samchain/econo-pairs-v1 huggingface dataset:
This leaves the Bank with its traditional responsibility for maintaining the stability of the financial system as a whole, but transfers our present specific responsibility for banking supervision to a new, single, regulator for the whole of the financial services industry. The Bill now before Parliament legislates for these changes insofar as they affect the Bank and it also changes the arrangements for the Bank’s internal governance and puts our finances on a statutory footing. The new legislation does not fundamentally alter the Bank’s raison d’etre - our core purposes. The heart of it remains the maintenance of monetary and financial stability, as well as the promotion of the effectiveness and efficiency of the financial system. But it brings new clarity to our responsibilities, and it ensures greater transparency and public accountability in relation to all our activities. It is in fact a radical re-styling of the Old Lady. And tonight I should like to introduce you to the New Lady, and explain just what it is that the new-style Bank of England is seeking to do and how we are organised to manage our affairs. Governance of the Bank Let me begin at the top with the changes to our governing body - the Bank’s Court - or Board - of Directors. We already have a heavily non-executive based board, consisting of myself and the Deputy Governor, four full-time Executive Directors, and twelve non-Executive Directors. The new Court will be entirely non-executive apart from myself and two Deputy Governors.

They are expected to adhere to ethically-driven values that reflect Shariah principles. They should be regarded as the true exemplars of Islamic finance. In short, they are the embodiment of what is good about Islamic finance. The establishment of CIIF is therefore a significant milestone in our collaborative efforts to raise the bar for professionalism and ethics in the industry. We aspire for CIIF to become the global body for professionals in Islamic finance. As we envisage CIIF as the leading driver and advocator of professionalism and ethical conduct, we should expect the new body to adopt global best practices of similar professional institutions. BIS central bankers’ speeches  1  CIIF will embark on a task that is both revolving and rewarding. A key imperative for CIIF to advance in its quest, as the advocator of the highest degree of professionalism and ethical conduct amongst Islamic finance professionals, is for the professional body to receive strong and continuous support and recognition from the industry. The industry cannot be a passive player. It must be an activist. Together with CIIF, it must be a strong advocator of professionalism and ethics. The signing of a first of its kind industry-led charter between The Association of Islamic Banking Institutions Malaysia (AIBIM), Malaysian Takaful Association (MTA), The Malaysian Investment Banking Association (MIBA) and CIIF is a very strong reflection of the industry’s support. This public commitment by AIBIM, MTA and MIBA acknowledges the noble intent of CIIF.
So perhaps we played a part in turning around the sentiment of international finance last year. BIS Review 120/1999  2  And let me say this also: knowing well my close colleagues who fought this battle together with me, it would, I think, be difficult to find stronger believers in the free market than those of us in the Hong Kong Administration. A few names will, of course, spring to your mind immediately, but my response is that we work in the real world and not in ivory towers. The fact of the matter is that free markets can sometimes fail. Free markets can sometimes behave in a manner very much against the long-term interests of society. When this occurs, if those of us in the Administration hide conveniently behind the banner of free markets and do nothing, we are failing in our duties. And to those who accuse us of betraying the philosophy of positive non-interventionism, let me ask this question: why do you think Sir Philip Haddon-Cave used the word “positive” when he coined the phrase? International finance But perhaps enough has already been said on that subject. Let me now move to the longer-term structural issues of concern to our monetary and financial systems. As I said earlier, we need to ensure that we come out of the crisis stronger rather than weaker. We need to identify structural defects, if any, and address ways of correcting them, not necessarily limiting ourselves to our own systems, given the globalisation of financial markets.

I hope that this will be a successful conference and all of you will have a fruitful and productive discussion. 9. Thank you very much. 2/2  BIS central bankers' speeches
Thanks to the work being carried out by CPMI-IOSCO on stress testing and margins, we are beginning to get a better picture of how risks are being managed across the whole CCP landscape. In my view, an important step for the future will be to put together CCP stress testing and the stress testing carried out by big global banks (one way of doing this could be to define common stress scenarios, and see how the entire system performs). Authorities, CCPs and market participants need to assess the extent to which banks will be able to absorb losses passed on to them by a CCP, and how a recovery or resolution process will affect the banking system.19 In this respect, authorities will need to pay particular attention to pro-cyclicality. As already mentioned, many of the proposed instruments to increase CCP loss absorption will have a significant cost for clearing members. We need to be aware that, very often, these costs will arise during a stressed market situation, when clearing members may already be facing significant liquidity pressure. Authorities responsible for CCPs and those responsible for banks should try and work towards a common understanding on pro-cyclicality, in order to ensure consistency in their regulatory actions. Lastly, I believe we also need to move towards a more systemic view of the interconnections between CCPs and clearing members, namely via the channel of indirect participation. The PFMI already require CCPs to identify, monitor and manage material risks arising from tiered participation arrangements.

The efforts seem to have already paid off – the year 2013 marked a turnaround in Romania’s economic development: economic growth of 3.5% driven mostly by robust export and industrial output on the supply side; a small current account deficit; historically low inflation; while the fiscal deficit was kept well below 3%. And I have every reason to believe that Romania will see further growth in the years to come. And that, unlike in the pre-crisis period, this time sustainability will be the name of the game, as hopefully we all have learned our lessons from our previous mistakes. As they say, no one really learns but from his own mistakes…  BIS central bankers’ speeches  1  Talking about sustainable economic growth, one needs to put things into perspective in order to ascertain whether the economy is on the right track. This means that short-term policies must be harmonised with the long-term vision and goals. Euro adoption could serve as such a long-term goal. And Romania has chosen to use it as an anchor. Let me say a few words about this subject. In the post-crisis period, all non-euro area EU countries in Central and Eastern Europe with floating exchange rate regimes (Czech Republic, Hungary, Poland and Romania), as well as Bulgaria, shifted to a wait-and-see approach as regards euro adoption, even though, in some of them, Maastricht criteria were already fulfilled or within reach.
Otherwise upon insolvency, it cannot be recapitalised back to the regulatory requirement. See page eight of Tucker (2013), “Resolution and Future of Finance.”  12  See Admati and Hellwig (2013), “Does Bank Debt Discipline Bankers? An Academic Myth about Bank Indebtedness”. While Admati and Hellwig point out the deficiency of short-term debt as a source of market discipline, they pay insufficient attention to longer-term debt given its role in recapitalising banks under resolution. 13  Or, more accurately, from whichever parts of the group were going to be resolved together as a unit under the preferred resolution strategy. See forthcoming Guidance from the Financial Stability Board. BIS central bankers’ speeches  5  the system’s evolving structure, or temporarily tighten capital requirements while the especially threatening circumstances last. Second, behaviour within the financial system itself can generate elevated risks. And that tendency towards exuberance is not solely down to moral hazard. Quite apart from TBTF, another driving force comes from myopia – a tendency to overlook risks in banking during buoyant conditions.14 Eventually risk does crystallise, prompting bankers and investors to wake up to the overvaluation of their assets and excessive leverage in the system. Credit tightens, exacerbating the macroeconomic downturn, and so on. Solving the TBTF problem is absolutely necessary but will not be sufficient to consign boom and bust to the past. Banking systems comprising lots of small banks have been capable of driving themselves over the cliff.

It should also be noted that the separation of spending of petroleum revenues from the current revenue stream through a fund mechanism allows oil producers to extract petroleum at a higher rate than would be appropriate if all the proceeds were to be redeployed in the domestic economy. Hence, the petroleum funds do not just offer an attractive way of recycling oil producers’ revenues in international financial markets, they can also have an indirect stabilising effect on the oil market. In my view, sound management of oil-producing countries’ petroleum wealth is in everyone’s interest. Thank you for your attention. 4  BIS Review 81/2008  BIS Review 81/2008  5  6  BIS Review 81/2008  BIS Review 81/2008  7  8  BIS Review 81/2008  BIS Review 81/2008  9
15  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  15  One key difference from the global financial crisis is the state of the banking system. A decade ago, its impairment led to slow growth in bank deposits and lending. With the financial system now repaired, bank intermediation has increased sharply during this time’s crisis. Supported by exceptional monetary and fiscal support, bank deposits and lending have grown rapidly. Annual growth of global M3 is currently running at almost 20% (Chart 13), its highest level since 1988. Chart 13: Growth in Global M3 (YoY)  per cent  20 18 16 14 12 10 8 6 4 2  2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020  0  Source: OECD. Notes: Based on total OECD aggregate. The same is true in the UK, where annual growth of commercial bank money (M4) currently stands at a little over 14%. Annual growth of M4 lending is more modest, at just over 4%, though this is still around 2 percentage points above its average over the past decade. It has been buoyed by the support packages extended to UK companies, with around 1.5 million business loans made totalling around £ billion. A decade ago, movements in broad money broadly tracked movements in money GDP – the velocity of circulation of broad money was roughly stable.

And firms’ labour costs grew an estimated 1.3% in the last quarter of 2014, close to core inflation. Consumer confidence and retail sales growth are at their highest in over decade. Similarly real income growth is on course to be the strongest for more than a decade. Firms’ investment intensions are robust. Surveys point to solid growth consistent with trend. There is little evidence of a deflationary mindset setting in. 13  That reflects an excess of saving over investment. That in turn reflects a combination of factors including the protracted process of balance sheet repair in both public and private sectors, and more secular factors like demographics (ageing and slower population growth), the higher steady state costs of financial intermediation relative to the pre-crisis period, and, possibly, lower productivity growth, as a consequence of lasting scars from the crisis. See Carney, M (2013), “The spirit of the season” at The Economic Club of New York; and box on page 42 of Bank of England (2014), Inflation Report, August. 14  Protracted pass-through, generated by stickiness in the domestic price of imported goods, challenges the classical view that the exchange rate provides an efficient shock-absorber in the face of foreign shocks. 15  These figures refer to the quarter-on-quarter annualised growth rate of the Average Weekly Earnings series.
Programs must be tailored to the current skills required by local employers. Placement needs to be a priority, and should be considered even before people are accepted into these programs. Workers need to know that a job will be waiting for them after they go through the effort of building their specific skills. There are several examples from Rochester and other parts of the region that illustrate the potential for this approach to workforce development. In fact, Rochester has a long history of involvement in workforce development. In 1885, a group of Rochester businessmen founded the Mechanics Institute. The Institute’s mission was to establish free evening schools in the city for instruction in mechanical drawing and other technical skills important for industrial firms. Funding was provided by contributions from Rochester residents. The first class drew more than 400 students. This endeavor evolved over time into RIT. Strong partnerships between Rochester’s higher education institutions and local businesses continue to this day. For example, RIT’s Center for Bioscience Education and Training provides local businesses and associations with workforce training tailor-made to specific organizational needs. And at RIT’s newly created Knorr-Bremse Mechatronics Laboratory, the university works with the companies that employ its graduates to make sure they have the technical skills they need to be successful. At the University of Rochester, the Center for Emerging & Innovative Sciences as well as the Center for Medical Technology partner with local companies to leverage the cutting edge research being done by the university’s faculty and students.

As their employment began to decline, some workers left the area while others remained. Indeed the legacy of the “Big 3” lies not in what was lost, but in what remains in the skills and entrepreneurial spirit of the many talented people that are here today. Some of these talented people started their own companies, while others found different ways to contribute their unique talents to the local economy. As a result, Rochester continues to reinvent itself, and is now much more diverse, with an employment base that is no longer concentrated among a few large manufacturers. The top employers in the region, like the University of Rochester and Rochester Institute of  BIS central bankers’ speeches  1  Technology (RIT), Wegmans, the Rochester General Health System and Paychex, just to name a few, perform a variety of activities, from health care and education to consumer and business services. The process of reinvention and economic diversification, in part, allowed the region to better weather the storm of the Great Recession compared to past economic recessions. For Rochester, the downturn was both shorter and less severe in terms of job loss than for the nation as a whole – a situation quite different from what had occurred before. Though it still lags the nation, the Rochester area has continued to grow at a solid pace through the recovery. This is no small feat, and it certainly is not true for all of Upstate New York.
Job insecurity at the end of the 20th century has given way to income insecurity at the start of the 21st. This insecurity is an important part of the explanation for recent patterns in jobs and pay. The Jobs Ladder The framework most often used by macro-economists to explain pay and jobs is the Phillips curve – the negative relationship between pay growth and the stock of unemployment.11 Despite reports of its demise, there is still reasonably clear empirical evidence of a Phillips curve in labour market data, once allowance is made for a possible downwards shift in the NAIRU and/or slope of the Phillips curve.12 An alternative, complementary, lens on the labour market comes from looking at flows of workers between jobs, rather than stocks of unemployed. There is a large literature studying the process by which people search for work and are matched into jobs.13 There is empirical evidence that job-to-job flows – the velocity of circulation in the labour market – can play a significant role in explaining wage growth.14 When studying labour market flows, a “jobs ladder” pattern of behaviour has often been found. In a growing economy, workers move between jobs by climbing a ladder of opportunities based on job characteristics such as relative rates of pay and firm productivity.

Chart 32: Real interest rates and unemployment (1999 – latest) Unemployment rate (per cent)  14  UK  12 US 10 Euro area 8 6  Euro area latest  4 2 UK latest  0 -6  -4  -2  US latest  0 2 Real interest rate (per cent)  4  6  8  Sources: Thomson Reuters Datastream, ONS and Bank of England calculations. Notes: Real interest rates defined in simple terms as current short-term central bank policy rate minus headline CPI inflation rate. 31  All speeches are available online at www.bankofengland.co.uk/speeches  31  The UK occupies an unusual, mid-Atlantic position. It has similar levels of real interest rates to those in the euro area, at the same as having similar levels of unemployment to those in the US. Put differently, relative to both the US and the euro area, and its historical past, the current UK monetary stance looks relatively accommodative. For the same output gap and a higher rate of inflation, the UK’s monetary stance is 2 percentage points looser than in the US. There may well be good grounds for these international differences – for example, differing levels of neutral real rates and different natural unemployment rates. Nonetheless, the very different starting positions of the economy and monetary policy should give us cause to pause before simply assuming central banks should be moving synchronously, even when faced by a common global shock.
Benoît Cœuré: The international dimension of the European Central Bank’s asset purchase programme - an update Speech by Mr Benoît Cœuré, Member of the Executive Board of the European Central Bank, at a conference on "Exiting Unconventional Monetary Policies", organised by the Euro 50 Group, the CF40 forum and CIGI, Paris, 26 October 2018. * * * It was more than 30 years ago, in October 1987, when the spread between the yield on ten-year US Treasuries and their German equivalents last reached current levels. Such stark divergences in monetary policy cycles are often followed by abrupt reversals in cross-border capital flows. Purchases of US securities by private non-residents, for instance, accelerated strongly in 1988 and 1989. Much of the inflow went into US Treasuries, partly due to attractive bond yield differentials. But when returns on German Bunds caught up with those of US Treasuries in 1990, the situation was turned on its head. In less than 12 months, private non-residents went from being net buyers of US securities to net sellers.1 In recent years, the United States has once again become a destination for large capital inflows. Between 2014 and 2017, purchases of US securities by non-residents roughly tripled. And in the first half of this year, private foreign investors were still important net buyers of US securities.

Currently, we have 21 remittance service providers offering digital remittance services, more than double the number 3 years ago. With the implementation electronic know-your-customer or e-KYC, consumers will be able to experience end-to-end digital remittance transactions. These are positive and exciting developments happening in our remittance market. Better public-private sector alliance to strengthen compliance Bank Negara Malaysia will continue to work closely with the industry to promote financial inclusion and this will be done primarily through the digitalization of remittance. Regulators also need to keep up with the times. We are taking a different approach this time – from ‘regulator instruct, industry do’ and ‘regulator knows best’, to creation of public-private sector alliance. It is vital to leverage on each other’s strengths and resources, not only to reap the benefits of technology, but also to overcome the emerging threats. We are all in this together. Greater harmonisation of regulatory framework on the remittance industry at the regional and 2/3  BIS central bankers' speeches  global levels is required to increase consistency in standards and reduce regulatory burdens on industry players. As a start, we have shared with other central banks on how we regulate the money services industry in Malaysia. This includes the transformation journey of MSB industry in Malaysia, our approach to innovation and technology, as well as monitoring of the whole industry. I believe that in the long term, harmonisation of rules will also foster innovation and spur regional expansion amongst industry players, while upholding the highest ethical and professional standards.