samchain/econo-pairs-v1 huggingface dataset:
Undoubtedly, the most significant effect of the global crisis on our banks was the fact that the path of gradual adjustment of imbalances that Spain had undertaken and which until then was the scenario shared by all analysts and national and international organisations, suddenly turned into a collapse of all macroeconomic indicators. That obliged banks and savings banks to accelerate the clean-up of their balance sheets and to set in train what has ultimately become a full-fledged industrial restructuring of the Spanish banking system. 2  BIS central bankers’ speeches  The toolkit at hand, which had been successfully used in the past, was not up to facing a crisis of this nature. The legislation on bank resolution had not been adapted to the demands of the Monetary Union, in particular to the prohibition of monetary financing, and nor did it envisage that it was savings banks that would essentially need to be repaired. Moreover, the singularity of a systemic crisis, on a global scale and with absolutely unrestricted capital movements, made it impossible to make creditors take haircuts without running the very serious risk that market alarm would ultimately lead healthy institutions to sink. Our main strength – one by no means insubstantial – was that the large credit institutions were reasonably sound and that the problems were concentrated in a clearly defined group of small and medium-sized institution.

4 And both have taken steps to improve the resilience and coverage of overnight unsecured benchmark rates – the Bank of England by taking over the  3  Reforming Major Interest Rate Benchmarks – July 2014 http://www.fsb.org/wp-content/uploads/r_140722.pdf. 4  In the US, this is the Alternative Reference Rates Committee (ARRC). In the UK it is the Working Group on Sterling Risk-Free Reference Rates. 4  BIS central bankers’ speeches  administration and reform of SONIA 5, and the Fed by overseeing the creation of the Overnight Bank Funding Rate. Such benchmarks are a vital means of assessing the passthrough efficiency of changes in policy rates – meaning Darell and Arvind will continue to be able to write papers on the topic long into the future. Pass-through beyond money markets Let me turn briefly to pass-through beyond money market rates. Deep structural forces affecting savings and investment preferences have combined with the ongoing legacy of the financial crisis to push the interest rate required to keep our economies in balance much lower than historical experience. The resulting proximity of policy rates to what was once known as the zero lower bound has important implications for the pass-through of monetary policy. Specifically, once household and business deposit rates have reached a very low level, it becomes difficult for banks to reduce them further. Recent international experience seems to bear this out – Chart 7 shows that pass-through to retail deposit rates tends to be weaker when risk-free rates are very low.
This cooperation has fostered our relations with foreign supervisory authorities and international institutions. Staff capacity building and development in this area was another priority of the project. Our institution should take relevant measures to increase their skills for preventing or handling deficiencies or threats to financial system stability. In terms of statistics, this cooperation has led to a thorough review of the existing regulatory framework to completely fulfil ECB standards on compilation and dissemination of monetary and financial statistics. The review aimed to identify items of noncompliance with EU standards and to subsequently draft a solid agenda for comprehensively reviewing our  BIS central bankers’ speeches  1  methodology and infrastructure to compile the Balance of Payments in accordance with EU standards. Payment systems constitute another priority of our work under this project. In this area, our practices further improved, aiming at approximating them to the ESCB practices on payment systems. Also, pertinent legal acts and their compliance with the EU regulatory framework were reviewed. Cooperation on interbank money market consisted in analysing the experience of other central banks in handling market obstacles and difficulties in relation to the regulatory framework. Other useful aspects for adapting, including identification of necessary actions to be taken by our institution in the interbank money market were also addressed. Coordination of the EU integration process is another major area that was broadly addressed by this project.

Mario Draghi: ECB press conference – introductory statement Introductory statement by Mr Mario Draghi, President of the European Central Bank, and Mr Vítor Constâncio, Vice-President of the European Central Bank, Frankfurt am Main, 3 November 2011. *  *  *  Ladies and gentlemen, welcome to our press conference. Today is the first time that I have had the privilege and pleasure of chairing the meeting of the Governing Council of the ECB. I am delighted to proceed now with our well-established practice of real-time communication and to report on the outcome of our meeting, together with the Vice-President. Based on its regular economic and monetary analyses, the Governing Council decided to reduce the key ECB interest rates by 25 basis points. While inflation has remained elevated and is likely to stay above 2% for some months to come, inflation rates are expected to decline further in the course of 2012 to below 2%. At the same time, the underlying pace of monetary expansion continues to be moderate. After today’s decision, inflation should remain in line with price stability over the policy-relevant horizon. Owing to their unfavourable effects on financing conditions and confidence, the ongoing tensions in financial markets are likely to dampen the pace of economic growth in the euro area in the second half of this year and beyond. The economic outlook continues to be subject to particularly high uncertainty and intensified downside risks.
A second, rather obvious and by now familiar conclusion is that, in a narrow sense, it may have become more difficult to identify where risk resides, although we should not make too much of that as interest rate, currency and equity risk has been transferred around the financial system via derivatives for almost two decades. For me, it is more interesting that, in big picture terms, many banks have in effect concluded that they are better at, or will be better rewarded for, managing market risk – and its sister, counterparty credit risk – than managing ‘buy and hold’ credit risk; and that if they are going to hold illiquid assets, they should provide a higher return than bog-standard loans. This suggests that stability relies on the liquidity of capital markets – primary as well as secondary markets – proving durable under stress. Indeed, contacts suggest that one of their main worries is that something – they don’t know what – could cause primary markets to shut for a few months, leaving them holding loans and warehoused portfolios needing to be marked down over quarterly reporting dates. Another theme is reliance on secondary markets to shed complex forms of market risk, especially when it is hard to be confident about the robustness of correlation assumptions incorporated into some pricing models and risk measures. Although there is a spectrum of opinion, many take encouragement from the way the system has weathered a series of shocks in recent years, including lately the Amaranth episode.

3  Alexander Balinky, Albert Gallatin: Fiscal Theories and Policies (Rudgers University Press, New Jersey NJ, 1958), provides a thorough analysis and critique of Albert Gallatin’s fiscal and financial system against the background of the political and economic conditions which then prevailed, as well as his party affiliation during his time in office. BIS Review 106/2008  1  orphan when he was only nine. He was raised by his relative, Catherine Pictet. 4 At the age of nineteen, Gallatin obtained a university degree in Latin and Greek. His classic education was not the only early influence on his future political convictions. He was deeply affected by the strict Calvinist attitudes to debt and savings that would have prevailed in Geneva at the time. Moreover, he was privy to and would have actively participated in the rich debates about politics and philosophy that took place in his social circles. These debates were inspired by the French Enlightenment and the influence and presence of the likes of Voltaire and Rousseau during those years. 5 Nonetheless, by the time he completed his studies, Gallatin was disenchanted with his prospects in Geneva as either a civil servant, merchant or member of the officer corps. In 1780, without saying a word to his family, he decided to leave for the newly independent United States of America. As he put it, he wanted to “drink in a love for independence in the freest country of the universe”.
As all risk managers know, you can’t manage what you can’t measure. This is equally true in the area of misconduct risk. At the same time, while hard data is important, I don’t believe it is sufficient to convey all of the complexities of a firm’s culture or all of the ways it can impact business outcomes. In recent years, we have seen firms develop dashboards that seek to bring together various metrics from across their organization. This is an important and necessary step. Data sources that we’ve seen include internal quantitative information such as compliance and policy violations, completed trainings, audit results, and risk metrics like limit breaches, policy violations and external metrics like customer complaints, stakeholder perceptions, and client surveys. There also are qualitative data based on employee surveys. Some firms have begun to do more frequent pulse surveys with small cohorts of staff. Other firms have found that long-term trends are more insightful than short term changes. These types of data, while necessary, are not sufficient to make progress. Supplementing hard data with interviews, focus groups, dialogue, and external benchmarking can greatly enhance an organization’s ability to manage and strengthen its culture. Measurement and metrics are best used as a starting point to spur further analysis and probing as boards and senior management seek to identify trouble spots and build strong cultures.

By contrast, in firms with low levels of cultural capital, formal policies and procedures do not reflect “the way things are really done.” Misconduct results from the norms and pressures that drive individuals to make decisions that are not aligned with the values, business strategies, and risk appetite set by the board and senior leaders. Employees do not speak freely when they have concerns, and directors and senior managers do not find out about improper conduct until it is uncovered by the authorities. Rules may be followed to the letter, but not in spirit. All of this increases misconduct risk and potentially damages the firm and the industry over time. To be clear, I am not saying this is easy. Culture is difficult to assess because it is not a single, point-in-time metric, but a multi-dimensional concept with different implications for different parts of an organization. This complexity suggests that no single metric, solution, approach, or template will work for every firm in every circumstance.5 Consider the different roles of key players in mitigating misconduct risk and building and sustaining a healthy culture. The board of directors, senior management, staff, investors, industry groups, and the official sector might all see and assess aspects of a firm’s culture differently. Today, I will focus on a few of these stakeholders. Boards of Directors In 2017, the New York Fed hosted a culture measurement workshop that included a panel of board members from various financial firms.
From the oil crisis, stagflation and repeated devaluations of the krona during my first period at the Riksbank, to the aftermath of the IT crash and terrorist actions on 11 September 2001, the invasion of Iraq and substantial fluctuations in energy and commodity prices during my time on the Executive Board. In between this we had the early 1990s with an economic crisis, severe problems in Swedish banks and the transition from a fixed exchange rate to a floating krona. The global financial crisis we are now in the midst of is the latest addition to the list. But the major events have not only been in the outside world. Partly as a result of these “external” developments, the way we work at the Riksbank has also undergone a dramatic change. This applies to everything from the actual task we have and our working methods to our communication and degree of openness. There have been plenty of challenges, and there are probably plenty more waiting around the corner. At the moment we are in a much more difficult situation for the economy than we have experienced for many years, with a worldwide financial crisis and a period of weak growth ahead of us. But at the same time, we are much better equipped to manage this type of situation today than when I first started at the Riksbank. Both we and others have learnt a lot along the way, remedied various deficiencies and tried to create something that works better.

Concluding, I would like to highlight the suggestions found in the report that it is now the time for the financial sector to focus on firms, as the basis for employment, innovation, productivity and economic growth. Thus, the development policies should focus on the firms and their future, as a source of convergence growth. The economic development policies and priorities, at micro and macro level, should focus on: the improvement of the institutional and financial infrastructure; the development of the capital market; the investments in infrastructure; and, the regional integration. * * * Dear participants, The EBRD Transition Report 2017–18 is an important document to all of us. Irrespective of our status as decision-makers, policy-makers, researchers, academics or journalists, the Report provides ample information to further corroborate our analyses and conclusions. I invite you to further read the Report and materialise its conclusions rationally and responsibly in your analyses for the present and the outlook of our economy, and beyond. Thank You! 3/3  BIS central bankers' speeches
This will support the increase in social welfare in the medium and long term and place our country among developed countries. 6. Conclusion  In conclusion, the high growth rate we witnessed in the 2002–2007 period is evidence of the importance of the implementation of policies based on price stability and fiscal discipline. The high dollarization phenomenon that had adverse effects on our economy in the 1990’s has been alleviated in recent tears. Our currency has regained the confidence of economic agents and Turkish lira-denominated investment and loan instruments have been increasingly preferred over FX-denominated ones by institutions and citizens. All these improvements are the favorable consequences of the policies pursued in the post-2001 period. Disappearance of dollarization is a precious legacy entrusted to future generations. Likewise, as you may recall, real interest rates reached 20–25 percent from time to time and entrenched in the minds of economic decision-makers as “normal” in the 1990’s. This expectation of high real interest rates has recently been replaced by more reasonable levels. We note this normalization in real interest rates as a remarkable improvement. We assess that if fiscal discipline is not compromised and structural reforms go into effect, in the Turkish economy, equilibrium real interest rate will continue to remain at low single digits in the upcoming period as well. Lastly, I would once again like to underline the fact that long-term productivity gains necessitate radical economic reforms. The enforcement of the said reforms is a challenging and time-consuming task.

Swedish fiscal policy constitutes one of the external preconditions for monetary policy. However, fiscal policy in Sweden does not need to be tightened to the same extent as fiscal policy in other countries. The Government is assuming in its Spring Fiscal Policy Bill that public finances will weaken further by one percentage point to a deficit of –2 per cent in 2010, while we at the Riksbank believe that the deficit will stop at –1 per cent. After that, we are assuming, as is the government, that there will be a gradual improvement in public finances of around one percentage point a year. If fiscal policy is different from our expectations, this may affect the picture of resource utilisation and inflationary pressures, and this could be a reason to adjust the forecast for the repo rate in the future. Concluding remarks Debt crises in several areas in the world around us have illustrated the importance of sustainable public finances. The large deficits in public finances in the wake of the financial crisis tend to lead to higher interest rates and will force tighter fiscal policy to be conducted, which will subdue growth abroad. This is a factor which means that in our most recent Monetary Policy Update we assume that GDP growth in Europe will be relatively weak over the coming years. There is also a risk of a more dramatic development. Greece has recently been the primary object of speculations regarding the sustainability of public finances. But Greece is not the only potential problem.
Marzunisham Omar: Credit reporting and risk management Welcoming remarks by Mr Marzunisham Omar, Assistant Governor of the Central Bank of Malaysia, at the BNM-IFC 4th Credit Reporting and Risk Management Training, Central Bank of Malaysia, 9 November 2012. *  *  *  It is my great pleasure to welcome you to Malaysia and to the fourth series of the “Credit Reporting and Risk Management Training”, jointly organised by the International Finance Corporation (IFC) and Bank Negara Malaysia. This annual workshop aims to support an exchange of views and experiences amongst experts and practitioners on the latest development in credit reporting methodologies and the role of credit registries in preserving financial stability, enhancing access to finance and promoting more inclusive financial systems. Bank Negara Malaysia actively supports the promotion of greater regional and international collaboration in central banking and financial services. We believe that experience sharing amongst policymakers and practitioners is a very effective way of building capacity in organisations. Since 2008, more than 3,500 officials from 88 countries have participated in the various knowledge sharing programmes organised or hosted by the Bank. This particular workshop led by the IFC, is of special interest. It aims to provide participants better understanding of a key infrastructure in enabling well informed credit decisions to be made based on borrowers’ repayment track records. Credit information sharing is an important element in the financial system and has important consequences on the functioning of the credit market, financial intermediation, financial stability and overall economic development of a nation.

In Switzerland, this means that as long as the economic recovery remains on track, we should not postpone for too long the process of normalising monetary conditions. Otherwise, we would put medium term price stability at risk. 1/1
This moved money market rates back to the level the Central Bank had aimed for when it set its interest rates in November, a range of 7.2-7.4 percent. It is always debatable what is precisely the right level of money market rates in light of the situation on and prospects for the foreign exchange market in the short run and for the goods and labour markets 1-2 years hence. The Central Bank’s current assessment is that the level of the interest rate set in November provides sufficient restraint to ensure price stability in the period ahead. However, this assessment is under constant review in light of the development of a host of indicators. BIS Review 42/1998  -6-  Foreign Exchange Market The foreign exchange market was reorganized in 1997. The exchange rate quotation meetings were abolished and replaced by a continuous market. Furthermore, market participants other than the Central Bank, now six institutions, replaced the Bank as market makers on this market. The arrangement is now similar to that among many neighbouring countries. The Central Bank’s transactions on the foreign exchange market are now always at its own initiative, and should be view as intervention aimed at influencing the exchange rate. The new market arrangement has greatly improved the flow of information about market conditions and made the market more active. Also, all information about pressure on the exchange rate now appears instantaneously and the volume of transactions has grown sharply.

It is a matter of concern that the budgeted improvement in the Treasury’s finances in 1998 is less than warranted by the automatic stabilizers alone and that, all other things equal, the degree of fiscal restraint on domestic demand in 1998 will be less than last year. In preparations for the 1999 budget it is therefore of paramount importance, in light of economic conditions, to aim for a substantial Treasury surplus. The same considerations, of course, apply to the implementation of the 1998 budget, and any excess revenue should be used to improve the financial balance rather then end up as extra spending. I say this because there are limits on what monetary policy can accomplish to restrain domestic demand in the current circumstances. Local government finances deteriorated somewhat in 1997. The combined revenue deficit of the 14 largest municipalities was 2.9 billion kronur. It is estimated that local government debt increased from 36 billion kronur to 42 billion kronur in 1997. General government debt in relation to GDP declined from 56 percent in 1996 to 52.7 percent in 1997, which, in light of the Maastricht limit on government debt of 60 percent of GDP, is a fairly good debt position. Monetary Developments BIS Review 42/1998  -3-  The Central Bank’s principal target remains price stability. The Bank’s monetary instruments primarily influence inflation in the long run, and it is generally accepted that price stability is an important precondition for economic growth and improved living standards.