samchain/econo-pairs-v1 huggingface dataset:
Jessica Chew Cheng Lian: Harnessing innovation for the sustainability of the MSB industry Speech by Ms Jessica Chew Cheng Lian, Assistant Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Money Services Business Asia Pacific Conference 2017 "Harnessing Innovation for the Sustainability of the MSB Industry", Kuala Lumpur, 5 September 2017. * * * It is my great pleasure to be here with you today at the Money Services Business Asia Pacific Conference 2017. I would like to congratulate the Malaysian Association of Money Services Business for organizing this event. Thank you for allowing me an opportunity to offer some remarks on this occasion. Over the last decade, the global MSB industry has made significant strides. Worker remittances have more than doubled to USD420 billion between 2007 to June 2017, providing critical resources that have helped lift families and communities in developing countries out of poverty, and facilitating greater talent mobility. Meanwhile, the currency exchange business has followed the fortunes of global business travel expenditures that have surpassed USD1 trillion annually, as well as over a billion international tourists arrivals recorded annually for the last 7 years. At the same time, the cost of money remittances has also fallen. The global average remittance cost has come down from above 10% a decade ago to 7% in 2016. Several countries have already met or surpassed the World Bank’s target of reducing costs to 5%.

Innovation is as much about creating new institutions and smart collaborations to advance common goals, as it is about inventing a new product. We see this in the notion of “co-opetition”, where competing firms have found benefits in coming together to build shared infrastructure, or to facilitate the exchange of information for the purpose of preventing criminal activity and guarding against cyber threats, all the while remaining fierce competitors in their product and service offerings. Innovation is also about constantly finding better ways to do things within an organisation in order to deliver a better customer experience and to keep organisations interesting and fresh. It is about changing mindsets and culture to ensure that institutions never become tired or irrelevant. It is about re-thinking our approach to developing the workforce so that we are at our most agile to deal with new challenges and risks. These are all important aspects of innovation and I am reminded that in Malaysia’s own journey to transform the MSB industry, we benefitted from charting new and sometimes, untested paths to solve the problems that we faced. For example, we learnt from and then re-defined the principal-agent model to meet the dual objectives of maintaining broad access to money services while raising compliance and operational standards. We departed from conventional regulatory and supervisory approaches, on the conviction that we could not achieve our objectives through enforcement alone.
In the Monetary Policy Report we assumed that GDP growth in Sweden will be 2.1 per cent this year and 1.2 per cent next year. Several factors indicate a slowdown in growth. For instance, Swedish exports will be negatively affected by the weaker international growth, particularly in the United States. Moreover Swedish households’ consumption will slow down for several reasons. Real disposable incomes will show weaker development and real wealth will be dampened. Households’ expectations are very pessimistic. At the same time, there are factors that may to some extent hold back a slowdown. The financial balance in Sweden is good; the current account shows very large surpluses and public sector finances are robust. The latter make it reasonable to assume further fiscal policy stimulation over the coming years. In addition, the Swedish financial sector has fared relatively well in the international financial turbulence, which reduces the risk of a serious credit crunch. But growth will nevertheless slow down. This means that the labour market will deteriorate towards the end of the year. We assumed in the Monetary Policy Report that the rapid increase in employment would come to a halt this year and that employment would fall slightly over the coming two years. We also assumed that the decline in unemployment would cease and that unemployment will increase slightly in the coming two years. BIS Review 100/2008  3  Inflation is high but expected to fall towards the target of 2 per cent Inflation was 4.4 per cent in July.

We were unanimous on the one decision to raise the interest rate by 0.25 per cent, but not on the other decision regarding the interest rate path. The majority of the Executive Board members considered it reasonable to have an interest rate path that involved a substantial probability of a further two increases during the year, while the minority considered it reasonable to have an interest rate path that involved some probability of one further increase. The minority’s assessment was that the slowdown of the economy that is now  BIS Review 100/2008  5  taking place would dampen inflationary pressures to a greater extent than assumed in the main scenario. There would therefore be less need to continue increasing the interest rate. 4. Developments during the summer  I have earlier discussed what happened during the summer in the world around us. The trend of falling growth and rising inflation has broadly continued. One important change is that the oil price and other commodity prices have begun to fall, which may further slow down price increases. The dollar has risen in value against the euro and the krona, which also means that the krona has weakened against a weighted average of other currencies. The financial market turmoil has also continued. I intend to conclude by summarising the important new information on developments in the Swedish economy since the monetary policy meeting at the beginning of July.
31.05.2022  Crypto-assets: a financial authority’s view Masters in Finance Closing of the Speakers Series, ESADE Pablo Hernández de Cos Governor  Good afternoon. I am delighted to be here today to address an audience of recent Masters graduates. Not only as recognition of the growing importance of furthering our education in such a changeable world, but also because it affords me the opportunity to talk about cutting-edge themes with those who will play a leading role in the future of our society. Among the many topical issues I could have selected for my address, I believe crypto-assets are the most suitable choice. Among other reasons, because young high-earners who study or work and live in big cities are precisely those who best fit the typical crypto-asset investor profile in Spain.1 Despite being a somewhat misleading term, so-called “virtual currencies” have already been part of our lives for over a decade now. However, only in recent times a series of factors have emerged that seem to be underscoring their ultimate potential to end up playing a significant role in the financial system.

Cryptoassets represent a new competitive threat for traditional transactional services, with some variants (such as stablecoins) also potentially compromising deposit-taking activities as 17  See “Assessment of Risks to Financial Stability from Crypto-assets”. FSB (2021). 18  https://www.bde.es/f/webbde/Secciones/Publicaciones/InformesBoletinesRevistas/InformesEstabilidadFinancera/22/F SR_2022_1_ChE.pdf 19  This extends to all matters concerning compliance with the tax obligations associated with investing in these markets. With this in mind, Spain has announced new reporting obligations that are expected to enter into force in 2023. The treatment of such assets for the purposes of the various different taxes has to date been resolved in the form of requests for binding rulings from the Directorate General of Taxation. 20  See “Research Note: Cryptoasset consumer research 2021”. FCA (2021). 21  Specifically, even though half were University graduates, almost two thirds of the crypto-asset owners interviewed admitted to having limited or zero understanding of the most basic features of the associated risks and rights. See “Cryptoassets in Asia: consumer attitudes, behaviour and experiences”. OECD (2019). 22  See “Cryptic Connections: Spillovers between Crypto and Equity Markets”. Iyer, T. (2022), IMF Global Financial Stability Notes, No. 2022/01. 6  they intend to become a store of value. As highlighted in some recent papers, a disorderly disintermediation in the event of an accelerated substitution of bank deposits for such digital assets could ultimately affect the banking sector’s net financing capacity and lead to credit being rationed or becoming noticeably more expensive.
The slow and uneven vaccine rollout, even in some advanced economies, and its very limited availability in the LICs are matters of serious concern. Enabling global access to effective and affordable vaccines is a global responsibility, and an ethical and moral issue. We support the Managing Director’s Global Policy Agenda (GPA) and its wellplaced focus on creating conditions for a safe exit from the crisis followed by a sustained, strong and inclusive global economic recovery. We welcome the GPA’s recognition of difficult challenges facing many developing countries in pursuing their development and social objectives, while facing severe financing constraint and high debt. We further welcome the increasing IMF emphasis on middleincome countries as many face stalled growth and large financing needs in tighter market conditions. Our constituency is a heterogeneous group of countries and a mix of fragile and conflict-affected states, middle-income and frontier economies, and oil exporting countries. The crisis has severely impacted all countries of our constituency. Our authorities reacted swiftly to the crisis and implemented measures to alleviate its impact on lives and livelihoods, with some of our members benefitting from Fund emergency and/or Upper Credit Tranche (UCT) facilities. The economic recovery is gradually taking shape in our constituency, but at varying pace and degrees. The rebound of international oil prices provided welcome relief to oil exporters in our constituency, but financing pressures continue to persist, and economic diversification challenges remain.

We support the IMF in scaling-up its work on the macro-critical implications of climate change, digitalization, poverty alleviation, youth employment, and inclusiveness in general. We look forward to the successful conclusion of a new general SDR allocation of $ billion and encourage the Fund to work on options for voluntary reallocations of SDRs for the benefit of poorer members. We welcome the doubling of the New Arrangements to Borrow, as well as the renewal of the Bilateral Borrowing Agreements to meet the members’ high and growing overall demand for Fund resources and the shift towards UCT arrangements. We welcome the work on the 16th General Review of Quotas and reaffirm our commitment to a strong, quota-based, and adequately resourced IMF at the center of the global financial safety net. 2/2  BIS central bankers' speeches
In facilitating this transition, Bank Negara Malaysia is reducing transaction fees for the RENTAS system (the real time gross settlement system operated by Bank Negara Malaysia) for payments made by financial institutions on behalf of their customers. With effect from 15 July 2008, the RENTAS transaction fee imposed on the member banks will be reduced by RM1.00, from RM2.50 to RM1.50. This reduction in fees will result in a corresponding reduction in bank charges imposed by member banks on their customers for RENTAS payments with effect from the same date. In addition, the banking industry will be reviewing the fee structure for fund transfers to apply a fixed fee instead of the existing Inland Exchange Commission of 0.03%. In this environment, the SMEs also need to initiate their own measures to complement those undertaken by the Government and the banks. Achieving cost efficiency and productivity improvements needs to be a priority for SMEs. SMEs should look at every facet of their business operations to identify ways to streamline processes, eliminate waste, consolidate activities and adopt new technology and energy-efficient processes. SMEs that operate in common geographical locations and that have similar production inputs, should also consider pooling their purchase requirements to benefit from bulk discounts by suppliers, in addition to sharing common costs such as transportation. In this regard, the Chambers of Commerces and industry associations can have a key role. They can facilitate the bulk purchase of raw materials for their members.

The market for information and statistics There are market based statistics-producers in developed countries. The market agents are ready to pay a price in order to acquire such statistics. The producers of statistics conduct frequent market surveys, analyse results, supply them on line at a price and help market agents to create wealth. Unfortunately, in Sri Lanka, we do not have such market based statistics-producers. The collection and analysis of vital data that are useful to market agents are being done by a few governmental organisations. Like any other product supplied by the government, such data are also supplied as a public good free of charge. Even when the governmental agencies could sell statistics at a price, they do not venture to do so, because they are guided by such principles as “doing utmost benefit” to people as a social service. The country too, therefore, expects free goods from these governmental organisations. But this creates a problem known as “the agent-principal problem” in economics. The agent-principal problem The agent-principal problem is typical to any government service. It says that the agent who is a government bureau or a department or even a university does not have incentive to produce its output at its best. The principal who is the user of the service, on the other hand, is scattered and not in a position to influence the agent to improve quality.
True, some of them had to do with political change and policy uncertainty to the heart of the developed world, but on top of that, major empirical and theoretical puzzles are challenging central tenets of monetary policy. In particular, inflation appears not to be responding to monetary policy as expected in advanced economies. Despite record- low interest rates over many years and massive liquidity injections by central banks through asset purchase programs, inflation has not picked up as expected. Explaining the apparent unresponsiveness of inflation has become a theoretical and empirical challenge that has drawn great attention from academia and policymakers in the last couple of years. Inflation dynamics and the way they interact with other economic variables are, of course, crucially important to central banks that have price stability as their core mandate. Most of them currently deliver on this mandate under a forward inflation targeting framework, whereby the stance of monetary policy seeks to achieve convergence of forecasted inflation to the target over a medium-term horizon. This prevents central banks from having to respond to short-term price volatility, but if inflation does not respond to monetary impulses as predicted by models, policymaking may become a much more complex game. If price responses get delayed in a highly accommodative environment, financial imbalances may build up, fiscal discipline may be eroded and inflation risks may get underpriced by markets, exposing themselves to reversals with data surprises in the future.

In pursuit of this we look at factors affecting the underlying robustness of the financial system, as well as potential “triggers” which, especially at times of structural weakness, could bring on a crisis. Our remit is of course in relation to the UK financial system – but this work has a substantial international dimension, given the openness of the UK economy, and the international character of much of the City. What does this mean in practice? The Bank’s financial stability work include such things as overseeing the UK payments systems; analysing broader developments in the banking, securities and insurance sectors, and the evolving strategies of London’s securities exchanges; looking at developments in emerging market economies; and contributing to the debate on the reform of the international financial system. In short, the Bank’s financial stability team has to analyse and respond to any developments – market or institutional; structural or temporary – that could threaten financial stability. Our second relevant core purpose is to promote the competitiveness of the UK financial services sector. This is not a lobbying function; we are concerned with the promotion of effectiveness and efficiency, not the acquisition of favours. Nor is it a responsibility exercised only in respect of UK owned firms. The UK financial services sector is more truly international than that in any other country in the world. The Bank, and the other authorities in the City, have an unwavering commitment to openness, and the provision of a level playing field to all firms regardless of nationality.
It is admitted that the Treasury is actually free of foreign debt and virtually debt-free domestically, if one takes into account its deposit balance in the Central Bank. The Bank’s foreign reserves and equity have never been larger than they are today. However, it has been said that Iceland’s banks have grown substantially, which makes the foreign reserves proportionally smaller. It is appropriate to remember that banks in Iceland, as elsewhere, are responsible for their own operations, and they must demonstrate prudence and sound risk management. According to the banks’ own declarations, to which the Financial Supervisory Authority has not commented, their financing status is at least comparable to that of comparable foreign banks. Therefore, they need not rush into disadvantageous credit markets ahead of others. However, it cannot be denied that the Icelandic economy’s total debt is too high, which can be traced to the decisions made by financial institutions and other companies in the market. If the Central Bank’s foreign reserves are compared with those of several countries outside the largest currency zones, it can be seen that, according to information from the International Monetary Fund, Iceland’s reserves as a percentage of per capita income are equal to or greater than those in, for instance, Australia, Sweden, Canada, and New Zealand. In terms of importation of goods, Iceland’s position is also excellent. Only New Zealand is stronger overall. In terms of importation of goods and services, Iceland is well above average.

The Central Bank itself takes the view that criticism of its work is desirable. Within the Bank, all are aware that, for every decision made, several options were possible, and the decision to embrace one option over all others is accompanied by a variety of consequences. In making decisions under such circumstances, there must be ample room for comment, contrasting viewpoints, and criticism. And – thank goodness – the Central Bank has not been free of such comments and criticism. Indeed, most comments have been presented in a responsible and appropriate manner and have been both helpful and useful in the broadest sense. That is not to say that there aren’t exceptions – predictable canting litanies that are of little use to anyone – but valuable comments have nonetheless been salient and they are heard and considered. Last Tuesday, after the Easter holidays, the Bank announced several amendments to its internal rules and terms. Those amendments were designed to grease the wheels of the financial markets, which must now tolerate deteriorating operating conditions. The Icelandic government has also announced a bond issue that is launched with the same objective. Though the Central Bank does not wish to make too much of these changes, the purpose is to pave the way for easier operation of the financial system during at time of difficulty on the global front.
So, instead of providing forecasts – a risky enterprise that I will leave to the expert speakers at this conference – let me set out what I think will be the key driving forces for the global economic outlook and examine their implications: First, fiscal policy is on the rise, chiefly in the US but also in the other major advanced economies. Second, monetary dominance is giving way to monetary divergence and financial conditions are tightening globally. Third, the challenge of balancing growth and stability will become more acute in China and emerging Asia. Fourth, a rise in trade protectionism and, more broadly, a pushback against globalisation, can seriously undermine growth prospects not just in 2017 but also over the medium-term. The rise of fiscal policy Let me begin with the new kid on the block – fiscal policy. Since the global financial crisis, across the advanced economies, monetary policy used to be the only game in town as governments struggled to restore debt sustainability. Fiscal policy is now, for the first time since 2009, turning more expansionary. 2/7  BIS central bankers' speeches  According to the BIS, estimated cyclically adjusted primary balances in the advanced economies turned slightly negative in 2016. This is likely to continue in the years ahead. What is behind this shift in the balance of the policy mix? First, policymakers are increasingly recognising the limits to unconventional monetary policies and the associated financial stability risks.

6  What could be done to minimise the risks associated with these developments? Certainly, the build-up of debt across different sectors needs to be monitored. Also, the regulation and supervision of the non-bank financial sector needs to be revisited. Despite some recent improvements, it is fair to say that, compared to the banking sector, we do not have enough information about the activities of non-bank financial intermediaries, nor sufficient understanding of their interconnectedness with other market players. We also lack consistently tested macroprudential policy tools that could be used to address the risks that have been already identified in this market segment. Progress in this direction is of the utmost importance. “New” risks Of course, the risks to global financial stability originating from low profitability in the banking sector and the search for yield by different market participants should be carefully monitored and addressed going forward. Yet as I mentioned before, in a rapidly changing world and in an ever-evolving financial sector, regulators should likewise heed a set of emerging risks which could also be potentially dangerous for financial stability. And this because, in many cases, we do not have the data, or even the conceptual framework, to analyse their implications (especially when compared to the more traditional risks). -  Technology-related risks: cyber risks  I will launch the discussion on these “new” risks by referring to those associated with the adoption of new technologies. Clearly, new technologies are not just a risk, they are also an opportunity.