samchain/econo-pairs-v1 huggingface dataset:
This would clarify the position of cash as legal tender. It is also important that the legislator takes a stance on the issue of what, in addition to cash, may comprise legal tender and how this relates to the Swedish krona as a currency. Legislation on legal tender should be as technologyneutral as possible so that it will also be applicable to future means of payment issued by the Riksbank. All in all, it would therefore be good if the means of payment issued by the Riksbank is given a stronger position in the future than it has at present. The e-krona will have only minor consequences for the banking system Some critics of central bank digital currencies claim that they create risks that affect the financial system. Some are worried that the Riksbank will compete with the banks and that credit granting might be affected. 9 But this is not true. With regard to supplying money, the Riksbank, like other central banks, has always competed with the banks. We have been offering cash as an alternative for 350 years now. One difference is of course that a digital form of cash in one way or another, such as an e-krona, would be a more effective competitor to the current supply of digital payment services than physical cash is. However, our analysis shows that the consequences for the banks would be very small under normal circumstances.

SPEECH DATE:  06/11/2018  SPEAKER:  Stefan Ingves  VENUE:  Di Framtidens betalningar  SVERIGES RIKSBANK SE-103 37 Stockholm (Brunkebergstorg 11) Tel +46 8 787 00 00 Fax +46 8 21 05 31 registratorn@riksbank.se www.riksbank.se  The e-krona and the payments of the future When did you last pay with cash? I suspect it was rather a long time ago. In Sweden, the Riksbank's money has been used for 350 years, so it entails a historical shift if you and all of us, completely stop using central bank money to make payments. Today we can buy food, pay our bills and receive medical prescriptions without needing to leave our homes. The more goods and services we purchase digitally, the more we need rapid and simple payment services that are adapted to our new way of shopping. Is it a problem that cash is being used less and less? Yes, in a way it is. If the Riksbank is to fulfil its mandate, to ensure that Sweden has a payment system that is both safe and efficient, the means of payment we issue must also be used. I believe that the arguments that once led to the central banks being allowed to issue money are still relevant, it is only the technology that has changed. This is why we at the Riksbank have decided to build a pilot version of a new type of Riksbank money – a digital krona, or e-krona.
The Bank more than welcomes a more competitive payment landscape. We desire new entrees. We are not in the business of protecting the incumbents. We also do not pick winners and losers. The market will decide those who will prosper. Existing players were given this notice long time ago. Banks especially, will have to reinvent themselves or risk being disrupted. What matters most, from the public policy perspective, is that Malaysian businesses and consumers will benefit from a more vibrant, competitive and efficient ecosystem. We should expect 3/5  BIS central bankers' speeches  enhanced competition to spur innovation in the products and services that are being offered. Globally, we have seen collaborative strategies emerging as a response to the changing market dynamics. From Scandinavia to Asia, banks in some countries are increasingly competing on a united front. This includes industry partnerships with the payment system operator and fintech firms. In these markets, collaboration on common mobile applications seeks to enable banks to develop more innovative use cases by leveraging on pooled R&D resources, and facilitate mass adoption through common awareness and promotion campaigns. Collaborative efforts enable greater economies of scale through the pooling of resources. Establishing a common platform among banks defrays the cost of testing out new technologies and new ways of doing business. This can go a long way in fostering a culture of experimentation. Collaborative strategies will enhance the probability of success. This is the essence of the merger between MEPS and MyClear. Maintaining the status quo is simply not an option.

Stefan Ingves: Evaluation of the Riksbank’s monetary policy and work on financial stability 2005–2010 Speech by Mr Stefan Ingves, Governor of the Sveriges Riksbank and Chairman of the Basel Committee on Banking Supervision, to the Riksdag Committee on Finance, Stockholm, 31 August 2011. *  *  *  The Riksdag (the Swedish parliament) and the people of Sweden must be able to see that the Riksbank is doing its job well. It is therefore necessary for them to have good insight into our work and for the Riksdag to be able to make regular evaluations of this work. The evaluations are also important for the Riksbank to be able to develop and improve its analyses. We have already said on several occasions that we consider it an excellent initiative by the Committee on Finance to regularly commission highly-qualified external experts to evaluate our work. Today, when we are to discuss the second evaluation of this type, I would therefore like to begin by thanking Professors Goodhart and Rochet for carrying out this work on behalf of the Riksdag Committee on Finance. We also welcome the Committee on Finance’s decision to give the evaluators the task not only of assessing how we conduct monetary policy, but also how we manage the task of promoting a safe and efficient payment system, that is, what we have interpreted as our responsibility for financial stability in Sweden.
Structural risks refer to fault-lines within the financial system, such as high concentrations of risk, complex interconnections, promises made that cannot necessarily be honoured, and uninsurable – or tail – risks. These risks can trigger sharp reversals in financial conditions, or amplify cyclical risks when they crystallise.6 As with cyclical risks, macro-prudential policy looks to build resilience to these risks, as well as eliminating fault-lines where appropriate. The cost-benefit calculus In seeking to fill these two gaps, it is important to acknowledge that there are two sides to the ledger – that a build-up in financial stability risk is often accompanied by higher growth. When the financial system under-prices risks, households, companies and the economy at large may appear to benefit. As asset prices rise, perceptions of wealth become inflated and risks appear smaller. Households and companies feel more comfortable taking on debt, banks and investors feel more comfortable lending to them. We can consume more, invest more, grow the economy more and feel more prosperous. The problem is that it cannot last. We cannot continue consuming more than we ever hope to earn; we cannot invest more than we ever intend to save; risks cannot be under-priced forever. This time it probably isn’t different. And when it all goes into reverse, when risks are found to be under-priced and not well-dispersed, when shocks arise and are amplified by the financial system, the cost in terms of lost growth can far outweigh the benefit of higher growth enjoyed while the risks were building.

13 In Q1 2022 Financial Stability in Focus Bank of England sets out the role of cryptoassets and DeFi in the  financial system and identified potential risks associated with them. 14 Breeden (2022) talks about the economy’s transition to net-zero, and the role central banks can play to support  it. 7/7  BIS central bankers' speeches
Joseph Yam: Banking sector risks and challenges Luncheon talk by Mr Joseph Yam, Chief Executive of the Hong Kong Monetary Authority, at the Hong Kong Institute of Bankers, Hong Kong, 16 June 2004. *  *  *  The turnaround Thank you for inviting me to talk to you today. It is a pleasure to be here and I am delighted to see such an enthusiastic attendance. I was recently looking over past speeches (not, let me assure you, with the aim of recycling them), and I noted that the last time I spoke at one of the Institute’s lunches was on 24 October 2001. This has prompted me to reflect on how much we have all been through over the past 32 months - both as a financial community and in the larger community. When I last spoke to you the world was just six weeks on from the 9-11 attacks. There was a strong sense that we were heading for difficult times, with a worsening global environment, and with deepening deflation, unemployment, a budget deficit, falling asset prices and a rising number of negative equity mortgages within Hong Kong. Conditions were likely to get worse before they got better, I concluded. Well, after a period of great difficulty, in which things got considerably worse than I think any of us had imagined, conditions are now at last improving. Since around the middle of last year Hong Kong has been enjoying a strong and broadening recovery.

Time is limited, and this is, after all, a luncheon speech, so I shall not go into detail about these standards. The point to make here is that, as an international financial centre, we have no alternative but to implement these standards as fully as we possibly can and as soon as international agreements have been reached on them. Many of these standards will be, to put it mildly, quite onerous. In this connection, I wish to ensure you all that the HKMA has been adopting a proactive approach in participating in the relevant international standard setting forums and in influencing the standard setting processes in the best interests of Hong Kong. We have also consulted widely in Hong Kong. Insofar as the banks are concerned, there is a clear need for bank management to allocate adequate resources to the process of implementation, which will involve substantial changes to IT systems and compliance arrangements. For Basle II, for example, banks should not be acting under the misapprehension that they can simply sub-contract the implementation processes to third party service vendors, such as their external auditors. Active involvement of bank management is crucial in ensuring that most, if not all of these international standards are properly incorporated into the daily operations of banks, especially since each bank may face different focuses and challenges in the process.
While important progress is being made, this has recently been overshadowed by financial turmoil in the region, and the focus of attention has as a consequence been diverted to the provision of credit to assist Asian economies in need in making structural adjustments. We had the financial package for Thailand, and there have since been many ideas put forward for a general facility of some sort. These are being actively considered and we are taking an active part in the discussion, although there are currently still quite significant differences of opinion. The position that we are taking is that whilst regional solidarity is highly appropriate for a region with increasing economic, trade and financial integration and increasing interdependence, any regional financial arrangement must be structured with regard to international standards and practices. It would not be appropriate, for example, for a regional institution, if there is to be one, to prescribe medicine, along with financial assistance, that is different from those prescribed by the International Monetary Fund. It would immediately be seen as a soft window for financial support, thus creating moral hazard problems. I am hopeful that well-structured arrangements will emerge in due course. Certainly the climate is right and the momentum is there. 14. Perhaps I should take this opportunity to put the recent financial turmoil in Asia in a global perspective. First, the world is in very good economic shape. World economic output is estimated by the IMF to expand by 4-4½% in 1997 and 1998, the strongest pace in a decade.

In the OECD countries, especially in the US, there is solid growth with low inflation, BIS Review 112/1997  -4-  while we are seeing signs of broad-based recovery in Europe. Only in Asia have we seen a slowing of growth, but the growth rates have still been high by world standard and last year Japan grew by 3.6%, the fastest since the late 1980s. 15. Second, because of high global liquidity and low inflation, asset markets around the world are at record levels. Capital flows have increased with globalization, and added to record high stock and bond prices. The fact that Europe has recently raised interest rates, and the Fed is considering whether to pre-emptively raise rates to prevent wage-push inflation, has made the financial markets much more nervous despite the growth environment. This explains why the financial volatility in Asia has become global in nature. It is very flattering to know that Hong Kong can move even the mighty US and European markets, as much as the other way around. 16. Third, Asian fundamentals, and especially Hong Kong fundamentals, are strong. But there have been different degrees of strength in Asia with respect to the fundamentals. The adjustments in exchange rates of currencies in this region reflect partly the market perception of fundamentals. But as I said recently at the Per Jacobsson lecture, there is no perfect exchange rate regime.
Quite simply, one calculates a price of what the instrument should be worth and hopefully the theoretical price will not differ too much from the price one gets if one actually sells it. The credit rating is often a decisive factor in the pricing. The structured products are thus more adapted to investors’ needs than the purely securitised products. But this has been at the cost of poorer liquidity. Special investment companies soon emerged It is essentially a good thing that new instruments make it possible to trade credit risk. Insurance companies, pension foundations and other institutional investors benefit from being able to invest in such products. And if the banks’ balance sheets are relieved of the credit risk and investors with capital take on the risk, it is a positive development for financial stability. It increases the system’s capacity to manage shocks. However, not all of the credit risk has moved from the banks to financially strong investors. In recent years, many banks have started special investment companies that are separate legal entities outside of the banks’ balance sheets. What these have in common is that they invest in assets with a high return and long duration, for instance, structured credit products, and finance themselves by issuing certificates in the short-term money market. The certificates are called Asset Backed Commercial Paper (ABCP). Depending on how they are constructed, the investment companies are often called "conduits” or Structured Investment Vehicles (SIV).

Howard Lee: Keynote speech - ASIFMA China Capital Markets Conference Keynote speech by Mr Howard Lee, Deputy Chief Executive of the Hong Kong Monetary Authority, at the ASIFMA China Capital Markets Conference, Hong Kong, 27 June 2023. *** Good afternoon, everyone. It's a pleasure to be here at the China Capital Markets Conference, and I'd like to thank ASIFMA for organising this event and inviting me to speak. Today's conference covers a wide range of topics, from opportunities and developments in China's capital markets to key trends like digital transformation, green and sustainable finance. As we all know, Hong Kong has always been the hub connecting Mainland and international markets, and currently intermediates two-thirds of cross-border direct investment and securities investment flows. It's an exciting time to be discussing how we can further leverage connectivity in China's and Hong Kong's financial markets and explore the key trends for the next stage of China's opening up. China's National 14th Five-Year Plan emphasises the importance of pursuing a higher level of opening up and promoting high-quality development. Despite the challenges presented by the Covid-19 pandemic, China's reform and opening up has continued to deepen. There are continued expansions of the Connect schemes, and foreign ownership limits on securities firms and mutual fund companies have been removed. These developments are encouraging and welcomed by the industry. Mainland authorities have reiterated that China will only open its door wider going forward, with Hong Kong continuing to play an indispensable role.
The introduction of euro notes and coins will have additional positive effects on the economic development in Europe, as it will be easier to compare prices and confidence in the new currency will be strengthened. Moreover, the euro is to be regarded positively not only with regard to the Swiss economy but also Swiss monetary policy. The Swiss export sector will profit from lower transaction costs, and currency devaluations - as previously implemented by some European countries in order to improve their competitiveness - will be a thing of the past. Swiss monetary policy will benefit from the fact that a large economic bloc now exists in Europe which pursues similar goals in terms of monetary policy. All in all, exchange rate fluctuations between Switzerland and the EMU countries should thus remain below the levels seen before the launch of the euro. Furthermore, the markets will realise in due course that there is no reason why the Swiss franc, with regard to the role as a safe haven currency, should be assessed differently than the euro. This realisation should reduce the risk of sharp appreciations. As a result of the introduction of euro notes and coins, the euro will increasingly be used as a means of payment in the tourism sector and the hotel and restaurant industry as well as in foreign trade, to some degree simply as a substitute for the D-mark.

Finally, I shall elaborate on the new National Bank Law. Economic activity In Switzerland, a turnaround in economic development emerged in the third quarter of 2003. Real GDP exceeded the previous quarter’s level for the first time since the third quarter 2002. Nevertheless, it still fell short of its year-earlier level. The Swiss economy recovered largely in line with our expectations as communicated in our September assessment of the situation. The recovery is attributable to the pickup in global economic activity, low interest rates and generally more favourable exchange rate conditions. This benefited primarily exports, which rose markedly in the third quarter. Equipment investment, too, picked up slightly following a long phase of decline. Private and government consumption continued to have a stabilising effect. The economic situation in Switzerland should improve further in the next few months. We are expecting exports to continue developing favourably, coupled with a robust increase in equipment investment. In this way, the economic upswing in Switzerland will become increasingly broad-based and strengthened. In the course of 2004, unemployment should also fall, leading to a pickup in private consumption. On average, a moderate decline in economic activity will be recorded in the current year, while for 2004, as already stated, we expect the economy to grow by slightly over 1.5%. This will, however, not yet suffice to close the production gap. Production capacities will therefore still not be fully utilised in the coming year. Even though the overall prospects have clearly improved, the situation in a number of industries remains difficult.
Rapid growth of leveraged lending – typically loans to non-investment grade firms that are highly indebted or are owned by a private equity sponsor – meant the share of debt owed by companies with debt more than 4 times their regular cash flow had increased from less than a quarter to more than a third. These companies won’t have much cash and will find it harder to raise new debt finance. In effect, the economy entered this crisis with a weakness that may make it more prone to scarring. The UK is by no means an outlier in this regard. In the United States, growth of leveraged lending was almost twice of that in the UK in recent years. The Federal Reserve has noted how this weakness in corporate balance sheets is likely to amplify the adverse effects of the virus disruption.9  There will be lessons to learn. We had warned about this since 2017 and ensured banks doing the lending could withstand the losses. When this is over and we can step back, we – and other central banks – will need to return to the question of whether unconstrained growth of corporate leverage in the good times puts the wider economy at greater risk of harm in the bad and, if so, whether measures are called for to limit the growth of corporate leverage.

BIS central bankers’ speeches  As I mentioned before, in addition to improvements in the existing Libor interest rates, the FSB also proposes that alternative benchmark interest rates be developed. In Switzerland, alternative interest rates for very short-term Swiss franc transactions already exist. An example of these on the secured money market is SARON,2 which is the basis for the interest rate curve on the Swiss franc repo market. On the unsecured market we have the TOIS3 fixing, which is related to transactions in the area of call money and is used for interest rate derivatives. However, reforms were also necessary for the TOIS fixing. Consequently, new standards have been in place since 1 October. These are in line with international requirements and have resulted in a number of enhancements, including improvements to supervisory structures and codes of conduct. For these benchmark rates, too, the underlying transaction volume is currently very low. Foreign exchange benchmarks I will now turn my attention to benchmarks on the foreign exchange market. On the international financial markets, currencies are traded around the clock. There are no final rates for any given day. Given this situation, benchmarks on the foreign exchange market provide numerous investors, such as investment funds or asset managers, with a basis which they can use for uniform valuation of their portfolios. One of the best-known benchmarks is the WM/Reuters fix, which is set daily at 4.00 pm, London time; it is calculated as the median of actual foreign exchange transactions conducted within the period of one minute.
Despite her impressive academic track record, Carmen has had at least one foot in the world of policymaking throughout her career. Given her influence among both academics and policymakers, Carmen is an ideal person to hold the Karl Brunner Distinguished Lecture. Karl Brunner himself maintained close contacts with decision-makers around the world, always emphasising the importance of a continuous dialogue between academia and practice. Carmen’s biography reads like a screenplay for an American success story. She was born in Havana, Cuba. A few years after the regime of Fidel Castro came to power, Carmen’s parents emigrated to the United States, leaving almost all their belongings behind. Carmen arrived in the United States at the age of 10, barely speaking any English. The family settled in Florida, where Carmen attended college. After finishing college, Carmen moved to New York to pursue graduate studies in economics at Columbia University. She then embarked on a successful career on Wall Street, where she rose to the position of Chief Economist at the investment bank Bear Stearns in the 1980s. After a few years in the financial industry, Carmen decided to return to Columbia to finish her dissertation. This was followed by an eight-year spell at the International Monetary Fund, before Carmen was appointed professor at the University of Maryland in 1996. In 2012, Carmen moved to Harvard University, and since June of last year, she has been Chief Economist at the World Bank.

To cope with these challenges, Carmen’s ability to take a step back and to provide us with a clear view of the big picture is most welcome. With this, I conclude my remarks, and I look forward to a stimulating talk and discussion. Carmen, the floor is yours. Page 4/4