samchain/econo-pairs-v1 huggingface dataset:
But equally, the need for management of risks, and for comparison of values across all sectors with a mark to market capability, is how business is actually managed and conducted. That is why I have for some time argued that a resolution of the conflict is important. The lack of consensus makes this a difficult process, needing consideration of the governance and control process of accounting, quite apart from the standards themselves. In this respect I recommend a recent report by the G303 as outlining a possible way forward. 3  The Group of Thirty, “Enhancing Public Confidence in Financial Reporting” (2003). BIS Review 5/2004  3  Paradoxically the existence of standards of risk management, or prudential control, themselves can lead to unintended consequences. For example, if banks all have similar approaches to risk management or all use similar models, or if rules require them all to provide more capital at times of economic downturn, then they may all react similarly to a given shock. This could itself amplify market movements and trigger liquidity difficulties, despite the best intentions. There is also the question of legal certainty. If counterparties doubt an institution’s strength or solvency, their behaviour may be influenced if they feel that complex and untested types of contract may not “close out”, particularly in adversity. Such concerns lay behind the LTCM crisis in 1998. Counterparties feared LTCM might be insolvent. They could sense a drain of liquidity from LTCM which might precipitate collapse.

However, the broad trend is to combine investor protection and consumer protection for banking securities and insurance, and split these away from the systemic aspect. The precise architecture in different countries depends on historical, political and institutional factors. Personally I feel we have been quite enlightened in the UK. As a former Chairman of the old Securities and Investment Board - a forerunner of the FSA - I could certainly see the limitations of the earlier situation. And despite the inevitable challenge - being well addressed in my view - of managing a supervisory authority with the size, scope, and powers of FSA, it reflects the realities of today’s environment. And as for financial sector oversight in the UK, this is carried on under the auspices of a Standing Committee of the three authorities involved: HMT, FSA and the Bank of England. The roles of each party have been carefully thought out in relation to which party is best placed to do what, and laid out in a published MoU. The FSA is responsible for the supervision of firms, markets and clearing systems, and for the conduct of regulatory operations in response to problem cases affecting these players. The valuable intelligence it gains can help in understanding concentrations and threats. The Bank has responsibility for the overall stability of the financial system as a whole.
The most significant point in this process is that, as an outcome of both the structure of financial markets and other policies implemented, a lot of risks such as exchange rate risk, interest rate risk, price risk and default risk were assumed by the public. In this scenario, the private sector did not feel the need to manage its own risks. In other words, both individuals and institutions left risk management to the government and this process created a vicious circle. In conclusion, the uncertainty caused by chronic inflation and high public debt created by public deficit hindered the development of risk management and therefore, of derivatives markets. Dear Participants, I am glad to say that as of today we have started to solve problems of the past. The Turkish economy is still undergoing a structural change process and significant progress has been made. Let me outline this process of change in the Turkish economy in three main points, which will serve as guidelines to the necessary steps we should take in the future. The first point is that we have made great progress in the fight against inflation, the primary source of uncertainty as well as in establishing lasting macro-economic stability. Today, inflation is in singledigits. More importantly, our surveys measuring expectations reveal that the public now recognizes that inflation is controllable and price stability is definitely an achievable target.

For a start, let us stop blaming others for our woes and, as Brutus was enjoined to do, let us accept that “The fault …… lies not in our stars but in ourselves.” We should then work together to build on our past achievements, which are not negligible, in order to secure the objectives of greater material wellbeing and social cohesion which, after all, we all profess to share. BIS Review 84/2005  5
Let me conclude by emphasizing that these two paths – reducing the financial stability costs associated with the failure of a systemically important financial firm versus applying tougher capital and liquidity standards for such firms that reduce the probability of failure – are complements not substitutes. We need to keep pushing forward with both approaches in order to make the financial system more resilient and robust. Thank you for your kind attention. I would be happy to take a few questions. 4  BIS central bankers’ speeches

5. What can and should EME policymakers do? I would argue that “keeping our own house in order” is a tried-and-tested recipe for enhancing EMEs’ resilience to global monetary policy spillovers. Indeed, as a few papers to be presented will show, the extent of global monetary policy spillovers would depend not only on the source economies, but also on the recipient economies, including their economic settings and vulnerabilities. Accordingly, macro-prudential measures would provide another line of defence through mitigating macrofinancial imbalances, and many Asian EMEs including Hong Kong are precursors in this regard. Furthermore, policymakers in the region have been working hard to grow the regional local currency bond markets and create a sticky domestic investor base, which help reduce the risk of disruptive capital outflows during times of distress. 6. A few papers to be presented today also offer other valuable policy recommendations, highlighting the importance of good central bank communications, in the sense that: (1) credible communications to anchor inflation expectations can alleviate the policy tradeoffs faced by EME central banks when external monetary policy shocks arrive, and (2) clear communications by the Fed regarding its monetary policy normalisation may help limit the resulting adverse global spillovers. These research findings corroborate well with our experience as central bankers, who have always been extolling the virtues of clear, credible central bank communication. 7. In closing, while the synchronised global monetary policy tightening will likely result in challenging spillovers to Asia and other EMEs, these difficulties are not insurmountable with the appropriate policy mix.
Gerry Corrigan noted three decades ago that the “implicit codes of conduct” that govern banker behavior exist apart from “explicit regulations.” He posited that these implicit codes must align with the public good – an obligation that banks owe in exchange for the benefits “uniquely available to [that]particular class of institutions.” 4 This, in Corrigan’s view, was what made banks “special” – the reciprocal benefits and responsibilities that support and constrain an industry essential to public well-being. Corrigan’s premise is not an antique concept from a bygone era of banking. Then, as now, there are public purposes of banking – including financial intermediation, corporate valuation, facilitating investment opportunities, providing credit and creating market liquidity. These activities underpin the economy and financial stability. Reciprocity – in other words, the expectation of a quid pro quo in the relationship between society and the financial services industry – is the basis of public trust in financial institutions. There is, however, a widespread sense that this principle has been compromised. 1  What I have to say today represents my own views and not necessarily those of the Federal Open Market Committee or the Federal Reserve System. Stephanie Chaly, James Hennessy, Thomas Noone and Joseph Tracy assisted in preparing these remarks. 2  See Malcolm Gladwell, The Tipping Point (2002), 133–168 (collecting sources). For additional information on the famous Stanford Prison Experiment, see www.prisonexp.org. 3  Adam Smith, The Theory of Moral Sentiments (11th ed. 1812), 276.

I would encourage each of you to consider not just specific examples of misconduct, but the patterns within them that point to underlying causes. I suspect we will see a strong overlap with those factors that contributed to the financial crisis. I think your focus should be less on the search for bad apples and more on how to improve the apple barrels. Role of the official sector Dodd-Frank strengthened bank balance sheets, and banks have become more resilient to systemic shocks. This is a positive development. At the same time, it is also important to mitigate the sources of systemic shocks. Dodd-Frank apparently did little to curb misconduct – a possible source of systemic risk. If the people managing capital cushions and liquidity buffers view these tools as sufficient mitigants for the costs of misconduct, or if powerful incentives encourage workarounds of the new regulations, then the connection between post-crisis reforms and greater financial stability becomes threatened. In the last year, we have seen emerging approaches to supervision that aim to address culture, conduct and governance. These methods are being developed in a number of jurisdictions. 8 I am pleased to welcome representatives of 15 foreign supervisors and other official sector agencies who are joining the many representatives of U.S. supervisory and regulatory agencies here today. The topic of culture and conduct has truly become a global dialogue. We have a lot to learn from each other.
Future price developments While we have been able to see some slowdown in the rate of increase in house prices over the past year, the rate is still high; the average price of a single-family dwelling rose by 8 per cent between the first quarter of last year and the first quarter of this year. I believe that we will have to assume that property prices and indebtedness will continue to increase relatively substantially over the coming period. This belief also appears to be shared by the households in SEB’s house price indicator and SBAB’s estate agents barometer. The probability of this happening also seems to have increased recently. For instance, we have seen a rapid increase in the number of persons employed over the past year, which means that more people have the opportunity to be able to buy a house. In addition, it now appears that the property tax will be abolished completely with effect from January 2008. This tax will instead be replaced by a municipal charge of a maximum of SEK 4,500. At the same time, tax on capital gains on housing will probably be raised from 20 to 30 per cent. It is no easy task to quantify the potential effects this tax reform may have on house prices. Even if the abolished tax is financed through the housing sector, I believe that it will push up property prices to  BIS Review 56/2007  5  some extent.

The FPC has recommended that banks should ensure that they take the necessary steps to put our system in a place where it can support the economy without compromising its stability. The Bank of England has taken steps to extend the Funding for Lending Scheme, and within that has acted to provide a clear incentive to stimulate lending by banks to small firms. But banks that are short of capital cannot increase lending. That is why in March the FPC made a series of recommendations to ensure that UK banks are well capitalised, and that banks meet that requirement in a way that does not hinder lending to the economy. You may be assured that we are determined that the newly formed PRA follows through on those recommendations. 2  BIS central bankers’ speeches
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, 27 April 2017. * * * Ladies and gentlemen, the Vice-President and I are very pleased to welcome you to our press conference. We will now report on the outcome of today’s meeting of the Governing Council, which was also attended by the Commission Vice-President, Mr Dombrovskis. Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged. We continue to expect them to remain at present or lower levels for an extended period of time, and well past the horizon of our net asset purchases. Regarding non-standard monetary policy measures, we confirm that our net asset purchases, at the new monthly pace of € billion, are intended to run until the end of December 2017, or beyond, if necessary, and in any case until the Governing Council sees a sustained adjustment in the path of inflation consistent with its inflation aim. The net purchases will be made alongside reinvestments of the principal payments from maturing securities purchased under the asset purchase programme. Our monetary policy measures have continued to preserve the very favourable financing conditions that are necessary to secure a sustained convergence of inflation rates towards levels below, but close to, 2% over the medium term.

Turning to the monetary analysis, broad money (M3) continues to expand at a robust pace, with an annual rate of growth of 4.7% in February 2017, after 4.8% in January. As in previous months, annual growth in M3 was mainly supported by its most liquid components, with the narrow monetary aggregate M1 expanding at an annual rate of 8.4% in February 2017, unchanged from the previous month. The recovery in loan growth to the private sector observed since the beginning of 2014 is proceeding. The annual growth rate of loans to non-financial corporations declined to 2.0% in February 2017, from 2.3% in the previous month, while the annual growth rate of loans to households remained broadly stable at 2.3% in February. At the same time, the euro area bank lending survey for the first quarter of 2017 indicates that net loan demand has increased and bank lending conditions have further eased across all loan categories. The pass-through of the monetary policy measures put in place since June 2014 continues to significantly support borrowing conditions for firms and households and credit flows across the euro area. To sum up, a cross-check of the outcome of the economic analysis with the signals coming from the monetary analysis confirmed the need for a continued very substantial degree of monetary accommodation to secure a sustained return of inflation rates towards levels that are below, but close to, 2% without undue delay.
This is a slight dip of 1.2% from 2010, but not bad, considering the weak performance of global equity market and the volatile financial markets in general. Indeed, we have seen a more diversified base of asset managers offering a greater variety of investment strategies. The number of investment professionals increased by 15% last year. And we continue to see strong interest from global fund houses seeking to set up or expand their Asian presence. 26 of top 30 global asset managers in the world have a presence in Singapore Second, the corporate debt market. The outstanding stock of corporate debt – in Singapore Dollars and non-Singapore Dollars – increased by 9% year-on-year to $ billion as at end 2011. And despite a more difficult market environment, Singapore Dollar bond issuance  BIS central bankers’ speeches  5  remained robust last year, at $ billion, compared to $ billion in 2010. Non-Singapore dollar bond issuance volume was also buoyant, growing 110% year-on-year. Third, the insurance industry. Non-life insurance gross premiums recorded growth of 14.5% in 2011. Almost 60% of total non-life gross premiums written in 2011 were sourced offshore, demonstrating Singapore’s role as an international insurance centre. Fourth, the Asian Dollar Market. This is the pillar of the Singapore financial sector. Banks in Singapore draw in foreign currency deposits globally, and deploy these funds to serve the financing and treasury needs of individuals, corporations and institutions in Singapore and beyond. Offshore lending expanded last year, with non-bank loans growing by 17%.

Zdeněk Tůma: Consolidation before expansion Summary of a speech by Mr Zdeněk Tůma, Governor of the Czech National Bank, for the conference on "Modernising Germany - Gaining Competitiveness for Europe", Berlin, 1 June 2006. *  *  *  Do we really face the dilemma of choosing between consolidation and expansion? We should look at the integration process from both the political and economic perspectives. From the economic point of view, deepening and enlarging are both primarily spontaneous processes, but this does not necessarily hold for the political aspect. Unfortunately, these two perspectives are often confused, which can lead to misleading conclusions. Let me consider the economic perspective first. As a recent EU newcomer I can confirm that we observed spontaneous integration with the EU well before the timing of our accession had even been mentioned. Therefore, I do not expect the expansion of the EU to end just because there is a lack of political will for enlargement. Market forces will keep the surrounding countries “in the game”. The political and institutional framework can encourage or discourage this process, but it can hardly stop it. On similar ground, the deepening of the already integrated area is quite spontaneous from the economic point of view. For instance, we are seeing dynamic integration of the financial architecture and a growing number of cross-border mergers in both the financial and non-financial sectors. Here, too, an appropriate institutional framework would help, but the consolidation process is going on even without it.
But the continued relative decline of manufacturing – and indeed the strength of sterling – over the past decade or so reflects, not the stance of monetary policy, but the remarkable wind of change that has blown across the world economy with the advent of China, India and much of the former Soviet Union into the world trading system. To their great credit, business people and politicians have not resisted changes to the structure of the British economy, unlike many of their counterparts abroad. As a result, total output and employment here have grown rapidly, and our living standards are higher than could have been sustained with policies aimed to defend the old industrial structure. Those changes, however, have led to the closure of many manufacturing companies. There are over a million fewer people employed in manufacturing now than a decade ago, and 200,000 fewer in the West Midlands. It is just over a hundred years since car production started at Longbridge, just over thirty years since it was nationalised, and no vehicle has been built there for over a year. But there are also many success stories. Since I became Governor, I have made regular monthly visits to the regions and countries of the United Kingdom, and visited around one hundred companies, large and small, new and old.

Third, increasing cost pressures have made it more difficult to sustain profit margins without raising prices. Energy and import prices are one source of higher costs. Another is the cost of employing labour which has been rising faster than the growth of real take-home pay. Higher pension costs for  BIS Review 9/2007  1  companies, on the one hand, and higher taxes, petrol and utility prices for employees, on the other, have opened up a gap between increases in the pay bill and real take-home pay. If investment and employment growth are to be maintained, the burden of these higher costs must either be passed back in the form of reduced input costs or forward as higher prices. So far, pay pressures have been subdued, but not sufficiently so to mitigate the rise in costs to employers. As a result, companies have scaled back their demand for labour and looked to raise prices. The risks to money spending, inflation expectations and cost pressures were not overlooked by the MPC and were explicitly identified as upside risks to inflation both in speeches and in our monthly minutes back in 2005. In the event, the upside risks to inflation did materialise to some extent. And a year ago, the MPC thought the risks to GDP growth were on the downside. Yet, the total output of the UK, leaving to one side the energy sector, has been rising at an annual rate of over 3%.
The US economy has not returned to pre-crisis levels of output, the Eurozone remains in recession, and emerging economies are starting to show more signs of weakness. Against this backdrop, Asia has been resilient but remains vulnerable to external shocks. Nevertheless, given the region’s strong fundamentals, we continue to be confident about Asia’s longer term growth potential. 5. One bright spot is demand for financing in Asia. Demand for almost every segment of Asian finance is also growing – trade and structured trade finance, cross-border corporate lending, infrastructure finance, capital-raising in equity and bond markets, corporate treasury services and wealth management. Trade finance is driven by burgeoning Asian trade, which is projected to grow at about 8.3% per annum. By 2020, 60% of global trade will have an Asian component.2 Corporate funding needs in Asia are also growing, with 57% of Asia Pacific business leaders expecting their funding needs to increase over the next 2 to 3 years, compared to 32% in Europe3. On infrastructure finance, we are familiar with ADB’s estimates that Asian infrastructure spending is expected to amount to $ trillion from 2010 to 2020. 6. To meet this strong demand, there is scope to broaden and deepen financial intermediation in Asia. However, this is likely to take place against some headwinds caused by (i) European bank deleveraging (ii) banks’ diminished ability to provide long-term financing  1  According to Bloomberg Markets, DBS is 8th in the second annual ranking of the world’s strongest bank in 2012.

There also may be externalities to actions taken in one business line that have implications for the risk of the institution as a whole; it is the second line’s responsibility to articulate that perspective to senior management. The second line’s responsibility for establishing a common framework for risk management creates benefits in terms of both efficiency and effectiveness. The second line is an institution’s center of excellence in risk management and is in an ideal position to identify and promulgate best practices and standards. In terms of efficiency, the second line is wellpositioned to collect and analyze risk information coming from all of the business lines, to provide common risk management tools, and to provide guidance to business areas to improve their risk management capabilities. The Bank’s third line of defense, Internal Audit, provides assurance to senior management and the Board of Directors that first and second line risk management and control activities are effective. Although I did not say it before, the second line is not fully independent of management. This is because second line risk management (in our case, the Risk Group) is involved in a broad range of management decisions related to the Bank’s risk controls, and, in terms of reporting lines, I am part of the Bank’s Management Committee and report to the Bank’s president. Our Audit Group, however, provides a fully independent, final layer of defense.