samchain/econo-pairs-v1 huggingface dataset:
Therefore, I will not discuss the problems arising from institutions being “too big to fail” but instead focus on how we can best deal with problems arising from cross-border banking activities. From a policy perspective, the key problem with cross-border banking is that the regulatory framework for ensuring financial stability has not been adapted to market developments as quickly and as thoroughly as needed. While financial markets have developed beyond national borders, the current legal and institutional frameworks – including regulation, supervision, deposit insurance and crisis resolution – remain national. The complexity of this problem has aptly been described as the European Financial Trilemma, meaning that the three objectives of global financial stability, financial integration and national financial independence cannot be achieved at the same time. 19 So far, EU member states have chosen to prioritise financial integration and to safeguard national powers. Until the financial crisis, this combination seemed to work well, but only because the financial safety nets were not really put to the test. In connection with the financial crisis, however, policy makers have been forced to realise that financial stability and financial integration cannot be achieved in combination with strictly national policies. And since the costs of financial instability have proved to be too high to be acceptable, a choice between the latter two has to be made. In this context continuing to safeguard national independence would imply closing borders to foreign financial institutions.

Since the June forecast the spectrum of risks has changed somewhat; the chances of inflation being higher than in the main scenario are now judged to be greater than the probability of a lower rate. The increased upside risk has to do with fears that inflation will react more quickly to the rising economic activity and that labour market shortages may be more serious and lead to a stronger development of wages. The assessment of an increase in upside risks is accompanied by less likelihood of a slowdown in the global economy. But there is still the risk of international activity being dampened appreciably in connection with a major correction of the high stock market prices and the financial imbalances that have been a feature of the American economy in recent years. Such a scenario would affect price tendencies in Sweden. The risk of financial bubbles, with serious real economic effects if they burst, is something that the Riksbank, along with other central banks, has to heed. Monetary policy In the late summer, at the monetary policy meeting on 12 August, the Executive Board had already noted that stronger economic growth in Sweden and rising resource utilisation pointed to growing upward pressure on prices. That in turn indicated that monetary policy might have to be given a less expansionary direction in the future. Two members of the Board even advocated a small repo rate increase in August.
The last but not the least is to increase the possibility of commercial banks to be more present into the market, making it more liquid and solvent. How we think this process will be realized: 1. The Ministry of Finance and the Bank of Albania must review the regulatory basis that covers the part of treasury bills issuance and more concretely the Agreement concluded by them “On issuance of treasury bills in the form of registration”. 2. The Bank of Albania must review the Regulation “On the secondary and retail treasury bill market in Albania”. 3. The Commission of Securities must review that part of the regulatory basis which is related to the licensing process of the securities register. 4. The commercial banks should proceed with the Commission of Securities, with the purpose to ensure the licence for maintaining the register of individual’s securities. 5. The Bank of Albania will prepare, after the completion of this process, the strategic plan of the movement of individuals from its windows to the windows of commercial banks. The time  BIS Review 24/2005  1  available to the Bank of Albania will also be used for testing the stance of “individual” investors in advance.

In this framework, we would also like to inform you that the Bank of Albania is working for considering, at the shortest time possible, the possibility of increasing the participation amount of individuals, through the Bank of Albania, in the primary treasury bill market, as well as the application of a commission on new operations they will carry out with it. The new level and commission will affect only the individuals that would like to use the Bank of Albania to participate in the primary market. Thanking you again for your attention, I would like to pass on to the discussions about the steps we deem to make. At the end of this meeting, I propose we come out with a concrete plan of actions for a successful implementation of this process. 2  BIS Review 24/2005
But in our own case this effect has been offset by the weakness of the euro – or by sterling's bilateral strength against the euro, if you prefer – which has dampened both external demand and our domestic price level. The result of these external developments – the global economic slowdown and the pattern of exchange rates taken together – for us has been that, notwithstanding only a rather modest slowdown of our overall economy, we have continued to see a growing imbalance between the internationally-exposed (particularly the euro-exposed) sectors, which have been having a rather torrid time, and the more heavily domestically-oriented sectors, which have been doing rather better. The weakness of manufacturing alongside continuing growth in the services sectors is a crude reflection of this imbalance. With inflation running somewhat below the Chancellor's symmetrical 2½% target, and with developing uncertainties about the continuing strength of domestic demand, the MPC was in a position to respond to these developments by reducing interest rates earlier this year. In fact we cut rates by ¾%, while the Federal Reserve cut much more aggressively, by 2½% over much the same period, and the European Central Bank by just ¼% – reflecting the different overall monetary conditions as they saw them in their respective currency areas. You might suppose that these relative interest rate movements would have encouraged the dollar to weaken against sterling and by more against the euro – and given the pattern of international imbalances it would have been helpful if they had.

The Rt Hon Sir Edward George: Reflections on the UK’s economic performance over the past year and future challenges Speech by The Rt Hon Sir Edward George, Governor of the Bank of England, at the Lord Mayor's Dinner for Bankers and Merchants of the City of London, 20 June 2001. *  *  *  My Lord Mayor, Mr Chancellor, my Lords, Aldermen, Mr Recorder, Sheriffs, Ladies and Gentlemen. It is always a privilege, my Lord Mayor, and a pleasure, to be invited to enjoy the splendour, and the generous hospitality, of the Mansion House on the occasion of this annual dinner for the Merchants and Bankers of the City of London. You provide us with an opportunity – in an atmosphere of calm – to reflect upon the events of the year that has gone by and upon the challenges to come. And the past year certainly has been eventful – though it is notable that some of those events did not result in particularly dramatic change. I think particularly of the Election and I congratulate the Government on the outcome, and you, Chancellor, on your own re-appointment. I very much look forward to continuing to work with you.
At a recent citizens’ panel in Leeds, for example, a young woman shared her story of trying to juggle studies with caring responsibilities for her parents. Higher costs of transport, food and heating had left her struggling to cope, let alone to make the most of her time at university. In Manchester, a carer told us how higher fuel prices had eaten into her pay as she relied on private transport to deliver vital services to vulnerable people. A woman at our panel in Durham told us how she received her pay on a weekly basis and struggled to budget for her monthly direct debits. Although she had health concerns, she felt unable financially to take time off from her full-time work. She told us she had cut back on all but the most essential purchases. We hear many such stories. For many people, this really is a cost of living crisis. Let me provide some wider context. The UK economy has been hit by a series of significant economic shocks. These include the change in our trading relationship with the European Union, the Covid pandemic with associated bottlenecks in global supply chains, and the sharp rise in global energy prices related to Russia’s brutal war on Ukraine and its people. For the United Kingdom, these shocks have eroded the terms on which we trade with the outside world.

While not the focus of my remarks today, this feature of the UK labour market is an important backdrop to our monetary policy decisions. And if we do too little with interest rates now, we will only have to do more later on. The experience of the 1970s taught us that important lesson. But equally – second – we have to monitor carefully how the tightening we have already done is  Page 12  working its way through the economy to the prices faced by consumers. Our outreach events make clear that we need to calibrate monetary policy with great care to return inflation to target sustainably. That is the best contribution monetary policy can make to a fair society. Thank you for listening  In light of all this, let me conclude with some final thoughts on how we approach the months ahead. At the Monetary Policy Committee’s February meeting, we made a very deliberate change to the way we described our view of the outlook. We moved away from what had effectively been a presumption at our previous meetings that further increases in Bank Rate would be required. In the Committee’s forecast, headline consumer price inflation was projected to fall sharply over the rest of year, more so in the second half. We recognised, however, that further tightening would be required if there were to be evidence of more persistent inflationary pressures.
We are of course not yet in a position to observe the actual outcome; there may, as last year, be surprises in store. My examples have been based on 12month HIBOR; there may, of course, be benchmarks higher or lower than this reference point which are more relevant to individual decisions. I hope that I have succeeded in demonstrating that the measurement of real interest rates is rather more complex than may appear at first sight, and is dependent also on the context. If you were to look at only the popular measure of the real rate - the nominal rate deflated by a measure of past inflation - then the recovery in asset prices in Hong Kong over recent months would seem inexplicable, because real rates would have appeared so high. The recovery in asset prices would, however, be consistent with a reduction in perceived real rates - which is in fact what I am suggesting has occurred, on a fairly significant scale, as expectations of inflation have probably become positive while headline recorded inflation remains negative. For those who see some downside in all of this from the implication in the consensus forecasts that general inflation is now expected to resume, it is worth noting that the forecast magnitude is only very modest. I would not pretend that every piece of evidence unequivocally supports my thesis today. For instance, the continuing lethargy of bank lending to business in Hong Kong might suggest that high real interest rates remain a deterrent to borrowing and investment.

Perhaps I should also add that the Hong Kong dollar’s stability after the depreciations of other regional currencies in 1997 probably helped to avert what might have been a spiral of further depreciations, which could have caused greater damage in the region and might even have had more painful eventual consequences for Hong Kong itself than we have in fact suffered. Slide 21 shows the path of the real effective exchange rate since mid-1997. This is the tradeweighted exchange rate adjusted for differences in movements of consumer price indices. It is one of several possible measures - none of them ideal - of external competitiveness. A movement up the page denotes a loss of competitiveness. The steep loss around the time of the Asian crisis in late-1997 has been partly recovered. The setback in the earlier part of this year arose mainly from the strength of the US dollar. But let’s look at this question in a longer-term perspective. Slide 3 shows that in the 13½ years from the introduction of the linked exchange rate up to mid-1997 the real rate appreciated on average by 4% a year; in the period since then the real appreciation has averaged 4½% a year. On this basis one might say that we are scarcely off track at all, from what appears to have been a secular trend of real appreciation of the currency.
Eric S Rosengren: Considering the routes to a policy destination Speech by Mr Eric S Rosengren, President and Chief Executive Officer of the Federal Reserve Bank of Boston, at the Money Marketeers of New York University, New York, 5 May 2010. Accompanying figures to this speech can be found on the Federal Reserve Bank of Boston’s website. *  *  *  I am happy to be with you this evening. I appreciate your warm welcome, and your invitation to join the long and distinguished line of individuals who have addressed the Money Marketeers over the decades. 1 I have always taken some delight in Yogi Berra quotes. As a Red Sox fan, I could always hope that garbled metaphors by the legendary Yogi would be as confusing to the players as they were to the public, which might translate into opportunities when the Red Sox came to New York. Alas, in the early going this season it is not the Yankees that seem confused. Yogi Berra was not only a great catcher and manager, but also an astute observer of the obvious.

The significance of systems and governance principles Given the gigantic nature of the risks faced by banks and the inability to foresee the delivery of external shocks, the life of the internal auditor is made miserable today. He has to function as an effective watchdog. But, he does not possess a set of well tested paraphernalia to do this job. He may be an honest, genuine and committed worker. But, the rest in the organization may not be so to the same degree. Hence, any mishap can occur without warning or the knowledge of the internal auditor. If it so occurs, the internal auditor himself is driven to a serious quandary. The way to overcome this risk is to develop and place in place suitable and effective systems, processes and methods across the organization at all levels. The internal auditor could just monitor and ensure that the systems are genuinely and effectively followed by all. An important element which also helps him to perform his job effectively is to introduce and follow to the letter the good governance principles in the organization. These governance principles would bind all in the organization by a common code of ethics. The absence of proper governance will lead to misuse of the resources to the detriment of outside stakeholders. The internal auditor cannot keep a watchful eye on everything that happens in a bank. A good deal of discipline that should be inculcated throughout the bank comes from self-discipline and there again, through the strict adherence to governance principles.
Other indicators – such as long-term unemployment, the rate of involuntary part time work, and the job finding rate – also point to more slack in labor markets than that indicated by the unemployment rate alone. In addition, it is hard to imagine a robust labor market without solid growth in wages. With productivity growth of around 1 to 2 percent and an inflation target of around 2 percent, we should be seeing wages and benefits rising at around a 3 to 4 percent rate. But that is clearly not the case. Although some in-demand occupations may be experiencing stronger wage growth, overall compensation growth has been around 2 percent over the past six years. Taken altogether, these and other measures lead me to conclude that there remains significant underutilization of labor resources – and likely somewhat more slack than what is indicated by the unemployment rate alone. So, while good progress has been made, we have yet to achieve our full-employment goal. Too-low inflation The other element of our dual mandate is stable prices. The Fed defines its target as 2 percent inflation over the medium term, with inflation being measured as the rate of change in the Personal Consumption Expenditures (PCE) Price Index. Earlier in the year, the inflation rate had been well below that target, at 1-1/4 percent. It has moved up a little since then, but inflation is still only 1-1/2 percent, still leaving a significant gap from our 2 percent target.

The FOMC should not simply set its policy instruments by mechanically aligning them with historical norms if those norms are not currently relevant for the conditions needed to attain both of our dual mandate goals. Rather, our policy instruments should be set to achieve our ultimate goals as efficaciously as  2  4  See, for example, Kocherlakota (2013). BIS central bankers’ speeches  possible given current and prospective economic conditions, all the while with an eye on managing against important risks to the outlook. I believe that the biggest risk we face today is prematurely engineering restrictive monetary conditions. In this scenario, the FOMC could misjudge the presence and magnitude of economic impediments and misread the recent progress we have made as evidence of sounder economic trends. If we were to presume prematurely that the U.S. economy has returned to a more business-as-usual position and reduce monetary accommodation too soon, we could find ourselves in the very uncomfortable position of falling back into the ZLB environment. Such an outcome could be a serious setback to the timely attainment of our dual mandate policy objectives. This risk consideration means that the decision to lift the funds rate from zero should be made only when we have a great deal of confidence that growth has enough momentum to reach full employment and that inflation will return to a sustainable 2 percent rate. We should also proceed cautiously and keep the path of rate increases relatively shallow for some time after we begin to raise rates.
The increasing competition in Sri Lanka’s banking industry has widened the scope of the IT infrastructure development to meet diversified demands made by numerous users. Today, customers of some banks enjoy services through Internet banking, Telebanking, Mobile telephone banking and Visa/Master Credit and Debit card facilities. The growing competition and expectations have also increased awareness amongst banks of the role and importance of technology in banking. 3. Worldwide Outsourcing and Service Improvements  3.1 An even more recent area in which the advancement of ICT facilities has had a significant impact is in the outsourcing of financial services. By 2010, it is projected that more than 20 per cent of the global financial services industry might shift offshore. In 2005, 70 per cent of world financial institutions used outsourcing compared to 26 per cent in 2003. For developed countries, outsourcing financial services offer cost reductions, while IT companies in many developing countries, such as India, Sri Lanka, China, South Africa, the Philippines, Singapore and Malaysia got opportunities to use their IT skills and profit from it. Similarly, the outsourcing of business processes, such as call centres, general processing for human resources, finance and accounting, back office services has also taken place. This trend has influenced some banks in Sri Lanka also to form their own subsidiaries to handle IT operations within the group. 4.

According to the IMF’s World Economic Outlook, global growth was projected at 4.8 percent in 2010 with Asia and Latin America experiencing strong growth. Africa was also expected to experience robust growth, but growth in Europe was sluggish whilst in the United States, it remained subdued. BIS central bankers’ speeches  1  This uneven scenario in global growth has created several downside risks, including risks to the financial sector. There is no guarantee that the problems in the financial sector have been adequately addressed, but there have been concerted efforts to ensure that they do not recur. The introduction of new rules, in particular Basel III is expected to help in this direction, as Basel III will address issues including strengthening risk coverage of capital for banks, the buildup of capital buffers and the introduction of global minimum liquidity standards. However, countries are now realizing that in addition to these new rules there is the need for better supervision and the creation of crisis resolution mechanisms. Your Excellency, distinguished guests, despite the down side risks to the global economy, there is room for optimism which stems from the progress being made to repair and reform the financial sector, including developing macro prudential approaches to limit systemic risks. Monetary policy in the developed economies should remain accommodative in order to serve as the first line of defense in the event of a future shock.