samchain/econo-pairs-v1 huggingface dataset:
These new asset classes serve to reduce vulnerabilities and recycle some of the regional savings for the development of regional financial markets; ii. Putting in the necessary supporting infrastructure is critical to facilitate the development and readiness of our markets to accept multi-currencies. This is the basic idea behind the signing of the currency swap arrangements with the People’s Bank of China and Bank of Korea to promote greater usage of renminbi and korean won ; and iii. In December 2016, Bank Negara Malaysia signed Memorandum of Understanding (MoUs) with Bank Indonesia and Bank of Thailand to promote the settlement of bilateral trade and direct investment using domestic currencies. An established Operational Framework will pave the way for wider usage of local currencies in support of closer integration under the ASEAN economic community. 4/5  BIS central bankers' speeches  Conclusion, the need to re-engineer the international monetary system The current international monetary system needs to be re-engineered. Our past experiences have proven that the current system is unstable, prone to shocks and broken. Stakes in the international monetary system are far too high to be beholden to conventional thinking and status quo. Like Japan and its buildings, we must continue to find innovative ways to strengthen the structure of the international monetary system. Such re-engineering efforts may unseat us from our comfort zone. It will certainly invite resistance and may even cause some temporary disruptions. But standing still is the costliest option, as we would be stumbling from one crisis to another.

In recent years, however, this sort of consideration has not played such a prominent role. There are several interrelated explanations for this. Monetary policy thus far has been aimed to a great extent at establishing a regime of low inflation and engendering understanding for it. In practice, the scope is also limited for monetary policy decisions of a fine-tuning character by the uncertainty that prevails, inter alia, about future developments and by the degree of credibility for the low inflation policy. 2. Uncertainty and Credibility There are various kinds of uncertainty that in practice play an important part in monetary policy and are also important for the speed and scale with which changes in interest rates are made: - One type of uncertainty has to do with the economy’s basic mechanisms.. Which model of the economy shall we use for our analysis? A major problem here in recent years has been that the shift to low inflation and a flexible exchange rate by itself can change the relationships in the model. - A second type of uncertainty concerns the interpretation of new information that is constantly coming in. It is important in this connection to assess what effects an interference or a shock have, which, inter alia, is linked with whether it is permanent or temporary. - Finally there is uncertainty about the effect of the measures that the Riksbank can take--in practice, changes in the instrumental interest rates.
It also has involved cooperation in not only the areas of surveillance and harmonisation of rules and regulations, but also the assessment of risks to the region and the building of regional financial safety nets. Finally, allow me to say something about the current environment. While Asia has not been immune from the effects of the turbulence and upheavals taking place in the different parts of the world, the region has been able to demonstrate time and again the ability to manage a swift rebound. Factors that have contributed to this resilience is not so much what we have done in response to the development but it is what we have done previously that prepared us to manage these developments. We have been better able to absorb and intermediate the financial turmoil and turbulence, while the series of financial reforms we have implemented have also increased our flexibility and produced better price and exchange rate adjustments. This has been reinforced by our sound macroeconomic fundamentals and the policy space we have to manage the implications of these challenging developments. Looking ahead, there is much to be done by all of us. I have always said that the business of Central Banking is an unfinished business. There will always be new challenges on the horizon. In Asia, while we have successfully prepared ourselves for the current environment, we now need to prepare ourselves for the future.

It has been a great privilege for me to be part of this Central Bank community. 4  BIS central bankers’ speeches
But neither the markets nor the public was comfortable with the degree of secrecy on these matters in the past. •  It does, though, pose the question of what happens when a firm ‘fails’ a stress test. And at this point, I need to broaden these remarks to the international scene and how that is affecting our relationships with business. Part 3: Policy in a global setting •  This country believes in free trade and open financial markets. Our financial system is highly integrated with the global system. •  That means that some firms domiciled or operating in the UK are global, and many are international. Creates a huge need for a level playing-field internationally. That is a common interest of business and the authorities:  •  Business: want to be able to compete more or less anywhere on equal terms with local, indigenous firms and with international firms from other countries. •  Authorities: want good standards on top of that. Not only because we need them at home. The UK/London needs good standards abroad too: problems in the international financial system almost anywhere in the world will blow through London and the UK to a greater or lesser extent. And vice versa. Financially, we’re the opposite of an island. •  Up to a point we can mitigate that by measures such as HMG’s planned ‘ring fencing’ of retail banks, which has the effect of separating domestic intermediation from the entrepôt. But the non-ring-fenced banks matter for stability too!

Adnan Zaylani Mohamad Zahid: Sustainability and the challenges ahead Speech by Mr Adnan Zaylani Mohamad Zahid, Assistant Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the IFN Green and Sustainable Finance Forum, Kuala Lumpur, 3 December 2019. * * * It is a pleasure to be here this afternoon. I would like to thank the organisers for once again inviting me to speak at their conference. I hope that I can further add to the valuable discourse that undoubtedly takes place at such events. We must now acknowledge, that the sustainability agenda has gained increasing importance and a momentum of its own. Everywhere, there is a sense of urgency and call for action. Consumers are making their purchasing decisions with the environment in mind. Investors and shareholders are making demands for their companies and corporations to adopt environmental, social and governance or ESG standards. Corporate managers, emboldened with such mandates by their shareholders are reshaping their organisations into new corporate citizens, responsible, responsive and socially aware. Governments are certainly not left behind. Globally, societies are seeking ways to create sustainable solutions for their communities. Achieving the sustainability goals will not be an easy journey. The global environment itself is more challenging than before with increasing volatilities and uncertainties arising from the global trade war, geopolitical developments and a multitude of factors. Many of these could derail or delay our efforts. How do we then stay on course to keep sustainability and responsible finance a prime focus of business in the financial sector?
Thus, capital requirements would rise in expansionary phases of the credit cycle and fall in recessionary periods, using a series of benchmark financial cycle indicators. In fact, this tool is known as the “countercyclical capital buffer” (CCyB) and, as with the other two I will now describe, it was introduced into Spanish banking regulations further to the transposition of the European capital requirements legislation which, in turn, is the application of the Basel III Accord in the EU. The tools designed to address the cross-sectional dimension of systemic risk are more geared to last over time, whereby they tend to be more stable throughout the financial cycle. The first is the buffer for systemically important institutions (at the global or national level), which is applied exclusively to those banks previously identified as capable of destabilising the system if they run into financial problems. The greater aggregate risks associated with these institutions warrant demanding of them some extra protection against shocks.6 Systemic institutions are identified following standardised methods both globally and locally. Specifically, the FSB and the BCBS globally coordinate the exercise involving the definition of global systemically important institutions. This exercise uses a methodology based on weighted metrics of various bank variables, such as size, complexity, interconnectedness, ability to replace their activities and volume of cross-border activity. The Banco de España, meanwhile, annually conducts an exercise to identify systemically important institutions at the national level, using a standardised European methodology very similar to that used at the global level.

As I noted earlier, effectiveness of the domestic policy response tends to weaken when the challenge is of a global nature. A case in point is the current cycle of capital flows which, in essence, is a global phenomenon driven by exceptionally low interest rates in the major economies. Hence, policy response calibrated with domestic orientation may be of limited use if the problems at the source remain. This means that the thinking on policy needs to broaden to explore possible benefits of a closer coordination of policies between countries, especially when central banks face similar challenges of a global nature like capital flows. Such coordination will elevate central banks’ policy-making to a new level, commensurate with the new challenge posed by the post-crisis globalisation. 2  BIS Review 138/2010
Dimitar Radev: Crisis management framework in Bulgaria Summary of statement by Mr Dimitar Radev, Governor of the Bulgarian National Bank, at the annual meeting of governors and other central bank representatives from the countries of the Dutch-Belgian constituency of the IMF, organised by the National Bank of Belgium, Brussels, 24 February 2017. * * * The closure of the fourth largest bank in Bulgaria in 2014 put to the test the country’s financial stability. This incident revealed, among other things, serious limitations in our crisis management arrangements in the banking area and, more specifically, the lack of a proper institutional framework to deal with resolution of systemically important banks. Our policy response to the 2014 crisis was incorporated in an 18-month plan adopted in mid2015, defining concrete actions in three priority areas: An independent assessment of: (1) the banks in Bulgaria (through an AQR and stress tests that were completed in 2016), and (2) our crisis management framework (through a still ongoing financial sector assessment, FSAP, by the International Monetary Fund and the World Bank); A comprehensive reform of the Central Bank’s banking supervision and regulation framework and practices, based on the Basel Core Principles (BCP); Introducing the BNB’s new bank resolution functions compliant with the European Bank Recovery and Resolution Directive (BRRD). The implementation of the plan helped build sound foundations for our crisis management framework.

First, in the area of monitoring and assessing risks to financial stability, central banks can benefit from extended access to supervisory information and intelligence to better understand risks and vulnerabilities for the financial system as a whole. At the same, there is clearly the issue, of how to translate the outcome of the financial stability assessment into supervisory action. In principle one cannot but agree that there should be a way through which, if the central bank identifies serious risks to financial stability, the competent supervisor should be able to act. Therefore, communication needs to go both ways: from the central bank to supervisors and vice versa within the respective legal framework. Second, in the area of liquidity, there is clearly room for a closer interplay between the two authorities. Central banks would benefit from enhanced access to supervisory information and intelligence for its role of maintaining stable money markets. To that end for instance access to information on banks’ liquidity contingency planning funds would be useful. At the same time, supervisors would benefit from information available at central banks stemming from their role in the money markets. Third, in the area of crisis management and resolution, depending on the nature and feature of the crisis, there is a need for close interaction between the two authorities. Provision of Emergency Liquidity Assistance is a clear point in case where central banks need supervisory information for decision-making.
If the financial infrastructure does not function, payments and securities transactions cannot be made, which would bring the economy more or less to a halt. It would also prevent the Riksbank’s interest rate from exerting an impact on the economy. This means that the financial infrastructure and the ongoing changes in securities markets are relevant for the Riksbank’s two primary functions, namely to safeguard both financial stability and price stability. It is therefore important that we closely follow developments in these respects. Increased integration As many of you are already aware, major changes are currently in progress in the securities markets and the financial infrastructure. In recent years we have seen a number of tendencies whereby trading in financial instruments is becoming more integrated. Such tendencies have also been evident recently in clearing and settlement – the processing of securities transactions that follows the trade as such. 1 In a world conditioned by further globalisation, increased competition and advances in technology, companies use mergers and acquisitions to adjust. In the field of financial instruments, the creation of NASDAQ OMX Group in February 2008 has strengthened the links between Nordic, Baltic and American exchanges. The driving force behind this merger is primarily economic in that it confers considerable economies of scale. 1  Clearing involves balancing mutual claims and liabilities. Settlement involves the transfer of money and securities between transacting parties. BIS Review 153/2008  1  The changes in securities markets are also connected with regulations.

Besides these measures, aimed at getting the credit market to function more efficiently, the Riksbank has taken more conventional monetary policy measures. The repo rate has been lowered during the autumn by a total of one percentage point – starting with 0.5 percentage points on 8 October in a joint action with the Federal Reserve, the Bank of England, the ECB, the Swiss National Bank and the Bank of Canada, followed by another 0.5 percentage points on 22 October. The purpose of these interest rate cuts was to mitigate the ongoing financial crisis’ effects on output and employment in Sweden while continuing to target 2 per cent inflation. With the autumn’s serious disruptions to financial markets, however, we probably should not expect that policy rate adjustments will have the usual effects. The adjustments have not affected market interest rates in the same way as they do under normal circumstances. 9  ”Policy rate setting and the monetary policy steering system”, speech by Riksbank Governor Stefan Ingves at Handelsbank, 28 April 2008. BIS Review 153/2008  7  Conclusion Let me now conclude. Major changes are in progress in the securities markets and in the financial infrastructure. The systems for securities transactions in the Swedish financial infrastructure are becoming increasingly integrated with systems abroad. This places new demands on cross-border cooperation. Two problems to do with the infrastructure have, moreover, come to the fore this autumn: counterparty risks and insufficient market transparency.
There has been unrest in the financial markets, particularly in recent months, and there have been signs of weaker economic growth in the United States and the euro area, among others (slide 10). But at the same time we are now expecting slightly higher growth in other parts of the world, including Asia and eastern Europe. Our view of growth in the world economy is therefore only marginally changed. Nevertheless, our assessment is that the slowdown in among others the United States, together with the unrest in the financial markets will slow down economic developments in Sweden somewhat. I would therefore like to take the opportunity to say a few words about this, as it has received so much attention in recent months. The financial unrest and how it affects the Swedish economy The weaker growth in the United States and the anxiety that has arisen in the financial markets is largely linked to the problems in the US housing and mortgage markets. This concerns above all the market for sub-prime loans. These are, somewhat simplified, loans to households that do not have sufficient credit rating to be granted a normal mortgage. During the summer there were signs that all was not well. The number of households experiencing difficulties in paying their mortgages had gradually increased. The unrest intensified when it was revealed that several financial institutions had made substantial losses related to the sub-prime market.

Programme, which focuses on specific life events targeting identified groups such as young adults, low income households and public sector officials. For example, one specific programme which was launched last month in collaboration with the Government  2  BIS central bankers’ speeches  aims to reach out to 120,000 individuals from low income households by 2015. The Central Bank also has a customer service centre for the general public to walk-in or call-in if they have inquiries, or need to print their credit report. The CCRIS kiosks use bio-metric identification embedded within the national Identification Card, and the report is produced in less than a minute without any charge. I believe that a holistic approach, combining credit information infrastructure with appropriate financial education interventions and avenues of outreach to consumers, will lead to more prudent financial management behaviours. I would like to take this opportunity to thank the International Finance Corporation for its leadership in the area of credit information reporting, and look forward to continuing to build on our long working relationship. I trust that we will have a productive exchange of ideas to further enhance the roles of credit reporting agencies in the area of risk management and to advance the credit reporting industry as a whole. On that note, I wish you a successful and productive programme, and a pleasant stay in Kuala Lumpur. BIS central bankers’ speeches  3
And now, in Iceland, financial supervision and other central bank activities have joined forces again, after a separation of 22 years. Now we have a single institution that is responsible for financial stability and has information on the financial system and developments in systemic risk within that system. The reunified Central Bank has far more explicit authorisations to intervene when events warrant it. It now has to power to affect the behaviour of financial institutions and market agents for the better. Unfortunately, the Icelandic language, rich though it is, still lacks a good enough translation of the English word “prudence”, which encompasses all that we hope to elicit in supervised financial market entities’ behaviour. We need a word that captures the concepts of foresight and thrift. I would like to reiterate what my predecessors said in the aforementioned letter to the Minister of Commerce: Supervision is a normal and appropriate part of the Central Bank’s activities. This supervisory role benefits just as much from its partnership with the Central Bank as various other Bank activities do from partnering with banking supervision. We have seen this in action. The year or so since the merger took effect has been a busy one, but it has proven the value of joining forces – in case anyone was in doubt before. For example, the integration of data and intelligence has been demonstrably beneficial during the pandemic, allowing increased oversight, improved analysis, and harmonised responses.

The senior management of the Central Bank protested vehemently against the separation, and I would like to quote from a letter on the topic, sent by the Board of Governors to the then Minister of Commerce in early 1998: “The Board of Governors is of the opinion that there are overwhelming arguments in favour of the Central Bank’s continued supervision of the activities of deposit institutions, other credit institutions, and securities market entities. The Board of Governors wishes to emphasise in particular that such supervision is a normal and appropriate part of the Central Bank’s activities. This supervisory role benefits just as much from its partnership with the Central Bank as various other Bank activities do from partnering with banking supervision.” If there is any single factor that foreign experts have identified as the main cause of the 2008 financial crisis, it is the fact that responsibility for and supervision of the financial system were spread across a large number of ministries and institutions, with the result that no single party had an all-encompassing overview, no single party was actually accountable, no single party had adequate power, and no single party had enough muscle to intervene. Actually, in other countries where financial supervision had previously been hived off from the central bank, the two functions were reunited after the 2008 crisis. The Ministry of Commerce was united with the Ministry of Finance for the same reason: to enhance the punching power of financial and economic administration.