samchain/econo-pairs-v1 huggingface dataset:
While the recent joint staff report on the events of October 15 certainly revealed that much has changed, it is also important to recognize that both private and official sector efforts to ensure a healthy and efficient Treasury market have been ongoing for some time. 3 One obvious example is the Treasury Market Practices Group, or the TMPG. Set up in February 2007, the  1  What I have to say today represents my own views and not necessarily those of the Federal Open Market Committee or the Federal Reserve System. 2  See Regulation and Liquidity Provision, remarks at the SIFMA Liquidity Forum, September 30, 2015. 3  Joint Staff Report: The U.S. Treasury Market On October 15, 2014. BIS central bankers’ speeches  1  TMPG is a group of market professionals committed to supporting the integrity and efficiency of the Treasury market. 4 A core purpose of the TMPG is to develop and update a set of best practices related to trading, settlement and risk management, thereby establishing a set of behavioral norms to which market participants are expected to adhere. Most recently, the TMPG updated its best practice guidance to address automated trading, and published a companion white paper on the subject.

Less traditional firms, often with a primary focus on automated, low-latency trading strategies, have entered the arena and helped to transform the landscape. In addition to adapting to these changes, traditional broker-dealers are complying with a more rigorous regulatory framework and are also expanding their use of automated trading technologies. These developments raise a number of important questions. They include: Who are these new entrants and what are their motivations? Has the changing composition of firms affected the nature of market making and liquidity provision? How have traditional liquidity providers responded to the expanded use of new technology? Has the changing structure introduced operational risks in the clearing and settlement infrastructure? How has the evolution of the repo market affected the secondary market for Treasury securities? Are the regulatory requirements imposed upon the Treasury market sufficient in today’s world? And finally, are there any changes – regulatory or otherwise – that could improve the functioning, efficiency and/or integrity of the Treasury market? As I noted in my recent remarks on market liquidity, many open questions remain on the subject of Treasury market liquidity. 2 At the same time, the agenda for this conference makes it clear that there are many other important questions beyond market liquidity worthy of consideration and debate. The breadth and expertise of the attendees at this conference make this forum an excellent opportunity to advance our collective thinking on this range of important subjects.
This issue was present during the first asset purchase program, especially when the pace of weekly purchases reached a peak of about $ billion in the middle of last year. The pace of those purchases at times put pressure on liquidity in the MBS market, leading the Desk to take mitigating actions when possible. 8 In the current circumstances, there would seem to be room for the Federal Reserve to expand its holdings of Treasury securities without creating difficulties for market functioning. The SOMA currently holds about 12 percent of the outstanding stock of Treasury coupon securities – a smaller share than it held before the financial crisis. Moreover, the supply of Treasury securities will remain ample, as the Treasury is expected to issue around $ trillion of securities over the next year. Any purchase program that the FOMC decides upon, whether aimed at Treasury securities or MBS, would be designed to support market functioning as much as possible while still achieving the program’s economic objectives. The deep liquidity of these markets has considerable value to our economy, and we should take whatever steps possible to leave this liquidity intact. The second operational challenge I mentioned comes at the other end of the program – the exit. In particular, it is important to consider whether balance sheet expansion would complicate the eventual exit of the Federal Reserve from its accommodative policy stance. I am confident that our ability to exit will not be compromised by any further expansion of the balance sheet.

Global data reveal that close to 95 million people during 2020, fell below the threshold of the poverty line, more that it was expected or projected at the start of the crisis. In this context, labor market data clearly indicate that youth, low skilled workers and women particularly in emerging and developing economies, have been hit harder. There is statistics pointing to a global employment rate for men below the pre-pandemic level by about 5 percentage points, while the women employment rate is still 7 percentage points below the prepandemic level. Given the nature of the crisis, Western Balkan region was not shielded from this global shock. Economies in the region are small and highly open in trade and financial terms, heavily exposed to external developments. GDP in the region declined by 3.4% in 2020, but with intensity that differs across counties in the region, ranging from –1% in Serbia to –15.2% in Montenegro. Henceforth, the disproportionality of the impact of the crisis pertains to the region, as well. Let me use labor statistics to illustrate some important aspects of how COVID affected women. First of all, in general, I can say that this crisis hit women more heavily than men, and this has come on top of the fact that women faced pre-crisis gaps in many respects on the labor market. Couple of numbers in this segment.
Inflation is higher in the euro area than in the US and approximately in line with the objective defined by the European Central Bank. In the euro area, however, capacity utilisation is very low, unemployment high and the outlook for growth is weaker. Against this background, it will probably also take time before interest rates rise markedly in the euro area. Chart 14. USD/EUR and the US current account balance as a percentage of GDP 0.8  0 USD/EUR (left-hand scale)  1  -2  1.2  -4 Current account balance (right-hand scale)  1.4 1999  2000  2001  2002  2003  -6 2004  Sources: OECD and Norges Bank  The imbalances in world trade represent a particular risk. The US is running a substantial trade deficit, which was financed for a number of years by private capital flows to the US business sector. The flows have subsided and led to a sharp fall in the US dollar at the same time as the euro has appreciated. Through purchases of US government securities, Asian countries have thus far kept their currencies stable against the US dollar. The US federal budget deficit is an important source of the imbalances in world trade. It appears that it will take time before the deficit is reduced to a considerable extent. This entails a risk that the dollar will depreciate further and that US long-term government bond yields will move up.

Per cent 25  December 2003  20  25 20  Household debt  15  15  10  10  5  5  0  0  -5  House prices  January 2004  -5 -10  -10 1983  1987  1991  1995  1999  2003  Sources: Norwegian Association of Real Estate Agents, Statistics Norway and Norges Bank  Home-owners who have seen the value of their dwellings rise have the possibility of taking up new mortgage-secured loans. They free up a portion of their home equity value to finance consumption and other investments. It is easiest to sell dwellings in the largest cities and some specific areas are particularly attractive. Residential property is now a fairly liquid and attractive investment. Price developments in the housing market are characterised by the fact that there is little change in the housing stock from one year to the next. As a result, higher demand for housing will in the first round translate into higher prices. Housing prices fluctuate more than prices for goods and services, where supply can be rapidly adapted. A persistently high rate of increase in house prices can in isolation engender expectations of a further rise and can thus prove to be self-reinforcing for a period. BIS Review 11/2004  17  Chart 26. Short-term interest rates in Norway Actual and market expectations.
We have plenty of tools to provide liquidity support to the financial system if needed and to preserve the smooth transmission of monetary policy. In my remarks today, I will discuss our policy path so far and what lies ahead. And I will explain the reaction function that will govern our future rate decisions. The path so far Last year, inflation in the euro area surged strongly, and spread deeply, because it was driven by two types of shocks which hit the economy at the same time. First, we underwent an unprecedented series of negative supply shocks caused by pandemic-induced supply chain disruptions, Russia’s invasion of Ukraine and the ensuing energy crisis. This significantly increased input costs for all sectors of the economy. Second, we faced a positive demand shock caused by the reopening of the economy after the pandemic. That favourable demand environment allowed firms to pass rising input costs through to prices much faster and more strongly than in the past. [1] Our policy stance was starting from highly accommodative levels, having been tailored to the very-low inflation environment of the past decade and the initial deflationary risks of the pandemic. So, we had to adjust, as quickly as possible, a stance that had become inadequate. This initially placed important emphasis on signalling, i.e. demonstrating, through actions and commitments, that monetary policy would cover the necessary ground decisively. That is why we put a great weight on the pace of our actions, hiking rates in large increments.

The enhanced intermediation during this decade has benefitted access to financing, particularly for small and medium enterprises, has also improved, both in volume and efficiency. By leveraging on the distribution networks of commercial banks, enhanced product and risk management capabilities, access to financing by this sector has increased at an annual rate of almost 20% since 2005. The financial infrastructure in Malaysia has also been significantly strengthened. Malaysia has an effective financial safety net that includes a comprehensive deposit insurance system and institutional arrangements that provide avenues for advisory, redress and rehabilitation. Innovations in payment systems and instruments as well as infrastructure for the issuance, trading and settlement of debt securities and the access improved market information has contributed to greater efficiency and has also enhanced the overall price discovery process. To support our liberalisation measures our payment infrastructure has also been enhanced to support cross-border trade settlements in local currency and cross-border liquidity support arrangements for financial institutions. Today, Malaysia also has a deep and vibrant bond market which is the largest in South East Asia, and a comprehensive Islamic financial system that is recognised as among the most advanced in the world. The bond market comprising of the conventional and sukuk market has trebled in size, providing businesses with alternative access to financing solutions including in multicurrency to meet a diverse range of risk and maturity preferences.
We trust in democracy in freedom, in human rights. We trust in the fact that market economies are the best way to produce goods, services and prosperity. And our future will depend on the people of Europe. It is the free will of our democracies which will shape Europe in the long run. And at the ECB we are very proud to be already an executive institution; we are the “avant-garde” of Europe. DIE ZEIT: Do you understand the French desire for a stronger role of national concerns in Europe? Trichet: I am not speaking of any particular nation. All European nations are members of the European team. And the success of Europe is the success of the team. DIE ZEIT: Perhaps the President of the ECB has to play a more political role in the next years than you want to... Trichet: Communication with the large public opinion, with all our fellow citizens is certainly one of the most important issues for all who care about the Unity of Europe. DIE ZEIT: Chancellor Angela Merkel wants European rules to protect Europe from sovereign wealth funds. Do we need protection? Trichet: These funds, like all new phenomenons, have to be studied and carefully observed. On the other hand the principle of free circulation of capital at the level of the global economy has been beneficial for all economies concerned. DIE ZEIT: The euro is at an all time high vis-à-vis the Dollar and the Yen.

Jean-Claude Trichet: Interview with Die Zeit Interview with Mr Jean-Claude Trichet, President of the European Central Bank, and Die Zeit conducted by Mr Marc Brost and Mr Robert von Heusinger, 23 July 2007. *  *  *  DIE ZEIT: Monsieur le President, fifty years ago the German Bundestag created the Bundesbank, one of Germany's best-known brands in the world. What is its legacy? Trichet: Monetary stability. Independence. Credibility. These principles are very favourable for sustained growth and job creation. Today it's globally recognized that this is the right way for monetary policy to deliver price stability and, by way of consequence, sustainable growth. DIE ZEIT: What do you admire most in the history of the Bundesbank? Trichet: One of the most impressive episodes has been the open conflict with Chancellor Konrad Adenauer who wanted the Bundesbank to decrease interest rates. But the Bank refused. It proved to be really independent. DIE ZEIT: That was 1956. Long ago. Trichet: Yes, but at the beginning of 2004 shortly after I became President of the ECB, three heads of member states asked publicly to lower rates: The Bundeskanzler of Germany, Gerhard Schröder, the President of the French Republic, Jacques Chirac and the Prime Minister of Italy, Silvio Berlusconi. The ECB demonstrated its independence. We did not comply. DIE ZEIT: Which personal episode with the Bundesbank do you cherish? Trichet: For me the whole history of the euro has an important personal touch with German friends in the administration and in the Bundesbank.
I applaud the significant progress being made by the International Accounting Standards Committee and look forward to the continued cooperation between the Basel Committee and the IASC toward achieving the goal of harmonization. Official supervision While effective bank level management and meaningful market discipline are crucial elements of an overall strategy for promoting and preserving financial stability, neither can substitute for the critical role played by official supervision. While banks perform functions that are indispensable to the success of any market economy, these same functions, by their very nature, introduce risks that are capable of undermining the prospects for such success. This reality was acknowledged by Adam Smith over two centuries ago in his seminal tract The Wealth of Nations. And it is with this fundamental reality in mind that governments have long recognized that banking and other financial institutions must be subject to at least some form of regulation and official oversight. The reasons for official supervisory intervention in the banking and financial system can be summed up as promoting financial stability and minimizing systemic risk. This is a broad mandate – to ensure that markets operate in a fair, transparent, and efficient manner, and that participants comply with the rules of the game. To successfully fulfill this critical responsibility, it is clear that the fundamental approach, scope and methodologies of official supervision must evolve in line with the way financial institutions manage their activities, which increasingly is along business lines rather than legal entities.

Serious measures to ensure relevant competencies and independence will greatly enhance boards’ effectiveness and go a long way toward ensuring they perform their increasingly critical role in overseeing the decisions of senior management. The role of senior management, in turn, is to set the business strategy, oversee day-to-day decisions made within the organization, and ensure their consistency with long-term objectives and policies as determined by the board. There are several aspects to effective bank-level management. First, I would underscore the importance of good corporate governance, the basic elements of which include: •  Independent and competent outside directors, as I mentioned a moment ago;  •  Capable and experienced management;  •  A coherent corporate strategy and business plan; and,  •  Clear lines of responsibility and accountability. Together, these elements contribute to an overall operating process conducive to long-term health and prosperity. A tightly run ship with a disciplined crew led by an experienced and competent cadre of officers is far better able to survive a long journey that will inevitably confront sudden storms. Closely related to good corporate governance and critical to any banking institution’s well-being is a rigorous internal control apparatus. Of course, effective internal control systems have always been centrally important to sound banking.
Creating the right incentives, consistent with good market practices and sound risk management, appears to be an important way of promoting the safety and soundness of the financial system and therefore a good way of sustaining both the stability and growth of the economy. This is not only relevant for prudential regulation; other areas such as accounting should also be consistent with this broad perspective. This consideration underlines the importance of taking seriously certain concerns such as procyclicality. In my view Basel II goes in the right direction. I am convinced that when banking systems are adequately capitalised, well-managed and risks are correctly assessed within the appropriate time horizon and the financial system becomes more stable, less procyclical, better able to promote sustainable growth, and more resilient during periods of distress. My second reflection is that one of the most significant conclusions of the analysis of the recent economic and financial evolution of the world economy has been the resilience of banking systems in most countries. In my view, this resilience has been the result not just of the presence of sufficient capital in the system, but also of improvements in banks’ risk management systems. I think we owe the industry a special vote of congratulations with respect to the latter, but we also owe it a commitment on the part of supervisors to continue to support such developments. This is exactly what we are all trying to do with the proposals for a new Capital Accord, which I would like to address now.

Zeti Akhtar Aziz: Launch of the Investment Account Platform in Malaysia Keynote address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Launch of the Investment Account Platform (IAP), Sasana Kijang, Kuala Lumpur, 17 February 2016. *  *  *  It is my great pleasure to be here this morning for the launch of the Investment Account Platform (IAP), a centralised multi-bank platform that is likely to have significant implications on the role of financial intermediation in the Islamic financial system. This platform is more than just a new and innovative medium for Shariah-compliant investments and fund raising initiatives. It signifies a fundamental shift towards providing solutions that addresses the prevailing gap in the current risk-transfer financial regime to one that now allows for financial institutions to include a wider range of investment intermediation activities that emphasises risk-sharing and thus facilitate a stronger linkage of finance and the real economy. Islamic finance in Malaysia has journeyed through different phases of development and has now evolved into a complete Islamic financial ecosystem that operates alongside the conventional financial system. Underpinning its growth has been the infrastructure and institutional development, product development that is reinforced by increased competition, and supported by a robust Shariah, legal and regulatory framework. Its development has also been strongly anchored by the investment in human capital development.
This may involve shifting resources to new areas of business or markets. In striving towards long-term competitiveness. Experience has shown that the aptitude for hard work, prudent practices, the agility to adapt to changing conditions, perseverance and the ability for reinvention are some of the qualities of the successful SMEs in our economy. The creation of the SME Credit Bureau is another milestone in the development of the enabling supporting infrastructure for strengthening the SME sector. The creation of such an information credit bureau industry is a further step forward in generating a financial intermediation process that is more efficient and effective. I hope that financial institutions and the SME Credit Bureau would work together towards making today's initiative achieve its objective. In enhancing greater access to credit to the SME sector, it would strengthen the potential for SME contribution to the economy. BIS Review 47/2009  3

In the coming years, the greater global participation in this developmental process, both directly and indirectly, would enhance the potential role that Islamic finance would have in contributing towards greater global financial stability in the international financial system. BIS Review 136/2008  5