samchain/econo-pairs-v1 huggingface dataset:
For example, should central banks more explicitly incorporate considerations of financial stability into their policies than they do today? If so, how? To what extent would the extension of their roles be compatible with their independence or even with their mandates to ensure price stability? 2  BIS central bankers’ speeches  The reform of the international monetary system will be the central theme of the last session that will take the form of a roundtable chaired by Martin Wolf. I am particularly grateful to Bill White for accepting the difficult task of drawing a summary of our symposium which is bound to be both dense and captivating. I would like to hand the floor to Axel Weber to chair the first session, and, once again, I would like to thank all the eminent personalities who have agreed to participate in this symposium. BIS central bankers’ speeches  3

Combatting fraud is a high priority for the Bank, and we will continue to work with the financial industry, Government agencies and law enforcement authorities to further improve banking and payment fraud incident response and recovery actions. Alongside these efforts, increasing digital and financial literacy will be extremely important to build and preserve confidence in the use of digital financial services. Learning how to use digital financial services safely is just one dimension. An important goal of improving digital financial literacy is also to help individuals make better use of digital financial services to improve their financial well-being. With an explosion of digital tools that can help individuals plan and manage their finances better, a much wider range of financial solutions, and easier access to financial advice - financial literacy, including digital financial literacy, is critical to help individuals navigate the complexity that comes with more choice. Faced with the same set of choices, individuals armed with the knowledge and skills to make good choices and good use of facilities available to them could significantly improve their standard of living, while others who make poor financial choices could be plunged into personal financial hardship. 15. The Financial Literacy Month this year aims to amplify the importance of digital financial literacy in helping Malaysians build financial resilience, and enable them to participate fully in the digital economy with confidence. Our efforts should reduce the digital divide, expand accessibility, and strengthen individual skills to manage money wisely. 16.
I urge you to be part of the conversation and engage in the dialogue. I pray that the event will be of great benefit to all participants. 3/3  BIS central bankers' speeches

Luis M Linde: Results of the comprehensive assessment of the euro area banking system Address by Mr Luis M Linde, Governor of the Bank of Spain, at the press conference presenting the results of the comprehensive assessment of the euro area banking system, Bank of Spain, Madrid, 26 October 2014. * 1. *  *  Introduction  We have called you here today on the occasion of the publication of the Comprehensive Assessment results for significant banks in the euro area, which has been conducted as a prior step to the start-up of the Single Supervisory Mechanism on 4 November. I believe the press conference and the material published by the ECB provide a rounded view of the overall results of the exercise. The aim of this conference is to offer you an analysis of the data from the standpoint of the Banco de España, and of the Spanish banking system. Two clear messages emerge from the information published today: Firstly, at European level, despite its great complexity, the exercise has unfolded successfully and has met its main objectives: to improve transparency regarding the situation of European banks, to identify potential weaknesses in their balance sheets and contribute to strengthening their solvency. Secondly, the outcome of the Comprehensive Assessment highlights the fact that the reform and restructuring of the Spanish banking system in recent years has borne fruit, and that Spanish banks now face the future with healthy balance sheets and a sound solvency position. 2.
In these situations it should of course be possible to use the monetary policy instruments to prevent a crisis.” (Government bill 1997/98:40 p. 54, my italics)  BIS central bankers’ speeches  7  In the present circumstances in Sweden I therefore see no clear signs of problems with financial stability, there is no lack of means to maintain financial stability and nor is there any reason to believe that higher policy rates would provide better outcomes for inflation and unemployment in the longer run. I shall elaborate further on this. Financial stability can be defined as a situation where the financial system is able to perform its most important functions – converting savings into funding, enabling risk management and mediating payments – and has sufficiently large resilience to shocks that may threaten these functions. Under normal circumstances, one can maintain financial stability with the aid of financial supervision and regulation and by publishing analyses and leading indicators, which can warn of threats to stability at an early stage. When it comes to financial stability, monetary policy should thus be the last line of defence, not the first. In Sweden, stricter capital requirements for the banks and minimum levels for liquidity measured by the Liquidity Coverage Ratio (LCR) and the share of stable funding measured by the Net Stable Funding Ratio (NSFR), according to the Basel III agreement and in accordance with the Riksbank’s recommendations in the latest Financial Stability Report (Sveriges Riksbank 2012a), provide better means to manage financial stability than the policy rate.

I would now like to discuss three questions in particular. The first is whether CSR is a stable concept or one that is still evolving? This concept broadly stems from that of sustainable development, which is defined as development that meets present needs without compromising the ability of future generations to meet their own. Its blueprint was set out at the 1992 UN Conference on Environment and Development in Rio de Janeiro (the first Earth Summit). It is based on the principle of development that is economically efficient, socially equitable and ecologically sustainable. CSR, whose initial objective was accountability, still largely appears to be an evolving paradigm closely linked to the current transition towards a new economic model. BIS Review 132/2008  1  In this respect, Rio brought to the fore the need for an ISO standard at the company level in order for companies themselves to take account of their impact and change their processes as part of a preventive approach. The UN addressed this dimension and brings together, under its aegis, the initiatives of the major companies that adhere to a relatively general charter. The Johannesburg World Summit on Sustainable Development (also known as Rio Plus 10 or the Second Earth Summit), largely focused on companies wishing to take centre stage in the protection of the planet and adopt a proactive role. The ethical dimension of CSR lends strength to the questions of stakeholders and employees as to how their funds are used.
There are also examples of situations where these objectives must be weighed against one another. In recent years, inflation has been low and stable in many countries while asset prices have risen sharply. There may be several reasons for this. First, a credible monetary policy will result in expectations of low inflation. Long-term implicit and explicit price and wage contracts based on low inflation in the period ahead may thus become more common. This would mean that it could take longer for increased demand to translate into higher inflation. Asset prices will not necessarily be constrained by expectations and may on the contrary react quickly to changes in the activity level. Second, periods of higher productivity growth may lay the basis for high corporate earnings, heightened optimism and reduced risk awareness. Productivity growth may also result in low inflation. Banks usually have low losses and solid profits and can increase lending without eroding their capital adequacy. Debt-financed investments may lead to a faster rise in house and property prices. Increased globalisation and changes in trading patterns may have similar effects. There seems to be broad agreement that extreme events that can threaten financial stability should be met with a resolute monetary policy response. For example, a number of countries initiated measures to ensure liquidity in the financial system after the terrorist attacks on 11 September 2001. This reduced the risk in the financial systems. There is less agreement, however, about how central banks should respond to financial imbalances that accumulate gradually.

I also call on banks to better monitor their pricing practices: margins must be sufficient to cover the costs and risks associated with housing loans. These points will be particularly closely monitored by the ACPR in 2020, and they are – I stress – of common interest to both you and us – in terms of financial stability. Lastly, to meet the challenge of profitability, French banks and insurers must be able to – at last! – operate in a genuine single financial market conducive to cross-border consolidation. And yet, the Banking Union is still half-finished: progress on resolution – second pillar – is at least as important as that on the deposit guarantee scheme – third pillar. Moreover, in the run-up to the arduous discussions on the future relationship with the United Kingdom, Europe must – more than ever before – assert its financial sovereignty. This requires the Capital Markets Union. I 2/3  BIS central bankers' speeches  would like to express my support for the priorities put forward in the “Next CMU” report and for the High-Level Forum (HLF) launched by the new Commission. If 2020 proves to be not only the year of Brexit, but also the year of a Savings and Sustainable Investment Union, Europe will have turned the problem into an opportunity.
In this regard, we have already implemented several measures, including removing the double-imposition of stamp duty for Shariah-compliant financing structures, and refining our rules to allow banks to offer Murabaha financing and deposits. As a further step, I am happy to announce that with effect from today, Singapore-based banks may enter into Murabaha interbank placements and offer Ijara Wa Igtina financing. These changes will enable the financial institutions offering Islamic finance a wider range of instruments in their management of liquidity and in their matching of assets and liabilities. These changes have been made after detailed consultation with the industry. MAS will continue to work closely with the industry to ensure that our regulatory and tax framework, and other necessary infrastructure and conditions are in place to foster good risk management and the further growth of Islamic Finance in Singapore. I announced at the World Islamic Banking Conference in Bahrain two months ago that we were in the final stages of setting up a facility to issue sukuk. Today’s signing ceremony marks a further milestone in our developmental efforts. With the help of our financial and legal advisers, the work on the legal structure has been completed. The sukuk, which is based on the Al-Ijarah structure, has been carefully studied by the eminent Shariah scholars advising the Islamic Bank of Asia and Standard Chartered Bank for its full compliance with Shariah principles. This sukuk is the Sharia-compliant equivalent of Singapore Government Securities (SGS), and is of the highest credit standing.

The sukuk will be given equal regulatory treatment as SGS, such as qualifying as an asset in the computation of capital and liquidity requirements, and as eligible collateral for tapping MAS' liquidity facility. The sukuk will be issued on a reverse-enquiry basis, based on the demand of financial institutions operating here. BIS Review 9/2009  1  MAS is committed to the facility, issuing to meet the needs of financial institutions that are carrying out or plan to carry out Shariah-compliant activities in Singapore, as this will strengthen their ability to meet their capital and liquidity requirements. This sukuk issuance facility underscores our strong commitment to the development of Islamic finance in Singapore. We invite eligible financial institutions to approach MAS to register their interest. I would like to place on record our appreciation to the Islamic Bank of Asia and Standard Chartered Bank, as well as Allen & Gledhill, which have been instrumental in creating this first sukuk to be issued by a Singapore statutory board. Thank you all for joining us this afternoon. 2  BIS Review 9/2009
Ladies and gentlemen, despite our economic stability and growing opportunity in the region, we do acknowledge a moderation in Thailand’s economic growth compared to the period before the Global Financial Crisis. During 2001 – 2007, the average growth rate was as high as 5.4 percent; we are now growing at a more moderate pace of around 3.0 - 3.5 percent on average. While part of the subdued growth can be attributed to external factors such as weak global demand, one cannot deny that longer term structural issues have also played a part in restraining Thailand’s competiveness, productivity, and potential growth. The government acknowledges these problems and has implemented many initiatives. You may have heard of Thailand’s efforts to promote digital economy, R&D, innovation, new s-curve as well as various investments in infrastructure projects, all of which are aimed at uplifting Thailand’s potential growth. But, one area that, in my view, is less frequently discussed is the implication of several new laws on the future of Thailand’s economic and business landscape. The discussion of these laws constitutes the second part of my talk. Ladies and gentlemen, in general, there are three main goals that policymakers want to achieve. First, we want to attain a high level of economic growth to raise standard of living. Second, the growth must be sustainable; there is no point to achieving high growth only to find oneself in a crisis at a later stage.

Meanwhile, the Bank had established a Board of Banking Supervision ‘to advise the Governor on supervisory matters and oversee the implementation of the (reformed) Banking Act’  28  and the supervisory  24  Hall, Maximilian, J.B. Handbook of Banking Regultation and Supervision, Hertfordshire, Woodhead Faulkner, 1993, p.75 Ibid, p.95 26 Kynaston, p.79 27 Hall, p.77 28 Ibid, p.23 25  8  All speeches are available online at www.bankofengland.co.uk/speeches  8  function was further expanded. And this brings me back to the collapse of Barings Bank in 1995, following which a report into the existing supervisory arrangements was commissioned from the (now also-collapsed) Arthur Andersen, which in 1996 set out recommendations to overhaul the Bank’s supervisory approach. What you can see in all this is that supervision is not a static game, and has to move with the times. But there are also some constants. In particular, although we have moved a very long way from the supervisory practices (and hairstyles, other than the resurgence of beards amongst male supervisors) of the 1970s, we have maintained the view of our predecessors that supervision cannot be a narrow, tick-box, compliance exercise, and that judgement plays a key role. Building society supervision  The merchant and trading banks of the City of London were no doubt significant in the world of wholesale international finance. But there was another group – the building societies – that served a critical function in servicing the UK economy, particularly retail customers.
The reason for this, as I said, is that in Sweden and abroad, it is at this maturity that a sufficient number of transactions are carried out. For the rate to be credible and representative, there needs to be a steady flow of enough transactions on which to base the calculation. The interbank rates can be developed at longer maturities even with a very limited transaction base, precisely because there is scope for the banks' own judgements – but this is also what makes them lacking in objectivity and easier to manipulate. Alternatives to longer-term interbank rates being developed In order to address this problem, central banks in several countries are now working to ensure that the new reference rates can also replace interbank rates in contracts with longer maturities. In principle, it is possible to create forward-looking rates based on traded derivative instruments with the new rates as a base. However, in most countries the derivative markets based on the new reference rates are not yet large enough to form the foundation for reliable forward-looking reference rates. A simpler way forward is to calculate backward-looking average rates based on the history of the transaction-based reference rate. The average rates then show the average return over a given period, including a compound interest effect, based on daily SWESTR values during the period. The central banks of the United Kingdom, Norway and the United States and the ECB have already begun to publish backward-looking average rates or indices that can be used in a similar manner.

One explanation could be that Swedish banks are just unusually well-capitalised. However, a quick look at the core capital ratios of European banks shows that Swedish banks instead have relatively low capital levels. The only possible remaining explanation is that Swedish banks are not as good at generating income from services other than lending. And right enough the results also reveal that Swedish banks’ non-interest income is among the lowest in Europe (see Figure 2). So what is a European bank investor’s assessment of Swedish banks? Judging by equity market prices there is some scepticism towards Swedish banks. As regards both valuations of their book capital – the price-to-book ratio – and P/E ratios, the Swedish bank shares are trading at a small, but nonetheless clear, discount in relation to the European banking sector. The possible reasons for such a valuation discount are either that the expected profitability is lower for Swedish banks or that they are judged to be riskier than their European counterparts. I think, though, that the latter hypothesis that Swedish banks are comparatively risky can be rejected – Swedish banks’ high credit ratings, low loan losses and stable earnings tend to suggest the opposite. In other words, it seems as if the equity market is sceptical because it judges Swedish banks’ potential for improvement or growth to be limited. The assessment of Swedish banks’ growth potential as limited has several possible explanations, which are more or less benevolent depending on whom you ask.
President Dudley: Let’s put it this way, if it did reach 30,000, I would be concerned about the stock market valuation. I think one of the things that’s interesting post the election is, I think the uncertainty level about policy has gone up enormously, yet markets have actually performed very well, especially the equity market. And that’s actually pretty unusual. Usually markets don’t like uncertainty. And so, one thing to ask yourself the question is, why are markets going up even though the uncertainty level has climbed so much? I think one of the reasons, perhaps, is the notion that political deadlock in Washington is going to ease. Another thing is maybe fiscal policy is going to ride in and provide some support for the economy. But it’s an unusual environment, where uncertainty level goes up and the stock market goes up. There’s a little tension there between those two things. Maureen O’Hara: The VIX which is – President Dudley: Well, that’s the other thing. Volatility in the market is extraordinarily low. So, that’s another thing that doesn’t quite fit. You would think if uncertainty was high, you’d have a little bit more volatility. If I was going to write something down as a prediction, I guess I would think volatility will go up. At some point. 3 / 13  BIS central bankers' speeches  Maureen O’Hara: Well, it is a confusing structure right now. I think it’s hard for anyone to kind of predict this economy. But that kind of makes it fun.

So we have two goals: employment and inflation. And if the world is a really good place, it maybe makes it a little easier to achieve those goals. And if the world is at a more difficult place, maybe it makes it a little harder to achieve those goals. But it doesn’t change our goals, and it doesn’t change our monetary policy mission. Maureen O’Hara: Let me turn that, our focus, just a tiny bit. You’ve been a leading critic of culture in the banking industry, and I kind of have a two-part question here. Do you think the era of bad behavior in banking is behind us? And here’s the second part of the question: some people would argue that the behavior wasn’t really that bad but instead the regulators… President Dudley: Who are those people? Maureen O’Hara: There was Elizabeth Warren, I’ll say that, I think she’s convinced. But some people would argue 6 / 13  BIS central bankers' speeches  that the regulators used the opportunity to extract excessive fines from banks for behavior that maybe wasn’t ideal but wasn’t so horrible. There’s two different perspectives. I think no matter how we look at it, some of the behavior of the banks was sort of unacceptable. Are we past that, do you think? President Dudley: Well, first thing I would say is a lot of the behavior was just totally egregious, totally unacceptable. Not in the gray area.