samchain/econo-pairs-v1 huggingface dataset:
In fact, non-residents only hold 29% of government securities which should include the Sukuk or MGII. Furthermore, most of the outflows by non-residents arise from the sale of short-term bonds associated with short-term views while investors of Malaysia’s long-term bonds have remained steadfast in their investment holdings. We also observe since October 2015 the non-resident portfolio flows has becomes positive. In 2015, as part of our effort to improve transparency, we have embarked on an initiative to gather statistics on the ultimate beneficiary owners of Malaysian bonds and sukuks to give the market a clearer picture on the types and behavior of investors in our market. Preliminary data showed that of the total non-resident holders of Malaysian debt securities, 70–80% were stable long-term investors while the remaining minority was short-term investors. We are now looking at measures on how we can enhance the disclosure requirements of our bond holdings to be even more transparent so that our financial market would be on par if not better than the best practices adopted by advanced markets. Over the years, we have liberalized the foreign exchange administrative rules to promote competitiveness and reduce cost of doing business, attract foreign investors and create business opportunities for our local players. Ringgit bonds were allowed to be traded freely offshore, with some restrictions placed on ringgit funding and FX derivatives markets to contain speculation, with the aim to ensure financial stability. An unintended consequence of this liberalization was the emergence of offshore transactions relating to Ringgit such as NDF and NDIRS.

Moreover, Iceland’s investment-grade credit ratings from Moody’s and S&P were preserved throughout the crisis. This is why the sovereign has been able to tap international capital markets twice so far since the crisis struck. You can see from this that the key characteristics of crisis management and bank resolution in Iceland were that shareholders lost all their equity, unsecured bond holders were bailed in, vital infrastructure elements of the domestic banking system were preserved, and deposits were given preference over other unsecured claims. Today this seems in many ways a standard approach, but it was not universally well received at the time. On the whole, these measures were successful, which mitigated the effect of the banks’ failure on the economy. The domestic payment system functioned more or less seamlessly throughout, and there was continuous access to deposits and basic banking services in  2  BIS central bankers’ speeches  Iceland. International payment flows were seriously affected, however, not least because of the freezing order imposed by the British authorities on Icelandic banks, but also because of general distrust among foreign counterparties. Let me now turn to the macroeconomic part of the story. I will paint with a rather broad brush here, both because time is limited and because the issues are somewhat better understood.
Certainly we need to reform the system to try to ensure greater stability - and a great deal of effort has been expended on precisely that over the past few years - by developing standards and codes of best practice by national authorities, for example, designed to help them to help themselves to take greater advantage of the opportunities presented by globalisation. More certainly needs to be - and is being - done, recognising the particular problems facing different countries at different stages of development. But it would be a terrible mistake to turn the clock back and retreat from “globalisation” into a world of nation states linked together predominantly by official financing. None of the poorer countries themselves are arguing for that, yet that is what some of the protests seem to imply. And so it is with some of the more specific issues - like pushing for higher labour standards in developing countries, which is fine up to a point, but if pushed too far could mean lower activity and higher unemployment in those countries; or debt forgiveness not tied to programs designed to improve the lot of the people living in the debtor countries; or the appropriateness of particular development projects and so on - we cannot simply focus on particular aspects of the problem in isolation, we need to examine both the pros and the cons in each case to try to find the best means to what is quite likely to be an agreed end.

But it certainly has helped us to achieve a significantly better macro-economic performance over the past few years, and that in itself has helped in addressing at least some of our social problems. Over the eight years or so since the last recession in the early 1990s retail price inflation - on the Government’s target measure - has averaged some 2¾%. That’s a lower rate for longer than anyone can remember. This much greater degree of price stability is a “good thing” in itself - economically because it contributes to more rational, longer-term, decision making, but also socially, because it is typically the poorer, less financially sophisticated, sectors of society - for example those living on low fixed incomes - that suffer most from inflation. But low inflation is not simply an end in itself. The real benefit is that alongside sustained stability we have experienced the longest period of quarter-by-quarter growth since quarterly records began. Over the whole period annual output growth has averaged a little over 2¾% which is significantly higher than the earlier trend rate of around 2¼%. But more even than that, employment has increased steadily by nearly 2½m people over the same period, so that the number in work is today the highest on record. And unemployment has progressively fallen almost month by month on a claimant count basis (though with a slight setback last month) and the rate of unemployment is just about the lowest rate we’ve seen for about 25 years in the UK as a whole.
That is, lending to companies who have high levels of debt.8  Chart 16 The flow of gross issuance of leveraged lending to UK companies has declined from post-crisis highs and there is a tail of highly indebted firms Annual flow £ 60  % of total debt 40 Net debt to EBITDA >4x 35  50  30 40 25 30  20 15  20  10 10 5 0 01  03  05  07  09  11  13  15  17  19  0 00  02  04  06  08  10  12  14  16  18  Source: S&P Global Market Intelligence. Notes: Gross issuance of leveraged loans by UK companies on a 12 month rolling basis. Net debt to EBITDA ratios of the top 500 largest non-financial corporates by revenue outside of real estate and oil & gas weighted by debt. That rapid growth has now eased right off. But it has left a legacy on the balance sheets of some companies and on the balance sheets of those who have lent to them. The legacy on the balance sheets of companies is that more than a third of corporate debt is now in companies that have debt more than four times their cash flow (Chart 16). That can raise the underlying level of economic vulnerability. As we saw earlier, high-debt corporates are likely to cut back more sharply in downturns.

Assuming that developments in Swedbank’s and SEB’s other markets continue to be relatively good, however, the bank groups should be able to cover most of the losses from the Baltic region with the earnings from the remainder of their operations. Swedbank and SEB have subsidiaries in the Baltic countries, while Nordea has a branch. According to EU regulations, the authorities in the country where subsidiaries are located have responsibility for their supervision, while the home country authorities have the responsibility for branches and for the bank group as a whole. Around 80 per cent, equivalent to SEK 320 billion, of the Swedish banks’ lending to the Baltic countries is in euro. These euro are lent almost exclusively in the international loan markets by the parent bank in Sweden. BIS Review 11/2010  1  The Baltic economies developed rapidly after these countries gained their independence, although there have been some setbacks. This development was supported by extensive inflows of capital from abroad, particularly after EU membership in 2004. Much of the money came from neighbouring countries such as Finland and Sweden. The average standard of living for the populations in the Baltic countries increased rapidly from 41 per cent of the EU average in the year 2000 to 62 per cent in the year 2008.
To further the development of cyber insurance in Singapore, the MAS is supporting the Cyber Risk Test-bed project. This will promote both the demand for and supply of insurance coverage, as well as tackle the difficulties that arise when nurturing new and emerging lines: •  On the supply side, a lack of loss and claims data that underpins an effective and accurate risk pricing model. •  On the demand side, a lack of awareness as cyber risk is new and emerging, and exposures are therefore difficult to understand and quantify. •  Finally, insufficient technical expertise to underwrite such complex risks. Led by the NTU-Insurance Risk and Financial Research Centre (IRFRC) in collaboration with the Agency for Science, Technology and Research (A*STAR), the insurance industry and corporates, the industry-wide cyber insurance test-bed project seeks to address the limits of insurability of cyber risks in three ways. •  First, the common data sharing platform encourages pooling of not just insurers’ claims data, but also corporates’ potential loss data simulated through hypothetical events. •  Second, it helps corporates understand their potential exposures and losses. •  Third, the players on the platform can come together to establish industry standards on clear-cut definitions of cyber risks, coverage limits and terms and conditions. Today, I am very pleased to announce SCOR as the first founding member to join the Cyber Risk Test-bed Alliance. We remain in close discussions with a number of insurance players, and look forward to the industry’s active participation on this strategic project.

Cyber risks thus present an enormous potential for insurance players – not just to capitalise on this insufficiently tapped space, but more importantly, to play a vital risk management role for the wider society: •  Increasing awareness of cyber exposures, as well as the forces of regulatory change, will underpin the rapid growth of cyber insurance. It is estimated that the cyber insurance market will grow 30% per annum to $ billion in annual premiums by 2025. 2  BIS central bankers’ speeches  •  Companies are increasingly focusing on cyber security issues. 63% of boards today actively address computer and information security, up from 33% in 2012. The sharp increase is likely driven by the recent high-profile and well-publicized cyber incidents. •  Governments are also gearing up to address the problem. There is a trend towards stringent data protection regimes that are backed by increasing levels of liabilities such as more notifications and significant fines for data breaches. US, Hong Kong, Singapore and Australia are among those already enforcing, or looking at, new laws, while the European Union is looking to harmonise pan-European data protection laws across the EU member states. As technology and the users – or abusers – of technology get smarter, the extent of and impact from cyber breaches will correspondingly rise. Businesses must prepare for this new era of cyber risks with cyber insurance as a critical component in a comprehensive risk management strategy.
That is, that we know the range of outcomes that might happen and how the economy works and, insofar as is possible, given uncertainty, that we correctly analyse the available information to weight the probability of those. A famous corollary of this is the efficient markets hypothesis – that it is not possible to systematically ‘beat the market’. The stronger form of the hypothesis posits that market prices fully reflect all available information – that the price reflects the likely future revenue streams. But even if the price does deviate from that fundamental level, it may be rational for investors to remain in the market – as Chuck Prince famously put it, to keep dancing so long as the music is playing. The rewards of the game may be worth the risk of being stuck without a proverbial chair at the end. And even if they are not, sitting on the sidelines may not be a winning career move if promotions and funding flow to those with a reputation for high returns. It may be rational to stay with the herd, as Keynes said “it is better for reputation to fail conventionally”.11 Rational expectations do not mean that the future matches expectations and corrections are avoided – when new information arises, agents react to that. If the information is material for a financial asset, for example a change in Roman property ownership laws in AD 33, the adjustment can be large.

The Board of directors shall consist of not less than 5 members (Section 30(2);  iii. Every financial service provider must have a Chief Executive Officer and Chief Financial Officer who shall not qualify to hold office unless it is shown that they are fit and proper persons, above 21 years old, have not been convicted of a felony or offence involving dishonesty, are not mentally incompetent, have never been removed from office under the BFSA, have not managed a company that has gone into liquidation or entered into a composition with creditors (Section 31);  iv. The majority of directors must be from outside the bank (Section 32(1);  v.  Directors, Chief Executive Officers and Chief Financial Officers are expected to act honestly, in good faith and in the interest of the company whilst exercising due care, diligence and skill (Section 33);  vi. A director is required to declare in writing to the board annually, the names and addresses of the director’s associates and full particulars of every material interest (Section 35);  vii.
Beverly Hirtle: Structural and cyclical macroprudential objectives in supervisory stress testing Remarks by Ms Beverly Hirtle, Executive Vice President and Director of Research of the Federal Reserve Bank of New York, at the conference "The Effects of Post-Crisis Banking Reforms", Federal Reserve Bank of New York, New York City, 22 June 2018. * * * Good morning. It is my pleasure to make the opening remarks at this conference on post-crisis regulatory reform in the banking industry. It’s exciting to see such a distinguished group of researchers and supervisors in the room, all focused on developing a deeper understanding of the effects of the many significant regulatory changes that were put in place in response to the global financial crisis. I hope that the day is filled with productive discussion and debate. And, before I continue, I want to note that my comments today reflect my own views and not necessarily the views of the Federal Reserve Bank of New York or the Federal Reserve System. We are approaching the ten-year anniversary of the worst financial crisis in generations. Many regulatory and supervisory reforms have been made since, including changes to regulatory capital requirements, the introduction of new liquidity requirements, the redesign of the supervisory program for systemically important banks by the Federal Reserve’s Large Institution Supervision Coordinating Committee (LISCC), the introduction of the Comprehensive Capital Analysis and Review (or CCAR) program, requirements about recovery and resolution planning, and myriad other regulations under the Wall Street Reform and Consumer Protection Act (DoddFrank Act).

Such information, and a minimum level of forecasting capabilities, are in fact necessary for the fulfilment of all the tasks of a central bank, particularly for the maintenance of financial stability and the formulation of monetary policy. Central banks of accession countries will therefore assume statistical reporting obligations towards the ECB as soon as they become members of the ESCB, that is upon EU accession, although these obligations are less onerous than those which apply to euro area members. This future obligation should not pose any difficulty for the Central Bank as the existing legislation already gives it the power to access information directly and to publish it. In addition to these enabling powers, however, the Bank must also be equipped with the necessary technological and operational infrastructure and communication facilities to enable it to receive  BIS Review 8/2003  3  information from reporting agents and to forward it to the ECB. It must also ensure that the relevant information follows the agreed methodology. Recognising this future obligation, the Central Bank almost three years ago established a broad-based representative committee to identify the changes required in the way monetary and financial statistics are classified and reported. This work has been completed and the reporting forms have been updated accordingly. To facilitate the collection of this information, moreover, a common database is being established between the Bank and the Malta Financial Services Authority.
This is an important milestone – one that takes us further towards embedding the right idea of increased resilience for those few insurers that have the capacity to impact the global financial system. I look forward to your continued support as the IAIS builds on this progress to put into practice the overall package of requirements for systemic insurers by 2019. And we will need your support as we further develop, over time, an International Capital Standard to apply to all internationally active insurance groups. Our aim is nothing less than a standard which embodies the principles which underpin ICAS and Solvency II. Conclusion The ideas I’ve described today are vital to preserving the positive role of insurance in the financial system and the real economy. 6  BIS central bankers’ speeches  These ideas – tailored capital standards that promote a level playing field; a framework to hold the right people to account; and global standards for globally systemic insurers – are needed now in practice. The Bank knows that as our reforms are implemented and as your business models evolve we need a regulatory approach that is regularly reviewed, adjusted if necessary; and that takes account of evolving financial conditions, product innovation and changing markets. Robust interaction with the industry is essential to ensuring the right ideas can be put into action now, and for the future.

Here I am thinking about variables like the economy’s potential growth rate, the output gap and the NAIRU etc. Why should identifying asset market misalignments, excessive credit growth and a rapid decline in private financial balances be more difficult than forming an opinion about variables such as these? My view about monetary policy in this respect is of course closely bound up with my experience of the Swedish banking crisis, but it is also in line with a central bank’s mandate to achieve long-run price stability. If anything, a financial crisis substantially increases the risk of outright deflation after some time. The central bank could manage this risk in two ways: by at least trying to prevent the bubble from building up by tightening monetary policy at an early stage, and then by loosening monetary policy aggressively if a bubble builds up and bursts anyway. To my mind, both such actions would be in line with focusing on long-run price stability, whether the central bank follows an explicit or an implicit inflation targeting approach. Although I will be leaving my job as governor of the Bank of Sweden towards the end of this year, I have no qualms about forecasting that financial stability will remain on the agenda and be a key challenge for financial authorities for many years to come. 2  BIS Review 68/2002
The third and last initiative we are working jointly with Shenzhen relates to talent development. You may recall that last year we launched the Fintech Career Accelerator Scheme and, since then, more than 70 Hong Kong students have been working on fintech projects in 12 banks and the HKMA. Building on the success of this scheme, and with the support of the Shenzhen OFDS, we have secured commitments from several high-tech firms in Shenzhen, including Ping An Technology, WeBank, Tencent and others, to offer summer intern positions for Hong Kong students to learn the latest technologies, not only in financial application but also in areas such as big data analytics or artificial intelligence. This people-to-people approach will deepen collaborative ties between Hong Kong and Mainland China in fintech development to our mutual benefit. 3/4  BIS central bankers' speeches  Enhanced research 15. Finally, I want to talk about enhanced research, which is one of the seven initiatives in the package helping Hong Kong to migrate to the new era of Smart Banking. Today we will publish our second whitepaper on DLT. You may recall that we released the first DLT whitepaper around this time last year, in which we explained how the technology works, outlined proof-of-concept projects and, more importantly, identified potential implementation challenges and issues.

Let me highlight three areas we need to get right to catalyse green finance – clear taxonomies to define what is green, what is transition, and what is neither; innovative solutions to unlock and catalyse multiple sources of financing; supervision of how financial institutions are managing their climate-related risks. First, clear taxonomies. We are unlikely to have a single, global taxonomy. Instead, efforts should focus on ensuring that taxonomies across different markets are interoperable and comparable. This means taxonomies that use a common language, such as internationally referenced industry classification systems. Asia needs a taxonomy that supports transition activities while achieving compatibility with existing high-quality international taxonomies. The ten countries of the Association of Southeast Asian Nations are developing a taxonomy with a two-tier architecture, comprising a Foundation Framework and a Plus Standard. The Plus Standard will set out data-backed thresholds for each activity, starting with less ambitious thresholds to facilitate early adoption and leading up to more ambitious “gold standard” thresholds that reference science-based pathways. In Singapore, an MAS-led industry taskforce is developing a taxonomy that encompasses green and transition activities. It adopts a “traffic light” system that helps market participants identify activities that are “green”, “yellow” (or transition) and “red”, with the intent of reaching net 1/2  BIS central bankers' speeches  zero as soon as possible. The calibration of thresholds is important, considering the feasibility and availability of alternative technologies in Singapore and the region. The thresholds will need to be recalibrated at regular intervals to keep pace with technological innovations.