samchain/econo-pairs-v1 huggingface dataset:
Nor has there been reason to take any measures on the basis of our other task, safeguarding financial stability. Swedish banks are profitable and financially strong, and therefore have good opportunities to manage unexpected negative events. The role of central banks in times of financial turmoil The role of central banks is to safeguard economic stability. We can do this best by focussing on achieving our objectives, that is, price stability and financial stability. However, the recent developments in the financial markets have illustrated the importance of increased cooperation both with other Swedish financial authorities and among countries’ central banks. One important challenge is to manage financial crises which risk spreading across national borders. In December 2007 and March 2008 the Federal Reserve, the Bank of England and the ECB coordinated measures to meet the banks’ needs of short-term financing. The Riksbank expressed its support for this action, although we did not consider it necessary to take corresponding measures in the Swedish financial system. BIS Review 51/2008  7  It is not self-evident what the role of the central bank should be when uncertainty and financial turmoil create problems in certain parts of the financial markets. The fact that central banks take measures to ensure the targeted interest rate is at the right level may appear reasonable. Similarly, we can observe that several central banks see arguments in favour of also influencing interest rates with a slightly longer duration.

On the other, there remains the risk of a default in Greece having an impact on global financial markets and GDP growth in the Eurozone. While these are still significant risks, the ability of the larger  BIS central bankers’ speeches  3  central banks to handle these situations has improved, reducing to some extent the intensity of the negative impact of such events. This is not to say that there are no associated risks or that their persistence for so long would have lesser effects. A positive note is the more consolidated growth in the Eurozone, which has helped to configure a more balanced global economic scenario. In the emerging economies, there are still significant risks. While the risk of commodity prices dropping further seems to have eased, Latin American economies have been weaker for longer than expected. This has occurred in a context where the high fiscal and current account deficits persist in many economies, making the necessary adjustments expensive and difficult to implement. The risk of slower growth in China and its implications for the copper prices remains, although the Chinese authorities have given proof of their ability and desire to avoid abrupt corrections in their economy. Domestically, the economic recovery in the second half of the year should be accompanied by a significant improvement in confidence indicators, but so far it has not happened.
Under these new arrangements, the tax incentives aimed at deepening the securities market and encouraging investment in it are of two kinds: - Double taxation of dividends was prevented by raising the corporate income tax rate and making it the only tax on dividend income. In addition, the income tax rate for small shareholders was lowered. - For residents, capital gains on shares became exempt from taxation if the security was listed on an exchange. Capital gains from the sale of through licensed intermediaries were made tax free. Premiums from the issuance of stock are also tax free for stocks listed on a stock exchange that does not distribute dividends to shareholders. There are also tax facilities for government securities. Privatization is an important part of our modernisation and liberalisation effort. Turkey embarked on a privatization program in the 1980s. Turkey’s telecommunications and energy sectors are great targets for global partnership. Despite extensive exemptions from the program, by 1994 total proceeds derived from privatization since it began in 1986 had reached $ billion, which is not so bad. Moreover, 25 percent of this total came from sales on the Istanbul Stock Exchange. More than 60 percent of the sales were direct sales to domestic and international buyers. The main purpose of privatization is to get the government out of the business of business and increase the efficiency of the privatised enterprises.

In addition, the return of the Istanbul Stock Exchange, though volatile, increased substantially this year. Market volatility creates liquidity and great trading opportunities. When I talk about money markets I mean the Turkish lira money market and the foreign exchange cash and deposit market, open market operations, and government securities auction markets. These markets, which were introduced as a part of the financial sector reforms, have increased the effectiveness of the central bank’s control over the liquidity in the financial system, and increased the role of market mechanisms in money management. When market mechanisms began to play a larger part in the allocation of resources, the responsibilities and instruments of the central bank also changed, bringing the issue of central bank autonomy onto the agenda of the Turkish economy. Turkey now has a well established and efficient system of financial markets. The main obstacle at present to the functioning of the financial markets is our large public sector borrowing requirement, which crowds out other demands for financing. The inability of domestic resources to cover the financing needs of the public sector has kept real interest rates very high for over a decade. Bold privatization efforts, broadening the tax base, and reforming the social security system are the best ways to correct this situation, and I may say that they are all under way. Macroeconomic stability and political stability are the keys to achieving sustainable growth in a low inflation environment. BIS Review 42/1997
Personal Contract Purchase (PCP) plans accounted for one in five new car purchases in 2006. Now they finance almost four in five (Chart 13). At the aggregate level, PCP is the new cash purchase. The Financial Conduct Authority, which regulates car finance, has expressed its concerns about a lack of transparency, potential conflicts of interest and irresponsible lending in parts of the car finance industry. It will explore and address those practices. 9  The Bank of England’s role is to manage any risks to the wider economy from this growth. And those should be kept in perspective. On average, those taking out PCP plans tend to have higher incomes and more savings than the population as a whole. 70% of PCP borrowers have above average income (Chart 14). Arrears rates on banks’ car finance deals are lower than on other forms of consumer credit. Moreover, the true burden of car finance to households overall is much lower than it seems at first glance. 9  Financial Conduct Authority (2017) ‘Business Plan 2017/18’. https://www.fca.org.uk/publication/business-plans/business-plan-201718.pdf 10  All speeches are available online at www.bankofengland.co.uk/speeches  10  PCP plans commit the car buyer to around three years of fixed monthly payments with an option - not an obligation - to make a final balloon payment at the end of that period, to own the car outright (Chart 15). If those optional balloon payments are excluded, this car finance debt accounts for only 1.2% of aggregate household income.

Many countries, not least my own, have had bitter and expensive experiences from this. Of course, all countries have specific national features in their banking systems. The main risks are common all over the world, however, and the same challenges to supervision seem to appear everywhere. I will focus on some important issues seen from my perspective, which includes the experiences we gained during the Swedish banking crisis in the early nineties. Deregulation Why deregulate if the consequences may be so dangerous? The obvious answer is that regulations tend to create inefficiency and prevent the domestic banking system from developing in response to international competition. The long run cost to society of extensive regulations is a poorly functioning financial sector. While regulations are usually put in place to decrease systemic risk they may indeed in the long run do quite the opposite. Strong regulations mean that banks have low incentives to adopt good credit policies and risk management techniques. Supervision tends to be excessively formal, focusing on formalities rather than on actual risks. Nor are the regulations and techniques of supervision updated often enough to foster the development of new activities and management of risks. Regulations shelter the domestic banking industry from outside influence, which slowly tends to decrease efficiency and increase systemic risk. Furthermore, in a regulated environment the likelihood is large that some credits may be subsidised, perhaps even channelled to politically desirable rather than economically sound projects, leading to misallocation of resources.
13  The statement is available at http://www.bankofengland.co.uk/publications/Documents/news/2017/008.pdf. 10  All speeches are available online at www.bankofengland.co.uk/speeches  10  VII. Conclusion  The UK has been at the forefront of efforts to make the global financial system safer, simpler and fairer. Recognising our role as guardians of the leading international financial centre, we have gone further than these minimum global standards. These efforts ensure that the world’s largest international financial centre both protects and serves the UK economy. And they mean that others can rely on us as a pillar of strength for the international monetary and financial system. As the FPC has made clear, we won’t turn our backs on these hard won gains. There should be no bonfire of financial regulation. But we will be dynamic – learning by doing and making adjustments, as necessary, to optimise our efforts without compromising on the level of resilience the world’s leading international financial centre demands. We will ring fence our banks to protect the core retail financial services they provide to households and companies. We won’t allow undercapitalised, opaque financial institutions to operate freely within our borders. But, while we won’t hesitate to do what’s necessary to protect the UK real economy, we will also work tirelessly for a responsible and open financial system that benefits all. A decade of hard fought financial reform creates enormous opportunities. It is all too easy to give into protectionism, but the road less taken is often the most rewarding.

Prasarn Trairatvorakul: Global risks and the outlook for Thailand Address by Dr Prasarn Trairatvorakul, Governor of the Bank of Thailand, at the Fitch Ratings 100th Anniversary Conference, Bangkok, 27 September 2013. *  *  *  Distinguished speakers and panelists, Ladies and Gentlemen, I would like to thank Fitch Ratings (Thailand) for inviting me to give an opening address at this year’s annual conference. Much has changed both at home and abroad since I gave an opening address at this event two years ago. In retrospect, however, it is interesting to look back over the past two years and notice how most global risks we talked about – for instance, fiscal drag and political gridlock in the U.S., sovereign debt crisis in the Eurozone, among others – are still with us today. Most of the risks have reduced in terms of magnitude and urgency, but they certainly have not disappeared. In fact, each of them took turn to appear in the media spotlight and became an object of market’s obsession. Victor Hugo once said, “No army can withstand the strength of an idea whose time has come.” And that sounds fitting for today’s financial market, where obsession with one idea could have a far-reaching implication for so many countries, at once, in an invasive way that is hard to shield against. A. The state of indecisiveness that we live in  It has been almost six years since the beginning of the global financial crisis.
The strong public finances to start with have helped Sweden to pursue an expansionary fiscal policy during the crisis without putting the long-term sustainability of public finances at risk, and to keep interest rates down at German levels. (Slide: Government bond rates of different countries). Important to have a surplus over the economic cycle One of the reasons why public finances in Sweden are so strong is that after the crisis of the 1990s the government and parliament formulated a surplus target for the public sector. Public finances were to show a surplus of 2 per cent of GDP over an economic cycle. This was in line with the growth and stability pact in the EU, which among other things meant that public finances should be in balance in the medium term, or show a surplus. This target was changed to 1 per cent of GDP when the definition of general government net lending was changed in the National Accounts. During the ten-year period prior to the most recent crisis, the surplus averaged 1.4 per cent of GDP and it was possible to reduce the gross public debt by almost half in this period. BIS Review 56/2010  5  The framework for fiscal policy also includes another essential part, the expenditure ceiling that prescribes an upper limit in Swedish kronor for general government expenditure over the coming three years.

However, the aid measures promised so far have not succeeded in reassuring the markets. 3  See Reinhart and Rogoff (2010). BIS Review 56/2010  3  Several other countries also have serious problems with their public finances Other countries are also experiencing serious problems. Among the euro countries, apart from Greece, these are mainly Portugal, Italy, Ireland and Spain. Critical conditions for assessing how these countries shall attain a sustainable development of their public finances in the future are the current size of the public sector debt in relation to GDP, the credibility of their future fiscal policy and the conditions for growth in domestic and external demand. The larger a country’s debt in relation to its GDP, the greater its interest expenditure and the closer it is to an untenable situation. Among the countries I just mentioned, Italy has the largest burden of debt, with a gross public debt similar to that of Greece at just over 100 per cent of GDP. The other countries are not quite so vulnerable, but their debts are rising rapidly. (Slide: Gross public debt in Portugal, Ireland, Italy and Spain). The credibility of their future fiscal policy is a decisive factor, not least for the rate of interest they are forced to pay on their public debt. Here, earlier patterns of balance or deficit play an important role, as does, of course, the content of their fiscal policy consolidation programme.
Even where national authorities had been created, there was uncertainty over the right way to assess risks, which instruments to use and how to calibrate interventions. Moreover, there was a real risk of inaction bias since the costs of macroprudential policy are visible and are felt immediately, but the benefits accrue over time and are difficult to quantify.5 Given this somewhat tentative start for macroprudential policy in Europe, substantial progress 1/4  BIS central bankers' speeches  has been made over the past eight years. Macroprudential authorities now exist in all but one Member State. The gaps in our framework and knowledge have slowly been filled through research and experience. The ESRB has played an integral part in this process.6 The framework has also helped to counter the risk of inaction bias. National macroprudential authorities have mandates and legal tools to act. At the European level, the ESRB also holds a mandate to monitor risks and vulnerabilities and has a number of legal instruments at its disposal. It can, for example, issue warnings if it has identified a significant risk to financial stability, as well as recommendations setting out remedial steps to be taken on an act-or-explain basis. National authorities have certainly demonstrated their willingness to use the tools at their disposal. Most EU countries currently have at least one measure in place to address risks in the residential property sector and half have measures to tackle risks in commercial real estate.

The report will provide a helpful basis for each individual jurisdiction to analyse whether and how to extend domestic operating hours. It will indeed feed into the Bank’s own analysis of extended operating hours. I would encourage central banks to undertake self-assessments against both frameworks. If more firms can use payment systems and for longer, it could simplify payment processing, expand the global settlement window and increase opportunities for new entrants to stimulate innovation for the benefit of consumers and businesses around the world. The Road Ahead There are three key ingredients that if mixed together could help the global payments ecosystem move the dial on payments. First, an innovative and forward-looking fintech and financial sector. Second, resilient, accessible and functional public infrastructure creating a platform for coordinated innovation. Finally, international collaboration across the public and the private sectors to promote harmonisation and interoperability. The combination of the three can speed up our journey to a world where any customer wherever they are and whatever the size of 5/6  BIS central bankers' speeches  payment can transact quickly, cheaply and securely. I would like to thank Andrei Pustelnikov for his help in preparing these remarks. I would like to thank John Jackson, Andrew Bailey, Dave Ramsden, Megan Solomon, Paige Benattar, Jurin Ohyama, Sam Leighton, Anna Koch, Michaela Costello, Paul Bedford and Dovile Naktinyte for their helpful contributions and comments.
Encik Adnan Zaylani Mohamad Zahid: Distribution in a digital economy - Customer @ Core Keynote address by Mr Adnan Zaylani Mohamad Zahid, Assistant Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the General Insurance Agents Convention &quot;Distribution in a Digital Economy - Customer @ Core&quot;, Bangsar South City, 18 October 2018. * * * Let me first begin by thanking Persatuan Insurans Am Malaysia (PIAM) for hosting this convention and inviting me to deliver the keynote address. This is my first ever engagement with the general insurance agency force but also the insurance industry as a whole and I am very pleased to be here at this fittingly themed convention, “Distribution in a Digital Economy – Customer @ Core”. There is no question that we are now in an era of the Digital Economy. According to the World Bank there has been an accelerated growth of internet access of more than 170% in global accessibility in the past ten years. In 2006, only 17% of the world’s population was estimated to have an Internet connection – but now that number is 46% in 2016. During the same period, Malaysians with Internet access has increased from 52% to 79%, which is a very high number amongst many countries. With such widespread accessibility, a market presence on the Internet has never been more important.

Which brings me to my last point. III. Big data raise issues that cannot be solved in a national context but require a public  global reflection. Very large worldwide corporates are hugely leveraging on Big Data. Public authorities have to forge answers to concerns that may arise on an international level. Which themes should be addressed? I would like to propose a few leads. 4 1)  Data sharing has to be developed on a worldwide basis, as rightly underlined  by the IMF in the ‘Data Gaps Initiative’ that has been launched by the G20. In Europe, existing legal provisions that authorize data sharing between supervisors and central bankers could become more prescriptive and be more largely implemented in practice in all countries concerned. Data sharing between tax authorities and other public administrations should be facilitated, subject to the respect of individual privacy of course. 2)  Private innovation is fostering growth and is increasing economic efficiency. It  should therefore not be discouraged by disenabling regulations. At the same time, it would be beneficial to the economy in the long run, and to financial stability more specifically, that the global actors that handle enormous volumes of data on physical persons as well as on private entities, comply with 3 core principles: security, transparency, accountability. In a fully interconnected world, it cannot be effectively addressed at the country level. I therefore believe that it would be useful for the International Organizations to carry out a reflection and issue recommendations in this regard.
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.

Major banks and insurers are accelerating their digital transformation and ramping up hiring in application development, data science, and artificial intelligence. Example: OCBC Bank recently announced that it plans to hire 1,500 technology staff over the next 3 years, with the majority of those positions to be based in Singapore. Bank of America has based one of its two overseas global cyber security centres in Singapore. The bank currently has more than 800 headcounts in Singapore focusing on technology. Another example is Shanghai Pudong Development Bank, which set up its first overseas innovation centre in Singapore. Likewise, global insurers like SCOR have established innovation labs in Singapore. Local insurers have invested heavily in technology too. Singapore has made a name for itself as providing one of the world’s most conducive environments for financial innovation. We are now home to over 50 global and regional innovation labs and more than 1,400 FinTech firms. Last year, we saw record high FinTech investments of $ billion last year, up from $ billion in 2020 [2] . Leading players at the forefront of digital asset innovation have anchored their operations in Singapore. JP Morgan has partnered DBS Bank and Temasek to establish Partior, which is a multi-currency, cross-border settlement platform, leveraging blockchain technology. R3, a global distributed ledger technology provider with roots as a banking consortium, has grown its innovation hub in Singapore to become the regional headquarters for Asia.