samchain/econo-pairs-v1 huggingface dataset:
The changing priorities and lifestyles of this new generation, growing wealth and increasing proportion of middle income population will also support continued and further growth in demand for investment-linked and wealth management products. As a result, the insurance industry has, and will continue to, expand its role beyond merely providing protection products. Against this backdrop, prospects for increasing the insurance penetration rate in our economies are clearly positive. However, this will hinge on the ability of the industry to respond to these changing demographics and dynamics in the financial system. In 2006, the insurance premiums averaged 2.95% of GDP in South East Asia as compared with 8.8% in the U.S. or 16.5% in the U.K. Compared to the  BIS Review 134/2007  1  banking sector, the insurance industry remains relatively less developed and commands a significantly smaller percentage of the total financial assets of the region's financial system. To tap these opportunities, appropriate strategies, new thinking and approaches will be required. In this regard, a significant development has been the evolution of alternative distribution mechanisms for insurance products and services in the region, notably through bancassurance. Indeed, bancassurance has developed in a number of ASEAN markets into a viable alternative distribution approach to the traditional agency force. Perhaps, in those markets where the insurance distribution channels through agency force have yet to be firmly established, bancassurance could provide a quantum leap to allow insurers to rapidly widen their outreach by tapping into an established banking network and client base.

Directors must devote their time to the bank, cannot be a director of more than three other profit-seeking companies, as well as disallowing of borrowing where cross ownership is more than one percent of the paid up capital of the borrower. Of the 92 people involved, 53 have now complied, and arrangements have been made for most of the others to comply, with the possible exception of the representatives of the Ministry of Finance who may find that their representatives are not the sort of people who can devote that much time to the bank because they are not part of the ownership or operation of the bank, but are just government representatives. We are looking into this and will discuss with the Ministry when the time is right. The problem in fact is not as innocuous as it looks as state bank remunerations are affected by considerations other than just how should directors be rewarded so that shareholders’ value can be maximised. But all this is being done through sanctions and coercion, and in the New Commercial Bank Act the authority will be explicit. My last words on commercial banks, the intervened banks might not yet be completely taken care of, but at least the cost of rescue can now be well estimated. The proper financing of the debt burden is probably one of the first jobs of the new government.
In particular, the G-20 has approved, as a new international standard, the so-called Key Attributes of Effective Resolution Regimes for Financial Institutions, which have to be complied with in each jurisdiction. In Spain, Law 9/2012 adopts and applies many of the principles set forth in the “Key Attributes”. Meanwhile, the European Union expects to adopt the Bank Recovery and Resolution Directive by the end of the year, which will be an important step forward in fully implementing the “Key Attributes” in all Member States. On this last point, as you know Ecofin is currently discussing the Single Resolution Mechanism and the Resolution Fund. It seems that agreements, or draft agreements, are being reached and that progress is being made in the area of resolution, such as the determination of the competent authority. Also, in the more difficult and complicated issue of financing, headway is being made on the characteristics of the proposed Single Resolution Fund. Negotiations are following their course and an extraordinary Ecofin meeting is scheduled for next week to address these matters. Let me now look at the new powers assigned to the Banco de España in the draft bill on credit institution supervision and solvency to be debated shortly. BIS central bankers’ speeches  3  Obviously all the functions and powers conferred on the Banco de España, which I will describe shortly, will have to be interpreted and implemented taking into account the powers of the European Central Bank in the framework of the implementation of the Single Supervisory Mechanism.

We must (according to proposition 96, 1998-99 to the Odelsting) endeavour to promote incentives which enable this approach to be maintained. At the same time, I showed above that risk in the settlement system can and should be further reduced. This raises the question of whether we have had the proper incentives up to now. It will be a challenge to find incentives which accommodate the industry’s need for self-regulation, while leading to a better system - with slightly lower risk. As licensing authority, we must take a stand as to which systems are to fall under the licensing requirement and which will be exempt (because they have no significance for financial stability). There are several issues which will have to be addressed in this area. Turnover and risk exposure in the systems will be key indicators in our evaluations. NICS is obviously a system which will be subject to the licensing requirement, and we will probably have to focus our evaluations on this system initially. We will also have to define which requirements will apply to the interbank systems and, particularly, what actions must be taken for us to fulfil the law’s objective that: Interbank systems shall be organised with a view to promoting financial stability. Special emphasis shall be placed on countering risks resulting from a deficiency in liquidity or financial strength among participants in the system. This must be interpreted to mean that the interbank systems should be organised in such a way that they are robust and can withstand stress.
Our regulations, which restrain the banking business operational, liquidity or market risks, are in full compliance with the international standards, providing at the same time enough room for the development of the interbank market. We have also taken major steps in terms of the institutional development of this market, through the establishment and maintenance of TRIBOR and TRIBID reference rates, through constant communication with the dealers’ association and promotion of new interbank market instruments. I would like to inform you today of the last Bank of Albania’s step in this regard, and also ask for your greater attention in terms of taking prompt actions that will boost the activity and role of the interbank market. Change of the Bank of Albania’s operational target framework The Bank of Albania is in the final phase of reviewing its operational targets. The latter will soon change their form, shifting from the quantitative targeting of the Bank of Albania’s balance sheet to the targeting of interbank market interest rates. The operational targets of monetary policy play a key role in the formulation and conduct of monetary policy. In a theoretical background, these targets serve as a link between the monetary authority’s interventions in the interbank market and the intermediate target of monetary policy. Thus, the operational targets serve as the starting point of the monetary policy transmission mechanism. In practice, these targets serve to steer and discipline the monetary authority’s interventions in the money market quantitatively.

The BNB Governor also outlined the second work block in this direction, on which the BNB is currently working, i.e., the overall framework of determining the amount of funds to be contributed by banks to the Single Resolution Fund and the amount and way of transferring funds from the Bank Resolution Fund in Bulgaria, which was set up in 2015, to the Single Resolution Fund. The third work block covers the overall activity of planning and conducting resolution activities, including the distribution of responsibilities and tasks between the Single Resolution Board and the BNB after our country joins the Banking Union. With regard to the expected effects on the economy and the business, the BNB Governor highlighted that it was positive to reaffirm Bulgaria’s strategic course, and that the process is already being filled with content and specific timeframe. The whole process stands as a positive counterbalance against the more general uncertainty from the global and European economic environment. 1/2  BIS central bankers' speeches  Among the more direct positive effects from this first stage on the path to the euro area is the anticipated improvement of the country’s credit rating, as announced by the credit agencies, should the process run successfully in the short-term. That would improve the funding conditions in the country. At the same time, the effects of joining ERM II will not be tangible in regard to the macroeconomic policy and neither will our monetary regime change.
The economy moves from point B to point C, so employment recovers (to above its pre-crisis equilibrium), but wages continue to fall. BIS central bankers’ speeches  15  Weak wage growth With some additional structure, the simple model above can be used to understand unemployment and wage inflation.23 If wages are adjusted infrequently (ie there is nominal wage stickiness), then the following relation between wage inflation, 𝜋 𝑤 , and unemployment can be derived: 𝑤 𝜋 𝑤 − 𝛽𝐸𝜋+1 = −𝜆𝜑(𝑢 − 𝑢�)  (WPC)  𝑤 captures expected inflation, 𝑢� is the ‘natural’ rate of unemployment (which can where 𝛽𝐸𝜋+1 vary over time) and 𝜆 is a parameter capturing the degree of wage stickiness. Equation (WPC) is the Wage Phillips Curve. For a given natural rate of unemployment, WPC traces out the relationship between wage growth and unemployment. Chart 9 contains a reducedform representation of the WPC, taken from Broadbent (2014). As that chart shows, outturns for wages in 2013 and 2014 were considerably below the past relationship, which would otherwise suggest that unemployment would be expected to be around 10% given the observed decline in wages. In light of equation (WPC), one way to interpret this is as there having been a decline in 𝑢�, the natural rate, such that a given rate of unemployment puts greater downward pressure on wages. Broadbent (2014) discusses Chart 9 further. 23  16  See Gali, J (2011), “The return on the wage Phillips curve”, Journal of the European Economic Association, 9(3), June.

Mark Carney: Prospects for the UK labour market Speech by Mr Mark Carney, Governor of the Bank of England and Chairman of the Financial Stability Board, at the 146th Annual Trades Union Congress, Liverpool, 9 September 2014. *  *  *  President and Congress. It is a pleasure to be in Liverpool today to discuss the prospects for the UK labour market. The growth and distribution of jobs and incomes matter to everyone. Employment does much more than provide the means to support workers and their families; it is essential to personal fulfilment and human dignity. Part of that dignity is being paid a living wage. Over the past year, the Bank of England has ensured that it pays all of its 3,600 staff at least the living wage. And we have recently brought all our contracted service staff in central London up to the London living wage. We are in the process of our final review. But I can announce today the Bank’s intention to become an accredited Living Wage employer by the time of the next TUC conference. Of course, the Bank of England’s responsibilities for promoting the good of the people of the United Kingdom go much further than being a responsible employer. We manage monetary policy to achieve price stability: low, stable and predictable inflation. And we promote financial stability by regulating and supervising financial institutions as well as by taking targeted actions to insure against unsustainable indebtedness, as we did earlier this year for the housing market.
In this case, one of the many additional possibilities currently under discussion to reduce the potential undesirable effects of Basel II is to scale the capital requirements obtained through the IRB function by using a countercyclical multiplier. In order to make this multiplier countercyclical, it would be built as a function of a reliable economic activity variable (for instance GDP growth rate). As it happens with other alternatives, its main pros and cons should be carefully assessed. The multiplier is easy to obtain, transparent (as depends on a reliable macro variable), it has a low implementation cost and, finally, it would be of a uniform and wide applicability. Among its drawbacks we found that, first, it implies undertaking an external modification on the capital requirement figure and, second, that the multiplier is built using a domestic variable, which may make international comparison very difficult. No matter what the result of the previous debate is, either the use of counter-cyclical risk estimations or the use of a capital multiplier, we should explore the use of complementary measures to attain our final goal of financial stability and to minimise the social costs of procyclicality; for example, dynamic provisions. As most of you already know, this type of provision uses historical information on credit losses to estimate a general provision for homogenous loan portfolios. It reflects a collective assessment of credit losses at the balance sheet date (i.e. it covers incurred losses not yet identified in specific individual loans).

One of the most notable advances in risk management across all three financial services sectors is the growing emphasis on developing a firm-wide assessment of risk. This constitutes the first trend in the Joint Forum’s report. Improvements in technology and telecommunications have made it easier for firms to gather, collect, and analyse large amounts of data on their exposures and business activities efficiently and increasingly in near “real time.” To make the best use of firm-wide data, some organisations have established a dedicated risk management function to foster more highly integrated and systematic approaches to risk measurement and management. The risk management function typically promotes the use of common risk measures across business lines. It can then report the firm-wide risk data to senior management. Reports may range from daily updates on “value-at-risk” trading positions to regular, if less frequent, compilations of the results of stress testing. The broader use of shared definitions to guide the comprehensive reporting of risk across the firm enables the integrated risk management function to identify concentrations of risk. Concentrations matter particularly when various business lines within the firm have different kinds of exposures to the same counterparty. Comprehensive and consistent reporting helps, moreover, to ensure that the firm is aware of the wide range of risks to which it is exposed; that it understands the relative importance of various risks and how they may interact; and that the firm is less likely to ignore material sources of risk.
| Andréa M. Maechler and Thomas Moser | © Swiss National Bank  SNB has adjusted its approach to implementing monetary policy  Objective  Approach   Keep secured short-term CHF money market rates close to SNB policy rate   Reserve tiering  Reserve absorption  Environment  Large stock of reserves  SARON is the new CHF reference rate 5  17.11.2022 Return to positive interest rates: Why reserve tiering? | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  Reserve tiering determines remuneration of reserves …  Banks with reserves exceeding their thresholds Threshold Reserves up to threshold  Reserves above threshold  Remunerated at policy rate (0.5%)  Remunerated at policy rate minus a discount (0%)  Banks with reserves falling short of their thresholds Threshold Reserves  Remunerated at policy rate (0.5%)  6  17.11.2022 Return to positive interest rates: Why reserve tiering? | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  … and creates an incentive for banks to trade reserves  Banks with reserves exceeding their thresholds Threshold Reserves lent to other banks  Reserves up to threshold  Remunerated at policy rate (0.5%)  Remaining reserves above threshold (0%)  Banks with reserves falling short of their thresholds Threshold  Interbank trade  Reserves borrowed Remunerated at policy rate (0.5%) from other banks Reserves  7  17.11.2022 Return to positive interest rates: Why reserve tiering?

In addition, sufficient digital infrastructure should be put in place as it will considerably strengthen other modes of connectivity. The internet and mobile communication connectivity will radically change the ways in which businesses operate and people interact, as they drive productivity and efficiency of all sectors. It will also facilitate financial, transport and logistics services, as well as open door to knowledge sharing for people across the subregion. While digital technology is rapidly improving in some GMS countries, there remains large “digital divide” both within and between countries that should be narrowed. BIS central bankers’ speeches  1  The second aspect is trade and investment connectivity. Intra-regional trade and investment activities have continued to flourish, mainly thanks to complementarities among GMS economies. Many GMS countries have varied and abundant natural resources, young population and low labor costs, while the others can offer technological know-how and financing. With varying industry specializations, the diversity among GMS members has contributed to stronger regional supply chain network, and in the future should magnify national strengths towards a higher competiveness of the whole subregion. Amid thriving trade and investment, Thailand is well-positioned to serve the whole subregion, owing to our established legal framework, financing facility, infrastructure, logistics and IT capability. This can be seen by prospering business activities along the Thai border with other GMS countries. Last year, Thailand’s 25 border customs checkpoints with Myanmar, Laos and Cambodia registered impressive trade flows of more than 500 billion baht.
Euro payment systems BIS Review 16/1999  –4–  A common monetary policy in the euro area is contingent on cross-border payments in euros taking place just as rapidly and efficiently as payments in national systems do today. All countries participating in EMU are therefore linked to a common payment system, TARGET. In addition to being a channel for monetary policy, TARGET is, however, designed to enhance the efficiency and reliability of cross-border payment systems. TARGET is therefore used for settling both monetary policy and commercial transactions. EU countries outside the euro area are also linked to the system. Payment settlements using TARGET take place on a real-time gross basis. This means that transactions are settled individually and with finality throughout the day. The system is also used to settle net positions generated through netting of gross positions between banks. The TARGET system consists of the national settlement systems linked together into a communications network called Interlink. Payments are transferred from one country to another via the settlement system of the payer country, where the central bank debits the payer bank’s account and credits an account of the central bank of the beneficiary country. In turn, the central bank of the beneficiary country credits the recipient bank. There are several alternative systems for making cross-border payments in euros. The most important are probably the Euro Banking Association (EBA) clearing system and the traditional network of correspondent banks.

Rachel Lomax: Global financial imbalances Remarks by Ms Rachel Lomax, Deputy Governor of the Bank of England, at the Chatham House conference on Global Financial Imbalances, London, 24 January 2006. *  *  *  One spin off from the debate about global imbalances has been renewed interest in the international monetary system. It is a benign aspect of a potentially acrimonious debate about whether the scale and persistence of global imbalances – and specifically the US current account deficit – was made in the USA or made in Asia – or conceivably Europe (and maybe even the Middle East). A better approach is to view global imbalances as the outcome of decentralised savings-investment decisions within an interdependent global system. And it’s worth emphasising straight away that substantial imbalances may be the natural product of a healthy global monetary and financial system: they do not necessarily represent a problem. But is the current pattern of large and persistent global imbalances healthy in this sense? Or does it reflect unsustainable behaviour on the part of policy makers, companies or private individuals around the world, rooted in unrealistic expectations, sub optimal economic policies or tensions between national policy objectives? Are global imbalances now on such a scale that their reduction inevitably poses a threat of some kind, whether to global activity, trade or financial stability? And does the current international monetary system embody sufficient incentives to deliver an orderly correction of imbalances?