samchain/econo-pairs-v1 huggingface dataset:
With a 5 per cent interest rate after tax and a disposable income that grows by 4 per cent the current value of this will be roughly 1 800 per cent of disposable income. The average remaining  BIS central bankers’ speeches  7  Households’ interest payments on their debt is not high from an historical perspective. At present, it is just over 4 per cent of disposable income. With a high mortgage rate of 7 per cent before tax, the mortgage rate after tax will be around 5 per cent. With an interest rate after tax of 5 per cent, the interest payment will be 5 per cent of 170 per cent, which is 8.5 per cent of disposable income. This is not particularly high, especially in comparison with the cost of renting a home, which can be on average 20 per cent of disposable income. When assessing whether households’ debt ratio of 170 per cent in relation to disposable income is sustainable in the long run, however, the most relevant indicator is the households’ net debt service, that is, the debt service households must pay to keep the debt ratio constant. Then it is necessary to take into account the fact that disposable income increases over time. With a disposable income that can be expected to grow by 4 per cent in the long run, therefore, 4 per cent should be deducted from the mortgage rate before tax of 5 per cent.

In just over three months’ time, we have got more than two million registrations for FPS. Another important development is the promotion of virtual banking. We have received about 30 applications for our virtual banking licences and we hope to begin granting the first batch of licences within this quarter. In a short span of a few years, we have gone through a very high speed journey into Fintech, and I am sure that there is a lot that we can share and discuss in the later panel on new finances. 11. Another exciting development is green finance. The French government issued the first sovereign green bonds in 2017, which set an important market benchmark. Hong Kong is also actively promoting its green finance platform. In fact, in the first three quarters in 2018, 28 green bonds were issued in Hong Kong, with an aggregate size of over $ billion. The HKSAR Government is launching a $ billion Government Green Bond Programme and the first green bond will be issued later this year. With France being a forerunner in green finance and the third largest global issuer of green bonds, we look forward to sharing experiences and collaborating with Paris in this area. 12. This is a quick overview of the recent developments in Hong Kong and the new opportunities ahead. I am sure the industry experts here today would have a lot more to share on these topics in the panel sessions, and I hope you will have a very fruitful discussion. 13. Thank you.
Here the Stability and Growth Pact lays down clear constraints on budget policy: the countries are to strive for budgetary positions close to balance or in surplus in the medium term and under normal circumstances they are to prevent the budget deficit from exceeding 3 per cent of GDP. A process has been set up for supporting the forces in each country that back a responsible policy. The process gets its muscle from the ultimate possibility of applying sanctions to countries that do not follow the guidelines. BIS Review 9/1999  –2–  The background to the EU countries’ agreement on strict guidelines in this field is the concern about the size of government debt and the central role of fiscal policy in relation to monetary policy. Fiscal policy affects price stability both via the level of economic activity and via expectations of future inflation. Without the support of generally consolidated fiscal policies in the euro area, the task of achieving price stability would be a heavy one. Problems and shortcomings in fiscal policy hit growth and employment in that they necessitate a level of interest rates that is higher than otherwise. Today, far too few countries fulfil the medium-term fiscal policy objectives and the major euro countries have very small margins to the Pact’s definition of an excessive deficit. This can lead to problems in the Union, particularly if a weaker economic development were to result in further budgetary deterioration.

A Bank of Zambia review of interest rates determination in 2003, nonetheless, showed that the key determinants of commercial banks’ interest rates, particularly the lending rate, were the yield rates on Government securities, level of statutory reserve requirements, inflation, weak policy credibility and high default risks on loans obtained. To enhance the role of the market in the determination of exchange rates, the Interbank Foreign Exchange Market (IFEM) trading system was introduced in July 2003. The entrenchment of the IFEM trading system has been characterised by increased interbank foreign exchange liquidity flows, particularly from mineral exporters. The financial sector reforms were aimed at improving the efficiency and intermediation of the banking system and also at enhancing competition amongst the players. The reforms entailed opening up entry of participants into the banking sector. With the liberalisation of the financial sector, several bank and non-bank financial institutions were established. The financial sector has expanded remarkably over time and the services provided have been improved. •  The number of commercial banks has more than doubled to 13 from 4 banks prior to 1990. Currently, the banking system is made up of the Bank of Zambia, which is the central bank, and 13 commercial banks, with a branch network of 159 as at end-December 2005 compared to 123 in 1990. •  Commercial banks have improved the range of products offered to customers, in line with global innovations. These include Automated Teller Machines (ATMs), foreign exchange accounts, Visa, mortgages, and leasing services.
Engagement with key stakeholders13 is also vital - and we’re very pleased to be hosting a Financial Stability Board workshop on LEIs here on 10 December. But, crucially, this means that both public sector and private sector will need to show concerted commitment, drive and leadership to deliver success. Looking forward And this brings us back to why we are here today. The need for close private and public sector collaboration is why we sought your feedback through our consultation. And, it is why we, with Pay.UK, have announced the Standards Advisory Panel, a senior group providing strategic advice on the adoption of new payments standards in the UK. This group will bring vital private sector expertise into the Bank and Pay.UK’s work to ensure consistent adoption of standards including ISO 20022, the CCM, and the wider adoption of LEIs. The cutover for moving to ISO 20022 messaging for sending and receiving CHAPS payments is planned to occur in 2022. This will be on a like-for-like basis with the current messaging standard, but we will then introduce enhanced data into CHAPS payment messages, including LEIs for messages in financial institutions in 2023. And, as I mentioned earlier, we will then look at further enhancements, including a broader inclusion of LEIs in payment messages, over later years. This may seem on the horizon now, but I’m sure I don’t need to remind a room full of payments experts that strategic change deadlines are never as far away as they seem.

The decisions that we make affect the whole economy, and ultimately serve the good of the people of the United Kingdom. And, making these decisions effectively relies on good data. This isn’t new: the Bank has been collecting data in one form or another since its foundation in 1694. But while data have always been important, the pace of change in technology has unlocked much greater potential. Across public and private sectors alike the possibilities of leveraging data on a massive scale or in innovative ways are being explored – in health and consumer tech, in finance in the form of fintech, and regtech and suptech for regulators like the Bank.1 As well as providing new opportunities for individual firms, the use of data in fintech – to better price and allocate capital and to monitor the uses to which it is being put – has the potential to support productivity growth across the wider economy.2 3 It is often said that “data is the new oil” fuelling a new industrial revolution. While the transformational potential is similar, there are differences from oil which mean that the nature of that revolution will be very different. Unlike oil, data are “non-rivalrous”, meaning more than one person can use the same piece of data at once. Once in the public domain it also becomes by definition “non-excludable”, meaning you can’t control who does and doesn’t have access.
The Bank has also introduced regulatory bootcamp sessions that are held every quarter. These sessions provide an opportunity for fintech companies to gain deeper knowledge and understanding before entering the Regulatory Sandbox. I hope that more fintech startups and companies, Islamic financial institutions and technology providers would take part in this key and exciting development – to contribute towards the creation of value-added and meaningful innovations that can greatly benefit the Islamic finance industry and the public at large. Conclusion Technology has indeed reshaped various aspects of our personal and business lives. Virtually every sector, in each and every country, is being transformed by this digital revolution. Fintech is unlocking tremendous opportunities that will bring significant benefits to consumers and the industry. Islamic finance, in embracing what technology offers, would be able to better meet the ever-changing needs of customers and the real economy. The incumbents have no choice but to quickly learn to adapt, invest and innovate to deploy new technologies. At the same time, technology and fintech in particular, offer significant opportunities for entrepreneurs to scale up and succeed. In closing, I wish you all an insightful and engaging Dialogue ahead. First, by leveraging on technology, industry players are able to create more value and customer focused services. This can be achieved through the delivery of customised solutions using for example biometric technologies, big data and analytics. Technologies such as Application Programme Interfaces (or APIs) could bring substantial benefits to customers, by making banking transactions simpler, quicker and more convenient.

Second, the adoption of technology can help Islamic finance reach out to market segments which would not otherwise be cost-effective. This means a great opportunity to serve untapped markets. Third, in terms of processes, fintech can assist to improve the efficiency of back-end systems and operations, including through the use of predictive analytics to undertake real time risk management. 3/3  BIS central bankers' speeches
In the US, Japan and most European countries, key rates have in practice reached a lower boundary. The authorities cannot provide further impetus to the economy through interest rate cuts and currency depreciation. Western countries with trade deficits would have benefited from a boost to their exports. A stronger Chinese currency could be part of the solution. With its enormous labour reserves, China has substantial capacity for exporting to the wealthiest nations in the world. If more income is not spent on domestically produced goods and imports, it is probably because of fundamental structural features of the Chinese economy. Income is still low for large groups. A substantial share of income flows to statecontrolled enterprises and high-income groups with a high propensity to save. A substantial share of GDP is invested in new real capital, which in turn continues to fuel export growth. The Chinese economy is likely to change. A larger share of income will be channelled to consumption. The current account surplus as a percentage of GDP has been reduced in the past few years. But deficit countries in the west must come to grips with their own problems. Demand for goods and services in western countries cannot outstrip production on a sustainable basis. Households in Europe and the US can now be expected to increase saving. Many have experienced that debt does not evaporate as fast as assets. Chart 3: Government gross debt. As a percentage of GDP. 2000, 2005 and 2010 Financial crises tend to be followed by debt crises.

Underlying inflation has naturally been more stable, but has been both higher and lower than the target. If we look at the ten-year period as a whole, inflation has been 2 per cent, that is to say close to the target. The notion of operational guidelines The past decade of low and stable inflation must be seen against the background of Norges Bank’s active use of the key policy rate. The interest rate has been set with a view to meeting the inflation target that was introduced in 2001. The notion of an operational economic policy framework sprang from the experience of economic planning in the 1960s and 1970s. The first decades after the war were naturally marked by high ambitions with regard to macroeconomic management at home and abroad. Through the 1970s, a period of soaring inflation, stagnation and deepening deficits, the pendulum swung. While the focus had previously been on market failure, it shifted to management failure in many countries. On the theoretical side, the economists Finn Kydland and Edward Prescott demonstrated that authorities operating a long-term plan may have strong incentives to deviate from that plan at a later stage. 1 If firms and households see through this at the outset, they will adjust their behaviour accordingly, undermining the long-term plan. If the authorities make a credible commitment to operational rules, they will come closer to achieving their long-term objectives. 2  1  Finn Kydland and Edward Prescott (1977): “Rules Rather than Discretion: The Inconsistency of Optimal Plans”.
The output gap is a measure that expresses our assessment of total capacity utilisation in the economy. The output gap is defined as the percentage difference between actual output and potential output. Potential output indicates the level of output that is consistent with price and cost stability. The estimate for the output gap is uncertain, partly because the level of potential output is unobservable and must be estimated. Since official statistics on overall activity in the economy are not available immediately and are subsequently revised, the level of actual output will be uncertain. Our overall assessment is that capacity utilisation has picked up over the past two years and is now slightly higher than normal. In our estimation of the output gap, the result of technical calculations is compared with other sources of information about capacity utilisation in the economy. Information from Norges Bank’s regional network may indicate that overall mainland capacity utilisation is close to a normal level. However, there are signs of bottlenecks in production in some sectors of the economy. For example, capacity utilisation in the construction sector is very high, particularly in the southwest  BIS Review 79/2005  1  region of the country. There are signs of some skills shortages in the construction industry, in manufacturing and in some service industries. Even though growth in the Norwegian economy has been high for a long period, substantial labour shortages have not yet emerged in the economy as a whole.

Information about the state of the Norwegian economy is available earlier than information provided by official statistics, and it is useful to have closer contact with business and industry throughout the country. The main impression from the latest round of interviews is that demand and output are rising in all sectors. The market outlook is reported to be positive, and the enterprises Norges Bank has contacted indicate that growth will be at least as strong six months ahead as it is now. The figures show that capacity utilisation in the business sector is gradually increasing. Some petroleum-related activities and parts of the construction sector are experiencing capacity problems, but so far, the pressure on factors of production does not seem to be particularly high in other industries. All industries report plans for moderate to solid growth in investment. In tandem with the economic upturn, employment is also rising throughout the private sector, with in general little evidence of wage pressures. Developments in Hedmark and Oppland counties are largely consistent with the overall picture for Norway. The industry structure in Hedmark and Oppland does not differ substantially in most sectors from the country as a whole. The exception is the primary industries, which play a far more important role in these two counties than in the rest of the country. The largest farming areas in Norway are to be found in Hedmark and Oppland, and employment is high in the primary industries.
Cash payments still account for a large proportion of the number of transactions in the Swedish economy. But it comes as no surprise to anyone if I say that they have declined in significance in recent decades. As a per cent of GDP, the share of Swedish banknotes and coins in circulation (M0) has more than halved since the 1950s, from around 10 per cent to just around 3.5 per cent. 2 In the past fifteen years, however, the trend has levelled off. The use of cash has not declined in the same way as before. M0 in nominal terms has actually increased. If we look at the statistics for ATM withdrawals, we find that the total transaction value has remained fairly constant at around SEK 275 billion a year during the entire 2000s. The number of cash withdrawals has been around SEK 320 million. Does this mean that we have reached a lower limit for how much the use of cash can decline? Has the heyday of the account-based payments ended? I do not believe we should be so sure of that. Cash is still expensive to transport and manage and a heightened risk of robbery in recent years has not made cash management cheaper. In the end, it is we consumers who pay the costs in different ways. However, we must probably point out that we Swedes like our cash more than most analysts believed a few years ago. How then have the account-based payment instruments developed?

The most well-known e-payment company is PayPal, which is registered in Luxembourg, but which is active around the world. Almost exactly ten years ago Stefan Ingves, the current Governor of the Riksbank, held a speech on the theme “Electronic money from a central bank perspective”. He then said that “the situation today on the e-money front can, put briefly, be described as there being a lot  5  In 2006, 85 per cent of all giro transfers and other credit transfers were made electronically, the remainder were paper-based. In terms of value, 96 per cent of these transactions were made electronically. Sveriges Riksbank. 4  BIS Review 16/2008  happening at different places in the world, although a breakthrough on a broad front is still in the future”. This summary can probably said to still hold today. 6 But not all development is tied to e-money. Mobile phones are now also used to make payments. For example, we can pay our bus and underground journeys by sending a text message. A few seconds later we receive a text message back from the operator, confirming that a ticket has been purchased and that it can be shown to the driver or conductor. If one has a prepaid card the cost is drawn directly, otherwise it will be put on the telephone bill. There are shops that have begun to use smart cards.
The persistence of uncertainties in particular relating to geopolitical factors and the threat of protectionism is weighing on economic sentiment. 1/4  BIS central bankers' speeches  At the same time, supportive financing conditions, favourable labour market dynamics and rising wage growth continue to underpin the euro area expansion and gradually rising inflation pressures. This supports our confidence in the continued sustained convergence of inflation to levels that are below, but close to, 2% over the medium term. Significant monetary policy stimulus remains essential to support the further build-up of domestic price pressures and headline inflation developments over the medium term. This will be provided by our forward guidance on the key ECB interest rates, reinforced by the reinvestments of the sizeable stock of acquired assets. In any event, the Governing Council stands ready to adjust all of its instruments, as appropriate, to ensure that inflation continues to move towards the Governing Council’s inflation aim in a sustained manner. The euro’s external dimension The benefits of the euro have not been limited to the European internal dimension. Standing together within the Economic and Monetary Union (EMU) allowed us to retain sovereignty that would otherwise be lost by individual countries in a highly integrated world economy. As already envisaged at the time of its creation, the euro symbolises the unity of a European continent that is better able to exert global influence.

Before I comment on the significance of board charters in augmenting good corporate governance in the financial sector, I think it is appropriate that I acknowledge the commendable work that has gone into implementing the FSDP through collaborative effort involving government and other institutions. The Government, working with the three financial sector regulatory bodies, namely, the Bank of Zambia, the Pensions & Insurance Authority and the Securities & Exchange Commission has continued to take the lead in implementing various reforms. This effort has been supported by private sector experts and representatives responsible for the technical aspects of implementing the FSDP recommendations.