samchain/econo-pairs-v1 huggingface dataset:
We could deliver results, on matters like model approval, on reporting, on the enhanced role of the consolidating supervisor, even on supervisory disclosure. Therefore, I very much support the work which is under way in fora such as CEBS in these areas. After a few months of existence the work done is already very encouraging. And I think that by making rapid and real progress, we can also promote greater convergence beyond the EU, as others may find our experiences of benefit to the wider search for greater international consistency in the implementation of Basel II. 5. Concluding thoughts  Over the rest of the day, we will hear additional perspectives from bankers and supervisors regarding the realities of the work ahead for all of us as we prepare to adopt and implement the new capital framework. In thinking about the preparations that all of us must make, we might recall the words of the Spanish author, Miguel de Cervantes. In his world-renowned novel Don Quixote de la Mancha, he wrote nearly 400 years ago that, “To be prepared is half the victory.” In my remarks this morning, I have tried to highlight why I have great confidence in this victory. It will no doubt require that we continue to dedicate our resources, our staff, and our talent to realise the benefits of Basel II in the coming months and years. Those benefits extend to much more than simply a more favourable capital requirement for qualifying individual banks.

I strongly believe that Europe is in a unique position to lead the way in the cross-border implementation of Basel II and to make faster and more tangible progress than is currently possible on  BIS Review 66/2004  5  a wider international basis. We need to seize this opportunity with both hands, because it will not just benefit us in the EU but, I believe, also have a positive impact beyond our borders. We have two major advantages in this respect. Firstly, within the European Union, we have a set of single market legislation in the banking field, founded on harmonisation and mutual recognition. Furthermore, the division of supervisory responsibilities between our countries is embedded in this common legal framework and has been in place for some time. Secondly, from a practical perspective, we also now have the Committee of European Banking Supervisors - CEBS. This committee is directly charged with promoting convergence of supervisory practices and co-operation between supervisory authorities, and has a key role to play in the implementation of Basel II in Europe. For these reasons, I believe that we can - and must - be more ambitious and go further than others may be able to go in our efforts to ensure consistent implementation of Basel II and effective supervision on a cross-border basis. We should not only move faster, but also go deeper in our search for convergence.
And ten-year government bond yields have fallen from nearly 9% on average in 1992 to below 5½% at the present time. They were trading at one point this morning below 10-year German Government bonds for the first time for nearly 30 years - and they’ve been trading well below US Treasuries now for some considerable time. But more than that, we have also over the past seven years or so enjoyed the longest period of uninterrupted, quarter-by-quarter, economic growth in the UK as a whole since quarterly records began in 1955. Annual growth since 1992 has in fact averaged 2.8%, which is between ¼ and ½% above most estimates of our long-term underlying trend rate. We have also enjoyed an almost continuous month-by-month fall in the rate of unemployment, on a claimant count basis, from a peak of some 10½% at the end of 1992 to the present rate of just over 4% (or a little below 6% on the LFS measure). That is the lowest rate of unemployment since early 1980. And, finally, the number of people in employment is currently around the highest number on record. I know that initially there were those who feared that low inflation could only be achieved at the expense of slow growth and high unemployment - and that may still be why some of you rejected low inflation as the overriding objective of monetary policy on the first vote. I think the facts demonstrate that this certainly need not be true.

And while no one I think clearly understands just why the euro has been as weak as it has particularly once the Eurozone economy began to pick up from about the middle of last year - the evidence is that it has not had as much to do with a change in relative monetary conditions as between the UK, and the US, on the one hand and the Eurozone on the other as is popularly supposed. It is in fact much more difficult to affect the exchange rate - directly through our domestic monetary policy than you might imagine. Of course we do take full account, in our forecasts and in our policy judgements, of the implications of the exchange rate, and of the international environment more generally, for our own economy. That was why we moved aggressively to cut interest rates a year or so ago. Sterling did not then fall against the euro as you might have expected - it actually rose. Even though we could not change the international environment, we were able to cushion its negative effect on the economy as a whole by providing an offsetting stimulus to the domestic economy. Had we not done so, we might well have suffered recession in the UK. BIS Review 18/2000  2  But the situation now is very different with the economy as a whole has strongly recovered and is now once again, operating close to capacity and apparently continuing to grow at above trend.
It involves in effect aiming to keep overall, aggregate demand in the economy (as a whole) more or less continuously in line with the underlying overall capacity of the economy (as a whole) to BIS Review 7/1999  –2–  meet that demand. Effective price stability is essentially a measure of our success in achieving economic stability in that much broader sense. It is a limited role. Neither we nor the ECB can do very much directly to affect the underlying supply side of the economy which depends upon its structural characteristics, and above all, in today’s world, on the efficiency and flexibility of goods, capital and labour markets. Monetary policy cannot substitute for supply-side reform, but by maintaining price stability we can, indirectly, help markets to function more effectively. Nor can either the MPC or the ECB do much directly to influence the pressures on particular firms or particular sectors or regions of the economy; we and they can only influence the monetary situation in the economy of our respective currency areas, as a whole. We have essentially one instrument: the short-term interest rate. But, again, if we are successful in achieving overall stability, that will also contribute over time to a more rather than less favourable operating environment for the different component parts of the economy. But that is the most that either we in the MPC or the Governing Council of the ECB can hope to do.

The regulatory framework should not be so onerous that it forms a high cost and a burden to businesses. Intrusive regulatory approaches on new products can become a disincentive. Tax structures can also be structured to support the innovation process. Within financial institutions, organisational structures can also create an environment for innovation by avoiding product-oriented structures and aligning instead to the organization’s processes as well as implementing appropriate performance incentives. Fifth, entering into strategic alliances with entities may bring new approaches, new technologies or specialisation in a new product. In addition, collaborative efforts amongst Islamic financial institutions would strengthen the ability to leverage on the industry’s expertise. The introduction of innovative Islamic financial products in a specific jurisdiction can be expanded to other jurisdictions, which in turn, will contribute to broaden and deepen Islamic financial markets and thus strengthen the overall development of the Islamic financial industry. To facilitate the achievement of this objective, the sharing of information can be made on the product features and the Shariah methodology adopted in ascertaining the permissibility of the products in the various jurisdictions. Strengthening risk management capabilities While financial liberalization and innovation have expanded the range of opportunities, it has also led to heightened uncertainties, greater volatility and increased potential of financial vulnerabilities. These  2  BIS Review 20/2004  developments require financial institutions to move to a higher standard of risk awareness and management.
To establish a robust SORA curve, SC-STS is coordinating closely with LCH to extend central clearing for SORA derivatives from 5Y currently to 21Y in the coming months. This will mitigate counterparty credit risks and support higher SORA transaction volumes and market activity across the longer tenors. Similarly, MAS will also extend the tenors and broaden industry participation in our SORA price discovery auctions. Since its launch in June last year, the number of participants in the auctions has doubled from six to twelve major banks. This has facilitated price discovery in SORA derivatives up to the 5Y tenor. Given the positive outcome, MAS will extend the tenors of the SORA auctions to 20Y from 1 March 2021. We expect the bid-ask spreads for SORA OIS and SOR-SORA basis swaps at the longer end of the curve to tighten further with these enhancements. To further enhance market depth, MAS will expand our SORA Floating Rate Notes (FRN) programme. This was launched in August last year, and has met with strong investor demand, with outstanding size growing to $ billion in only 6 months. Looking ahead, we will extend the tenors from 6 months to 1 year and 2 years in the first half of this year. The 1-year tenor will be issued quarterly while the 2-year tenor will be issued semiannually. We will also gradually increase the issuance sizes if investor demand continues to be strong.

https://www.mas.gov.sg/news/speeches/2021/pushing-ahead-with-sor-sora-transition-in-2021  2/7  12/02/2021  "Pushing Ahead with SOR-SORA Transition in 2021" - Keynote Speech by Mr Leong Sing Chiong, Deputy Managing Director (Markets …  7 The overarching policy intent of the extended end-date has been made clear in the commentaries from authorities in the US and UK. The proposed extension will allow more time for the transition of legacy contracts, while the usage of LIBOR in new contracts is to cease as soon as possible. 8 US regulatory agencies [5] have stated that the use of USD LIBOR in new contracts a er 31 December 2021 would create safety and soundness risks, and this should cease as soon as practicable and latest by end-2021. In the UK, the Financial Conduct Authority will be consulting on an approach to prohibit some or all new use of LIBOR a er end-2021. This would likely be coordinated with similar measures across other key jurisdictions. 9 All these suggest that a er end-2021, new cash and derivatives contracts in these currencies will predominantly reference overnight near risk-free rates (RFRs), while LIBOR markets will decline in liquidity. 10  So what does this mean for our SGD benchmark transition eﬀorts? Key priorities for the SC-STS 11 The SC-STS has reviewed its key priorities and timelines against these developments and will be publishing later today an updated Transition Roadmap for 2021/2022.
On the one hand, this was due to a significant improvement in our labour supply, both in terms of quantity and quality. Part of this is related to inflows of foreign workers, but our success in raising female participation Page 3 of 10  and improving financial incentives to work has played a key role. On the other, we have also radically transformed our energy sector, through the linking of our system with the European grid bolstered by investment in new power plants. The divergence between our growth and that observed in the rest of the euro area is also due to the different performance of our respective financial sectors. Malta’s financial system has proven to be more stable than that of neighbouring countries. Our core domestic banks have remained sound with strong capital ratios, high liquidity and healthy profits. Asset quality has continued to improve, while banks remained prudent, boosting provisions. We believe that besides being a testament to the prudence of our local banking community, these results are also due to the actions of regulatory authorities. How to address some of the challenges of our economic success Rapid economic growth, such as that which Malta is currently experiencing, brings about its own challenges. Opinion surveys confirm how the Maltese have shifted from worrying about the cost of living and economic uncertainty to being concerned about the environment and traffic congestion. This shift is also evident at the level of policymakers.

This would boost capital stock and total factor productivity and, hence, sustainable economic growth going forward. I believe that the setting up of the Malta Development Bank should help increase the availability of finance to the real economy, while also supporting long-term investment projects. This bank is going to fill in an institutional gap in our financial sector, which recent developments have made ever more evident. In a banking sector, which remains relatively well profitable, compared to their European peers, despite the decline in lending to nonfinancial corporations, we need an institution that can help create an environment where banks feel comfortable to extend credit to innovative firms, namely firms that may  Page 8 of 10  not be able to provide adequate collateral due to the nature of their business, but which are still good business opportunities. Besides the Development Bank, there are other policy measures that should help facilitate the flow of credit. At the Central Bank we will continue to evolve our credit register to provide more information to banks and help reduce credit risk. More broadly we will continue supporting government in its attempts to reduce excessive bureaucracy and further improve the insolvency process. We will also continue to take macroprudential measures to ensure timely policy interventions to safeguard the stability of the financial system. The struggle against bureaucracy is a key element in the broader effort to improve the ease of doing business in this country.
To sum up so far: yes, there has been a strong regulatory reaction to the crisis, but as I see it, this is appropriate, given –  the pre-crisis regulatory framework,  –  the costs crises give rise to, and  –  the efforts that the Basel Committee has made to mitigate risks of unintended consequences,  The problem is that myopic observers tend to forget these aspects. Are we there yet? Remaining challenges? I would now like to change perspective slightly and ask, are we there yet? Have our efforts done the trick, or are there still challenges to be tackled ? Well, from a Basel Committee perspective I am pleased to be able to say that the Basel III framework is now agreed – in principle. This is a major achievement that all participating parties should be proud of. If I widen the scope, beyond the Basel III framework, and look at other parts of the reform agenda, it is obvious that the work on ending the “too big to fail” problem has been difficult, and that some work still remains to be done. However, the reason we have not yet reached our goal is not lack of effort, but simply that the resolution of very large, cross-border banks is not easy. The main remaining issue here concerns how to ensure that global systemically important banks have sufficient capacity to absorb losses in resolution, without having to ask tax-payers to foot the bill.

This legislation, now in passage through Parliament as a draft law, includes initiatives in the area of insolvency law to strengthen the application of out-of-court payment settlements, and introduces a second-chance mechanism. In relation to the Code of Good Practices, the exclusion threshold, the application of so-called “floor clauses” and the calculation of the limit on the price of properties acquired to be able to avail oneself of the dation in payment envisaged in the code have all been reviewed. Lastly, the law on measures to strengthen the position of mortgage debtors provides for an extension of the moratorium on evictions in the cases of particular vulnerability identified in Law 1/2013. These improvements are in addition to those adopted as a result of the financial crisis. They are steps in the right direction which, given their significance, merit analysis and assessment. And, in this respect, I would like to voice two ideas. First, in this new setting it is essential that legislation should preserve the payment culture that has traditionally existed in the Spanish mortgage market. The erosion of this culture, as occurred in some euro area member countries under European Union bail-out programmes, would truly be most negative for the stability of the financial system.
At the ECB Governing Council, we repeatedly point out the dangers of allowing a onetime spike in prices of exogenous origin to affect wage levels in this way because it becomes a self-perpetuating increase harming competitiveness. In Malta the indexation scheme is partial, but nevertheless it contains the potential for creating higher costs. We have to sell our products and services abroad and so we need to remain competitive. So do you think it was wrong to give workers a € increase? That is an agreement reached with the social partners. If we accept that it is a priority for us, then we need to make sure we increase our productivity to match the increase in wages. Nearly one year on, do you think the euro was to blame for the rising inflation and would you describe its phasing in as successful? A Eurobarometer survey last April showed that 90 per cent of Maltese citizens considered that the change to the euro was smooth and efficient. A Eurobarometer survey in February said that 84 per cent of Maltese citizens believed that the price conversions into euro were "always, or mostly" fair. A Eurostat assessment in April found that the total one-off impact of the euro changeover was between 0.2 and 0.3 percentage points. According to the European Commission, the perceived inflation index for Malta fell from 51 points in December 2007 to 40.5 points in January to 34 points in February.

Lower interest rates should contribute to easing current tensions in the financial markets and also to facilitating the flow of credit. But monetary policy alone cannot resolve the financial and economic crisis. Corrective actions at other levels of policy are required, and these have indeed been taken by national governments and central banks as well as by international institutions. It will, however, take a while for confidence to return to a level that would permit the financial system to fully service the needs of a globalised economy. So why did the ECB increase rates in the first place in July? Consistently with its interpretation of the mandate, at that time the ECB perceived that there were strong upside risks to price stability. Decisions are always based on the latest information available and on a full analysis at a given point in time. The slowdown in economic activity has been very sudden, and projections for inflation have in the meantime been revised downwards. 2  BIS Review 152/2008  Do you think the cuts should always be passed on to the customer? In some cases the local banks have refused to do so, or they didn't reduce them to the full extent. In Malta, banking practice has generally been to set interest rates with reference to the official policy rate. Where such is the case, we would expect most of the ECB's interest rate cuts, one percentage point in the past month, to be passed on to customers, particularly at a time of weakening growth prospects.
A number of factors should help in this recovery, including the better performance of the developed world, the depreciation of the real exchange rate, the stronger monetary stimulus, the low funding costs for the short and the long term, and the greater fiscal impulse. Nevertheless, I must stress that under the current conditions it is also important to keep an eye on the supply side of the economy and advance in every measure favoring stronger growth in productivity. The Administration has recently announced a series of initiatives intended to improve our country’s capacity for innovation and growth, as well as an energy agenda with specific goals to reduce costs both upstream and downstream. These measures are vital in our current context, since the capacity of our domestic firms to absorb high costs will be more constrained with normalized terms of trade like we expect for the coming years. Working out these issues will permit giving a sustainable impulse over the years to investment, growth, and employment. Summing up, inflation has risen beyond expectations a few months back, while the economy is in a phase of slow growth. After lowering the MPR in October 2013 and March 2014, the Board has kept the MPR at 4 percent over the past few months. Overall, in this juncture we believe that this slowdown will reduce inflationary pressures, helping inflation to return to 3 percent in the policy horizon. Monetary policy is already in an expansionary stance and both domestic and external financing conditions are good.

Figure 8 MPR and expectations (percent) 9  9  7  7  8  8 6  6 5  5  4  4  3  3  2  2  1  1  0  0 07  08  09  10  11  12  13  14  15  16  MPR  First half June 2014 FBS  June 2014 EES  June 2014 MP2014 Report Forward June MPForward Report  Source: Central Bank of Chile. BIS central bankers’ speeches  11  Figure 9 Real housing prices  (base index: 2008 = 100)  150  150  140  140  130  130  120  120  110  110  100  100  90  90  80  80 02  03  04  05  06  07  CBCh (*)  08  09  10  11  12  13  14  CChC  CBCh RM (*)  (*) Preliminary results. Source: Central Bank of Chile (CBCh) based on data from the Internal Revenue Service (SII) and the Chilean Chamber of Construction (CChC).