samchain/econo-pairs-v1 huggingface dataset:
I believe that this threshold could be raised significantly without unduly increasing the risk to the broader financial system. Second, policymakers might reexamine the implementation of the Volcker Rule to ensure that it is efficiently achieving its policy objectives. The fact is that most market-making activity has an element of proprietary trading. The market maker that bids successfully often does so based on a view on which way the market might be headed in the near term. Thus, the line between market-making and proprietary trading is not always clear-cut, which makes regulation in this space difficult. Some market participants have argued that the Volcker Rule has contributed to the decline in market liquidity of corporate bonds. Although I view the evidence on this point as inconclusive, it may be worth considering giving greater discretion to trading desks that facilitate client business to intervene when markets are illiquid and volatile. Also, community banks are subject to the Volcker Rule even though they typically do not engage in proprietary trading, or sponsor or retain ownership interests in hedge funds or private equity funds. This seems like an unnecessary burden that drives up compliance costs without a significant corresponding public benefit, so we also should exempt community banks from the Volcker Rule. Third, although CCAR is a vital part of our bank regulatory toolkit, I believe that we should consider changes that might lessen the burden it places on banks. In this vein, the Federal Reserve recently removed the CCAR qualitative assessment for large, non-complex firms.

This is a good example of identifying regulatory burdens that are not worth the cost. We are also considering the implementation of a stress capital buffer that would better align the dynamic stress capital requirements of CCAR with our more static, point-in-time regulatory capital rules. Other potential adjustments include changes to the assumptions about the pace of a firm’s planned dividend and share repurchases, and how a firm in a stressed environment would likely manage its balance sheet and business footprint. The financial crisis provided a vivid reminder that a well-functioning financial system is a necessary condition for a vibrant economy. The efficient intermediation of funding from savers to borrowers supports economic activity and, over time, raises living standards. This means that we need a financial system that is robust and resilient to shocks. Most of the changes that have been implemented since the financial crisis have moved us in this direction, and it is important that any new changes to laws and regulations be grounded in what we have learned. Our central purpose must be to ensure a safe and sound financial system that efficiently provides financing to households and businesses through the ups and downs of the business cycle. Thank you for your kind attention. I would be happy to take a few questions. 1 James Bergin, Dianne Dobbeck, Jack Gutt, Kristin Malcarney, Kevin Stiroh, Joseph Tracy and Emily Yang  assisted in preparing these remarks.
Caleb M Fundanga: Access to improved financial services in Zambia Remarks by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the Standard Chartered Bank M-Banking Media Launch, Lusaka, 17 March 2009. *  *  *  The Standard Chartered Bank Plc – Managing Director, Ms Mizinga Melu Management and Staff – Standard Chartered Bank Zambia Plc Members of the Press; Distinguished Guests; Ladies and Gentlemen I am honoured and thankful for the invitation to officiate at this important launch of the m-Banking product. Distinguished Ladies and Gentlemen; allow me to begin by commending Standard Chartered Bank for the important role it continues to play in the financial sector in Zambia. Since 1906, when Standard Chartered Bank was established in Zambia, the bank has grown to be one of the biggest players in the market. As at 31 January 2009 the bank accounted for about 15% of the banking sector’s total assets, while its deposit base accounted for 18% of total sector deposits. More importantly, the bank’s loan portfolio accounted for 13% of the total loans in the sector. Madam Managing Director, I congratulate you for the Bank’s commitment to providing products and services that best suit the needs of customers. This, in my view, should be emulated by other banks to ensure that more people have access to banking and financial services that are tailor made to meet the needs of customers.

Denis Beau: Moving beyond the first generation of innovation and regulation for tokenized finance - the case of DeFi Address by Mr Denis Beau, First Deputy Governor of the Bank of France, at the occasion of the change of Bank of France Head of the Asia-Pacific Representative Office, Singapore, 31 March 2023. *** I am glad to be here with you today for this handover reception. It gives me the opportunity and the pleasure to thank François Haas and to welcome Stéphane Latouche as our outgoing and incoming chief representative in Asia and head of the Bank of France Office in Singapour. It also gives me the opportunity to underline our very good and multifaceted cooperation with the MAS, in particular on financial innovation. In my remarks today, I would like to illustrate this cooperation, notably with our work on the development of tokenised finance, and the so-called decentralised finance, and how we, at the Banque de France and the ACPR, are working to respond to this change of paradigm, in line with our financial stability mandate. I. A strengthening of bilateral ties between the ACPR, BdF and MAS, a very close and sustainable partnership between Singapore and France Let me start with what the ACPR, BdF, and MAS have achieved together.
And that, of course, my Lord Mayor includes the holders of your high office over so many years - and it includes the City Corporation. We at the Bank have enjoyed tremendous moral and practical - not to mention gastronomical - support in all our efforts to promote the reputation and prosperity of the City, and I hope that you may feel that we have been equally supportive of initiatives that you have taken to the same end. From my perspective it’s been a very warm and constructive relationship which I have no doubt will continue. You, Gavyn, have certainly contributed to that relationship during your period in office and I am grateful to you for that. But more than that you have maintained the finest traditions of the Mayoralty in the lead that you have given to the City. You have taken on an exhausting - and in this case I really mean exhausting - program - both at home and around the world in promotion of our interests and you have still found time, with the Lady Mayoress, to entertain us right royally this evening. We are all most grateful to you. So to you all - as I make the transition from Who’s Who? To Who’s He? - I say thank you and farewell until we meet again - as I very much hope we will if ever Vanessa and I manage to tear ourselves away from Cornwall.

A year ago there were grounds for hoping that the external storms were beginning to abate, but those hopes were deferred - by the after-effects of corporate governance and accounting failures in the US and by uncertainty associated with the war in Iraq. There nevertheless remain reasonable grounds for  BIS Review 29/2003  1  thinking that the external environment will now gradually improve as we move through the second half of this year into next, and that this will help to offset the gradual moderation we are beginning to see in the growth of consumer spending. That would open the way to continued relatively steady and better balanced growth - at or above trend, with inflation remaining close to target. But there are certainly short-term risks on either side, and given those risks - including the risk of slow growth in the Eurozone, particularly in Germany - I agree with your assessment that the economic case for euro-entry has not yet been made. More generally on that subject, I very much welcome the Treasury’s exhausting - I mean exhaustive - broader assessment of the longer-term pros and cons which I hope, when people have had time to digest it properly, will result in a better balanced - less polarised - debate on the economics of the euro question. I confess that I had hoped that we would by now be further along the narrow channel I have described on past occasions between the Charybdis of external weakness and Scylla of unsustainable consumer demand.
It is a foundational element for a well-functioning democratic society and provides evidence about the ability of an economy to provide opportunities for its citizens. A standard approach to measuring income mobility is to compare where a child is in the income distribution relative to where the parents were in the income distribution. A striking result is that intergenerational income mobility in the U.S. – a child’s chances of moving up in the income distribution relative to her parents – has remained stable over the past half century. However, because of the increase in income inequality, the consequences of being born to low-versus high-income parents are larger today than in the past. One explanation for the lack of a correlation between income inequality and income mobility in the U.S. is that income inequality is strongly influenced by the top one percent of the income distribution, but there is little correlation between income mobility and this top income percentile.2 While income mobility in the United States has been relatively unchanged, it remains well below several other nations. According to Stanford economist Raj Chetty, the probability of moving from the bottom quintile to the top quintile is 7.5 percent in the United States, as compared to 11.7 percent in Denmark and 13.5 percent in Canada – two countries with relatively high levels of intergenerational mobility.3 So effectively the chance of achieving the American Dream is not the highest for children born in America.

The policy rate has been raised markedly over a short period, and monetary policy is beginning to have a tightening effect on the economy. This may suggest a more gradual approach to policy rate setting. The future policy rate path will depend on how the economy evolves. The outlook is more uncertain than normal, but we will most likely raise the policy rate again in December, when we will also present this year's fourth Monetary Policy Report with new forecasts for the Norwegian economy. 2/3  BIS - Central bankers' speeches  3/3  BIS - Central bankers' speeches
History tells a rather different story. Successful economies have typically experienced appreciating exchange rates during periods of their most rapid development; and the wealthiest economies tend to be those which appear to be the most expensive in terms of overall price comparisons. It is not so much the real exchange rate which determines prosperity, as it is the fundamental characteristics of the economy, such as underlying productivity, which determine the real exchange rate. An economy which can successfully sell high value-added goods and services on world markets and as a result enjoy at the same time relatively cheap imports is better off than one which balances its accounts by selling a higher quantity of cheaper output and buying a lower quantity of dearer imports. There remains a question of whether there might nevertheless be advantage in a short burst of competitive advantage - as might be delivered by an engineered depreciation before the inflationary feedback negated the competitive gains - not just as a means of boosting the economy in the short term but also hopefully as a means of building a better foundation for longer-term growth. Experience suggests, however, that this sort of procedure is a bit like a drug to which the patient too readily becomes addicted. If people come to expect continuing doses of devaluation, then inflation and inflationary expectations may harden and, perhaps more significantly, businesses are spared the discipline of searching for greater efficiency or the incentive to move up-market.

1  Helmut Schmidt; Remarks at the Farewell event for the ECB President Jean-Claude Trichet; October 19, 2011. BIS central bankers’ speeches  1  But since then, the Eurosystem has struggled to match this performance. Inflation has been well below 2% for 3 years now – with exactly the same phenomenon in Germany itself – and this fall cannot be explained completely by the decline in oil prices. At the same time, inflation expectations have gradually drifted down over the last three years. Our mandate imposes a duty to react, in order to protect the Eurozone economy – including the German one – from the lethal danger of deflation. Third, patience within a medium to long-term perspective. In this volatile world we live in, our policy reactions are not the result of short-term economic fluctuations, market overreactions, media headlines or poll results. Our credibility is also symmetric. If we tolerate long deviations of inflation under 2% now, there is a risk that in the future, when inflation wanders above 2%, our determination to bring it back to close to but below 2% lacks credibility. As Romer and Romer, two US monetary economists, forcefully argued in a recent paper 2, the most dangerous idea for central bankers is to indulge in the idea that monetary policy can do little against shifts in the output gap, be they negative or positive. In retrospect, there is sound evidence now that the Great Depression in the 30’s and the Great Inflation of the 70’s were sustained by this belief.
Investment and, for a part, production, came abruptly to a halt. When such a shock occurs, public provision of liquidity has to substitute to private provision. In a domestic context, this is the function of the lender of last resort. But when the shortage is about foreign currency liquidity, this role has to be played by foreign exchange reserves. Foreign exchange reserves Following the 1997–98 crisis, emerging countries have constantly sought to expand their foreign exchange reserves. The emerging markets’ average reserve ratio has more than quintupled from 4 percent to over 20 percent of GDP since 1990 (Obstfeld et al. 2009, Matteo y Lagos et al., 2009). One cannot assume, however, that equilibrium has been reached and that the demand for reserves will stabilize. On the contrary, there are strong indications that this trend will persist, or even be amplified, following the crisis. 6  BIS Review 76/2010  How much reserves are enough? Theoretical reasoning would balance the benefits of holding reserves against their cost, with some notion that there is an optimum. On the benefit side, reserves can be detained or accumulated for a variety of motives:   to smooth out the impact on consumption of shocks on the current account, which is the most basic and traditional motive, even in the absence of international capital flows    as a result or by-product of foreign market intervention to prevent exchange rate appreciation. This is usually defined as a “mercantilist” motive.

Such a scenario could prove attractive both for capital exporters (through better returns on excess savings) and capital importers, which may not have the option of isolating themselves from international capital markets anyway. Experience shows, however, that an open international financial system is not inherently stable and, therefore, very dependent on a strong infrastructures and conditions. The move towards a financially open world would, at the very least, have to be supported by robust arrangements on international liquidity provision. Pending ambitious reforms, a lot can still be done to provide investors with stable stores of value. One very promising avenue would be, for countries which have surplus savings, to develop their own internal stores of value by expanding the range of safe and liquid financial assets available to domestic and international investors. By doing so, they would achieve several goals at the same time. They would bring more efficiency in the financing of their own domestic needs. They would provide their own investors with a broader range of choices. They would also eliminate some of the currently existing incentives to export capital in order to protect its value. They would contribute to reduce the “asset shortage” with all its negative consequences, including international imbalances and the financing of asset bubbles. Financial development in many countries would address both the causes of international imbalances and some of the roots of the financial crisis. References: Adrian, T. and H. S. Shin (2008), “Liquidity and Leverage”, Federal Reserve Bank of New York Staff Report No 328.
If any of these risks comes true, it is quite possible that the reaction of the exchange rate will push inflation up in the short term, although its medium-term effects are less obvious, considering that activity will probably suffer too. At home, inflation has remained high for quite some time, which could affect the velocity of its convergence, because of both its effects through indexation and the formation of expectations. All in a context where margins are still bounded and capacity gaps are small. Meanwhile, the drop in the oil price and the reduced external inflation might take some steam off inflationary pressures. Into the medium term, there are risks that could result in activity performing worse than assumed in our baseline scenario, widening capacity gaps and easing inflationary pressures. On one hand, although the labor market has remained resilient, a significant adjustment that may slow down wage growth, increase unemployment and affect expenditure cannot be ruled out. Confidence may not recover as expected, driving the economy to grow less. In any case, we do not rule out either that the economy could grow more than forecast, if confidence indicators recover more rapidly. This could also occur if the drop in fuel prices has a greater impact on our national income. After assessing these risks, we estimate that the balance of risks is unbiased for inflation and downward biased for output. Now let me turn to our Financial Stability Report (IEF).

Figure8 Real MPR (*) (9ercent) 8  Brazil  6  8 6  Indonesia  4 2 South Africa  0  Mexico  New Zealand  Colombia  4  Peru 2 0  Chile -2  Australia  -2  (*) Calculated as the current MPR minus inflation expected at December 2016. Sources: Central Bank of Chile and central banks of respective countries. 12  BIS central bankers’ speeches  Figure 9 Total corporate debt (*) (percent of GDP) 125  125  External Debt  Local Debt  100  100  75  75  50  50  25  25  0  09  10  11  13  12  14  15  0  III  (*) Excludes banks. Based on firm-level administrative information. Source: Central Bank of Chile based on Achef, SBIF and SVS data. Figure 10 Corporate financial indicators (1) (percent; times) 12  0,8 Indebtedness (right axis) (3)  9  0,6  6  0,4 Profitability (2)  3  0,2  0  0,0 95  97  99  01  03  05  07  09  11  13  15  (1) Data at December of each year, except 2015 which uses information up to September. (2) Accumulated profits in twelve months before financial expenses plus taxes over total assets. (3) Debt to equity ratio. Source: Central Bank of Chile based on SVS data.
Clearly, a managerial remuneration scheme which depends exclusively on the bank’s current performance places managers in a situation similar to limited-liability shareholders. They cash in on lucky gambles but bear few of the negative consequences of unlucky ones. Unless we are willing to question the notion of limited liability for managers (as does Kotlikoff, 2010, for example), this kind of consideration provides the rationale for regulating managerial remuneration, and in particular for imposing long waiting periods before managers can cash in bonuses.5 A very careful design of managerial payment structure is needed if we want to ensure that the risk decisions of self-interested managers are in line with the longterm interest of firm owners and society.6 Bondholders Let me now turn to the issue of whether bondholders – the final stakeholder group – contribute to a balanced weighting of risk and return in a bank’s decisions. Under normal circumstances, discipline arises through the possibility and reality of default and eventually bankruptcy. Bondholders who are deprived of the upside potential of the risks taken by the bank and lose part (or all) of their stake in the event of default can be counted on to ensure that the negative consequences of the risky gambles taken by the bank are given proper weight. Indeed, the cost of debt increases with additional risk-taking, thus reminding managers and shareholders of the downside of the risks they are naturally inclined to take.

Muhammad bin Ibrahim: Scaling up excellence – creating opportunities while mitigating risks Keynote address by Mr Muhammad bin Ibrahim, Deputy Governor of the Central Bank of Malaysia, at the Regional Conference on Money Services Business “Scaling up excellence – creating opportunities while mitigating risks”, Kuala Lumpur, 19 May 2014. *  *  *  I’m glad to be here with you today to join Mr Mathew A. Verghis in welcoming you to this regional conference on money services business. On behalf of Bank Negara Malaysia, I would like to thank the World Bank, the Malaysian Association of Money Services Business, and the International Association of Money Transfer Networks who partnered with us in organising this event. This conference aims to bring together regulators and industry players to review developments in the money services business industry at a time when there are significant changes occurring in the financial industry. In many countries, money services business plays an important role in complementing banking institutions to provide financial services to the community, in particular, the unbanked and small business communities. Given the forces of change that are reshaping the financial industry, it is timely to consider how these forces impacted the expectations, opportunities and challenges for money services businesses. The money services business industry contribute to an important purpose in our communities. They provide financial services to segments of society in both the developing and developed world that do not have access to basic banking facilities and services.