samchain/econo-pairs-v1 huggingface dataset:
Chart 9  Liquidity-providing operations lei billion, stock, daily averages  18 16 14 12 10 8 6 4 2 0  liquidity-providing operations (repos and swaps)  Sep.09  Aug.09  Jul.09  Jun.09  May.09  Apr.09  Mar.09  Feb.09  Jan.09  Dec.08  Nov.08  Oct.08  lending facility  Source: National Bank of Romania  Therefore, it may be asserted that foreign exchange market interventions proved useful not only in keeping the exchange rate within a range consistent with macroeconomic fundamentals, but also in ensuring optimal money market liquidity management. The National Bank of Romania was not the only central bank to opt for the managed float of the domestic currency. As regards forex market intervention as part of the instrument array used by central banks all over the world, it is noteworthy that the relevance of this tool increased after the onset of the financial turmoil. Central banks in Central and Eastern European countries that have in place a flexible exchange rate system (the Czech Republic, Poland, Romania and Hungary) issued in February 2009 a joint statement whereby they openly declared themselves against an excessive depreciation of local currencies which could not be substantiated by economic fundamentals and could produce a destabilisation, committing themselves to move towards fighting such a depreciation. The exchange rate developments of the said countries’ currencies are presented in Figure II.

It is up to policy-makers to draft policy measures during such an episode in order to influence both the level where a U-turn occurs and the slopes following the end of an episode of sizeable capital inflows. I will show in the following section that the policies envisaged by the arrangement Romania signed with the EU and the IMF are aimed at smoothing out the slope of the trends of the abovementioned indicators so that the necessary adjustments unwind at a reasonable pace, without destabilising the economy. BIS Review 5/2010  5  3. Case study – Romania  3.1. The period of massive capital inflows  Foreign capital inflows in Romania have picked up since 2004. The current account deficit widened from 8.4 percent of GDP in 2004 to 13.5 percent of GDP in 2007 and to 12.3 percent of GDP in 2008. The medium- and long-term external debt of the private sector posted an almost twofold increase (Chart 1), from 12.9 percent of GDP in 2004 to 25.6 percent of GDP in 2008.
But, rightly or wrongly, the impression from afar is that Euroland is some way from possessing these necessary elements of structural flexibility. Consequently, there is concern whether intra-Euroland adjustment between disparate regions, when the exchange rate is no longer an  3  BIS Review 23/2000  instrument and fiscal policy is supposedly constrained by Treaty criteria, will prove to be too painful for some. There are other structural features of Euroland, which also cause some concern to observers from my side of the world. These include high taxation, stringent regulation and cosy corporate governance characterised by the equity of major businesses being closely held by friendly groups of long-term investors, including one’s bankers and associate companies - or Euroland’s version of the crony capitalism for which parts of Asia have been so severely rebuked. From bitter experience, I know as well as you do that the media tend to exaggerate the negative and overlook the positive. The vision of Euroland which may consequently predominate in the sub-conscious of Asian readers might include such things as French truckdrivers blockading autoroutes; German resistance to foreign takeovers; relatively high taxes and a heavy burden of social security contributions; and statutory ceilings on the number of hours employees may work. But let me refrain from venturing too far and turn to the financial system of Euroland. The perception is that it is dominated by the banking sector, which is in turn dominated by a handful of huge traditional commercial banks.

It left the punch bowl on the table and said “let’s party” ... Trichet: As regards the punch bowl, you are quoting William McChesney Martin, a previous Chairman of the Federal Reserve! Again, let me say that we are united in purpose. As regards the ECB, the very solid anchoring of inflation expectations is a major asset in all circumstances. FOCUS: However, you do sometimes make comments about the US Federal Reserve. When its Chairman, Ben Bernanke, was chosen as Time magazine’s Person of the Year, you commended him, saying that he had done extraordinary things under extraordinary circumstances. Were they also the right things? Trichet: When the financial crisis intensified in 2008, the ECB and the Federal Reserve cooperated closely, together with other central banks, including through swap agreements. We ourselves supplied US dollars on this side of the Atlantic as part of this very close cooperation. 2  BIS Review 7/2010  FOCUS: How important is it, in such dramatic situations, that the ECB is able to act independently of politics? Trichet: This is crucial. The European Central Bank is totally independent. This is guaranteed for us by an international treaty. It is essential for the confidence of our fellow citizens, economic agents and market participants. And “confidence” is the key word at the moment. FOCUS: Do you consider this independence to be a great advantage? The Chairman of the Federal Reserve was appointed by the President – and the Senate is currently deciding whether Ben Bernanke can have a second term in office.
In this particular case, there are tremendous competitive advantages to be reaped from the global experience and expertise of the Tokio-Marine Group, combined with an intimate knowledge of the Malaysian market derived from Asia Life’s long-standing presence in the domestic market. With Tokio Marine’s presence in all three life, general and takaful sectors, the Tokio Marine-Asia Group alliance in Malaysia is also well-positioned to take full advantage of cross-sector synergies to effectively implement strategies that are responsive to the changing market conditions and consumer demands. Let me, therefore, congratulate all of you who are part of this exciting transformation. Ladies and gentlemen, The life insurance industry in Malaysia continues to face exciting opportunities as well as challenges. As some of you may be aware, an important long-term economic issue which we are now grappling with concerns pension reforms which are aimed at ensuring adequate financial provisions for the ageing population during their retirement years. Malaysians today live longer and have fewer children. By the year 2020, the percentage of the population above the age of 60 years is estimated to more than double to 16% of the population, from only 7% in 2000. The demographic changes also have significant implications for healthcare financing. With the ageing population and medical inflation, total expenditure on healthcare has continued on an increasing trend. A large proportion of that is borne directly “out-of-pocket” by individuals, or by employers as part of employment benefits for staff.

In the bank’s drive for excellence and customer satisfaction, the Bank of Sierra Leone has continued and will continue to create the enabling environment for safe and sound banking. For instance, in collaboration with other stakeholders, the Bank of Sierra Leone is putting in place measures to implement all provisions of the Anti-Money Laundering Act so as to prevent money launderers using our financial system for their criminal activities. A recently concluded workshop organised by UNODC/GIABA//Bank of Sierra Leone succeeded in drafting a National Anti-Money Laundering Strategy with the aim of providing a framework for an Anti-Money Laundering regime that will ensure effective crime prevention and detection, and at the same time avoid creating excessive burden on the financial system and its users. The workshop attracted various stakeholders, including the Association of Commercial Bankers in Sierra Leone to which GTB is an active member. The Bank of Sierra Leone shall continue to maintain the open door policy and encourage dialogue in the process of ensuring a sound and stable financial system. BIS Review 79/2006  1  Mr Chairman, Distinguished Ladies and Gentlemen, allow me to close this brief remarks by once again congratulating the Board, Management and staff of the Guaranty Trust Bank (SL) Limited for another step taken to enhance the public image of the bank. I thank you for your attention. 2  BIS Review 79/2006
Our contacts with investors and financial institutions in the Gulf region have also reinforced our belief in promoting the development of Islamic finance in Hong Kong. This has in fact been articulated as a key policy initiative set out by the Chief Executive of the Hong Kong Special Administration Region in his 2007 Policy Address. In other words, it is now official Government policy to develop Islamic finance in Hong Kong and our commitment to this is beyond doubt. Being a major international financial centre in Asia, Hong Kong should seek to become an important player in the booming Islamic finance arena by providing a platform for Middle East  BIS Review 59/2008  1  investors to access investment opportunities in the Asia Pacific region. Hong Kong can also leverage on its experience, innovation and market diversification to serve as a capital-raising centre for Middle Eastern issuers to tap the funds made available by the high savings rate in Mainland China. Some people have expressed scepticism about how Hong Kong could play a role in these segments of the market. But market players in Hong Kong have answered this scepticism by quickly introducing our first Shariah-compliant product. In late 2007, we witnessed the first Islamic fund introduced by a local bank in Hong Kong. The fund is an index-tracking fund which tracks the performance of the Dow Jones Islamic Market China/Hong Kong Titans Index.

Such investments can be found in the emerging markets of Asia, especially in China. Although the dynamics are somewhat different in China, its tale of economic growth is as legendary as that of the Middle East. China has experienced a huge inflow of funds in search of growth opportunities and at the same time the Mainland authorities have been gradually opening up the country’s outward investment. As a Special Administrative Region of China, Hong Kong plays a pivotal role as the IFC of China in the course of financial liberalisation. Not only has it acted as a conduit for Mainland companies accessing international markets through IPOs, but also one of the largest sources of foreign direct investments for Mainland China. With the continuing financial liberalisation on the Mainland, Hong Kong is positioned as the most attractive destination both for investing into China and tapping China's funds. What are the challenges for us? Opportunities aside, we are of course aware that Hong Kong also faces challenges in developing Islamic finance. It is a fact that Hong Kong’s Islamic community is not big, but we are confident that the development of Shariah-compliant financial markets can take off even in environments in which the domestic Islamic community is relatively small, simply for the fact that investors nowadays are looking beyond domestic boundaries and traditional finances as financial activities gravitate towards the Middle East and China. Indeed Hong Kong’s relatively small population does not seem to undermine in any way our performance in the conventional financial and capital markets.
The shape of things to come: innovation in payments and money − speech by Sir Jon Cunliffe Given at Innovate Finance Global Summit, London  Published on 17 April 2023  In his speech, Jon Cunliffe looks at four areas where the tokenisation of money is now being explored. The first is stablecoins used for payments, the second is the tokenisation of commercial bank deposits, the third is the next stage of the Bank of England’s work on issuing a Digital Pound and the last is the Bank’s work to ensure to ensure these new forms of money are robust and uniform. Speech Thank you for inviting me here today to talk about the ‘shape of things to come’. I want to concentrate my remarks today on payments and money – how we pay for things and what type of money we use. These once dusty and forgotten corners of the financial system have been transformed in recent years. And there are good reasons to believe that even more radical change is on the horizon. I will talk today about developments within in the UK, but much of the trends and the possibility of further technological advances that I will cover are relevant for cross-border payments which have lagged far behind the developments we have seen in recent years in domestic payment systems. And which merits a speech all of its own. I should start however with a health warning. Central bankers are very used to forecasting the economic future.

I can report informally that I personally am highly satisfied with the progress that the joint Basel Committee and IOSCO working groups have achieved to date, which reflects in no small way the cooperation of the industry in preparing data and responses for the discussions. I expect that the Committee will release a proposal for a six-week period of public comment next month such that the proposals can be released in final form this summer. However, intensive work will continue prior to the discussions at the meetings of the Basel Committee and IOSCO’s Technical Steering Committee toward the end of March and the beginning of April. So I cannot yet comment on the solutions that may be proposed or approved by the Committee and IOSCO. I can tell you that we set, as a guiding principle, a goal to apply Basel II to these exposures in a manner that reflects as best as possible sound practices already in use when those practices appeared to be both prudent and broadly acceptable to many kinds of banks and markets. Some industry representatives have raised concerns that finding ways to apply Basel II to trading book exposures might lead to a revision of the existing “Market Risk Amendment” to the capital framework that was approved in 1995. Understandably, those industry representatives expressed concern that this might disrupt banks’ efforts to prepare for Basel II, which addresses mainly credit and operational risk.
Such an approach is key in ensuring that no single tool is overburdened. Reawakening growth, reigniting productivity and restoring inclusiveness Before I conclude, let me suggest how we can successfully navigate this global landscape with contradictory forces held in tension. I have no precise answer. But I will highlight three important outcomes that need to be achieved jointly in order to secure continued and sustainable progress in the global economy. First, is the need to reawaken growth. Having had sub-par growth for nearly a decade now, policy-makers need to relook what we have learnt and rethink our approaches; from fiscal to monetary policies and structural issues that need to be addressed, to enable us to remove any impediments to growth. We need to enact policies that enable the private-sector to revive their dynamism and explore new strategies to enable them to engage and uncover productive investment opportunities. The second is to reignite productivity. To this end, just as how technology and globalisation has resulted in many of the paradoxes outlined earlier, it is also an avenue that could provide answers to our challenges. Policy-makers and the private sector need to automate and adopt technology to increase productivity and dispense the easy way out of depending on low cost labour model for competitiveness. Third, and perhaps the most important of all – to restore inclusiveness.

However when the acquisition of high yielding assets is funded from short term sources, the financial institution is not only exposed to losses on the asset side but also to adverse changes in funding costs. In such a situation, the Central Bank finds itself in a position where it is more exposed to losses on collateral. Whereas the Central Bank will be constantly prepared to provide the necessary liquidity to the banking system to perform its intermediation role, the Central Bank expects that credit institutions will be looking primarily to the market for their funding requirements. Among the many lessons that may be drawn from the experience of the international financial turmoil, one that stands out is the importance for each banking institution to keep a prudent mix of dependable sources of funding, to limit the level of financial leverage and to maintain a sound balance sheet. The merits of traditional banking practices are echoed in the recent remark by the German Finance Minister. He said, “I believe it is in the interest of the financial sector itself that it should concentrate more on its proper role of financing the real economy, and ensuring that  6  BIS central bankers’ speeches  capital is allocated in the most intelligent way, instead of banks conducting the bulk of their trading on their own account”. Such considerations provide the foundations for drawing the desired roadmap for the future evolution and growth of Malta’s domestic banking sector and the preservation of financial stability.
In that case, loyalty to a network of professional contacts was a powerful incentive to commit fraud. I am lucky to have had a very different experience at the New York Fed. I oversee a staff of legal, compliance, and law enforcement professionals who appreciate their paychecks but, in all candor, are not in it for the money—or, at least, not entirely in it for the money. What matters to them is the Federal Reserve’s public mission. A good way to encourage their best conduct is to acknowledge their contributions to that mission. But don’t take my word for it. A growing number of organizational experts and management consultants have concluded that job satisfaction and other intrinsic benefits matter as much if not more than extrinsic rewards, including pay. 7 This is not to say that incentive compensation is 3/7  BIS central bankers' speeches  weak tea. It is certainly a powerful motivator. My point is that, in your efforts to construct the most effective controls for your organization’s risks, consider both monetary and non-monetary incentives. Moral reasoning It is also important to promote moral reasoning. I know there’s a joke in there somewhere. After all, what is a lawyer doing talking about morality? And there is some tension in advocating moral judgment in a discussion about controls. Controls seek consistency and objectivity. Morality, by contrast, can be very personal or subjective. Controls often remove discretion. Moral reasoning is all about choice. But let’s be realistic.

Get creative It’s easy to say, in essence, “Don’t miss the forest for the trees.” Let’s acknowledge that the challenges you encounter in the first line of defense are a veritable thicket. To manage effectively the risks that your firms face requires intellectual agility and creativity. For now, I want to touch on a few considerations: diversity, choice architecture (especially incentives), and moral reasoning. These inputs can help you apply the three lines of defense model more effectively, especially in the face of rapid technological innovation. Diversity If you want to think nimbly, embrace diversity: the way we think, our backgrounds and areas of expertise, our experiences—including, but certainly not limited to, the ways that people treat us because of where we were born, our race, gender, pedigree, sexual orientation—and even our values. Diversity can help address the problem of silos that I described earlier. The problem with silos is not specialization, but blind spots. At the New York Fed, I don’t want economists making legal judgments, or lawyers performing economic analyses. But I very much want lawyers and economists to provide insights to each other based on their specialties. More generally, inviting outside views helps avoid common, human biases. 4 “Groupthink” is one well-documented bias. Another is the “endowment effect”—placing greater value on what one already has versus what one does not. What links these phenomena is an excessive preference for the status quo.
The European Commission's proposal (CRR3/CRD6) to finalise the implementation of these rules is a decisive and very balanced step forward. This balance must be preserved in the discussions that are underway in the Council and Parliament, and which will continue under the Czech Presidency. In this respect, I would like to mention two major challenges that you are familiar with. First, we continue to call for the implementation of an output floor at the highest level of consolidation within the European Union, which is the only level consistent with the spirit of the Banking Union, which is now almost complete. Second, we need targeted adjustments on critical and strategic exposures for the financing of the EU economy, but they must remain temporary in order to correspond to the spirit of the agreements. 3  In the current context, in addition to completing micro-prudential regulation, it is also desirable to maintain a comprehensive and consistent macro-prudential safety net to enable banks to absorb new shocks while continuing to provide essential services to the real economy. This takes several forms, ranging from countercyclical capital buffers, which the French macroprudential authority reset at 0.5% with a 12-month implementation deadline at its March meeting, to borrower-based measures.

After September, on the basis of its current assessment, the Governing Council expects that a gradual but sustained series of additional interest rate rises will be appropriate. Lastly, the reduction in the size of the Eurosystem's balance sheet will only be achieved at a later stage, probably when the need not only for normalisation but also for a tightening of monetary policy becomes apparent. As part of this gradual normalisation process, the ECB Governing Council has made it clear that it will not rule out any options, including acting against fragmentation within the euro area, and will maintain a gradual and flexible approach to conducting monetary policy. 2. Macro financial risks and outlook In this context marked by the rise in external shocks, strong uncertainty about the extent of their impact and their duration, and a change in the interest rate environment with the prospect of very low or even negative rates over a long period coming to an end, we can collectively rejoice in the fact that for more than two years the banking sector has been resilient; it has contributed to 2  mitigating shocks and not to amplifying them. This shock absorption capacity is an asset that must be maintained and even strengthened. This can be done through two channels: supervision and regulation. The macroeconomic risks and outlook in particular confirm the need to keep the monitoring of banks' credit and market risks high on the supervisory agenda of the ACPR and the Single Supervisory Mechanism (SSM).