samchain/econo-pairs-v1 huggingface dataset:
It is targeted at raising the bar of professionalism and integrity of participants in the money and foreign exchange markets. In line with the focus of many prudential regulators worldwide, the next phase of our efforts in strengthening corporate governance includes enhancing our supervisory toolkit to effectively address culture. Beginning 1 January 2018, the Bank will also be introducing a strengthened transparency framework for our enforcement actions, to serve as a deterrence against misconduct. At the same time, we have to be realistic. There is only so much regulation and supervision can achieve. Firstly, because enforcement actions are ex-post, occurring only after a finding of misconduct. Secondly, because not everything unethical is illegal. Morality cannot be legislated. The spirit of the law may be violated even when the letter of the law is kept. As such, while public sector efforts are necessary to ensure minimum universal standards, the values for the financial sector are ultimately solidified by private sector forces. In particular, professional bodies have a crucial role to play. This role includes – but is not limited to – promoting competence within the financial sector. Beyond training, these organisations are uniquely positioned to build for financiers, a sense of pride and societal purpose toward their vocation. The Asian Institute of Chartered Bankers (AICB) is making substantial progress in this direction for the banking profession. I am pleased to note that its flagship Chartered Banker curriculum dedicates a significant emphasis on professional ethics.

In one example, a PPI policy bundled with a mortgage – cost the customer more than £ over the term of the loan, even though the maximum amount claimable was only £ The FSA reported that this abuse stemmed from “a culture in banks and other firms that focussed on profit over customer outcomes”. Closer to our region, we saw in 2001 the unexpected failure of the Australian HIH Insurance Group, which experienced estimated losses totalling AUD 5.3 billion. This was attributed in part to a culture where the board was “unduly deferential” to management, and staff simply did not question leadership decisions. In fact, instances of failures in professionalism and integrity do not seem to have waned since the global financial crisis. According to the Boston Consulting Group, banks have paid fines amounting to USD 321 billion to regulators around globe since the crisis through the end of 2016. Instances of misconduct range widely – from the well-known rigging of LIBOR and Euribor rates, to the more recently uncovered case of Wells Fargo, where over 2 million fake accounts were 1/5  BIS central bankers' speeches  opened under a senior management who fostered “an atmosphere that prompted low quality sales and improper and unethical behaviour”. Our financial industry is not invulnerable to the ethical challenge. In the 1980s and 90s, we had cases of Malaysian banks that suffered significant losses arising from imprudent lending under ethically questionable decisions by top management.
•  The statement entitled Summary of the Monetary Policy Committee Discussions will be published within 8 working days following the meeting with the title Summary of the Monetary Policy Committee Meeting, alongside its English translation. •  As of July 2006 the “Price Developments” report started to be published to provide an accurate understanding of inflation data. This report will be published within 2 working days following the announcement of inflation data. BIS Review 1/2007  5  •  Besides all these statements, presentations and speeches made by the Governor and the Committee members will be shared with the public from time to time. •  Moreover, the research papers, booklets, and technical notes published by the Central Bank and organized conferences will continue to be a part of the communication policy. The publication calendar for the Inflation Report and the Financial Stability Report along with the Monetary Policy Committee Meeting dates are presented in the Appendix. Meeting dates have been determined by taking into account such factors as official holidays, national and religious festivals, and the data flow calendar. Exchange rate policy and foreign exchange buying auctions Along with inflation targeting, the Central Bank will continue to implement a floating exchange rate regime in the upcoming period. In the floating exchange rate regime the FX rate is neither a target, nor a policy tool. The only variable that the Central Bank sets as target is inflation and the main policy tool to achieve this target is short-term interest rates.

In case the issue of liquidity bills is deemed necessary, the method of issue of the said bills and other related information will be announced to the public in advance by a press release. As always pointed out, the Central Bank deems the stability and development of financial markets as a supporting objective for the effective implementation of policies pertaining to price stability. As a matter of fact, compatible with the floating exchange rate regime, the Central Bank has taken measures towards maintaining financial stability several times in the last four years. Within this context, the Central Bank, the primary goal of which, entrusted to it by law, is to establish price stability, will continue its practices to enhance the effectiveness of the monetary policy and liquidity management, also in 2007. Accordingly, the Central Bank may change not only its liquidity management strategy, but also the borrowing and lending interest rate margins in cases of unpredictable changes in market conditions and according to the new needs. Obviously, under the floating exchange rate regime, the Central Bank is able to implement the YTL liquidity policy in a more flexible manner than it can under a fixed currency peg regime and can act more promptly and flexibly to meet the YTL liquidity needs of the banking system. The Central Bank can prevent excessive fluctuations in money market interest rates as long as they are consistent with the inflation target.
2 According to this theory, the pass-through of changes in monetary policy interest rates to the real sector of the economy is influenced by banks’ ability to provide credit to firms. This applies, in particular, to banks with less liquid balance sheets, often the smaller banks. 3 With a bank lending channel, the effects of monetary tightening on the supply of credit becomes more pronounced. The European banking sector has undergone a phase of some structural changes over the past years. In particular, as in other parts of the world, the European market for structured financial products, such as asset-backed securities or Collateralized Debt Obligations, has grown rapidly over the last decade. For instance, the quarterly issuance of euro-denominated asset-backed securities increased from just under € billion at the beginning of the present decade to above € billion in the second quarter of this year. 4 These developments potentially influence banks’ ability to grant credit. 5 Such changes are important for the conduct of monetary policy because, first, they affect monetary analysis (one of the pillars of the ECB’s monetary policy strategy), and second, because they are likely to affect the monetary transmission mechanism. On the one hand, increased securitisation is expected to weaken the effects of the bank lending channel by dampening the effect of monetary tightening on the supply of credit. Indeed, some evidence points to the fact that the supply of loans is positively affected by securitisation.

The continuation of the market turmoil does not allow me to talk to you with the benefit of detachment and the comfort of an ex-post assessment. However, I should like to take advantage of the occasion to share with you some considerations on the ECB’s response to the market turmoil drawing on the experience of the past year. 1  I am very grateful to Cornelia Holthausen for her valuable contributions. BIS Review 116/2008  1  2. The separation between monetary policy formulation and its implementation  Central bankers have, naturally, eyed the developments of the past year of financial turmoil – and, particularly, their recent intensification – with great concern, as they have the potential to influence adversely the ability of central banks to steer monetary policy rates, affect the transmission mechanism of monetary policy and, more generally, may pose a threat to financial stability. Once the credit concerns that had built up in the sub-prime mortgage market segment started to affect interest rates and traded volumes in the euro area money market, the ECB responded to these highly unusual market events by timely and forcefully adjusting its liquidity policy. I will not deal with the specificities of the ECB’s liquidity management over the past year – this will be carried out by the ECB staff in tomorrow’s session on “The Experience with Crisis Management” – but I would like to stress one fundamental principle underlying our response to the turmoil: “the separation principle”.
In other words, over such a short period, the outcome of an ex-post analysis can be heavily influenced by which of the two sides – the Treasury or investors – was the lucky recipient of the net inflation surprise that occurred over the period in question. For example, in countries such as the United Kingdom, where inflation declined following the inception of an inflationlinked debt program, ex-post studies generally suggest that these programs have reduced financing costs for these countries. The fact that the Treasury saved or lost money ex-post is thus not a very reliable guide as to whether the strategic decision to implement a TIPS program has been a good idea. The relevant question is whether the Treasury obtained the financing it needed at a lower ex-ante cost. If the experiment were to be run thousands of times drawing from the underlying distribution of possible inflation outcomes, would Treasury’s costs have been lower, on average, with TIPS or with nominal Treasuries? To conclude on the basis of one coin flip or roll of the dice as ex-post analysis essentially does surely is not the best way to evaluate the respective costs of TIPS issuance versus nominal Treasuries. Thus, we need to focus on the underlying factors that determine the ex-ante difference in costs. 1  2  See Sack and Elsasser (2004), Roush (2008).

As a result, by issuing securities in a segmented TIPS market, the Treasury may keep realized yields on bill and nominal coupon securities lower than they otherwise would have been. The last noteworthy fiscal benefit from TIPS issuance is the fact that it reduces risk to the U.S. government in terms of the variability of its net financial position. The rate of inflation influences both the cost of TIPS and the government’s tax receipts. Thus, some level of TIPS issuance may reduce the variability of the government’s net financial position. This, in turn, should lead to a more regular and predictable pattern of issuance, which should help minimize interest costs. In summary, our analysis of the ex-ante costs of the TIPS program and the more difficult-tomeasure benefits suggests that TIPS issuance provides at least a modest net benefit to the Treasury. So, now I want to turn to a related question: Are there ways to increase the benefits? 6  See Fleming (2002), Krishnamurthy (2002), Laubach (2003). BIS Review 14/2009  5  I would be willing to make two modest suggestions here. First, it may make sense to emphasize longer-dated TIPS issuance rather than shorter-dated issuance. Analytically, the logic goes as follows. Inflation uncertainty is likely to increase at longer time horizons. Thus, investors are likely to pay a greater premium for inflation protection at longer-time horizons. This implies that the cost savings associated with TIPS are likely to be greater for longer maturities rather than shorter maturities.
It is gratifying that SAMA has achieved its objectives of its monetary policy. The average inflation rate has remained at less than 1 percent over the last 20 years, and these stable conditions have contributed to sustained economic growth of 3% over the period. The exchange rate of the Riyal has also been maintained over the period of Rls. 3.75 per US Dollar, while the rates of exchange against other major currencies have moved within manageable limits. These positive indicators together with the uninterrupted full convertibility of the Riyal since 1961 and no restrictions on payments from and to the Kingdom, have created a stable business environment for the private sector as also for the inflow of capital for domestic investment. Since its establishment in 1952, a major responsibility of SAMA has been to maintain financial stability and promote growth of the national banking industry. As far as SAMA's objective of maintaining a stable financial system, its achievements have been equally remarkable. SAMA has followed prudent policies aimed at creating a sound, stable, and efficient financial system. Such a system has been characterized by freedom of capital flows, open investment climate, availability of ample liquidity, competitive environment and a modern payment system. Over this long period, sound laws and regulations and timely supervisory actions have ensured that Saudi Banks have stayed strong with adequate capital, efficient management, fit and proper directors and managers and sound internal control systems.

Hamad Al-Sayari: Financing a changing world Speech by His Excellency Hamad Al-Sayari, Governor of the Saudi Arabian Monetary Agency, at the Euromoney Saudi Arabia Conference 2007: Financing a Changing World, Riyadh, 8-9 May 2007. *  *  *  I am pleased to be here today at this international gathering of experts who share a common interest in the economic development of Saudi Arabia. The theme of this Conference is "Financing a Changing World" and I intend to share with you my views on the role that the Saudi Banks and the Capital Market are playing in this regard. This gives me an opportunity to recap the important contribution of our banks and our growing capital market in channeling the financial flows to and from the Kingdom. I will also outline the future direction and challenges in this regard. In recent years, international fund flows have been affected by different phenomenon, including rising imbalances in trade balances originating from the export dominated economies in Asia, the pace of economic growth in developed economies in Europe and North America, and the volatile energy and commodity prices affecting all countries. Addressing the impact of these global phenomenon are causing significant challenges to the economies of all countries. For the Gulf region including Saudi Arabia, a major challenge is to ensure that the increased financial flows into the region are channeled efficiently to the most productive sectors of the economy and to profitable enterprises and projects.
This is more than two and a half times the joint stock market value of the four major Swedish banks at the turn of the year 2012/2013. In Sweden, we succeeded in managing the acute phase of the financial crisis in 2008 and 2009 in a way that made it possible to limit the costs to society. One contributing factor was probably that the crisis of the 1990s was fresh in the minds of the banks and they thus limited their risk-taking more than might otherwise have been the case, at least with regard to their operations in Sweden. As we know, not all countries were as lucky. The negative effects of the crisis are still in evidence in large parts of the world – not least in several countries in central and southern Europe – and will probably remain so for some time to come. In retrospect, it is easy to note that the combination of shortcomings in the regulations and the profit motives of the participants on the financial markets contributed to one of the worst financial crises of the modern era. The details regarding the build-up of risk and the course of the crisis have been described several times and I will not repeat them here. It is enough this time to note that banks with a limited amount of capital and banks with a high degree of market funding proved to be vulnerable when the storm broke.

We have to demonstrate the same spirit with which the European Union was progressively developed over the past half-century: setting objectives, agreeing deadlines and mobilising the necessary political will within Parliaments. Europe’s governments are committed to pursue fiscal consolidation. Those within the euro area have formally declared that they will take “all measures needed to meet fiscal targets this year and the years ahead in line with excessive deficit procedures” (Euro area heads of state or government declaration of 7 May 2010). Some of them have made precise additional commitments to accelerate fiscal consolidation and ensure the sustainability of their public finances. Fiscal consolidation is being put in place at the same time as we strengthen the resilience of the European banking sector. Publication of the detailed results of a harmonised panEuropean stress test is an important step in the right direction. These tests will increase transparency and enhance investors’ confidence in Europe’s banking sector. They will also contribute to restoring the important intermediation role of the interbank market in channelling funds within Europe. 3. Where next? So where do we go from here? As I have indicated, collectively as European and global policy-makers, we need to ensure economic recovery and renewed confidence, while reducing fiscal deficits and remaking the financial system into one that supports the real economy. This needs to be our clear sense of direction. 1  Keynes (1937), “How to avoid a slump”, Article in The Times, 12 January 1937.
Joseph Yam, JP: Open and connected – Scaling new heights  Luncheon Address by Mr Joseph Yam, JP, Chief Executive of the Hong Kong Monetary Authority, at the 7th Annual Hong Kong General Chamber of Commerce Business Summit “Hong Kong: The Hub of Asia”, held in Hong Kong on 13 December 2000. *  *  *  1. I am grateful, and much honoured, to have the opportunity to speak to this 7th Annual Business Summit of the Hong Kong General Chamber of Commerce. This conference is billed as a ‘business summit’. The word ‘summit’ always makes me think of one of my favourite hobbies – hiking. Those of you who have enjoyed – or endured – some of the more spectacular mountain trails in Hong Kong will know what I mean. I am thinking especially of the steep ranges in the remoter parts of Sai Kung, but you don’t have to go far in Hong Kong before you find yourself in the middle of one of our wild and mountainous country parks. They are among the attractions that make Hong Kong such a special place. In my view, they should be included in any list of the qualities that make Hong Kong a desirable city to do business in – along with the rule of law, a low and simple tax regime, an educated workforce, and so on. If you haven’t enjoyed these mountains, I recommend you take advantage of this long-awaited fine autumn weather to try them out.

The study focuses its analysis through another form of ‘turning point’ – 1  BIS Review 114/2000  the ‘hub’ – in positioning Hong Kong as a logistical, financial and digital centre of intermediation between the Mainland and the rest of the world. Indeed, China’s entry into the WTO, along with globalisation and technological advance are the three processes that I believe will shape Hong Kong’s role as such a hub over the coming years. 5. I have recently spoken in some detail elsewhere on the economic implications, and, in particular, the implications for Hong Kong’s banking and financial sectors of China’s entry into WTO. So I shall deal with these only briefly here, before turning to the other two processes of globalisation and technological advance. To summarise the research by the World Bank, the HKMA and other organisations: China’s share in the world’s external trade is predicted to double in the space of five years as a result of WTO entry – from around three-and-a-half per cent to more than seven per cent. This rapid growth in the Mainland’s share of world trade, coupled with a projected growth in trade volume at the rate of 7% per annum, is likely to mean yet more Mainland-related business for Hong Kong, just as it will undoubtedly also mean a great deal more business for Shanghai and other Mainland cities as well.
Understanding these interactions is essential in assessing whether inflationary pressures are likely to prove persistent and thus calibrating the appropriate monetary policy response. On the basis of current futures prices, wholesale natural gas prices may stabilise or even fall somewhat in the coming months – indeed, that is precisely what we have seen in recent weeks. This will have a mechanical moderating effect on headline inflation from the middle of next year, as the MPC has anticipated in its latest forecasts. But, to the extent that the level of imported gas prices remains significantly higher than in the past – which is also foreseen in futures markets – then the threat of second round effects that sustain inflation at above target rates may well remain, as domestic firms and households try to resist the squeeze on their real incomes and spending power. That threat will be more acute to the extent that domestic firms and workers seek to protect the real value of their profits and earnings in the face of higher – even if no longer rising – imported energy prices. And – other things equal – the ability to firms and workers to protect their real incomes will be greater when corporate pricing power is stronger and labour markets are tighter.

Today’s allocation of zakat contribution to INCEIF by the three Islamic banks is another commendable act of industry in support of learning. INCEIF has received monetary contributions from several other Islamic financial institutions since 2007. This has enabled INCEIF to continuously enhance its internal capacity as the leading provider of Islamic finance education and knowledge. The contributions are being utilized to create the provision of scholarships, research and facilities development. In this regard, INCEIF has recently been accorded the “Project of National Interest” (Projek Berkepentingan Nasional) status. This status, which accords contributors with tax benefits in the forms of tax rebates for zakat contributions and tax deductions for non-zakat contributions, will incentivize more individuals and institutions in providing monetary support to INCEIF. The contributions will indeed go a long way towards the growth and development of Islamic finance in Malaysia and beyond. Thank you. 2  BIS Review 87/2010