits are more limited, whereas some of the costs may be less acute. Similar experiences with dollarisation in some countries show, however, that such a partial euroisation entails some serious risks for citizens, business, banks and the government alike. BIS Review 17/2008  5  Conclusion Let me conclude. 1.

The condition of the banks which perform the financial intermediation function is of key importance for the whole economy. This accounts for the Bulgarian National Bank’s enormous responsibility for the fulfilment of the mandate entrusted to us by law and specifically for maintaining the stability of the banking system. This requires that we stay traditionally focused on the high capital and liquidity requirements for banks. These requirements are not ends in themselves, but follow from the need for banks to have reserves at hand. On the one hand, the reserves allow them to absorb costs and losses arising from the worsened quality of assets in the adverse macroeconomic environment. On the other hand, they support banks’ lending capacity. Consequently, it is logical to expect that we would continue to apply the measures of the anticrisis package, approved in March this year. Furthermore, we analyse, on an ongoing basis, the situation, and as a macroprudential supervisory authority we consider the likely scenario of a worsening economic crisis and the related significant deterioration in loan portfolios. Under this scenario, banks may need to temporarily operate under the combined capital buffers requirement, being ready to draw up and implement plans for rebuilding them. The prospect of continuing negative developments in the economy is a reason for us to expect materialization of credit risk and deteriorated quality of assets on banks’ balance sheets. It seems very likely that the trend of decreasing amount and share of non-performing exposures, seen over the last few years, may reverse.
It should be emphasised that the impact of Asia’ s economic and financial integration, would extend beyond its own region to other parts of the world. Today, the economic and financial linkages between the emerging economies have gained significant traction and are likely to continue. All the issues that I had mentioned earlier would only be significantly realized if we have a seamless payment system that links markets as one. As part of our continuing journey in deepening and strengthening our financial markets in Asia and Malaysia in particular, Bank Negara Malaysia is pleased to be a party to the launching of the Pilot Platform for Cross-Border Investment and Settlement of Debt Securities, jointly with the Hong Kong Monetary Authority and Euroclear Bank. This initiative marks an important milestone in our vision towards deeper financial integration. The rollout of  BIS central bankers’ speeches  1  this platform will provide investors and market intermediaries with more efficient and cost-effective cross-border access to the bond markets in Hong Kong and Malaysia. Over the years, the bond market in Asia has expanded significantly. To date, Asia’ s share of the global bond market has increased by almost four-fold since the pre-Asian financial crisis. In tandem with the growth of the bond markets, the sukuk market in the region has also evolved as an important avenue for international fund raising and investment activities, generating significant cross-border flows. Malaysia has been an important part of this development with well developed bond and sukuk markets.

While these developments are likely to further reinforce the strong intra-regional trade and investment linkages that are already in place, a key aspect of the increased financial integration in Asia is the need for more efficient intermediation of funds within the region. This includes the mobilizing and channeling of some part of the sizeable savings in Asia to productive investments. The average savings rate in Asia is 35% of GDP and Asia as a group has a total of about USD5 trillion in foreign reserves. Even if we invest 1% of this amount, the impact would be significant. With further liberalisation of the financial sector and the capital account, and the increased linkages of the national payment systems in Asia, financial flows within the region is envisaged to increase. This trend is reinforced by the increased presence of regional institutions in the individual countries’ domestic financial systems and Asia’ s favourable economic prospects and the increasingly more developed and sophisticated financial markets. This region has already experienced an increase in intra-Asian financial flows. One should expect that given the uneven growth paths across economies in the next few years, issuances out of the emerging economies, in particular Asia, will also likely assume greater importance as an asset class. The greater variety of asset classes would contribute to the stability of the international financial system. It will also provide a wider range of options for investors and borrowers and thus, contribute to a more efficient allocation of financial resources across borders.
The most famous trading routes were the Silk Road and Spice Route, which served as major conduits for the flow of trade, people, ideas and religious beliefs between Asia and the Middle East. In the 14th Century, Muslim traders introduced Islam into Southeast Asia. This was three hundred years before Catholic missionaries brought Christianity. However, this flow ebbed some time in the last century or so. Due to colonialism and the Cold War, Asia and the Middle East lost their close contact with each other. Fortunately, recent global developments have re-ignited the mutual interest of countries in Asia and the Middle East in each other. The key factor is globalisation. Globalisation means that changes and events in one part of the world will impact on other parts quickly and in a variety of ways and across a broad range of areas. The international landscape post-September 11 world underscored this point dramatically. Asian countries recognise that the Middle East is an increasingly important part of the global strategic balance. Political developments in the Middle East will affect Asia, which is home to 60% of the world's Muslim population. Asian countries have therefore stepped up efforts to engage the Middle East and understand the region better. Plans by Middle Eastern countries to invest more than $ trillion in infrastructure and other developments mean plenty of opportunities for Asian countries to participate in the Middle East's growth. Happily, this interest is not one way. The Middle Eastern countries have also become more interested in Asia.

Japan is experiencing renewed vigour. Prospects for ASEAN on the whole are good, though there are occasional hiccups. Asia is integrating through trade, tourism, people-to-people exchanges, investment flows and production chains. If there are no mishaps, by 2050, half of humanity – the more than 3 billion people in Asia – will enjoy a standard of living which their grandparents did not even dream of. Naturally, Asia's growth trajectory will not be a straight line. Asia has its share of problems too – the North Korean nuclear issue, tensions across the Taiwan Straits, Kashmir and terrorism. But these issues can be and are being managed. Many countries in the Middle East are keen to engage Asia but I have been told that their businessmen are not so familiar with doing business in China and Southeast Asia. This is where Singapore can play a role. As a key financial and commercial hub, Singapore is well-positioned as a gateway for Middle East companies to expand in Asia. Middle Eastern investors can leverage on Singapore's networks and knowledge to venture into Asian markets. There is much that Asia and the Middle East can do together, as we embark on this journey of rediscovery. Although there are significant differences between Asia and the Middle East, we also share common interests and common challenges. We both want to reconcile tradition with modernity and change, to develop without losing our core values. Both Asia and the Middle East can profit by sharing experiences.
Because forefront technologies are based on the World Wide Web, central banks, supervisors and regulators will eventually need worldwide cooperation to ensure that their powers are still effective. Let’s take the example of crypto-assets. Everyone in France can bet their money in Bitcoin and the likes today (but think twice before doing so!). Yet, none of the Top 10 exchange platforms are located in France. This is the reason why back in February 2018 the Governor of the Banque de France and the French Minister of the Economy Bruno Le Maire, along with their German counterparts, asked that the issue be escalated to the G20 level. Thanks to this initiative, an international monitoring of the financial stability risks of crypto-assets is now in place and many initiatives are taken by international bodies to address the most pressing issues such as anti-money laundering, market integrity and consumer protection. (C) Finally, financial technologies should not only be seen as opportunities for the provision of new products and services or as a further threat to financial stability. Financial technologies can 4/6  BIS central bankers' speeches  also be an asset to enhance compliance with regulation or risk management practices: that’s what we call “Regtech”. They can also help the supervisor to perform its task more efficiently: we then speak about “Suptech” (supervisory technology). In both areas, the prospects are promising.

We very much recognize the potential risks involved and our utmost priority is to limit harmful second-round effects of this shock. In doing so, this should help to limit the impact on businesses. Apart from serving as an anchor for macroeconomic stability, the BOT can also work to promote Thailand’s competitiveness and adaptability. We will continue to pay particular attention to policies that facilitate businesses in adjusting to a competitive environment. For example, the BOT is formulating a Capital Account Liberalization Master Plan to enable more flexibility in managing cross-border investments and to achieve greater balance of capital flows. Foreign exchange regulations would also be streamlined to help reduce the cost for the private sector in cross-border transactions as well as to deepen and broaden domestic financial markets. More directly, the BOT can strive to enhance the effectiveness of the financial sector in serving as an efficient intermediary that is able to meet private sector demands at reasonable costs. Improvements can be achieved in four dimensions. First, encourage financial innovation and the expansion of available financial instruments. Second, broaden the choice available to firms and households in terms of financial services. Third, reduce the cost of these financial services. And lastly, improve access to them. The second Financial Master Plan is an example of BOT’s efforts aimed at pushing the financial sector in this direction. To conclude, I wish to reiterate that with its solid economic foundations, Thailand is poised for a strong recovery and is well-positioned to benefit from the rise of Asia.