samchain/econo-pairs-v1 huggingface dataset:
This stands alongside various other efforts for training and standard-setting, including those by AIF, ICLIF, SIDC, FIDE Forum, PPKM and FSPB. I wish to take this opportunity to specifically commend the AIF and FSPB for their initiatives, including today’s event. These draw the much needed attention by the industry to this important subject. The system of values affecting behaviour does not only depend on the sector-wide legal and regulatory frameworks and the vibrancy of the professional community. Also, of crucial importance, is the role of the board and senior management in each organisation. As has been often repeated, these leaders set the tone from the top. This is established through official decisions and formal statements, including the corporate values and various codes of conduct. However, their role goes much further than that. More than their words, the board and senior management determine the prevailing values of the organisational ecosystem through their attitudes, actions and decisions – especially those relating to professionalism and integrity. Do they give the impression that the ends always justify the means? How vigorously do they question sudden surges in a business unit’s profitability? Are they willing to overlook ethically questionable actions so long as the firm is technically within the bounds of the law? How do they react to ethical failures and misconduct? How does compromising the policies of the organisation affect bonuses and promotion? Apart from the board and senior management, the system affecting each organisation is also determined by the shareholders.

I think we’ve been clear in our expectations around AML/BSA: •  That AML/BSA needs to be managed on an enterprise-wide basis;  •  That AML/BSA needs to be a high priority for the board of directors, senior management and line management;  •  That the message on compliance needs to be carried down well into the organization, so that those who are on the front lines making daily decisions understand the importance of compliance and the consequences for failing to meet the requirements; and  •  That AML/BSA shouldn’t be treated as a static exercise – standards and best practices evolve and you are required to keep up with and adhere to the latest requirements. As I know you are also aware, we are seeing keen competition for talent/resources in this area. While we recognize that it may be difficult to identify and retain talent, having a solid recruiting strategy and ongoing training in place, as I mentioned earlier, are important components to addressing the problem. You might wonder why this topic remains on my list – and it’s because in spite of the heavy public attention on the matter, including a range of public enforcement actions, it remains a work in progress for many firms. And, for firms that haven’t yet been faced with MRAs or a public enforcement action, I worry about complacency. So, I raise it again because it seems that another warning shot is warranted. 2.
While a given physical manifestation of climate change – a flood or storm – may not directly affect a corporate bond’s value, policy action to promote the transition towards a low-carbon economy could spark a fundamental reassessment. Take, for example, the IPCC’s estimate of a carbon budget that would likely limit global temperature rises to 2 degrees above pre-industrial levels. That budget amounts to between 1/5th and 1/3rd world’s proven reserves of oil, gas and coal. 24  20  See AM Best – Special Report: Asbestos Losses Fueled by Rising Number of Lung Cancer Cases (2013) www.ambest.com/ambv/bestnews/presscontent.aspx?altsrc=0&refnum=20451. 21  See Roe v Arch Coal Inc et al, Case: 4:15-cv-00910-NAB, United States District Court, Eastern District of Missouri, 9 June 2015 and Lynn v Peabody Energy Corporation et al, Case: 4:15-cv-00916-AGF, United States District Court, Eastern District of Missouri, 11 June 2015. Note that as at 1 September 2015 the defences to these claims were yet to be filed. 22  Loss and damage refers to impact of climate change not mitigated by reductions in emissions. The UNFCCC Warsaw agreement in 2013 discussed support for measures to address loss and damage. See http://unfccc.int/resource/docs/2013/cop19/eng/10a01.pdf. 23  The largest UK insurers hold or manage in excess of £ of CRE and infrastructure assets, and have committed to further such investments in future. For instance, six major insurers pledged to invest £ into UK domestic infrastructure in 2013 as part of the Government’s national infrastructure plan (see http://www.ft.com/cms/s/0/1f74e176-5c41-11e3-b4f3-00144feabdc0.html).

With the sustained budget surplus and accumulated surplus on the Exchange Fund and Land Fund assets, the actual amount of foreign reserves in Hong Kong amounted to $ billion at the end of September, the third largest in the world. This is more than seven times Hong Kong dollar cash in circulation or over three times $ M1. 30. The currency board system has an automatic adjustment mechanism to maintain exchange rate stability. When there are outflows of funds from the Hong Kong dollar, the Hong Kong Monetary Authority (HKMA) will sell US dollars to banks for Hong Kong dollar. On settlement day, the HKMA will debit the clearing accounts of the banks for the necessary amounts of Hong Kong dollars in return for the US dollar that will be credited to the New York accounts of the same banks. Since banks may have sold more Hong Kong dollars than they have in their clearing accounts with the HKMA, they can only obtain Hong Kong dollars by borrowing from other banks, by bidding up the interbank rates, or selling back the US dollars to the HKMA, that is, by reversing their short position. In fact, the banks do not hold excess Hong Kong dollars because they are generally long in foreign currency. The latest data at the end of July shows that the Hong Kong banking system is short roughly $ billion or $ billion. 31.
As we increase the width of the coloured section by moving from the dark central band to the lighter shades of red further out, the number of outturns that we think will lie within the section increases. The bands are drawn so that the number of outturns increases by 10 for each change of colour intensity. The inflation outturn would be expected to lie somewhere within the entire coloured area on 90 out of 100 occasions. On the same day that the Bank of England produced its forecast for inflation, the Met Office produced a forecast for the temperature in various towns over the following ten days. Chart 7 shows this ‘plume chart’, as the Met Office refers to its fan charts, for the town of Reading. I will leave a detailed explanation to meteorologists, but the interpretation of the temperature plume chart parallels that of the inflation fan chart closely. The width of the plume chart indicates the degree of uncertainty about future temperatures, and different colours suggest different probability bands. And the probability of the central temperature projection - in this case the solid blue line - is extremely small. I am not suggesting that the BBC use such charts in its forecasts, but surely it might give a little more freedom to the meteorologists to use probabilistic thinking in describing the outlook. Such charts can also be used to illustrate uncertainty about longevity.

Thomas Jordan: Monetary policy in a climate of increased uncertainty Summary of a speech by Mr Thomas Jordan, Member of the Governing Board of the Swiss National Bank, at the SNB Money Market Event, Geneva, 1 November 2007. The complete speech can be found in German on the Swiss National Bank’s website (www.snb.ch). *  *  *  Uncertainty about the extent and distribution of losses from US “subprime” mortgages has resulted in a marked squeeze on financial markets. In particular, there is considerable uncertainty concerning the true valuation of securitised assets and structured products based on subprime mortgages. Demand for liquidity has surged. In certain instances, the crisis of confidence among financial market participants was so pronounced that some markets did not function at all. The “re-pricing of risk” has caused risk premia for most financial instruments to soar. Risk premia are important for the Swiss National Bank (SNB) for two reasons. On the one hand, they act as economic signals and should therefore be as unbiased as possible in the way they reflect underlying risks. In addition, there are certain risks attached to extreme values of risk premia. Abrupt and uncontrolled corrections could lead to instability on financial markets and interfere with their smooth functioning. On the other hand, risk premia affect the restrictiveness of monetary policy. An increase in such premia tightens monetary policy. The SNB monetary policy concept, where the three-month Libor is at the centre of the implementation of monetary policy, takes systematic account of changes in risk premia.
And very recently the Financial Services Committee decided to further investigate (1) how to manage supervision of cross-border banking groups, whether subsidiary or branch structure, and (2) arrangements for cross-border crisis management. 2  BIS Review 22/2004  So, which are the developments in cross-border banking that have necessitated further consideration of the existing rules, policies and structures? Which are the regulatory challenges indicated in the title of this speech? I think the convergence of regulations is a process that, although being long and slow, is already going in the right direction. Even though, as mentioned earlier, there are still way too many differences in implementation and actual practices. But when it comes to the genuine conflicts of interest between nationally motivated regulators and an integrated European financial market, we are just in the beginning of a major rethinking. The challenges regulators have to face At the heart of the matter lies the emergence of large foreign subsidiaries and branches. The presence of foreign subsidiaries and branches is not new. What is new is that they might make up a substantial part of your domestic financial system. Whereas the typical bank group might be described as “Big mama, small daughter”, the opposite may now be increasingly true in many cases, and in particular if seen in relation to the size of the home and host countries. This is already true in most of the acceding countries. To give an example, more than 90 percent of Czech banking assets are held by foreign owned banks.

EU level harmonisation often applies to high level principles and minimum requirements, while implementation, additional requirements and enforcement is left to the member states. In practice, this becomes a barrier to integration. An EU bank will be subject to as many different reporting requirements and regulatory relationships as it has countries of operation. For a banking group involved in life insurance and securities trading this number should be multiplied by three. For instance, ABN Amro is rumoured to be dealing with 47 different regulators only in the EU. Second, today’s banking regulation was originally designed to protect the soundness and stability of the national banking system and sometimes even to politically control it. Thus, supervisors as well as central banks have national mandates and responsibilities vis-à-vis their politicians and citizens. This was all fine in the so called good old days of closed national markets. Now, however, it may sometimes be in conflict with the ultimate goal of a single market in financial services. Some of the work needed in these areas has already been started. The Brouwer reports to the Ecofin well describe some of the difficulties. The BSC Task Force on Crisis Management has taken the first steps towards a more structured approach to crisis management of cross-border banking groups, through the signing of a Memorandum of Understanding. CEBS (Committee of European Bank Supervisors) is also trying to take on some of these issues, in particular regarding the convergence of supervisory practices.
The MIFC initiatives that were announced yesterday would propel Malaysia into becoming a vibrant, innovative and competitive international Islamic financial services industry supported by high calibre human talent, world-class infrastructure and best international standards. Building on what we have, we need to create a global brand to be promoted more aggressively in the global arena. This will be key to penetrate markets as well as to attract global players to our shores, henceforth enhancing the viability and sustainability of Malaysia's Islamic financial system. Malaysia will embark on more strategic promotional and marketing efforts through greater collaboration and smart partnership. MIFC WILL BE OUR GLOBAL BRAND. 2  BIS Review 75/2006  On this note, on behalf of the hosts and organisers, I would like to thank the distinguished panellists and moderators, media and the respected audience for making this Forum a success, and I hereby declare the forum officially closed. Thank you. BIS Review 75/2006  3

No hard data on industry-wide uptake are available but intelligence from supervisors is that the scale of adoption of advanced analytics across the industry so far is relatively slow. There is clearly, however, the potential for usage to accelerate. At the macroeconomic level, changes in technology, including AI, could, over time, profoundly affect the nature of the financial services consumed and may result in changes to the structure of the financial services industry. This set of issues is being explored at the Bank of England by Huw Van Steenis in his review of the future of the financial system. What matters to  1  McWaters, J (2018) 2  All speeches are available online at www.bankofengland.co.uk/speeches  2  us as prudential supervisors is the extent to which the development of advanced analytics changes the risks to the safety and soundness of the firms we supervise. Increasing levels of automation, machine learning and AI could improve the safety and soundness of firms in some ways. For example, until recently, most firms were using a rules-based approach to antimoney laundering monitoring. But this is changing and firms are introducing ML software that produces more accurate results, more efficiently2, by bringing together customer data with publicly available information on customers from the internet to detect anomalous flows of funds.3 ML may also improve the quality of credit risk assessments, particularly for high-volume retail lending, for which plenty of data are available and can be used for training machine learning models.
After analysing the different alternatives, the SNB decided to use a combination of SNB Bills and reverse repos. These instruments are perfectly in line with our monetary policy strategy. There is, however, still a range of alternative instruments available, should there be a need for them. Let me explain briefly how the method chosen by the SNB works. As I have already mentioned, the SNB aims to keep the three-month Libor within a certain target range. This rate depends on the level of liquidity in the financial markets. If there is excess liquidity, the SNB must withdraw a certain amount to influence the level of the Libor. In so doing, it uses a two-pronged approach: on the one hand, it issues SNB Bills with different terms. Banks or investors who purchase these bills pay the SNB with liquid funds, which are thus drained from the financial system. On the other hand, the SNB also makes use of reverse repos in order to complete the withdrawal of liquidity achieved by the use of SNB Bills. In a reverse repo, the SNB delivers securities to a bank in exchange for liquid funds, thereby absorbing liquidity from the financial system. Reverse repos with a term of, in general, one week are used to manage short-term liquidity. SNB Bills, on the other hand, are used to manage liquidity in the longer term (one month or more).

Jean-Pierre Danthine: Signals from the financial markets and developments in the implementation of Swiss monetary policy Introductory remarks by Mr Jean-Pierre Danthine, Member of the Governing Board of the Swiss National Bank, at the half-yearly media news conference, Geneva, 17 June 2010. *  *  *  As has been pointed out in the speeches of my two colleagues, reports on the economy are quite positive and indicate a faster economic recovery than anticipated. The signals from the financial markets, however, are less favourable and I will be talking about them in the first part of my remarks. I will devote the second part of my comments today to developments in the implementation of monetary policy over the last few months. These developments result from the unconventional monetary policy measures adopted by the Swiss National Bank (SNB) to combat the financial crisis and to ensure price stability in line with its mandate. International financial markets experience an uncertain period The period of calm which prevailed on international markets from spring 2009 onwards gave way to a new phase of uncertainty in the second quarter of 2010. Since April 2010, the climate on financial markets has deteriorated again. Share prices have fallen, credit risk has risen and instability has increased on the major foreign exchange markets. As Philipp Hildebrand has already stated, the return of uncertainty chiefly reflects investors’ doubts about the capacity of certain countries to service their debt.
This could eventually increase the flexibility of wage formation and increase productivity. This development is particularly in evidence in the expanding services sector. According to the National Institute of Economic Research, the proportion of time-limited employment has increased from 10 to approximately 16% of the total number of employees between 1990 and 1998. This development may have been reinforced by the difficult situation in the labour market during these years but many believe that the trend will continue. New methods of compensation are also spreading. Bonus wages, profit sharing and a 13th monthly wage are examples of components in wage formation that increase flexibility in the labour market. Increased cost consciousness due to stiffer competition can be a factor driving on this development. Although short-term employment in various forms may reduce the inflationary pressure and make the labour market more flexible, this does not mean that this development is always positive for wage-earners and households. Uncertainty about future income makes long-term planning more difficult such as having children and buying a house. In order to reduce the risk of various groups in the labour market competing against one another to drive up pay increases in a way that in the end creates a poorer outcome for all, various changes in the forms of wage formation have been carried out and are planned. The most important is the so-called Industry Agreement between some 20 organisations in the labour market.

However, we must carefully follow and analyse the development in the area where monetary policy is formulated. The risk of incorrect assessments having more serious consequences should, however, be small as changes in this area do not take place overnight. Another component of the risk scenario is how wage formation and the labour market will function in coming years. Negotiations are taking place in an economy undergoing strong growth at the same time, as there are occupations with a shortage of labour where pay has fallen behind. However, changes have taken place in the Swedish labour market that permit some optimism about developments. Above all, this concerns the support for and understanding of the inflation target and the low inflation expectations that have been established. Changes in the forms of wage formation, which have been carried out or are planned work in a positive direction. Finally, globalisation and competition can have increased businesses’ cost consciousness. This may lead to a greater opposition to wage increases and also that businesses in their drive to keep costs down endeavour to introduce forms of employment that increase flexibility in the labour market. In conclusion, it is important for the Riksbank as always to carefully monitor what is taking place in the economy when conducting monetary policy.
Page 1  The cost of living - speech by Andrew Bailey Given at Brunswick Group’s Cost of Living Conference, Coin Street, London  Page 2  Published on 01 March 2023  Andrew Bailey shares what we learnt from talking to people at our outreach events across the UK during the past year. Speech The latest release of data for the UK consumer price index showed an annual increase of 10.1% in January. It is down from a peak of 11.1% in October, not least because direct effects from energy prices have eased. But also, core inflation, which excludes the most volatile components of the consumer price index, fell more than expected to 5.8% in January. The Bank’s Monetary Policy Committee spends a lot of time poring over these data. Consumer price inflation remains much too high, and it is our job to bring it back down to our 2% target. That is why we have increased Bank Rate by nearly 4 percentage points over the past 15 months. To set the appropriate level of Bank Rate over the months ahead, we have to monitor our progress towards our target very carefully. But the data can only tell us so much. At times like these, more than ever, it is important to hear the human stories behind the data. These stories help us understand both what is actually going on and the impact it has on people’s lives.

If new mortgage rates rise by 3 percentage points, as market rates currently suggest, the ‘typical’ monthly interest payment will go up by just under £  Page 11  Bank of England outreach programmes Listening to people from all parts of the United Kingdom  It is no surprise that people who talk to us at our outreach events are worried about rising interest rates too. This is not just those on variable rates or those nearing the end of their fixed-term mortgage deals. Even if home ownership feels remote for many younger people, they worry that rents could rise as landlords look to pass through higher mortgage rates. Some older people have been able to save enough through the pandemic to pay off their mortgages early, but many struggle themselves or worry how younger people will cope. These concerns bring home that, by increasing Bank Rate by close to 4 percentage points, we have tightened monetary policy significantly. It is having an impact. Let me say two things about that. First, with the external shocks that have hit the economy, there is no easy way out. People on lower incomes are struggling to make ends meet. We must ensure that the situation does not get worse through homemade inflation taking hold. The UK labour market remains very tight. Since the start of the Covid pandemic, we have seen a large increase in the number of people who do not take part in the labour market in this country. The UK labour force has shrunk.