samchain/econo-pairs-v1 huggingface dataset:
However, one of its significant features is that the uncertainty surrounding the “true” value of complex financial instruments has undermined the confidence of global markets, increased uncertainty about counterparty risk and led to contagion across asset classes, financial markets and economic regions. The crisis has highlighted the fact that the valuation of financial instruments is not only a question of accounting. It raises issues about risk measurement and management by financial institutions, prudential issues via the definition of capital requirements and, more widely, financial stability issues. However, valuation is also without any doubt an accounting issue. It is therefore hardly surprising that the debate about the application of accounting standards to financial instruments is a highly topical one. I think it interesting to note that the crisis has occurred in a financial system that has seen two far-reaching developments. I am referring first of all to the rapid growth in securitisation and products whose valuation is complex. I will not dwell on this aspect as it is not the subject of today’s meeting. The aspect I would like to focus on is the transition to the “fair value” accounting of financial instruments. The rationale behind this accounting development is understandable and can be summarised as follows. The aim is to enable investors and financial system participants, which include supervisors, to have a better understanding of the risk profile of financial institutions in order to better assess their position.

Page 1  Central clearing: three lessons and a path forward − speech by Christina SegalKnowles Given at the European Association of CCP Clearing Houses (EACH), Brussels  Page 2  Published on 19 May 2022  Christina Segal-Knowles talks about central clearing (a system that helps manage the risks of financial contracts). She says the work to strengthen it is a crucial part of our efforts to enhance the resilience of the UK and global financial system. Christina reflects on recent episodes of extreme market stress, and looks at what could be learnt from them to make central clearing stronger. Speech Thank you for having me – it is a pleasure to be here with you to celebrate the 30th anniversary of EACH. I would have loved to be there in person. But I have another anniversary to celebrate here in London – my son turns 6 today – so I am multitasking! The reality is that Central Counterparties (CCPs) have much to celebrate. A decade ago, incentivising central clearing was a key prong of post-global-financial-crisis reforms. CCPs were central to efforts to move away from the opaque network of insufficiently margined bilateral derivatives contracts that helped to turn a slump in U.S. subprime mortgages into a global financial meltdown. Today, prompt and transparent margining and greater use of central clearing ensures that perceived stress on one major participant does not cause a panic. Greater use of CCPs and the broader reforms to derivative markets have made the financial system more resilient.
BIS central bankers’ speeches  17  Chart 13  Chart 14  Projected equity inflow to market capitalisation for G20 EMEs(a)  Projected annual gross equity inflows to G20 EMEs  Per cent of market capitalisation (lagged 1 year) Inflows (average 2010-2050) 20 Range (2010-2050)  $ trillions 20 18  15  16 14  10  12 10  5  8 0  6 4  G20 EME  Turkey  S. Korea  S. Africa  Russia  Mexico  Indonesia  India  China  Brazil  Argentina  -5  Source: Institute of International Finance, Thomson Reuters Datastream, GDP projections from Chart 7, home bias projections from Table 2 and Bank calculations. (a) Blue dots represent the average annual inflow over the projection period, as a percentage of the previous year’s market capitalisation. Bars represent the range of the highest and lowest annual inflows over the projection period, as a percentage of the previous year’s market capitalisation. 18  2 2010 2015 2020 2025 2030 2035 2040 2045 2050  Source: IMF International Financial Statistics, IMF World Economic Outlook October 2010, S&P Global Stock Markets Factbook (2010), updated and extended version of dataset constructed by Lane and Milesi-Ferretti (2007), Thomson Reuters Datastream, UN Census Bureau, Penn World Tables and Bank calculations.

But let me sketch three broad areas that seem important to us. First, successful transition away from LIBOR in its current form will unbundle the risk-free and bank sector credit risk elements of the interest rate curve. Including compensation for banking credit risk may have made eminent sense for those syndicated loans made in the 60s and 70s, without greatly affecting variation in the level of LIBOR (as shown in Figure 1). But many LIBOR-linked instruments no longer directly involve banks, yet remain exposed to variations in the perception of bank risk seen in the past decade. That does not reflect an efficient allocation of risk in the economy, and poses material economic and distributional risks at times of stress, as we saw during the financial crisis.
Most of the financial regulation developments have been carefully designed and implemented. 3  While governments have changed, the goal to develop and improve the financial system has remained and therefore those announcements have progressively materialized. To provide a few recent examples that were addressed in previous Chile Day meetings, some of those measures include the implementation of Basel III banking regulation standards, the development of Financial Market Commission (CMF) as a strong integrated financial supervision authority, and the agenda of the Central Bank towards the internationalization of the Chilean Peso, among others. This positive interaction of good policies and consistency in its implementation has greatly contributed to create the resilience that allowed the Chilean financial system to withstand both external and internal shocks. The International Monetary Fund in the latest Financial Sector Assessment Program (FSAP) performed last year, highlighted that the Chilean financial system has been resilient to recent shocks, with a robust regulatory and supervisory framework and an adequate response by the financial authorities to the effects of Covid-19. This points out to the ability of the local financial system to maintain: (i) Access to financing for companies and households, (ii)· Access to hedges in foreign currency, (iii) Stock market operating normally, (iv) Uninterrupted payment system, (v) Solvent and liquid banking system and robust financial infrastructure.

These two shocks in combination with the initial conditions, pushed costs upwards, carrying global inflation to levels not seen in the last 30 or 40 years, and Chilean terms of trade lower. As a result of inflation surprising to the upside, central banks started withdrawing monetary stimuli far more aggressively than previously expected. The Federal Reserve led to an appreciation of US dollar, higher interest rates, higher term premiums, and spreads, negatively affecting financial conditions for emerging markets. Exchange rate has been in a depreciatory trend for a long time, currently stands 23% above the levels before the social outburst in 2019. A significant part of this depreciation has been for idiosyncratic reasons, probably associated to high levels of political and economic uncertainty. In this context it is very likely that exchange rate passthrough to domestic inflation is higher than in normal times. 6  Let me elaborate on these developments in the FX market and local inflation for a few minutes. The global tightening of financial conditions was exacerbated by local uncertainty in Chile. As a result, since the beginning of June 2022 and until the Central Bank announced the FX intervention program, the peso depreciated by more than 25%. This pressure on the FX market had a component of non-compensated flows that led to a spike in volatility levels and frictions in the process of price formation. Given these developments there was a concern about potential spillovers to other markets, especially fixed income, and the effects that this could bring to the real economy.
new mountains that underline the importance of policymakers' capacity to climb up the top. In only two years, the world we knew has dramatically changed. The humankind has faced threats that seemed to be forgotten in the modern world, an unprecedented pandemic and a war in Europe, which are not only a human tragedy, but also supply shocks with significant economic costs that may profoundly reshape the world economy and geopolitical landscape. This environment creates many challenges for the macroeconomic policies, as well. 1/4  BIS - Central bankers' speeches  The pandemic was a shock of unprecedented nature causing global supply disruptions, supply demand mismatches, and exceptional patterns of economic behaviour. However, the policy response was of unprecedented nature and size, contributing to relatively swift and job-reach recovery. Thus, for example unlike GFC when it took seven years for the euro area GDP and almost twelve years for unemployment to return to its pre-crisis level, this time it took only one year to return to pre-crisis level and unemployment to hit record low. These developments are also relevant for some of the CESEE transition economies with strong trade and financial ties with the advanced Europe. This was a showcase of how a sizable and wellcoordinated monetary and fiscal mix can mitigate the adverse effects of a large exogenous shock. Unfortunately, while calibrating our exit strategies and reverting to a normal mode, another shock wave came pushing energy and food prices further up the curve, hence accelerating inflation while overshadowing growth recovery.

It is not yet possible to tell to what extent the U.S. economy will experience a lengthy, more difficult process of adjustment. That is probably the background to how the Federal Reserve has acted in recent years. A series of interest rate hikes during 1999 and 2000 were presumably intended to restrain the euphoria and excessive expansion. When a downturn then became evident, it seemed  2  BIS Review 26/2001  desirable to try to limit the mood swing by means of the marked interest rate cuts we have seen this year. It is precisely the Federal Reserve’s vigorous action that underlies certain analysts’ view that the current economic slowdown will be fairly mild and brief. If international activity were to move into a recovery, most things suggest that demand in the Swedish economy would start rising rapidly again. The earlier capacity restrictions would then return to the agenda, with the attendant risk of an accelerating rate of inflation. So the situation is difficult to assess and I grant that the judgements our Executive Board has had to make in connection with the present Inflation Report have been more difficult than usual. While the difficulty in predicting the future is admittedly a truism, the present international economic situation is perhaps the trickiest for a decade. Growth with a balanced picture of inflation The main scenario we have adopted in the Inflation Report envisages weaker real economic activity in the rest of the world, with the slowdown in the United States in the foreground.
Norman T L Chan: SME Financing Guarantee Scheme Opening address by Mr Norman T L Chan, Chief Executive of Hong Kong Monetary Authority and Deputy Chairman of the Hong Kong Mortgage Corporation Limited, at the SME Financing Guarantee Scheme signing ceremony, Hong Kong SAR, 13 December 2010. * * * Good morning, I am very pleased to welcome all of you to today’s Letter of Intent Signing Ceremony for the launch of the SME (small to medium-sized enterprise) Financing Guarantee Scheme by the Hong Kong Mortgage Corporation (“HKMC”). SMEs are an important pillar of the Hong Kong economy and employment. In 2008, the collapse of Lehman Brothers caused credit crunch and market dislocation around the world. To mitigate the impact of the global financial crisis, the Hong Kong SAR Government swiftly rolled out a series of measures to “stabilise the financial system, support enterprises and preserve employment”. A key measure to help the SMEs was the launch of the $ billion Special Loan Guarantee Scheme in December 2008. By October this year, the scheme has helped more than 20,000 companies, with the approved loan amount exceeding $ billion, and helping to secure more than 330,000 jobs. With the recovery of the local economy and the improved financing and cash flows for SMEs, the Special Loan Guarantee Scheme will cease to receive applications from early next year.

Furthermore, a QR Code payment system is safe and reliable since it was developed on existing payment infrastructures of banks and payment service providers such as PromptPay or credit and debit card infrastructures, which are highly secure, compliant with international standard and subject to regular examination. The forth is facilitating further innovations. This open infrastructure will lead to further development of various financial innovations in the future. E-Payment will not only facilitate payment flows but also provide solid foundation for SME’s financial data collection. Data from retail electronic payments can be effectively used to support credit granting, which will provides more alternatives for SME financing. Financial Institutions in many countries have started to provide information based lending instead of traditional collateral based lending. These four important criteria of QR Code will lead to an expansion of QR Code payment services to all merchants in our daily life such as department stores, fresh markets, coffee shops, and convenient stores. QR Code payment services are accessible for all type of merchants, including brick and mortar stores and e-Commerce. Moreover, it can easily be rolled out to various locations such as business districts, tourist destinations, or rural areas. To promote standardized QR Code payment, BOT has allowed banks and payment service providers to propose their projects for consideration in the central bank’s  4  Regulatory Sandbox.
The Riksbank has long pointed out that the Swedish banks should reduce their funding risks by extending the maturity of their funding so that it corresponds more closely to the maturity of the banks’ assets. The aim of the NSFR is to get the banks to do just this. •  Finally, we have the so-called countercyclical buffer, which is one of the new buffers introduced through the capital adequacy regulations in Basel III. This is intended to ensure that the banks build up extra shock absorbers in times when credit growth is particularly high so that they really take into account the risks that such an expansion entails for the financial system as a whole. This may also help to slow down an excessive growth in credit. Once this framework is in place it is in my opinion reasonable, given the course developments have taken in Sweden, that the countercyclical buffer is implemented and activated at a high level. 1  Having 12 per cent CET 1 capital here entails, according to the regulations, a primary capital requirement of at least 13.5 per cent of risk-weighted assets. As 13.5 per cent of 22 per cent equals 3 per cent, the leverage ratio requirement, put simply, corresponds to a risk weight of 22 per cent for mortgages. The calculation is based on a leverage ratio defined with primary capital in the numerator.

Most of these losses were unrealised, and we made valuation provisions against them. MAS accounts for its investments on a lower of cost and market value (LOCOM) basis. This is a conservative approach as we fully provide for any unrealised valuation losses below cost but we do not recognise any unrealised valuation gains. MAS' investment performance has to be viewed from a longer-term perspective given the year-to-year volatility in financial markets. 7/16  BIS - Central bankers' speeches  Since the 2008 Global Financial Crisis, MAS' investment portfolio had benefited from a period of low inflation and low interest rates. Including this latest year, MAS recorded an annual average investment gain of $ billion in the last 15 years. The key question MAS focuses on is not whether the negative currency translation effects or interest expenses persist but whether the investment performance will recover. We expect financial markets to remain challenging for at least the next two to three years, as the effects of restrictive monetary policies continue to work their way through the global economy and financial markets. MAS will continue to focus on keeping the portfolio resilient through this period of economic uncertainty as financial markets return to their long-term trajectory. Several major central banks were also negatively impacted by one or more of the factors that affected MAS. Central banks which hiked interest rates to dampen inflation, like the US Federal Reserve, and the European Central Bank, also experienced higher costs on their monetary policy operations.
But there are also reasons to consider the possibility that the baton changeover might not go as smoothly as we hope and believe. One reason for this could be that economic activity in Sweden as such does not continue developing as favourably as we are presently assuming it will. Another reason could be that the forces currently holding back inflation in Sweden and other countries are stronger and more persistent than expected – that the inflation propensity has fallen, at least temporarily. The first step will then probably be to make monetary policy more expansionary. But as I noted, the room for manoeuvre is becoming more limited. It is not possible to quantify exactly when it has been exhausted, but somewhere there is a limit. We cannot rule out the possibility that we will sooner or later reach a situation where we assess that it is no longer possible or desirable to make policy even more expansionary. If we were to find ourselves in such a situation – and I emphasise if – then the consequence could be that we will have to accept that it will take longer than desirable to attain the inflation target. I would like to emphasise that in such a hypothetical case it would not be a question of “giving up the inflation target”. The advantages of an inflation target of 2 per cent that I have just described would of course still apply and we would continue to do our best to attain it.

Here is the CliffsNotes summary: The play opened with the great financial tempest of 2008–09, during which it appeared the ship of the mighty American economy would founder. A humble, once unassuming but suddenly daring captain named Ben Bernanke took firm control of the nation’s monetary helm in Act II, working with his officers – the FOMC – to contrive innovative ways to keep the economy afloat by jury-rigging monetary policy and adopting radical tactical maneuvers. These efforts succeeded in steering the ship of the economy away from the shoals of depression and deflation and into more tranquil waters. Act III began with a recovering economy heading on a more promising course. But the headway being made was substandard, hindered by the flotsam and jetsam of fiscal incompetence and rising fears of a new storm brewing in Europe. In an effort to propel the economy forward at a better clip, the FOMC commanded that unprecedented amounts of monetary fuel be provisioned for the financial system through large-scale asset purchases, the proceeds of which were pumped into the stores of banks. But as Act IV began, the banks lingered in the wings rather than taking center stage. Rather than shovel their abundant means into their loan boilers, they were parsimonious and hoarded their fuel. Other members of the financial fleet, however, were heartened by the turn of events, especially those who finance themselves through the issuance of stocks and bonds rather than through bank loans.
In 2013, our cash-in-circulation over GDP is 6% compared to only 2% to 4% in advanced countries. In terms of payment card usage, our payment card transaction per capita is relatively low, at only 13 transactions per capita in 2013. This is far below the level of payment card usage in the advanced countries with an average of more than 200 transactions per capita. It is also important to note that Malaysia has a higher proportion of credit card usage compared to debit card usage, with a ratio of 7 credit card transactions for every debit card transaction. In contrast, debit card usage is more prevalent in the advanced economies, at an average of 6 debit card transactions for every credit card transaction. The debit card is a more cost-effective payment instrument compared to the credit card. Greater use of debit cards would minimise the country’s retail payment cost and contribute to greater savings and efficiency. In this respect, the banking industry can play the important role of taking more proactive measures to widen the payment card acceptance infrastructure, and promote actively the usage of debit cards to the general public. It is a mutually beneficial relationship. Consumers can conduct their financial transactions in a safe, convenient and efficient manner while the banking industry can benefit through reduction in the cost of handling and managing cash. High potential for debit cards to displace cash in Malaysia Cash is an expensive payment instrument which imposes an unnecessary cost to the economy.

c.  Highlights of development in delivery channels and payment system infrastructure  As banks serve various segments of the economy, it is important to widen the accessibility of e-payment services through various channels to cater to the needs of different consumer groups. The industry should continuously identify and address any gaps in the current e-payment infrastructure and services by improving their product offerings. For instance, building on the wider penetration of online banking services which now have a total of 17 million subscribers (of whom 7.5 million are active users), banks have also provided alternatives to consumers to conduct electronic funds transfers using either the Interbank GIRO (IBG) or the Instant Interbank Fund Transfer (IBFT) via 9,410 ATMs and 2,475 selfservice Internet kiosks nationwide. While the fees imposed for IBG and IBFT are differentiated, consumers are given choices that suit their preference. To promote infrastructure sharing and reduce cost and enhance online bill payment facilities in Malaysia, there is currently an ongoing industry initiative led by the Malaysian Electronic Clearing Corporation Sdn. Bhd. (or MyClear in short) to develop a national bill payment scheme known as JomPAY. JomPAY leverages on shared infrastructure to significantly expand the scope and utility of bill payment facilities. At present, customers can only use the online channel of a bank to make bill payments to merchants who maintain banking relationships with the same bank.