samchain/econo-pairs-v1 huggingface dataset:
In implementing the minimum regulatory standards, the objective is not to achieve a single set of uniform rules, but rather to focus on implementing rules in the respective ASEAN member countries that are consistent with an agreed set of sound principles of regulation and supervision. This will entail efforts at the national level to align existing regulatory and supervisory regimes with international standards such as the Basel and Insurance Core Principles. In addition, the implementation of well-designed financial safety nets such as deposit insurance systems will further support the successful management and transition during the financial integration process. Surveillance mechanisms also need to be enhanced to be able to take into account the implications of cross-border transactions and the diversity of the market structures across the region which will affect the way risks are measured and managed. Traditional risk metrics may not be able to fully capture more layered risk complexions. As financial systems develop at an uneven pace across the region, and as regional exposures become more significant, more granular and broader risk metrics will need to be developed to capture differences in market structures and different business profiles in local markets which reflect prevailing economic and financial conditions. As an example, loan-to-deposit ratios vary considerably across the region, partly reflecting differences in the depth and sophistication of financial systems and to some the extent whether savers and borrowers have alternative avenues for investment and financing.

I’d like to discuss this morning why the Basel Committee believes that applying transparency and market discipline approaches in the New Capital Accord will help us achieve our objectives to reinforce the safety and soundness of the banking system. My first point will be that, despite its name, the New Capital Accord is about much more than just capital. It is also about maintaining a level playing field and about strengthening incentives to foster sound risk management through three pillars: risk sensitive minimum capital requirements, coordinated supervisory review and - importantly, given the theme of this conference - enhanced market discipline through greater transparency. The New Accord is therefore much more comprehensive than its 1988 forerunner. Second, I’ll comment on the rationale behind the compound approach followed by the Basel Committee that blends rules, discretion, and market-based incentives. It could be viewed as a portfolio of different policy approaches that allow supervisors to achieve or at least draw close to a kind of efficient frontier. Third, I’ll share with you key issues that the Committee faced in drafting the market discipline component of the New Accord and, specifically, I will mention some of the concerns that arose in our public consultations.
Conclusion We are at a critical and exciting stage in our journey to the first ISO 20022 migration, which that will lay the foundations upon which to build the payments industry that is fit for the future. I want to thank the industry for your engagement and inspiration to date and encourage you to prepare. The building of Stonehenge was a feat of engineering and innovation. It also demonstrated how much people working together for a collective purpose can achieve. Now through our collaborative endeavours we can achieve our vision for the future of payments. Bringing real benefits to all users of payments. And shaping the payment landscape of tomorrow. I’ll leave you with a quote from Albert Einstein: “Innovation is everyone’s responsibility, not just R&Ds.” I am grateful to Jason Gorner, Sita Mistry, Sophie Dalzell, Lisa Donohoe, Samantha Leighton and James Southgate for their help in preparing these remarks.

Full and consistent implementation of the Stability and Growth Pact over time and across countries remains crucial to ensure confidence in the fiscal framework. At the same time, it is essential that all countries intensify efforts towards achieving a more growthfriendly composition of fiscal policies. We are now at your disposal for questions  2/2  BIS central bankers' speeches
Many of its customers, aged 75 and over, had invested their life savings into these products but were left with significantly reduced retirement income. Ten years later, the Government agreed to pay compensation amounting to £ billion. But many policyholders and their families suffered over the decade when their fate remained uncertain, and some of those affected were no longer alive to benefit personally from the compensation. Another way to think about this is to consider the importance, at a human level, of what insurance companies do – and therefore, how we would feel about it if an insurer couldn’t make good on its promises. Much of this is about the everyday business of work, family and home, and I have spent some time this year with policyholders to remind myself of this. The most striking thing about talking to a group of policyholders is simply the vast range of insurance needs people have, from burst pipes to with-profits funds. One is also 1  Based on ABI data, as at end 2016. 3  All speeches are available online at www.bankofengland.co.uk/speeches  3  struck by how complex people find insurance, and some of the different experiences that can arise. One person I spoke to had a really excellent experience with a UK home insurer. Another’s family had been injured in a motorway pile-up, and was having terrible difficulty trying to find out if the non-UK insurer of the driver who had hit them is or is not solvent.

In a world where a German trader can trade on an exchange in London with a counterparty in the US who uses a French technology provider and a Belgian settlement agent, the question of how to ensure that all parts of the process are regulated effectively is a tough one. Some argue there should be some kind of pan-national “super-regulator”. Perhaps that is where we will eventually get to although one worries about its potential for the worst sort of bureaucracy: and in the meantime we think that an approach based on close cooperation and the exchange of regulatory information, is a pragmatic way forward and more likely to balance the need to protect investors and the need to encourage innovative, responsive markets. But let me turn my attention back to the opportunities that technology offers. The scope for new contracts on B2B and e-commerce networks is enormous. Contracts that would have taken some time to establish themselves in a pit can be quickly listed on screen at relatively little cost. Trading is now possible in such diverse commodities as electricity, telecoms bandwidth and even the weather. The organisers of this event may, in future, be able to hedge their exposure to fluctuating wine prices using exchange-traded futures based on the finest premier cru, I suspect this is one contract where traders would be happy to go to physical delivery. We central bankers will have to stick to our usual vin ordinaire.
But risk and high yield often go hand in hand and it must be assumed that equity prices can fall just as easily as rise. The Central Bank has assessed the banks’ credit portfolio quality on the basis of geographical and sectoral distribution. It is no longer enough to focus solely on activities in Iceland, because threequarters of the banks’ total lending on a consolidated basis was to non-residents, especially in the other Nordic countries and the UK. The assessment indicates that the banks’ loss provisioning is more than adequate to meet expected losses. However, this view must be tempered by hefty credit growth in recent years and the large increase in leveraged buyouts and forward contracts connected with them. House prices are at a historical peak in real terms and may unwind. Equity prices reflect expectations of ongoing rapid output growth, but such sentiment can quickly reverse, as recent experience has shown. Arrears and impairment are minimal, but both may be expected to increase in the coming years. One major vulnerability of the Icelandic economy at present is the risk of a rapid and unforeseen rise in international interest rates and premia. Short-term rates have already risen widely and may go up further. Long-term rates have not changed much but could begin to climb. Premia are prone to change at short notice due to shifts in investors’ risk assessments or risk-seeking. The Icelandic economy has never been so sensitive to changes in global markets, which could significantly affect it.

The problem that loomed around this time a year ago is a thing of the past and terms in the secondary market are more favourable again. The Central Bank underlines that global market conditions can take a sudden turn for the worse and it is important to be on the alert and prepared for such a contingency. The current episode of ample liquidity and lower interest rates which has been ideal for risk-seeking investors may change unexpectedly. Short-term interest rates have been rising in most markets recently and capital costs are no longer so favourable. The Icelandic banks are better equipped for such a reversal than a year ago, because experience has taught them to extend and disperse their borrowing, and build up substantial liquid reserves in foreign currency. In 2006 the spotlight was on the banks’ liquidity risk. Now that this risk has ebbed, the focus has shifted to credit risk and the potential impact of higher interest rates and a depreciation of the króna. Amidst the turbulence of 2006, the banks slowed down their credit growth and expansion of their balance sheets. No major foreign financial companies were acquired and equity exposures were reduced. Nonetheless, it is natural to consider their credit risk and vulnerability towards a fall in asset prices. Icelandic households’ debts with credit institutions have soared in recent years, especially averageincome and young households.
In this vein, the Committee’s second report discussed some of the term rate alternatives, and development of proposals for a term reference rate was recently added to its mandate. In this regard, I would also encourage market participants, academics, and other interested parties to contribute to the effort to develop a term reference rate. Another key area of focus—further motivated by Andrew’s warning—is the development of fallback contract language in the event that LIBOR ceases to be published. The absence of such language creates the potential for large-scale disorder in global financial markets should LIBOR go away. Put simply, this is an unacceptable risk. The International Swap Dealers Association (ISDA) has been working on this issue for the derivatives market and is expected to issue a consultative document soon that should prove instrumental in making further progress. The ARRC has also been coordinating a similar effort across cash products of all types. The goal is to achieve consensus on a consistent approach across markets whenever feasible. Looking Ahead As I have noted previously, LIBOR continues to have significant shortcomings despite strengthened governance in recent years, and uncertainty about its future will only grow over time. This uncertainty reflects the limited liquidity underlying LIBOR and the corresponding legal risks I discussed earlier. But, I am also skeptical about whether LIBOR can ever be adequately transaction-based. As Andrew highlighted, there is no guarantee that LIBOR will continue to exist beyond December 2021.

The Financial Stability Board (FSB) has been a galvanizing force at the international level. The FSB and its members have published proposals, plans, and timelines for reference rate reform and have promoted the strengthening of the major interest rate benchmarks. The FSB has been carrying out work on the development and introduction of alternative benchmarks, developing a plan to accomplish a transition to new benchmarks, encouraging work by the private sector on contract robustness, and reporting regularly on the progress made.14 The Federal Reserve has played a lead role in the development of these recommendations as applied to U.S.-dollar LIBOR, working closely with the other major financial regulatory agencies in the United States. This effort has also involved coordinating with the official sector sponsors of similar efforts around the world.15 In late 2014, in response to FSB and Financial Stability Oversight Council recommendations, the Federal Reserve convened the Alternative Reference Rates Committee (ARRC)—a group of market participants established to identify more robust alternative U.S.-dollar reference rates that are risk-free or nearly risk-free, fit the needs of the derivatives market, and are compliant with IOSCO principles.16 This effort paralleled similar ones in other jurisdictions to find reference rates that are well-suited to local conditions and market needs—including the UK’s Working Group on Sterling Risk-Free Reference Rates.
We will participate actively to propagate free and open trading alliances as Asia grows and becomes more economically integrated. In this way, we help to unlock the value, spin off new opportunities and create good jobs for Singaporeans. ASEAN and AEC 2015 One key market for Singapore is ASEAN. ASEAN is a growing region and has a combined population of 600 million people. ASEAN also has a GDP that is the third largest in Asia, after China and Japan. In recent years, ASEAN has embarked on an enterprise to integrate our economies into a regional bloc. ASEAN today, through initiatives like the ASEAN Free Trade Area, has resulted in virtually no tariffs for flows of goods between our countries. Going forward, ASEAN is making good progress towards becoming the single market and product base envisioned in the ASEAN Economic Community (AEC). The realisation of the AEC by 2015 will result in an even more tightly integrated region, and this has opened up more opportunities for corporates as well as investors. A key principle underpinning the AEC 2015 is the free flow of goods, services and investment within the region by 2015. Let me update you on the progress so far. •  1  On trade in goods, virtually all goods in ASEAN already move throughout the region tariff-free1. We are now working on reducing non-tariff barriers. ASEAN-6 countries have eliminated tariffs on 99.65% of tariff lines effective 1 Jan 2010.

RCEP will be one of the biggest FTAs in the world, covering 3 billion people and accounting for one-third of the world’s GDP. RCEP is a significant agreement for ASEAN. It is an ambitious attempt to deepen regional economic integration and to link ASEAN’s various trading partners, many of whom do not have existing trade agreements with one another. One key partner for ASEAN in RCEP is China. China will continue to play an increasingly important role in trade with ASEAN, and this will grow even further with its participation in RCEP. In 2012, ASEAN-China trade volumes reached a record high of $ billion, and by 2015, ASEAN is expected to be China’s top trading partner. As a result, in the next few years, we can expect a greater acceptance and use of the Renminbi (RMB) as a trade settlement currency, especially in ASEAN. What does this mean for us? China has already signed bilateral currency swap arrangements with key ASEAN countries, such as Singapore, Malaysia and Indonesia. Corporates, investors and financial institutions need to be prepared if they are to capitalise on the opportunities brought on by the increasing internationalisation of the RMB. In February this year, Singapore became the first country outside Greater China to have a Renminbi clearing bank when the Singapore branch of the Industrial and Commercial Bank of China (ICBC) was designated as such. This was followed by MAS and the People’s Bank of China signing an enhanced bilateral currency swap agreement in April.
It is, therefore, in the interest of the internal auditor to promote governance to facilitate his job in a bank. The need for continuous learning These new challenges that are faced by internal auditors require them to acquire the necessary skills and competencies on a continuous basis. This makes it necessary for them to place them on a learning path so that they could update themselves with new developments. As I mentioned earlier, the internal auditor should be an all-rounder. He should know all aspects of banking in order to perform an effective job as an internal auditor. In this respect, the work done by the Institute of Internal Auditors in developing a wholesome internal auditor is laudable. In addition to providing professional qualifications, it conducts regular seminars, lectures and short-term training programmes to keep its membership continuously updated of the new developments. In the modern world where human knowledge is subject to the fastest depreciation and obsolescence, the cry by any  BIS Review 143/2007  3  professional should be learning, learning and learning. I hope that this seminar will fulfill that task. Conclusion The functions of internal auditors have expanded substantially over the years due to the expansion of business, addition of new risk elements and adoption of advanced technology. Yet, the basic character of the auditors remains the same. They should function only as extended ears, eyes and arms of the top management and owners. They may point at irregularities, but would not act as penal authorities.

Ardian Fullani: Concerns of the prospective ERM II members Speech by Mr Ardian Fullani, Governor of the Bank of Albania, at the conference “The Mission of Contemporary Central Bank” organized by the National Bank of Poland, Warsaw, 15 December 2006. *  *  *  Your Honor Mr. Balcerowicz, Honorable Governors, Dear Colleagues, Ladies and Gentlemen, I would like to take this opportunity to thank Mr. Balcerowicz and the National Bank of Poland for the invitation. It is an honor for me to take part in this discussion and to share my thoughts concerning the challenges facing prospective ERM II members. The central theme of this conference – the mission of the contemporary central bank with the focus on euro adoption – is of crucial importance for countries aspiring to become members of the big EU family in the not-too-distant future. Drawing from the experience of current and prospective members, accession to this family is a complex and challenging process. As a test of the nominal convergence of a country, the ERM II mechanism has attracted a lot of academic interest and criticism. Conceptually speaking, the ERM II directly precedes the full integration in the EMU. (I)  ERM II as a step towards EMU  To put the ERM II in a proper context, we need to be clear on the fact that it is an early necessary step before Euro adoption. Therefore, entry into ERMII is conditional on the economic and political readiness for entering the EMU.
That would be a mistake if we want to take collective control of our destiny in this new world – a world marked by direct criticism and unilateral action on the part of the new President of the United States. What we need is not necessarily more Europe, but rather a “better” Europe: a Europe that is less caught up in the detail, more focused on a few key priorities, and more efficient. A Europe that talks less and acts more: “Little, well, until the end.” Of course, there are some non-economic areas: youth training – like Enrico Letta, I believe in the benefits of an Erasmus-pro programme for apprenticeships – climate change, defence and the protection of our borders, for example. On the economic level, we should be proud of our successes – our single currency, our single market and our shared social model. But to complete the success of our monetary union, it is vital that we make progress on our economic union. There are two concrete levers for achieving this . A “Financing Union for Investment and Innovation” The first immediate step is a “Financing Union for Investment and Innovation” (FUII). Why? In those economies that are close to the so-called technological frontier, as is the case with France and Italy, innovation is the key to economic growth, and not just for start-ups. The problem is that, today in Europe, there are companies that want to invest and innovate, but that cannot find the right financing, notably equity capital.

Out of the 35 OECD countries, that with the second highest real GDP growth was Ireland at 4.3% in 2016, and Spain is also growing strongly, at 3.2%; the country with the lowest government debt at end-2016, was Estonia, at 9.5% of GDP; several countries in the area, including Austria and Germany, boast almost full employment, at between 4% and 6% in 2016; Estonia and Finland are among the top 3 countries in terms of science scores in the PISA test. So the euro is not to blame, it is the different national policies. Admittedly, with the euro we have lost the tool of currency devaluation. Devaluation can have positive effects in the short term as it lowers the price of exports, but, in the medium term, it can have significant negative effects: it can exert inflationary pressure via the rise in import prices; it can make the country poorer, via the reduction in the value of its assets, and conversely the increase in its external debts; and lastly, it creates the risk of a trade war, with chain devaluations, as was the case in the 1930s. On average, we have a suitable exchange rate with the euro. But no lasting success in economic history has been built on a weak currency; all have been built on a good structural environment, corporate innovation, and a high level of specialisation among firms. Italian creativity, your commercial ingenuity, dating back to Venice, Genoa and Florence, count much more than the facility of a weak lira.