samchain/econo-pairs-v1 huggingface dataset:
Like so many of the impacts of climate change, this cost would be borne unequally: 45% of the mortgage impairments in the scenario are accounted for by just 10% of the country. [12] And there is evidence that in areas particularly at risk of flooding, many homes could become uninsurable. Finally, the CBES exercise is a measure of the progress banks and insurers are making in their climate risk management. Overall, this is a good news story: we were encouraged by the progress  Page 7  firms have made. But there is still much more to do. We will give firm-specific feedback to participants, but key themes include: The need for more data on, and understanding of, customers’ current emissions and transition plans. This can include looking through complex chains of financial relationships between clients and counterparties to see the underlying emissions. The need to invest in modelling capabilities and doing more to scrutinise data and projections supplied by third-parties. The need for some firms to consider more deeply how they would respond strategically to different scenarios, including thinking through the implications of different paths for climate policy. More generally these results bring home the fact that uncertainty around the impact of climate change – even given a pre-determined scenario – remains extremely high. As you will see if you read the report, the error bands around all these estimates are very wide.

Mugur Isărescu: The history of the Romanian monetary system in a European context Opening speech by Mr Mugur Isărescu, Governor of the National Bank of Romania, on the occasion of the inauguration of the Euro Exhibition at Banca Naţională a României, Bucharest, 10 March 2011. *  *  *  Dear Mr González-Páramo, Your Excellencies, Distinguished guests, It is an honour for us and we are glad to welcome you today, at the opening of an exhibition not only educational and attractive, but also relevant considering Romania’s euro adoption. We do hope the Euro Exhibition that the National Bank of Romania is hosting, on behalf of Romania, will prove successful all the more so as our country is destination No. 10 of the European Central Bank’s travelling exhibition. Let me thank Mr. José Manuel González-Páramo for accepting to jointly launch the Euro Exhibition today in Bucharest where it will be open for about three months, here, in the old financial centre of Bucharest where the Romanian leu was born. The leu-euro relation is thus acquiring a symbolical dimension with a certain meaning in the current European context. The reference to the European context is neither conventional nor formal. It reveals that the Romanian leu is one of the strong historical bonds that put our country on the European map.
Also, under the Basel III requirements in the run-up to 2019, the  BIS central bankers’ speeches  11  quantity and quality of capital needed to be maintained is higher to meet the regulatory requirements of core capital and leverage ratios. Under the capital enhancement plan, the Central Bank will increase the entry capital requirement for new banks incorporated in Sri Lanka from its current level of Rs. 5 billion to Rs. 10 billion, commencing 2016. Meanwhile, for existing banks incorporated in Sri Lanka, commencing 2016, minimum Tier I capital requirement will be increased for Licensed Commercial Banks and Licensed Specialised Banks from Rs. 5 billion in 2015 to Rs. 10 billion, and from Rs. 3 billion in 2015 to Rs. 5 billion, respectively. However, branches of Foreign Banks operating in Sri Lanka are excluded from the capital enhancement requirement as they have backup funding arrangements from their parent banks. Similarly, the NBFIs are required to enhance the core capital from Rs. 400 million in 2014 to Rs. 1.0 billion by 2015 and further to Rs. 1.5 billion by 2018. Third: Human resources aspects Ladies and gentlemen, managing the concerns of employees and winning their confidence and support for the consolidation programme is very important for the smooth execution of this process. The Central Bank has informed all financial institutions involved in the consolidation programme that this process should not adversely affect the staff of the respective financial institutions.

Under the consolidation approach for NBFIs as stipulated in our Master Plan, local banks and Category A NBFIs are encouraged to acquire upto 3 Category B NBFIs, while all Category B NBFIs are required to merge with local banks or Category A NBFIs, or merge among themselves, so that they fulfill conditions to become Category A NBFIs. Further, where groups of banks and NBFIs have multiple NBFIs in that group, we have requested such NBFIs to be merged so that only 1 NBFI would remain in the group. It was decided to permit banks to operate a newly acquired NBFI as a subsidiary considering the structural, operational and cultural differences that exist between these two types of financial institutions. Further, in the case that a bank or Category A NBFI acquires a negative net worth Category B NBFI and requires additional capital infusion, we will provide an equivalent amount of funding support to the acquiring entity through the SLDILSS. Second: Capital enhancement plan Ladies and gentlemen, one of the key factors underpinning the stability in the financial sector is capital, which needs to be maintained at adequate levels to absorb unexpected losses. Capital is required to be increased gradually in order to ensure that sufficient buffers are built during good times to strengthen resilience of the financial sector for such capital to be drawn down during bad times.
Indeed, the notable reduction in business activity further to the restrictions associated with the state of alert prompted a much sharper decline in non-financial corporations’ operating revenue than that in the payments they must meet. The latest Central Balance Sheet Data Office figures give an idea of the severity of this shock to firms’ liquidity. There was a strongly adverse impact on these agents’ profits already in Q1, despite the fact that the sharp contractions in activity and operating revenue associated with the declaration of the state of alert only affected the last two weeks of this quarter. The reduction in the return on assets for the overall sample of firms was so significant that it pushed ROA below the cost of borrowing, a development not seen since 2014. The information on bank lending shows firms resorting to this source of financing to cover a large portion of these liquidity requirements. Specifically, the outstanding balance of bank financing granted to Spanish non-financial corporations rose to 8.7% in May after having shrunk by 1.1% year-on-year in February. And the preliminary data for June would suggest that this trajectory has been holding in the most recent period. Yet for financial institutions to have been able to meet such a notable increase in firms’ applications for credit, the contribution of the support measures launched at both the European and national levels has been decisive.

In their evaluation of Swedish monetary policy in the period 1995–2005, Giavazzi and Mishkin say that this was a sign that monetary policy had been too tight from the beginning of 2002.4 I do not agree with them. Looking back after the event, we can perhaps say that a couple of repo rate increases in 2001 and 2002 could have been avoided. The previous Governor of the Riksbank, Lars Heikensten, also admitted this at a hearing in the Riksdag Committee on Finance on 1 April 2004. But my view is that the repo rate was then reduced too much and was too low for too long. I can see four factors that support this. First, resource utilisation was probably higher than the Riksbank then estimated. The GDP gap is difficult to calculate, particularly at the end of a time series and in connection with severe downturns. According to the two GDP gaps presented in the Monetary Policy Report in February, the GDP gap prior to the crisis was approximately +4 per cent. My own assessment is that the GDP gap was in fact approximately +2 per cent.5 However, the fact that resource utilisation was so high was not as apparent before the crisis. This can be seen, for example, by comparing the calculations of the GDP gap in real time, that is at the point in time concerned, and the most recent calculations. The calculations in real time show that the GDP gap was actually assessed as relatively normal before the crisis (see Figure 6).
The most concrete example of reform based on the lessons learned from the crisis is that macroprudential policy has been established as a separate economic policy area. Over the last ten years, intensive efforts have been made around the world to define and implement macroprudential policy. Sweden has made some progress but more needs to be done. At the end of last year, Finansinspektionen, which has the main responsibility for macroprudential policy, was given the goahead by the Government to introduce a tougher amortisation requirement. This is, in itself, a positive development. But a regulatory framework that makes macroprudential policy more flexible needs to be put in place so that measures can be implemented quickly when necessary. Macroprudential policy can be specifically focused on reducing the risks associated with household debt. But the Riksbank’s assessment is that a combination of different measures is required in several policy areas to reduce these risks. 12 Above all, the fundamental causes of rising indebtedness need to be dealt with, something that is difficult to do without first tackling the Swedish housing market and its inherent imbalances. This is of course no easy task. But nevertheless an urgent one. As I mentioned earlier, the interest rate will be lower on average in the period ahead, sometimes much lower if monetary policy is to be able to meet the inflation target. The financial side of the economy needs to be robust enough to cope with such periods without macroeconomic developments being exposed to too large risks.

Upturn cut short by sovereign debt problems in 2011–2012 An effect of the severe crisis of 2008 was a shutdown in global trade, which brought the Swedish economy to a sudden halt. To support the economy, the Riksbank quickly lowered the repo rate to a, at the time, historically low level of 0.25 per cent. Around the world, other central banks and governments made herculean efforts to kick-start the financial system and reverse the trend. As the situation on the credit markets improved and global trade picked up, the recovery occurred more rapidly than expected in Sweden. From mid-2010, the Riksbank began raising the repo rate towards a more normal level. But during 2011, the recovery stuttered when unease linked to the problems of heavily burdened public finances in several European countries started to affect the credit markets to an ever-increasing degree. Measures by institutions such as the EU and the ECB helped to stabilise the situation, but weak confidence and low demand among households and companies subdued European developments. This, in turn, led to a slowdown in Swedish economic activity, despite relatively high domestic demand. GDP fell again in 2012 and the Riksbank lowered the repo rate in a number of steps. Focus on inflation and maintaining confidence in the inflation target has produced results Something which provoked head-scratching around the world during these years was that inflation remained at a relatively high level to begin with, despite the major economic slowdown after 2008.
Within the Federal Reserve, we have worked very hard to raise the resilience and security of our own operations. We have made major investments to enhance the back-up facilities for Fedwire. We hold ourselves to very high standards, subject our systems to exacting contingency tests, and coordinate these efforts closely with other U.S. payments systems. We are also continuing to work on ways to improve the security and availability of the telecommunications network that is so vital to the functioning of the financial sector. A private sector group sponsored by the New York Fed, the Payments Risk Committee, has enumerated best practices that financial institutions and payments utilities can adopt to avoid telecommunications outages and to facilitate rapid recovery should an outage occur. We are also working closely with the telecommunications industry, through the Alliance for Telecommunications Industry Solutions, to help improve network diversity and avoid single points of failure for voice and data lines. Payments risk challenges facing system participants The reliability of a payments or securities settlement system depends not just on the system’s design and operation, but also on the quality of the risk management exercised by the participants themselves. The combination of individual and collective efforts to manage exposures, a discipline that must be performed both by the participants and the system operator, is necessary to achieve reliability. The increased specialization of the back office operations of the largest financial institutions makes this challenge more difficult to meet.

That still leaves us with quite enough to worry about - and who ever met a central banker - or a sailor - who didn’t worry about what was coming next - it would be a contradiction in terms. The immediate challenge is to cope with the imbalances within and between the industrial countries, and we have more work to do to improve our defences against volatile international capital flows more generally. But for the time being, the rate of world output growth, which had fallen to only about 2% in 1998, about half its long-term trend rate, and which was widely expected to fall further, is now expected to bounce back to around trend over the next couple of years. And whereas, a year ago, many industrial countries were still in the process of easing monetary policy, to offset the impact on world demand of the interruption of the flow of credit and investment to emerging market countries and transition economies, we have recently seen a quite widespread increase in interest rates, designed to moderate the pace of domestic demand growth. And rising interest rates - I need not remind you - are a reflection of a strengthening economy. Against this backdrop of strong economic growth and official tightening, it is not surprising that bond markets in most developed economies have responded with higher yields over the last 12 months.
Speech by François Villeroy de Galhau, Governor of the Banque de France and President of the ACPR  ACPR conference of 22 November 2017 Bank resolution: from regulation to implementation  Ladies and Gentlemen,  I am delighted to welcome you to this new conference organised by the Autorité de contrôle prudentiel et de résolution. For the first time, the morning of this conference will focus on bank resolution. This is always a somewhat paradoxical subject: if we are spending time on it today, it is in the hope that we will never have to deal with it in the future. "Si vis pacem, para bellum", as the Romans said... just as they prepared for war to maintain peace, we must be fully prepared for a crisis if we are to avoid it. But I would like to start by noting an important victory: that of Paris and France, which will welcome the European Banking Authority. It represents an achievement for a highly motivated and dynamic team, as well as a threefold recognition, i.e. that of the attractiveness of France and the Paris financial centre today; the richness of a financial ecosystem that boasts one of Europe's most impressive talent pools; and lastly, I believe, the quality of the public regulators and the supervisor – the ACPR. And the European Banking Authority's decision to move from London to Paris clearly bodes well for other post-Brexit financial relocations.

Anita Angelovska Bezhoska: We remain consistent in maintaining price and denar stability Address by Ms Anita Angelovska Bezhoska, Governor of the National Bank of the Republic of North Macedonia, marking 28 years of monetary independence of the country, Skopje, 26 April 2020. * * *  This day has been deeply imprinted in our history. On 26 April 1992, the independence of our country was completed with the last piece of the mosaic – the monetary sovereignty. The grounds of the monetary independence were laid 28 years ago, by introducing the denar as our currency that replaced the Yugoslav dinar. At the same time, the National Bank began operating as an independent central bank, standing firm in front of the series of challenges in those turbulent times of separation from the Yugoslav state. I address you in times when the global population is facing pandemic of unprecedented proportions. Now, allow me to briefly retreat from the everyday hardship and recall this crucial day of the monetary history, when our modern central bank began constituting with great dedication, sacrifice and vision. A central bank with mission that has been clear since early days – to create an independent and responsible institution that will cope with the current challenge of macroeconomic stabilization and build a capacity to approach central banks in the developed market economies. Looking back, I believe that the challenges of the National Bank’s leading team in the first years of independence had been immense.
Urban Bäckström: The current situation for monetary policy  Speech by Mr Urban Bäckström, Governor of the Sveriges Riksbank and Chairman of the Board of Directors and President of the Bank for International Settlements, before the Standing Committee on Finance, Stockholm, on 10 October 2000. *  *  *  It is gratifying to be able to note, as on so many of my previous appearances here, that economic developments in Sweden are impressive. Having achieved a growth rate in the past six years that averages 3%, it seems that our economy is now expanding at an annual rate of around 3 to 4%. Employment has really taken off. To date this year the number of people in work is 70,000 higher than in the same period of 1999. I can also note, once again, that notwithstanding the rapid economic growth, the rate of inflation has remained moderate. But these favourable developments do not mean that the Riksbank can sit back and relax. The path ahead contains a number of risks to which we must be alert. What lies behind the favourable economic trend? A basic factor behind the Swedish economy’s favourable path is, in my opinion, the economic policy realignment that has been carried out in the past decade and a half. Credit and currency markets have been deregulated, the tax system has been reformed, components of the transfers system have been modified and competitive pressure has increased. All this has helped improve the workings of our economy.

It is accordingly conceivable that the Swedish economy will move into a process with accelerating productivity growth but let us wait until that happens before incorporating it in our expectations and policy decisions. Our economy is developing favourably enough as it is. A growth process driven by rising investment and productivity can result in good circles. To some extent, that can be said to have been the case in recent years. It accordingly helps to explain the favourable economic developments in Sweden. Another cause lies in the various deregulations that have been implemented. 1  BIS Review 87/2000  Inflation this year improved by deregulation and competition Thus, it is other positive supply side effects that have helped to achieve the rapid output growth without generating inflationary impulses. The effects have come from the deregulation of electricity and telecom markets, as well as from the EU’s agricultural reform. Meanwhile, the temporarily lower rate of inflation has meant that real wage growth has exceeded expectations and thereby acted as a general demand stimulus. On the whole, however, the effects are of the one-off kind that lower the price level and stimulate demand for just a limited period. But if these effects have a gradual impact on different segments of the economy, their overall impact on inflation may be spread over many years. Another explanation for the favourable overall price trend is the generally stronger competition.
This needs to be restored. The next generation of policy-makers and leaders in business will be defined not by the power they hold and the amount of wealth they amass, but by the stewardship they exercise in serving the people and the responsibility they demonstrate to their communities. Thank you. 4  BIS central bankers’ speeches

In the current international financial environment, this trend has become more pronounced prompting investors to consider other asset classes and markets that provide stability. Thus far, the global financial crisis has had limited direct effects on Islamic finance. While Islamic finance by its very nature only engages in transactions that have underlying tangible productive activities, the slower overall growth and the increased uncertainties have affected pricing and activity in certain market segments. However, this in part reflects the shift in activity from the financial markets to the Islamic financial institutions. The scope of Islamic financial business has now expanded to more sophisticated financial products in response to the changing global customer base. Such Shariah-compliant products include private equity, project finance, the origination and issuance of sukuk, as well  2  BIS Review 121/2008  as fund, asset and wealth management products. The sukuk market in particular, has become an important avenue for international fund raising and investment activities. This market has expanded by an annual growth rate of 40%. The year 2007 saw an exceptional growth of the global sukuk market which expanded by more than 70%. New issues during the year reached a record high to about $ billion and the outstanding global sukuk market has now surpassed the $ billion mark. Up until August this year, it has held its ground with a total global issuance now exceeding $ billion, and is expected to exceed USD200 billion in 2010.