samchain/econo-pairs-v1 huggingface dataset:
Sources: Bank reports and the Riksbank. 20  BIS Review 23/2009

It is our expectation that the board of directors and senior management of institutions to play their roles in ensuring that the compliance programme is fully implemented and that any money laundering and terrorism financing activities are promptly detected and reported. Hence, I urge all reporting institutions to improve both the quantity and quality of STR submitted. In the same vein, the FIU will continue to improve its feedback mechanism to reporting institutions. The fourth area is to give greater emphasis on compliance. This is important so as to improve the compliance level among the reporting institutions in order to preserve the integrity and stability of the financial system. More focus will be given to enhance and raise the compliance level among DNFBPs in view of the emerging risks. To this end, greater collaboration between the FIU and the various self-regulatory organisations would be pursued actively during the year. BIS Review 46/2009  3  The fifth and last area is to ensure that the enforcement of the AML/CFT regime should be achieved without undue increase in the regulatory cost. It is important that the controls in place are commensurate with the associated money laundering and terrorism financing risks and the risk mitigation measures are adequate. This underscores the progressive introduction of more risk-based approach in the national AML/CFT regime. I understand that this is among key topics to be discussed in this conference, and I am sure it will generate interesting discussions between the experts and the participants.
But let me highlight one change. 2  BIS central bankers’ speeches  12 When banks first started their ML/TF risk assessments, the focus has largely been around processes to identify and deal with customers with high ML/TF risks. This level of risk assessment is necessary but insufficient now. Just as how a bank should look at the credit risk of its overall loan portfolio and not just of individual customers, ML/TF risk assessments can also benefit from the same approach. We will therefore require financial institutions to assess ML/TF risks at the institution level, to complement individual transaction level checks. This will in essence be the banking industry-equivalent of what the government has done in the NRA. There are several banks that already have such a practice in place, so this requirement will level-up the industry as a whole. 13 Other changes in our impending consultation document will include formalising the need to screen one’s customers, tightening the threshold for enhanced measures on cross-border wire transfers, and providing a risk-based approach for politically exposed persons. Details of these and other amendments will be laid out in the consultation paper. Overall, we do not expect the revisions to require major changes to existing processes, and I welcome your inputs during the consultation. An effective supervisory regime 14 However, even the best regulatory framework is futile, if it is not backed by effective supervision. As I have alluded, MAS’ supervisory approach is premised on “prevention is better than cure”.

Indeed, the very foundation of insurance is one that is based on a relationship of trust and integrity. Reputation and trust are indeed the valued assets of the insurance and takaful industries' business. Any lapses in market conduct will have widespread implications on the business and on the industry. Ensuring fair and equitable dealings with customers should also be a priority. In this environment where the industry originates more and more innovative and complex financial solutions, insurers and takaful operators therefore have a responsibility to ensure that: •  consumers receive sufficient information to be able to make informed decisions;  •  that they understand the key features of a policy, including any significant exclusions, before any purchase;  •  that the recommended policies are suitable for their demands and needs; and  •  that their claims are dealt with promptly and fairly. The new environment of increased market discipline now places even greater emphasis on stronger corporate governance, integrity and transparency. High standards of integrity should also define the management of the institution's human and physical resources. In this respect, there can be no substitute for the commitment of an institution's leadership to uphold the highest standards of integrity in dealing with its human capital and corporate resources that are managed on behalf of shareholders and policyholders. Achieving success in an environment of greater competition will hinge on the ability of the domestic industry to innovate and provide enhanced value propositions for consumers.
But clearly, banks are exposed to more than just credit and market risk. Operational risk also is a growing concern for the banking industry. The looming issue of Year 2000 remediation is just one example. With the continuing diversification of banking, the fast pace of financial innovation and the growing concentration of crucial payments, settlements and custody businesses, the importance of operational risk is rising, especially at many larger institutions. These institutions find that the probability of a financial loss resulting from a breakdown in internal controls or systems is greater than ever. As banks expand into new lines of business, such as electronic banking, this trend is likely to continue. For instance, consider the risk of a breach in electronic security controls that leads to unauthorized access to confidential customer information. Should this breach be severe and pervasive, it could lead to considerable legal and reputational problems for a bank. Further, the overall rapid pace of technological change in this area means there is a substantial risk of obsolescence. These are just some of the risks that banks must manage, and clearly the list I have set forth is not exhaustive. In particular, consider banks in emerging market countries that are subject to a unique set of risks as a result of the financing and investment cycles in their countries. Those banks that fund their domestic assets with foreign currencies may be particularly susceptible to liquidity risk when sharp fluctuations in exchange rates and market turbulence make it difficult to retain sources of financing.

The Single Resolution Mechanism Let me now turn to the establishment of a Single Resolution Mechanism (SRM), which constitutes the second pillar of the banking union and is a necessary complement to the SSM. It is crucial that the SRM is in place once the SSM is operational. There would otherwise be a danger of creating potential conflicts between supervisory and central bank perspectives. It would be a misunderstanding to believe that there will be no more troubles at banks as soon as responsibility for banking supervision is conferred to the ECB. On the contrary, non-viable banks will have to be closed down and resolved in order to prevent the “zombification” of the European banking sector. The viable parts of certain banks may nevertheless require transitional funding – which should not be mistaken for a bail-out. A single resolution mechanism is hence an essential condition. It will ensure timely and impartial decision-making focused on the European dimension and that resolution costs are borne by the private sector, thus putting an end to the expectation that taxpayers will foot the bill. The era in which the privatisation of profits and socialisation of losses was possible should belong to the past. The SRM should be equipped with a comprehensive set of enforceable tools and powers to resolve all banks participating in the SSM. This mechanism should under no circumstances be placed with the ECB, in order to nip any potential conflicts of objectives in the bud. However, the flow of information to the SSM must be safeguarded.
The second major difficulty in our present situation relates to the strength of the exchange rate. We are, of course, acutely aware of the problems that this is creating - and has been creating for the past year or so - for those sectors of the economy that are engaged in international trade and exposed to international competition. Given that the UK chemical industry exports nearly two-thirds of its output, and that this country imports nearly 60% of the chemicals we consume, it is just possible that one or two of you are suffering from the strong exchange rate. I only ask you to believe that we both understand and share your concern. From a macro-economic standpoint it is - as I say - important that the pace of growth of aggregate demand should slacken. But it is clearly not desirable - either in terms of sustainability or in terms of the balance of the economy - that the slowdown should simply be a result of a sharp deterioration in our balance of payments. Our problem, potentially, is excess domestic demand. And that is the root of the dilemma. We have needed to tighten policy to moderate the strength of domestic demand. That has no doubt contributed to the continuing strength of the exchange rate - although you can’t plausibly explain anything like all of that strength in terms of relative interest rate movements here and abroad. It certainly has a good deal to do with market perceptions about the future strength of the euro.

Athanasios Orphanides: The role of central banks – lessons from the crisis Panel remarks by Mr Athanasios Orphanides, Governor of the Central Bank of Cyprus, at the VIth International Symposium of the Banque de France on “Which regulation for global imbalances?”, Paris, 4 March 2011. *  *  *  The topic of this session is lessons from the crisis, specifically regarding the role of central banks. Let me start with a question: How do we learn in our profession? The answer, I believe, is that our main guide is history. Indeed, one of the many differences between central banking and the natural sciences is that in central banking, unlike the natural sciences, we cannot run controlled experiments to improve our knowledge. As a result of the crisis, we are experiencing a unique natural experiment to draw lessons from. I fully expect this episode, which unfortunately is still mutating and evolving in some areas, to provide material for myriads of PhD theses and other studies for decades to come. What do we mean by “lessons” for the role of central banks? Lessons in the sense of learning things we did not know? Or in the sense of reaffirming things we knew? In my view, we have some of each but, in addition, we have seen an evolution in the consensus views on familiar questions. Let me focus on just a few1.
My colleague David Bailey, the Executive Director for International Bank Supervision, spoke in January about the PRA’s approach to hosting international Banks in his speech in January on “responsible openness”, and the same principles apply in insurance.4 We have always attracted international insurers looking to establish operations in the UK to take advantage of concentration of skills, proximity of fellow insurers, and strong legal and regulatory systems. There have always been processes and rules in place to ensure that these entities are authorised and supervised appropriately. However, the end of passporting 1  Information on the Temporary Permissions Regime London Market Group report ‘London Matters 2020’ 3 Association of British Insurers ‘The State of the Market 2019’ 4 David Bailey Speech: ‘Responsible Openness’ 2  3  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  3  access from the EU has removed a route into the UK market for a huge number of insurers. To give some sense of scale, over 600 EU insurers held passporting permissions to write business in the UK in December 2020 (although not all passports were actually in use). Although only a third of those firms chose to enter the TPR, even this relatively more manageable number – 190, from 20 countries – represents a step change in the size and number of overseas insurers the PRA has responsibility for, with many of these insurers expected to apply for permanent authorisation. It is therefore only right to consider in detail our approach to these firms.

Both the regulator and industry play a role in ensuring quick delivery in these circumstances – industry through the prompt and accurate provision of information to enable us to assess applications, and ideally through the development of contingency plans ahead of time; and the regulator by ensuring that our process to consider applications is proportionate and efficient. That said, it’s only right that we continue to apply appropriate scrutiny to mitigate wider risks that the individual parties to transactions do not have the incentive to address. But we are no more interested in process for the sake of process than you are, and have already shown this through our past engagement with you and some recent authorisation decisions. More efficient processes that still deliver on our prudential objectives should be a positive for all sides. We intend to hold a round table discussion to explore this further with the industry. This will allow us to identify, in a collaborative spirit, regulatory and non-regulatory barriers to new capital and opportunities. The roundtable will consider:   Investment in existing Life and GI insurance entities wishing to expand;    New insurer authorisation process;    Insurance Linked Securities; and    Mobilisation regime for start-up insurers. The UK is open for business in the insurance sector, and we welcome applications from those seeking to invest and operate here. Our approach maximises the accessibility of the UK market whilst ensuring that broader safety and soundness objectives are not compromised and rules are consistent for everyone.
If, for as long as it lasts, financing the deficit 5  The word “relatively” is important here – what matters is the behaviour of domestic demand compared with that in other countries. If demand weakens in other countries the home country’s exchange rate will still appreciate even if nothing happens to domestic savings rates. [More here on global imbalances] 6 For a thorough treatment of the relationship between imbalances and the exchange rate – and specifically the chain of causation running from the former to the latter – see Obstfeld and Rogoff (2000), Obstfeld and Rogoff (2007). 5  All speeches are available online at www.bankofengland.co.uk/speeches  5  relies on “the kindness of strangers” (as the Governor once described it) perhaps the foreign exchange market thinks those strangers will be less generous to a UK outside the EU. International capital markets might require a higher premium for sterling finance. If so, this would slow the growth of domestic demand 7  that much earlier, accelerate a rebalancing of the economy and depress the fair value of the exchange rate . While possible in principle, I’m not convinced this is the main explanation for sterling’s reaction to the referendum result. The currency has remained weak even in the face of robust consumption growth since that date.

The bond proceeds are channelled to support healthcare and pharmaceutical development, for the benefit of lower income households and small businesses. The World Bank’s pandemic bond facility has been triggered, and will provide $ million in emergency financing to 64 of the world’s poorest countries to support their recovery.3 5. Today, I will focus on opportunities in green and sustainable finance, and impact investing. Pushing forward with green finance for a sustainable world 6. The pandemic provides a prime opportunity for countries to “build back better”. It is important now, more than ever, that countries not only rebuild their economies and preserve jobs, but also in the process, intentionally build a more sustainable new economy. There have been growing calls for governments to prioritise or accelerate green infrastructure development as part of recovery plans. Infrastructure development is critical to driving economic growth and improving social outcomes, while climate change remains a significant threat to mankind. It is important that a right balance between growth and sustainability be achieved. Public-private partnerships will be key to achieving this. Last week, Infrastructure Asia in Singapore partnered the World Bank Group and Singapore Management University to build capabilities of regional government officials, and raise awarenss of solutions to support sustainable and resilient infrastructure development, such as clean energy projects.4 1/4  BIS central bankers' speeches  7. Singapore is committed to support the pivot towards a clean and sustainable future.
But I do believe there are areas in which change could beneficially be made, which would have the effect of strengthening the international financial architecture, to the benefit of us all. There are four areas in which I would like to see further improvements. First, we need a comprehensive set of international accounting standards which attract broad support, and high quality independent audit to help enforce them. Second, the role of the Financial Stability Forum could be developed and strengthened. Third, and linked to that change, there are gaps in the global regulatory system which could and should be plugged. Fourth, we need to find ways of bringing developing economies more closely into the process of setting standards. I will say a word or two about each of these suggestions. (i)  Accounting and auditing  Accounting standards are the foundation stone of the financial system, and of financial regulation. Without accounting numbers in which investors can have confidence regulation, cannot hope to be effective. And those accounts must be audited objectively and independently. Since the reformation of the International Accounting Standards Board three years ago a determined effort has been under way, led by Paul Volcker and David Tweedie, to complete the standard set and  BIS Review 25/2003  3  secure broad agreement to their acceptance around the world. They are now close to success, but there are some difficult obstacles still to be overcome, notably the question of the treatment of financial instruments (IAS 39).

But the more important question remains whether the institutional framework for overseeing financial markets, seeking to prevent crises and, when prevention fails, to manage them, is adequate. Open financial markets will always be prone to bouts of irrational exuberance, but do we do enough to contain the collateral damage which excessive volatility can cause? Some academics, notably John Eatwell at Cambridge, argue that we need a fundamental recasting of the international financial institutions. He favours the creation of World Financial Authority charged with setting the regulatory framework for financial markets across the globe, and endowed with powers of intervention when crisis threatens. His arguments are persuasive, but it seems unlikely that countries will be prepared to cede sovereignty to such an authority on a scale which would be necessary to make it work effectively. There have been many other less ambitious proposals, both from within the IMF and the World Bank, and from individual countries. For a time it seemed as though the creative departments of every  BIS Review 25/2003  1  Finance Ministry in the world – if that is not an oxymoron – were engaged in a kind of architectural competition to draw up a new set of relationships between the international financial institutions, their member countries, and the key regulatory organisations in the financial sector. On the face of it, the changes made as a result of this frenzy of creativity have been very modest. No major new institutions have been set up.
Caleb M Fundanga: Foreign private investment in Zambia Opening remarks by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the Closing and Dissemination Workshop on Foreign Private Investment and Investor Perceptions Survey, Lusaka, 20 January 2011. *  *  *  The Deputy Secretary to the Cabinet, Mr Evans Chibiliti; The Deputy permanent Secretary at the Ministry of Works and Supply, Mrs Bweupe Kaonga; The MEFMI Executive Director, Dr Elias Ngalande; The IMF Country Representative, Mr Perry Perone; Heads of Government Departments present; Chief Executive Officers of various Companies and Associations present Colleagues from Bank of Zambia; Distinguished Participants; Members of the Press; Ladies and Gentlemen. It is my honour and privilege to officiate at this very important Closing and Dissemination workshop of Phase III of the Survey on Foreign Private Investment and Investor Perceptions. As I welcome you all, I wish to convey my appreciation for your contributions to the success of this project. May I, in this regard, express our special appreciation to the private sector colleagues for their cooperation during the survey. Let me also take this opportunity to extend my sincere gratitude to the Private Sector Development (PSD) Programme, for providing financial support for this very important project. Further, our thanks go to the Macroeconomic and Financial Management Institute (MEFMI), and Development Finance International (DFI) for providing technical support to this survey.

High inflation, prevailing uncertainties and tighter financing conditions dented private consumption and investment, which fell by 0.9 per cent and 3.6 per cent respectively. Survey indicators for economic activity have steadily improved over recent months, coinciding with reduced concerns about energy shortages and price increases. These factors coupled with the ongoing support provided by fiscal policy and the continued resilience of the labour market, are expected to support a recovery over the coming quarters. Accordingly, projected growth for 2023 has been revised up to 1.0% in our latest staff projections, which also foresee growth of 1.6% in both 2024 and 2025. It has to be stressed, though, that the ECB staff projections were finalised before the recent emergence of financial market tensions. As such, these tensions imply additional uncertainty around the baseline assessments of inflation and growth. I will now turn to inflation, which has decreased from its peak in October owing to a sharp drop in energy prices and stood at 8.5% in February. Input cost pressures, which are partly related to the past surge in energy costs and the impact of supply bottlenecks and re-opening effects, are all weakening. However, accumulated price-pressures are still spreading through the economy with a delay. As a result, inflation excluding energy and food, has continued to increase, reaching 5.6% in February. Wage pressures have strengthened on the back of robust labour markets and employees aiming to recoup some of the purchasing power they have lost to high inflation.