samchain/econo-pairs-v1 huggingface dataset:
On bank capital adequacy, some countries (such as the UK and Switzerland) have indicated that the standards they apply will be tighter than the minimum set out in Basel III. This represents a cross-border challenge to regulators because banks from relatively lightlyregulated countries will have a competitive advantage. It was this sort of problem that led to a “race to the bottom” in regulatory standards in the pre-crisis years, and we must strive to avoid this happening again. Regulatory arbitrage is a serious threat. For financial institutions, which are systemically important to the world economy (and that therefore are practically “too big to fail”), there needs to be additional rules. The FSB will report to the G20 Summit in November on which banks and insurance companies qualify, and what additional capital requirements they need to have. Some banks are resisting this strongly. They argue that tighter regulations will drive financial transactions into the world of “shadow banking” where the activities will be regulated lightly. In my view, international banks need to accept tighter regulation, which will mean lower returns on capital in good years due to lower leverage. In return, this approach should help them avoid the frequent  BIS central bankers’ speeches  3  crises and losses of bank capital which have been seen in the last two decades or so. Hence, in the long-term, bank shareholders should be no worse off as a result.

As for the G20 agenda, the challenge is to transform its broad vision into detailed rules that prevent regulatory arbitrage of which banks took advantage of in the run up to the crisis. In closing, I am reminded of an old saying: “Money is a good servant but a bad master.” In the last crisis, excesses in the financial system came close to driving the world economy into the abyss and a repeat of the Depression of the 1930s; and it is my belief that nobody wants to see that happen again. I wish you a productive and successful conference. Thank you. 4  BIS central bankers’ speeches
Controlling for other factors, such as the supply of government debt, research at the Bank has sought to identify the impact of ICPF purchases on the yield curve. It finds the impact to be material, especially at the longer end of the yield curve. Over the period 1990 to 2010, it finds that pension funds purchases lowered the two-year real yield by around 70 basis points  6  6  Data are adjusted to remove impact from re-valuation effects. BIS central bankers’ speeches  and 20-year real yields by around 165 basis points, with the price pressures most acute during the period 1996 to 2004. For insurance companies, the bulk of the buying pressure comes somewhat later (2006 to 2010) and the impact is somewhat smaller (30 basis points and 75 basis points respectively). Nonetheless, if these ready-reckoners are even roughly right, they suggest a very significant impact of ICPF portfolio allocation on yields, and hence on incentives to hedge further, in a pro-cyclical spiral. This evidence, while far from conclusive, provides some important clues. There are indications of correlated, pro-cyclical swings in asset allocation and asset prices induced by asset managers’ and their clients’ behaviour. Like bankers, institutional investors have risen and fallen with the herd. Keynes’ bankers and today’s asset managers may not after all be such different beasts. Patient capital There is a second, long-term, set of risks and opportunities posed by the asset management industry.

The more successful you are on this train journey, the more you should care about the other passengers who may not be as accomplished or resourceful as you are. Have empathy and be just. Be generous to those in need of help. Finally, be fully committed and have the courage to tackle challenges, adversity and changes. There are many decisions during the train journey that are very tough and difficult. Many involve choices that do not produce or guarantee good outcomes. Be courageous and decisive. In the real world, there is no such thing as perfect information. Very often indecision itself can bring about much worse outcomes than picking any one of the seemingly unsatisfactory choices. Life is full of changes and surprises and you will be much better off to embrace them rather than resist them and feel depressed when you are down. 8. So my advice to you, my fellow graduates, is that write down on the back of your train tickets these three words: “Wisdom”, “Morality” and “Courage” (智、仁、勇). Keep on reminding yourself that these are the tips for you if you wish to reach your destination: Success. Success has to be earned, no matter how you define it. While you have your own right to define what you mean by success, I would advise you not to confine yourself just to the material benchmarks, although they are very important. A successful life is a meaningful life, something that money alone cannot buy.
There Ought to Be a Law Another uncertainty is the possibility of legislation in United States, the United Kingdom, or the European Union to ease the transition. In the U.S., the ARRC has proposed that New York State should, by the force of law, substitute a rate based on the Secured Overnight Financing Rate for LIBOR in contracts that would otherwise have no workable fallback when LIBOR ceases.8But again, this solution is aimed at contracts that don’t specify another fallback and can’t be amended to do so—primarily floating-rate bonds. We can hope that the New York legislature will take up this proposal in its next session, but obviously it has a lot of other pressing business these days, and no one can guarantee that there will be a legislative Hail Mary. And even if there is, it would not displace non-LIBOR fallbacks that are written into existing contracts, which may not be the alternative you’d prefer. The lesson here is that for every exposure you have to LIBOR, do everything you can right now to make sure it provides for the end of LIBOR in clear terms. Do not wait for the state cavalry to ride to your rescue. In the UK, the government has said it will give the FCA new powers to smooth the transition,9 and there has been speculation about what the FCA will do with those powers. The UK legislation takes a very different approach from the proposed New York law.

The fact that the financial system has been comparatively stable in the present situation has a variety of explanations. One is more highly developed methods for risk management. Another is that the sophisticated markets for derivatives have made it possible to spread risks more efficiently to those who are better equipped to carry them. A third is that banks, financial institutions, legislators and supervisors have drawn important lessons from the periods of turbulence in the 1990s. A fourth, more direct explanation is that the highly inflated share values have not been used to any sizeable extent as collateral for bank loans. The interim reports from Swedish banks have also confirmed that the Swedish financial system is developing in a stable manner with good profitability. The major stock market fall around the world has, however, drawn attention to the life assurance companies and the diminishing value of their share portfolios. It has been asked how pensions are affected, whether life assurance companies can encounter problems with solvency and whether this can have repercussions in the stock market in that these companies are forced to sell shares. A further question is whether Swedish banks that own life assurance companies can be hit by developments. These matters are considered in the Inflation Report we are publishing today. Our overall conclusion is that the problems for life assurance companies are unlikely to be seriously harmful for the Swedish economy.
Although such fiscal measures are politically needed, they should remain temporary, in addition to being targeted more precisely at consumers who need them the most, and targeted in keeping a "price signal" that provides an incentive to decrease energy consumption, in order to help minimise the risk of energy shortages. They should also be further coordinated at the European level. B.Monetary policy will be efficient to bring inflation back towards 2% Let me clarify something fundamental: in the medium term, the real answer to inflation is not fiscal, it is monetary. In the euro area and elsewhere, although it retains a strong external component (around half of headline figures in the euro), inflation is becoming more "domestic" and broad-based. In October, core inflation (which excludes energy and food) stood at 5.0% in the euro area. Monetary policy has a more direct impact on core inflation, and central banks cannot not let it get out of hand and persist. This our mandate, and our responsibility. Therefore a normalisation in our stance has been clearly warranted over the last year. The ECB Governing Council decided on 27 October to raise its key rates by another 75 basis points, the third significant increase in a row, bringing the deposit facility rate to 1.5 %. In doing so, we have removed a substantial part of our accommodative policy, and are clearly approaching the "normalisation range" which can be estimated at around 2% in the euro area. We should reach this level by December.

For this reason, it is not always easy to determine when, and how strongly, it will influence the Swiss franc exchange rate. However, if all other factors remain the same, there is less demand for investments in Switzerland – and thus for Swiss francs – when Swiss interest rates decline. BIS central bankers’ speeches  3  But I am also aware that negative interest rates do not constitute business as usual. In addition to the interest rate differential, nominal interest rates will themselves also return to normal. For this to happen, economic conditions abroad will need to improve to the point that interest rates in Switzerland can rise without causing the Swiss franc to strengthen further. This is currently not the case. At the most recent monetary policy assessment, we decided to leave the target range for the three-month Libor unchanged at between −1.25% and –0.25%. The interest rate on sight deposits at the SNB remains at –0.75%. Despite a slight depreciation, the franc is currently still significantly overvalued. We are convinced that negative interest rates and the SNB’s willingness to intervene as required in the foreign exchange market will make investments in Swiss francs less attractive; both of these factors serve to weaken the Swiss franc. The provisional inflation forecast in chart 4 is also based on a depreciation, along with a Libor rate of –0.75%. The chart shows that, over the short term, inflation will be lower than forecast in June, owing to the lower oil price.
In this new environment, the Paris financial centre has obvious advantages, building on the very welcome measures announced in July by our Prime Minister to strengthen Paris’ attractiveness. To name a few, France has the biggest investment banks in continental Europe, the largest asset management industry and is the leading private equity investor; and French universities are renowned worldwide for the excellence of their finance teaching. And, last but not least, Paris will have the privilege of welcoming the EBA. Furthermore, the euro area has to keep control of the risks regarding its currency, the euro, and euro-based transactions. Some financial market infrastructures located in London, which are key for the EU, will soon become off-shore to the EU as a consequence of Brexit. This is particularly problematic when these infrastructures could put the EU’s financial stability at risk, as they represent 70% of the daily euro clearing business, equivalent to around EUR 930 billion (GBP 792 billion) in trades per dayi. This is the reason why the Commission proposed – and we support – a location policy for CCPs. Clearing activities in euro, for all those of “super-systemic” importance, must be located where the supervision of the Eurosystem can be exercised effectively. It is a matter of consistency for monetary policy and financial stability.

Annual Financial Lunch of the French Chamber of Great Britain London, 23 November 2017  Speech by François Villeroy de Galhau, Governor of the Banque de France  “Europe, France and the United Kingdom: facing our common economic challenges”  Press contact: Clémence Choutet (+ 33 1 42 97 74 51; clemence.choutet@banque-france.fr). Page 1 sur 5  Ladies and Gentlemen, It is a pleasure to be in London today and I wish to thank you for inviting me to speak at your Annual Financial Lunch. The destiny of France and the United Kingdom has indeed been linked for a very long time; the existence of the French Chamber of Commerce in Great Britain, which was established 143 years ago, is a good illustration of these firm and lasting ties. In this regard, I would like to express our full solidarity for the series of terrorist attacks that hit London recently. King Georges VI declared in 1940, and his words still apply to this day, that: “It is not the walls that make the city, but the people who live within them. The walls of London may be battered, but the spirit of the Londoner stands resolute and undismayed.” I believe that the spirit of resilience that is so characteristic of Londoners is what we need the most in times of crisis. We are and will always remain close friends and partners, even if we will no longer – unfortunately – be in the same European Club when Brexit is completed.
The crisis has clearly shown how inadequate regulation and excessive risk taking in the financial sector in developed economies can lead to unpredictable consequences in the real sector, both nationally and globally, stressing the need for a better understanding of the links between the financial and the real sector, such as and cross-border ties in the context of rising globalization. The fact that the roots of the global crisis were precisely in the financial sector suggests that most of the post-crisis needs for statistical changes touch exactly the central banks. Although the outbreak of the global crisis can not be attributed to the lack of statistical data, however, significant statistical gaps became evident and they are best reflected through the G-20 Data Gaps initiative for identifying recommendations to fill in these statistical gaps. The recommendations are mainly located in the following key segments: The first segment is better recognition of the increase in the financial sector risks. It was found that timely detection is extremely important for protection against crises. In this domain, emphasis is placed on developing a broader base of financial stability indicators, which we prepare on a regular basis. In fact, in the post-crisis period, this recommendation led to a dramatically increased number of central banks that prepare these indicators. Also, in the context of financial systems and markets, a focus was placed on detailed data on securities, in order to obtain a better analytical infrastructure to detect the risks of individual exposures and cross-sectoral spillover.

On the contrary, government debt is a vital ingredient of modern monetary policy. A liquid market for government bonds is a prerequisite for a modern and efficient financial market. Functioning financial markets, in turn, are necessary for an efficient monetary policy: a liquid market for governments bonds enhances the efficiency of the monetary transmission mechanism. Yields on government bonds and indicators derived from these yields are an important source of information for the monetary policy decision making process. Finally, in implementing government policy, government bonds serve as collateral. Sound government finances are a prerequisite for the long-term success of monetary policy and for maintaining price stability. However, healthy government finances do not necessarily imply zero government debt. For the functioning of financial markets and an efficient monetary policy, a liquid market for government bonds is a considerable advantage. BIS Review 94/2007  1
Let me mention just four: 1.  to preserve peace;  2.  to improve economic prospects;  3.  to defend our values; and  4.  to increase personal options continent-wide. The founding fathers of the EU were willing to make political sacrifices to end bloodshed in Europe, following two devastating wars just decades apart. Let us not forget that we are here in a former prison in which every respected Luxembourg family had relatives who stood up for these values. After 70 years of peace in western Europe it is easy to be complacent that war will not happen again. Yet the current situation in Syria, Iraq, Ukraine and that of the Balkans in the 1990s shows that peace is vulnerable, even on our doorstep. But defence and security have to be understood as a common endeavour. The economic benefits of the Union are well documented: free trade, the removal of non-tariff barriers, the elimination of transactions costs of foreign exchange payments and the introduction of a single yield curve across the euro area to name but a few. These measures have reduced costs for businesses and households, and in turn generated higher income and created jobs. Looking ahead, also the recovery is on track to overcome the crisis. Europeans, for all our differences, have many values that we share more closely than even close allies such as the United States. Our social model ensures adequate healthcare and workers’ rights that are absent elsewhere.

MAS' corporate priorities for the year have been developed on the basis of these external and internal environment scans. These include programmes to enhance Singapore's position as a world class financial centre and to create flexible and forward-looking organisational practices for a more cohesive and dynamic MAS. 4  BIS Review 63/2001
Even as banks continue to upgrade their systems and processes to strengthen their risk resilience, it is equally important that banks regularly test the robustness of their contingency plans and capability to manage tail risk events. I am glad that the industry continues to demonstrate its commitment to sound risk management with your investments in systems, technology and in your people. MAS appreciates your close co-operation to develop and update our risk management guidance, and your active participation in IWST exercises. Thank you. BIS central bankers’ speeches  5

Fadilj Bajrami: Continued cooperation with central banks of the Western Balkans Address by Mr Fadilj Bajrami, Vice Governor of the National Bank of the Republic of Macedonia, on the occasion of the first Programme Steering Committee Meeting of the ECB Regional Cooperation Programme with central banks in the Western Balkans, Tirana, 17 April 2014. *  *  *  Honorable Governor Fullani, Honorable Governor Hamza, Dear Mr. Sturm, Dear Mr. Rumbold, Representatives of central banks, Ladies and Gentlemen, It is my honor and pleasure to be here with you in Tirana on the occasion of the first meeting of the Steering Committee for the joint cooperation project between the European Central Bank and the national central banks of the Eurosystem, and the central banks of the Western Balkans. As my colleagues have already noted, most of the activities of the project will be devoted to identifying the needs of the central banks of Albania and Kosovo in the process of their joining the European System of Central Banks, by strengthening their capacities and compliance with the standards of the central banking in the EU. Last year, the National Bank of the Republic of Macedonia successfully implemented such a project in cooperation with the ECB and the Eurosystem. The project implementation has clearly identified the changes that the NBRM should focus on during its preparations for accession to the European System of Central Banks.
The main point I want to make here is that, even though there are international agreements arising out of the alphabet soup of committees, most of these initiatives require detailed interpretation, rule-making and implementation by the PRA, even after transposition into EU or UK law. Since the PRA was created in April 2013 (to 30 September 2015), I count that the PRA has issued 70 consultation papers, 82 supervisory statements or updates thereof and 44 policy statements setting out final rules. The UK financial regulatory system is not solely about the PRA of course. Those firms that are authorised and supervised by the PRA are the banks, building societies, credit unions and major investment firms. Those firms are also regulated by the FCA for conduct matters. The remaining firms and persons within the regulatory perimeter of the financial system are then solo regulated by the FCA for prudential matters as well as conduct. The PRA and FCA arrangement is an example of the modern “twin peaks” model for financial regulation, pioneered in Australia in 1998, which separates out the prudential regulator – which covers the larger, more systemic firms – from the conduct regulator. That gives the latter a very long tail of small firms and financial advisors within its net. For comparison, the PRA authorises 2  BIS central bankers’ speeches  some 1,700 firms and groups and has a budget for some 1,200 staff, plus support services from the wider Bank of England. The FCA regulates over 73,000 firms and employs over 3,000 staff.

For example, they are making public commitments in different areas that can have a positive impact in terms of mitigating and adapting to climate change, such as their carbon footprint, fossil fuel exit strategies, shareholder engagement and greenhouse gas emissions reductions. The ACPR and France’s securities regulator, the AMF, which have been monitoring these commitments for the last two years, stress that significant headway has been accomplished in a short time, but also warn that progress still needs to be made if banks are to communicate more clearly and transparently about their objectives and especially about the means of action likely to ensure that these collective commitments are kept. Banks could also contribute to the transition to a sustainable economy by playing their part in the emerging green bonds market. This market doubled in size in 2021 to reach EUR 460 billion globally, of which half is denominated in euros [SLIDE 7]. But it still has lots of room to grow, judging by the fact that green bonds made up a mere 0.4% of the total volume of bonds issued during the same year worldwide and 2.6% in Europe. In this setting, the new label will help to support a fast-growing market while also preventing greenwashing risks. 2.3 Central banks are also helping to steer these transformations as they lead by example [SLIDE 8] To conclude, I would like to say a few words about what we at the central bank are doing. I will offer two illustrations for each challenge.