samchain/econo-pairs-v1 huggingface dataset:
In better run firms, the rules are built on a foundation of the shared and well‐understood values of the institution. These values reflect a bank’s public function as a financial intermediary and recognize the privileges that come with a banking charter. 4 In other firms, however, compliance rules can be undermined by the values of the organization, resulting in an unhealthy dissonance. For example, if there are elaborate rules for complying with the tax laws of a particular jurisdiction, but the organizational value is to facilitate flight capital, a mixed message may be sent that tax compliance rules are just technicalities. Similarly, in the area of economic sanctions, if the sanction is perceived as something technical and implicating only a single currency, the bank might be sending an unintended message – that we comply with the sanction only because it represents a mandatory but silly rule of a single sovereign issuing a specific currency, and not because the sanction seeks to address a problem that all should find abhorrent, like financing a jurisdiction engaged in genocide. 5 What to leave out Thinking about culture like a package, there are some things that I would leave out. Again, without being exhaustive, here are three examples. First, I would leave out any depiction of the persons that an organization does business with as “counterparties.” If you went to your doctor and overheard her refer to you in conversation with office personnel as a “counterparty,” rather than as a “patient,” would you worry? I would.

But compensation plans bear some degree of responsibility as well. Annual bonuses that reward immediate book value without reflecting tail risk to the organization reinforce short termism. Changing the time horizon for compensation will be a significant feature of meaningful cultural reform. 10 Conclusion The principal benefit to a financial services firm in having a strong ethical culture is the avoidance of bad banker behavior. Bad banker behavior often leads to enforcement actions that can carry significant monetary fines, that can inflict destructive damage to the organization’s reputation, and in the worst case, that can cause the death of a franchise (recalling that all financial services firms depend upon public confidence to survive). A strong ethical culture also attracts the best and the brightest personnel, who will seek out the bank as the place to build a career doing high quality work, for fair compensation, with people they like and respect. As for those with whom the bank does business, they may come to see the organization as customer focused, looking to serve them well, and not turning them into the next “profit opportunity.” Finally, from the perspective of the supervisory community, an industry comprising personnel who have a strong ethical culture will be a safer and sounder industry, certainly safer and sounder than an industry full of miscreants. This could be a powerful factor toward financial stability. Thank you for your kind attention. 7  Christine Lagarde, “Economic Inclusion and Financial Integrity,” Address to the Conference on Inclusive Capitalism,” May 27, 2014.
This could in turn fuel asset prices, thereby increasing the risk to financial stability which could undermine the process of economic recovery. Indeed, some countries in the Asian region are already facing these issues and have introduced measures to reduce the risks associated with capital inflows. For Malaysia, however, it should be noted that the financial industry, the private sector and the country have the capacity to manage these challenges, given the stronger overall financial conditions in the country, low levels of corporate leverage, a sound banking system and a strong external balance of payments position. Beyond the immediate priority of establishing economic recovery and preserving macroeconomic stability, it is also acknowledged that the Malaysian economy currently stands at a pivotal juncture. In order to secure continued medium and long-term growth and development, the structure of the economy has to undergo several important changes – changes that would better position Malaysia in meeting the new challenges and reaping the opportunities that the future Asian and global landscape brings. Foremost, the events of the past two years have brought to the forefront the importance of having a more balanced and diverse model of development. Malaysia’s openness and integration with global trade and investment flows is an important source of our economic strength, and must remain so going forward. However, given the more dispersed growth prospects of the global economy in the future, it is important that the export structure of Malaysia evolves to be more diverse too.

In France, the ACPR is mobilised to support innovation, as demonstrated by the creation of the Fintech Innovation Unit and the Fintech Forum with the French financial markets authority. Within this Fintech Forum, we work closely with other public authorities to promote the development of Fintechs and Insurtechs in France. A year ago, the ACPR authorised the first fully digital insurance company in the health sector, the Insurtech “Alan”. In the case of insurers, the digital revolution starts with a complete overhaul of customer relationships and user habits. But it goes further than that. In the digital revolution, the insurance sector can bring stability and protection – it is this that has always been the raison d’être of insurance. I’d like to underline two topics that I think are essential: cyber-insurance and big data. Coverage against cyber-risk, first, is a very real concern that affects all companies – both small and large – as cyber-attacks are becoming increasingly frequent and costly: in 2016, cyber-attacks were estimated to cost businesses about USD 450 billion a year at the global level, 3/4  BIS central bankers' speeches  according to a report by Lloyd’s and Cyence. Despite these threats, the cyber-insurance market is still underdeveloped. Insurers can and should take inspiration from their own experiences in tackling cyber-risk, and use it to develop a more mature European cyber-insurance offering. The second subject I’d like to focus on is personal data and big data.
In order to prevent a refinancing “cliff” at the end of 2011, the Bank has had bilateral discussions with the main users of the Scheme to ensure that there are credible funding plans in place to reduce their use of it in a smooth fashion. Of the £ of Treasury bills initially advanced, some £ has already been repaid. The Discount Window Facility Alongside the Operational Standing Facilities to cope with short-term frictional shocks, and Long-Term Repos to cope with system-wide liquidity shocks, the Bank’s Discount Window Facility offers large-scale liquidity support for idiosyncratic as well as system-wide shocks. The Discount Window was launched during the heart of the crisis in October 2008. It allows banks and building societies to borrow gilts against a wide range of collateral, at fees reflecting the type of that collateral and the size of the drawing relative to the size of the firm. Although similar in principle, the Discount Window is not intended to be a direct replacement for the Special Liquidity Scheme. It is both shorter-term and more expensive in steady-state, in line with the underlying principles for all the Bank of England’s permanent liquidity insurance operations: that commercial banks should be incentivised to manage their liquidity risk prudently in the market. The terms were also designed to protect the Bank against risk to its own balance sheet. Transactions under the Discount Window facility are intended to be for a maximum 30 days, although they can be rolled.

In Europe, in particular, economic activity will be extremely weak on account of the financial and debt crisis. Switzerland will experience a significant economic slowdown over the rest of the year. Only because of the unexpectedly strong winter half-year does the SNB now expect growth of around 1.5% for 2012. The risks for the Swiss economic situation remain exceptionally high. The uncertainty about future developments in the euro area has again risen. If global activity proves disappointing or the turmoil on the financial markets increases, downside risks will again emerge for the economy and price stability in Switzerland. The imbalances in the Swiss residential mortgage and real estate markets increased further last quarter. Consequently, the SNB welcomes the Federal Council decision to make available a countercyclical capital buffer which can counter adverse developments on the domestic credit market. Global economic outlook Let us examine the economic outlook and the inflation prospects in a little more detail. In the first quarter of 2012, the global economy continued to grow at a moderate pace although this varied considerably from one region to another. The emerging economies were still making a major contribution to global growth. By contrast, overall momentum in the advanced economies was subdued, although here, too, differences from one country to another were considerable. Japan experienced strong growth in the first quarter due to a catch-up effect. In the US, momentum was moderate. In the euro area, a number of countries are in deep recession, while in Germany, GDP continued to expand strongly.
Of that increase, the return to pension revaluation in line with the consumer price index accounts for 55% to 65%, and the removal of the sustainability factor for 20%. The remaining 15% to 25% would be associated with the fact that, even with the 2013 reform, under the demographic and macroeconomic scenarios considered pension expenditure will grow by between 0.7 pp and 1 pp of GDP between 2019 and 2050. In addition, a permanent increase has been agreed in the transfers from the central government to the social security system, to meet the latter's so-called extraneous expenses, estimated at around 2% of GDP. Higher transfers from the central government serve to correct the current social security system deficit, but evidently have zero impact on public finances overall and, therefore, on their sustainability. Moreover, other measures introduced to align the effective and statutory retirement ages – chiefly a new regime of early retirement penalties and new incentives for late retirement – may alleviate the pension system’s shortfall, but their estimated effectiveness is subject to high uncertainty. The Government estimates an impact, in terms of lower spending, of between 1.1 pp and 1.6 pp of GDP by 2050. Likewise, the repealed sustainability factor will be replaced by the new “intergenerational equity mechanism” which, by means of a specific-purpose increase in social security contributions, envisages bolstering the Social Security Reserve Fund and adopting new measures as from 2032, depending on developments in pension spending relative to GDP.

First of all, this is because, in Spain, energy, and electricity in particular, account for a larger share of the consumption basket. While Spanish households devote 11.7% of their budget to energy, the euro area average is 10.9%. Regulatory and pricesetting mechanisms are another factor responsible for the notable unevenness across euro area countries in the pass-through to retail prices of the higher wholesale electricity price. For instance, in Spain around 40% of households opt for a dynamic pricing system, characterised by the high frequency of price revision, which explains the higher volatility of the electricity component of inflation and, thus, the faster and stronger pass-through. 8  The rising inflation is also having an uneven impact on households and firms. In particular, in recent months, lower-income households have experienced higher inflation because staple goods, whose prices have shown a greater relative increase in recent times, account for a larger share of these households’ spending. Consumer price inflation dynamics have gradually spread across the board since the summer of 2021. Thus, underlying inflation has risen rapidly, exceeding 4% in mid-2021 in the United States and 2% since end-2021 in the euro area. The underlying inflation rate has continued to increase and in April reached a level of 3.5% in the euro area (the highest in the history of the monetary union) and 3.4% in Spain (the highest since 2003). Additionally, according to the preliminary estimates available, underlying inflation in the euro area climbed to 3.8% in May.
Obviously both the banking sector and the Spanish economy have to digest the excesses of the real estate cycle, which has proved to be unsustainable. However, in assessing the position of the banking sector, the exposure to a sector and the complexities associated with the crisis in that sector should not be confused with potential losses for banks. For an exposure to become a loss involves there being a default and, insofar as the exposures to this sector are secured by collateral, the ineffectiveness of that collateral in compensating for the default and the non-recovery of the loans in question. Furthermore, unlike what generally happens in other countries where the loss estimates used to calculate provisions are made by auditors, here the Banco de España has established an objective system for calculating provisions which reduces downside discretionality. Also, the Banco de España has obliged banks to adopt pre-emptive measures in the form of a larger pool of provisions. These can be used to cope with possible impairment of their real estate assets by, for example, raising the provisions to be made from 10% to 20% of the value of the properties held on their balance sheet when these assets remain in their ownership for more than 12 months, as a precaution against sale at a lower-than-expected value. In any event, we face an extremely complex scenario and it is essential that all Spanish credit institutions, particularly those that have taken most risk, prepare themselves and adopt the measures needed to ensure their profitability.

Zeti Akhtar Aziz: Nurturing young talent in Malaysia Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Kijang Emas Scholarship Award Ceremony for High Achievers, Kuala Lumpur, 6 May 2014. *  *  *  While the global economy continues to face uncertainties and significant challenges, the Malaysian economy has every potential to remain on a steady growth trajectory and move up the value chain. This is however only achievable if we can nurture the required talents. Talent development strategies and implementation is therefore one of the key priorities of the nation. We need to invest in our talent pipeline The Kijang Emas Scholarship Award is an eminent scholarship award reflecting the Bank’s commitment in creating a sustainable talent pool for the nation. The Kijang Emas scholarship is distinct from the Kijang scholarship whereby the recipients are given the freedom to pursue any field of study at top-notch universities in any country of their choice. The Bank also does not impose any bond on the recipient except that they return, contribute and take part in the progress and development of our beloved nation. To date, 42 high potential talent have been awarded the Kijang Emas scholarship. The recipients are currently pursuing their studies in diverse field of studies including Medicine, Dentistry, Genetics, Biochemistry, Dietetics, Physics, Engineering, Law, Psychology and Architecture in top universities around the world such as M.I.T., University of Pennsylvania and the University of Cambridge.
In our downside scenario, which captures – among other shocks – the impact of a complete cut-off of Russian gas, we project that the economy will contract next year before picking up in 2024. But inflation is expected to be higher at the end of the projection horizon than in the baseline scenario. [14] A third factor will be the actions of governments. Monetary policy will do whatever is needed to return inflation to our target. But a truly European approach where monetary and fiscal policy complement each other can improve the inflation outlook. In particular, how fiscal policies support firms and households through the difficult winter ahead will play an important role in inflation dynamics. Targeted, temporary and tailored measures are needed to protect the incomes of the most vulnerable, while also preventing a significant loss of capacity owing to production cuts and bankruptcies. But beyond that, it will make a difference whether fiscal policy focuses mainly on public consumption and transfers – which may add to inflationary pressures – or on public investment and debt sustainability. As many of the sources of inflation today are on the supply side, government policies that lift supply and redirect investment to where it is needed are necessary to support sustainable growth. The pace of rate increases The second consideration in responding to current inflation is the pace of rate increases.

This market has since been liberalised to allow foreign corporations to raise funding in both domestic and foreign currency. In these recent few years, there has been a number of successful Reminbi bond issuance from our market to finance investment opportunities in China. Various other key financial infrastructures were also put in place to enhance the efficient functioning of the intermediation process of the overall financial system. This included the infrastructure to support robust payment and settlement systems. In 2012, we introduced onshore settlement of Reminbi transactions in our real time gross settlement system RENTAS via a local onshore settlement institution. As part of the development of our domestic financial infrastructure the Malaysia Deposit Insurance Corporation was establish to provide a comprehensive deposit insurance and insurance benefit system for the banking and insurance sector. This institution not only imposes discipline for risk management by the financial institutions through the imposition of differential premiums based on the risk profile  BIS central bankers’ speeches  1  of institutions, but it also is the resolution authority in the event of failure of a financial institution. Underpinning the financial sector growth was also the development of a more robust surveillance, regulatory and supervisory framework. As the Malaysian financial system evolved to become more complex, sophisticated and diversified, the regulatory and supervisory approach has correspondingly evolved from detailed and prescriptive rules to a risk-based approach that combined greater supervisory judgment and intensity with highlevel principles of sound practice.
Given a small-sized and open economy, the increase and stability of exports is of outmost importance. Therefore, the research work, the reforms and the strategic decisions should be adopted in line with this target. In this respect, the role of banking systems acquires a particular importance, which should carefully identify the primary and profitable sectors and should provide their ongoing financing. Banking credit has been and remains one of the main instruments which shall provide the sustainable performance of the economic and financial activity at home. For this strategy to be successful, it must include as one of its substantial constituents the philosophy and priorities of the Western Balkan regional development. This need does not only derive upon the competition requirements and the achieving of the economy of scale, but also upon our common target for the European integration. During the recent years, I have continuously highlighted that the key of the successful integration in the European Union is the regional cooperation. There are many reasons backing the conclusion that our models of growth must be seen as complementary and not competitive to each-other. It is indispensable that the complete process of structural reforms takes place quickly and in a coordinated way, which precedes the membership to the European Union. Only in this way the whole region will converge naturally, avoiding episodes of misbalances within the bosom of the European family upon the membership. This will be a real contribution to the long-term sustainability of the European developments.

If we start with the date that was set in the original decision – the beginning of 1995 – CPI inflation up to today has averaged 1.4 per cent. If we instead go back to January 1993, when the new policy was announced, the same figure is 1.7 per cent. If we focus on UND1X, the underlying measure that guided policy especially in recent years but also during a large part of the period 1996-1999, the corresponding figures are 1.8 and 2.0 per cent, respectively (see Figure 1). 2  BIS Review 11/2005  Whether this constitutes a good result or not is open to discussion, of course. Allow me here to simply say that when the target was adopted, and as an observer outside the Bank, I thought like many others that it would be very difficult to bring inflation down sustainably to a level around 2 per cent. What is particularly interesting in this context is that it has proved possible to establish a regime with a low inflation rate, close to the target, and to combine it with firm economic growth, which over these years has averaged almost 3 per cent a year, compared with about 2 per cent during the two previous decades. If anything, economic growth also appears to have become more stable since the inflation target was introduced.2 Another way to assess policy is to study whether we have acted in the way that we say we will, i.e. followed our policy rule.