samchain/econo-pairs-v1 huggingface dataset:
It will also give the board the opportunity to convey its views directly to us, for example on whether we are imposing too much of a regulatory burden. As a result of the consultation exercise, we have received a number of supportive comments. It is difficult, after all, to argue against the principle that banks should be encouraged to raise their governance standards. However, a number of concerns have also been voiced. I will not go into these in detail, but some of the questions that have been raised are as follows: Is the HKMA interfering too much in the way in which banks choose to manage themselves? Is too much burden being placed upon the board, and upon non-executive directors in particular, in terms of establishing policies and controls? Should there be a distinction between listed and non-listed banks? Is it right to place more onerous requirements on banks compared with other companies, for example as regards the required number of independent directors? And is it going to be possible to find sufficient independent directors of the right quality? I have answered some of these questions already in this speech. We do believe that banks are different from other companies because they are looking after other people’s money. From this point of view, it does not matter whether the bank is listed or non-listed. We also believe that banks are exposed to special risks compared with other companies, and that the board needs to ensure that policies are in place to manage these risks.

The Financial Secretary recognized this by announcing in his Budget speech that he had asked the Secretary for Financial Services with the assistance of the Standing Committee on Company Law Reform to conduct a comprehensive study on corporate governance in Hong Kong this year. The objective will be to plug any gaps in the corporate governance regime and to become a benchmark in the region. Market bodies, professional organizations and regulators will be asked to help in this task. Your own Association may be able to contribute. I do however believe that sound corporate governance is particularly important for banks. The rapid changes brought about by globalization, deregulation and technological advances are increasing the risks in banking systems. Moreover, unlike other companies, most of the funds used by banks to conduct their business belong to their creditors, in particular to their depositors. Linked to this is the fact that the failure of a bank affects not only its own stakeholders, but may have a systemic impact on the stability of other banks. All the more reason therefore to try to ensure that banks are properly managed. It is true to say that banks in Hong Kong are already well managed by international and certainly by regional standards. The fact that they survived the financial crisis in generally good shape is a testament to this. However, during the financial crisis, the HKMA came across a few individual cases where the board of directors did not perform as well as might be expected.
So we can provide that real leading edge. Our people are all over the world. Wherever you go, if you look at expatriates, Sri Lankans in any country, anywhere in the world – I have been to the Caribbean, places like Barbados, even there you find Sri Lankans. And they are doing very well in their professional endeavours. So we have to reach out to this diaspora, as I call it, and ensure that they also come and help us but already within the country, we have a sufficient pool of people who really can lead the charge, not just in-terms of raising Sri Lanka’s profile but also attracting foreign investment and other resources which will help this country provide leadership in this region in the decades ahead. So remember that it is a great challenge for all of us, this institution is going to be at the epicenter of this country’s efforts to develop itself. President Maithripala Sirisena who visited us, a few weeks ago, made it very clear that his main objective is to see that people’s incomes increase. That is his objective. He has spelt out his objective. How do we achieve that? That is where we have to sit now and brainstorm. To me the key challenge is how to raise productivity. Productivity is very important, output per capita. This is the key element that we have to utilize.

“Measuring the Natural Rate of Interest: International Trends and Determinants,” Journal of International Economics, vol. 108(S1), pages 59–75. Rachel, Lukasz & Smith, Thomas D., 2017. “Are Low Real Interest Rates Here to Stay?” International Journal of Central Banking, vol. 13(3), pages 1-42. World Bank, 2016. “Poverty and Shared Prosperity 2016: Taking on Inequality”. World Bank Group report. 2/2  BIS central bankers' speeches
Given scarce labor and increasing wages, productions in Thailand need to shift from labor intensive to a more capital intensive industries and thus more import of capital goods and machinery are made cheaper during this investment up-cycle. Third, on capital flows management. In October 2012, the Bank of Thailand launched the Capital Account Liberalisation Master Plan. This Master Plan aims to facilitate Thai companies to diversify their investments abroad, especially in neighboring countries. This would encourage private companies to operate their businesses more efficiently by expanding their markets and production bases, which in turn will help strengthen their competitiveness. Facilitating outflows also helps capital flows to be more balanced. The Bank of Thailand, for instance, has removed the limit for Thai individuals’ outward direct investment, raised the limit per investor, and eased regulations for transfers of foreign currencies to facilitate investment in foreign securities. Recent surge of capital inflows to the region is likely to continue as long as advanced countries continue their extra-loose monetary policies and as long as the prospect of this region remains much more positive than advanced economies. There is no one-size-fits-all measure to deal with impact of short term capital inflows on the economy. The Bank of Thailand thus utilizes policy combinations, namely: allowing exchange rate adjustment as a first buffer; liberalising outward investments by residents; exercising exchange rate intervention to deal with excessive movements; and should circumstances deem necessary, the Bank of Thailand is prepared to consider appropriate measures in order to prevent serious impact on the economy.

I also feel that the ambitions are even greater. This is obvious even from the motto of the forum. So I wish you success in your work! Thank you for your attention! 2  BIS central bankers’ speeches
In particular, the FPC is charged with ‘the identification of, monitoring of, and taking of action to remove or reduce, systemic risks with a view to protecting and enhancing the resilience of the UK financial system’, but this does not ‘require or authorise the Committee to exercise its functions in a way that would in its opinion be likely to have a significant adverse effect on the capacity of the financial sector to contribute to the growth of the UK economy in the medium or long term’. 7 This approach, of proposing and testing, is similar to the notion of ‘discursive governance’ proposed for independent regulatory agencies by Gehring (2004) and discussed in the financial stability context by Demekas (2019). 6  7  All speeches are available online at www.bankofengland.co.uk/speeches  7  Together, these three ingredients mean we have a clear mandate to follow but, at the same time, we have the flexibility that’s needed to manage financial stability efficiently and effectively. An example – resilience of major banks Our approach to how resilient major banks should be to economic shocks captures all of these ingredients. We started with Parliament’s preferences: resilience but not at the expense of growth over the medium to long term. Using all the evidence available, we’ve balanced the benefits and costs. On the benefit side of the ledger: the fact that the system will not magnify severe downturns.

And so, when the downturn came along, it was turned into disaster as the financial system collapsed. A taxpayer bailout and a million more people unemployed up and down the country. Financial instability is something for which everyone, and especially the most vulnerable, pays the price. An independent committee to take the long view  Against that backdrop, few would disagree with an intention to build a stable, resilient, financial system. But the road to disaster is paved with good intentions. There will always be pressure to live for the moment. A little loosening of standards can bring many years of small gains before the big price is paid. So in the aftermath of the crisis, Parliament did not just declare its intention to build a stable financial system. It chose also to commit to sticking to that intention. And there was, of course, a model for how to commit not to live for the moment in economic policy. In 1997, the Monetary Policy Committee of the Bank of England was established to deliver the clear intent of sustained low inflation. Successive governments had lived for the moment by pushing the economy to expand beyond its potential. Each time, that worked in the short term. But ultimately it brought no benefit and only a price: inflation and recession to get inflation back down again. Recognising that the pressure to live for the moment had resulted in serious costs, government and Parliament sought to entrench the long view in economic management. The results have been impressive.
Second, a lot more was done, by the Bank and others, to establish support for the goal of price stability – not as a political tenet but as a technical prerequisite for a well-functioning economy. This ran through the speeches of Robin Leigh-Pemberton, Eddie George and Mervyn King in the late 1980s and early 1990s, as well as in Bank research. Analytically, energised by the current Governor when Chief Economist, the Bank put resources into analysing the costs of inflation, and into contributing to the so-called time-consistency literature on the central importance of mechanisms to underpin trust in a monetary authority’s declared commitments. 11 And in more public spheres, Eddie George’s speeches in the early 1990s repeatedly stressed the emergence of a consensus, domestically and internationally, about macroeconomic policy goals and means. Price stability was not  6  See Letter to The Times from 364 Academic Economists, April 1981. 7  Notably Samuel Brittan and Peter Jay. See, for example, Sir Samuel Brittan’s 1981 paper “How to end the “monetarist” controversy: a journalists reflections on output, jobs, prices and money”, London: IEA. 8  See Lawson, N., 1984, “The British Experiment”, The Fifth Mais Lecture at City University Business School, June. 9  These differences of emphasis emerged during the review of macroeconomic policy objectives and instruments discussed in Chapter 36 of Lord Lawson’s book “A View from Number Eleven”. 10  See Nigel Lawson’s 1984 Mais Lecture, op.

My reluctance to go down that route stems from a concern that we would slip towards a degree of individualism where members were no longer listening to each other. It would not be possible for members to polish their statements after the meeting, as they would then be able to tweak their text, ever so slightly of course, in the light of the market reaction to our decision and so on. So highly polished statements would be brought to the meeting, with perhaps even a degree of competition in the depth of the analysis or the beauty of the prose. But the very point of a committee is that we 26 should listen to each other, and then make up our own minds. That includes trying to persuade one’s  unexpired parts of the terms of existing Committee members, but do not include the terms of Howard Davies and David Walton. 25  For example, Weber, A., 2007, “Monetary policy strategy and communication”, speech at the Deutsche Bundesbank/Federal Reserve Bank of Cleveland conference on “Monetary policy strategy: old issues and new challenges”, Frankfurt, May 2007. 26  See section on “Does discussion help?” in Lombardelli, Proudman and Talbot, op. cit., page 199. 6  BIS Review 66/2007  colleagues. Over the years, 27 I have definitely seen occasions where individual members have altered their position during the course of a meeting.
In fact core inflation is expected to be slightly above our inflation target by the end of the forecast horizon at 2.3 per cent. Energy price inflation remained extremely elevated at 40.8 per cent in September and it continues to be the dominant component of overall inflation. Marketbased indicators suggest that, in the near term, oil prices are likely to moderate, while wholesale gas prices will stay extraordinarily high. The relatively high import share of gas needed for the EU27 energy consumption, will create extensive challenges in the coming winter months, especially, in countries with gas-intensive industrial sectors. Food price inflation also rose in September (to 11.8 per cent), reflecting higher input costs related to energy, disruptions of trade in food commodities, and adverse weather conditions. While supply bottlenecks have been easing, these continue to gradually feed through to consumer prices and are putting further upward pressure on inflation, as is recovering demand in the services sector. The depreciation of the euro has also contributed to the rising inflationary pressures, together with the aforementioned supply and demand factors. Monetary policy The ECB's primary objective is price stability, which is defined as keeping inflation at 2% over the medium term. In response to these developments, in our September monetary policy meeting, the Governing Council of the ECB decided to raise policy rates by 75 basis points. This significant step frontloads the transition to normalise monetary policy towards levels that will enable the timely return of inflation to our two per cent medium-term target.

Conclusion Let me now conclude. The world's economy has gone through the various problems caused by the pandemic to the consequences of the Ukraine war. For the first time in many years, inflation has become a threat for many countries around the world. Growth is down and inflation is up. This is a big setback for the global recovery. The decisions we make now will have far-reaching consequences for our future. We need to be determined to make difficult choices. But if these choices are based on data, on what we learned from the past and on a clear understanding of the evolving challenges, then I am sure we will come out from this crisis stronger and better equipped for a more sustainable and resilient economic future. 4/4  BIS - Central bankers' speeches
6 For example, the SBIF may require that the effective net worth of the bank or banks involved be more than 8% and up to 14% of their risk-weighted assets; or demand that the limit of the loans granted by a bank to another financial institution be reduced to 20% of the effective net worth (section 35, banking law). Concluding remarks The challenges facing emerging market economies are different from those of industrial countries. While the latter struggle with ensuring a sustained recovery from the Great Recession, the former have to manage a healthy and vigorous process of growth, which is not exempt from tensions. The need of the world to rebalance saving-investment across countries will have as counterpart capital flows adjustments. Exchange rate flexibility, avoiding serious misalignments, should help to smooth this process. It is tempting to think that emerging economies did not suffer the financial crisis for having better regulatory framework than industrial ones. However, the issue is somewhat more complicated. In some way, emerging markets enjoyed also less complexities and smaller sized financial systems. For the current level of development and the size of the financial system, regulations appear to have worked fine. But, the challenge is how to allow continued financial development in the context of a solid financial system. For this reason it is very important to learn from mistakes in more mature markets, and to participate and analyze coming changes in the global financial landscape.

Although, in general, I think that monetary policy should not target asset prices, nor should it be used as an instrument to deal with asset prices, the problem is more acute regarding capital inflows. If capital inflows fuel a bubble in the exchange rate, tightening monetary policy will actually induce more capital inflows. Paradoxically, monetary policy loosening may help to stabilize the economy and lead to a slowdown in the rise in asset prices. 2 Misalignments of the exchange rate, in particular in the context of massive inflows, may be the prelude of problems, in the extreme a currency or financial meltdown. For this reason other tools cannot be ruled out, in particular exchange rate intervention. To avoid the perils of introducing rigidities in the exchange rate regime, interventions should be truly exceptional and should not target a particular exchange rate value. Hence, the volatility of the exchange rate is not artificially lowered, and appreciation expectations are not introduced. If the currency is misaligned from fundamentals, the intervention may be successful in realigning the currency. If not, sterilized intervention will most likely be ineffective, and for this reason is important to have a strong presumption that the currency has moved away from fundamentals before intervening. 3 In addition, foreign exchange intervention allows authorities to increase the international liquidity position of the economy so as to insure against a future curtailment of capital inflows.
How payment services and user needs are evolving Technology continues to transform retail payments: the way we pay for goods and services has changed dramatically over the past decade or so. In many countries, you can now pay for your tea and cake with a smartwatch, or send your friends a ‘payment request’ with a few taps to split a bill at a restaurant. Many people’s wallets are now virtual rather than physical. Innovation has expanded the frontier of what is possible and provided many of us with access to faster and simpler payment services. It is not just the private sector that is innovating. The changing user demand for electronic payments is inspiring central banks to consider the future of payments. A topic of intense interest is Central Bank Digital Currencies (CBDCs). CBDCs (particularly retail CBDC) could create a new form of digital money, issued by the central bank, and available for households and businesses to use. Whether to issue a CBDC, for which use cases, in what form, and with what consequences are all major questions currently being considered by central banks and governments across the globe. No decisions have been made in the UK and we continue to work closely with a wide range of stakeholders to develop a clear understanding of the potential implications: positive and negative. The Bank of England and HM Treasury will consult later this year on the assessment of the case for a retail CBDC in the UK, including scope for further work.

We are keen to understand industry’s view on the priorities, costs and benefits of the various ingredients of the roadmap and which they would like to invest in. At the same time we will be publishing a consultation on a revised framework for recovering the build and run costs from industry (the RTGS tariff). To whet your appetite I will highlight the three key themes of the consultation. First, creating new ways to connect to RTGSthat are cost-effective, based on open standards and compatible with a wide range of technologies. This includes creating new channels to submit payment instructions, alongside the established SW IFT network. We will also continue to evolve our API platform to automate and streamline data exchange with participants. Secondly introducing a range of flexible and innovative settlement services to address the changing needs of our users. The specific options include: improving liquidity efficiency, extending operating hours of our system and introducing a new settlement model to enable payment synchronisation. Synchronisation would enable the cash movements in RTGS to happen if and only if a corresponding asset on another ledger is transferred. It would create a way for the private sector to build new services for their customers using central bank money. We believe that this model can boost the speed of settlement, reduce risk, and enable further innovation.
Although it is difficult for the industry to be insulated from an economic downturn, there is scope for more forward-looking evaluation and management of the risks facing the insurance industry as a whole. Rigorous stress testing and risk mitigating strategies for the asset side of the books are examples of  BIS Review 45/2009  1  areas that insurance companies should be paying particular attention to in these difficult times. (ii)  Encouraging investments in research and talent development  Second, I would like to encourage the industry to take advantage of the current downtime to channel resources to research and training. Companies should not lose sight of the long term and use this opportunity to invest in trying to identify new risks, new trends and in capacity building. For research, this is very important. As the insurance industry in Asia develops, there is an increasing need for better understanding of insurance risks in Asia in order to allow for more robust risk modelling. For instance, systemic demographic shifts in Asian countries will pose many retirement planning challenges. Just to cite a quick statistic, from the year 2000 to 2050, the old-age dependency ratio in Asia is projected to rise from 9% to 27%. There is a need for everyone to have a better grasp of this relatively new challenge of managing longevity risk. Many countries have been reviewing and improving their pension systems given this trend.

A key issue is how emerging markets will be impacted by tighter financing conditions (and the ensuing capital outflows) and to what extent this will have repercussions for euro area foreign demand. Against this background, ensuring the continued resilience of the euro area economy is paramount. Second, there are policy challenges related to our financial markets. The euro area financial system weathered several episodes of stress in the second half of last year. This is a sign that a lot has already been achieved with the establishment of banking union, which, however, is not complete yet. To make our financial system truly safe and sound we need to progress in two main domains, which complement each other. On the one hand, we need to finalise and implement the work we started when establishing the Single Supervisory Mechanism and Single Resolution Mechanism as the initial pillars of banking union. This includes further regulatory work to harmonise our rules for supervisory action and ensure a consistent application of the Bank Recovery and Resolution Directive’s bail-in provisions. On the other hand, we need a common public backstop for the Single Resolution Fund to strengthen its credibility and we need to ensure that confidence in the safety of deposits is equally high in all 2  BIS central bankers’ speeches  euro area Member States by establishing a European Deposit Insurance Scheme.