samchain/econo-pairs-v1 huggingface dataset:
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.

8/16  BIS - Central bankers' speeches  Given the loss in FY22/23, no contribution will be accrued but the Government will still receive $ billion this FY, based on the contribution accrued for FY20/21 when MAS recorded net profits. However, MAS is unlikely to be able to contribute to the Consolidated Fund over the next few years. We will need to generate future profits exceeding the cumulative losses in the latest two FYs of $ billion, before we can resume contributions to the Consolidated Fund. Second, the loss recorded by MAS will not affect the Government's ability to spend up to 50% of the expected long-term real returns on the net assets invested by MAS. As with GIC and Temasek, up to 50% of the expected long-term real returns on the net assets invested by MAS are available for spending by the Government under the Net Investment Returns framework. Under this framework, the expected long-term real rate of return on MAS' net assets is not affected by any single year's investment performance. This rate of return is reviewed annually and is subject to the President's concurrence. To ensure that MAS remains well-capitalised relative to its assets, MAS increased its issued and paid-up capital by $ billion to $ billion in FY22/23. The last time that MAS' capital was increased was in FY11/12, from $ billion to $ billion. As a fully owned subsidiary of the Government, MAS returns a portion of its net profits from time to time, taking into account its capital and reserves.
Efficient and well balanced financial system will allow the system to better manage and absorb shocks as the market would be less prone to one-way market conditions and possesses greater liquidity. A well balanced financial structure contributes positively to information processing, price discovery, and risk management. The experience of the Asian crisis, for example, points to the critical importance of the development of long-term local currency debt market, to increase the depth and the breadth of financial market. In relation to this, BIS identified that the lack of diversified structure and market may lead to increased risk from concentration of credit and maturity risks in the banking system as lack of markets may lead to the mispricing of risk and excessive delay in correcting large exposures, as well as increased vulnerabilities from capital inflows. The second point we want to make is the importance of strong financial market infrastructure. One of the key issues for emerging markets is the structural weaknesses which can create disincentive and moral hazard. The presence of such distortions contribute to built-up of financial vulnerability, hinder growth of market solution for tackling risk, and complicate policy actions in events of crisis management. Progress in correcting these weakness however may be slow.

It is hard to see beyond one of two ways of interpreting this statement, 2/4  BIS central bankers' speeches  neither of which stands up to much scrutiny. The first interpretation is that the rules should not change in the future, and to do so would be unwelcome. This is unrealistic, dangerous and inconsistent with practice. As the world around us changes, so must the rules to accommodate these changes. As evidence of this, look at what the authorities have had to do in response to Covid and the shock that created for financial markets. The EU is almost constantly revising, or contemplating revising its own rules, and that’s a good thing. So, I dismiss this argument. The second argument is that UK rules should not change independently of those in the EU. I am being careful to phrase this point. It’s not that UK rules might change independently – the equivalence process provides for re-assessment of such decisions, so this should not be a problem. So, it must be the stronger form that they should not change independently. But that is rule-taking pure and simple. It is not acceptable when UK rules govern a system 10 times the size of the UK GDP and is not the test up to now to assess equivalence. It’s worth considering why we would choose to change the rules. First, it would be rare to say the least if such rules turn out always to work perfectly first time and thus need no amendment.
The driver of these changes is the increasing use of private bank money rather than publicly issued cash for small payments through cards, the internet and new e money providers. It is difficult to predict how far or how fast this shift will go. Cash remains hugely important for payments in the economy. It is still used to settle nearly half of the transactions in the UK. Although the cost of card and smartphone transactions has come down, cash remains materially the cheapest technology for small transactions. Estimates suggest that cash transactions cost retailers less than 1½ pence per transaction, or 0.15% of the value, compared to over 5 pence per transaction for debit cards 0.24% by value. And, behaviourally, many people in the economy clearly prefer to use it for a variety of reasons. That could change quickly, as it has done in one or two countries, such as Sweden. But in many others the use of cash has proved extremely stable. For example, in Spain and Italy cash is still used for over 80% of transactions at the point of sale. 14  Given our general responsibility for money in the UK, what do these changes in the way money is used as a means of payment mean for the Bank of England? Our responsibility is to ensure that people can use the money of the UK to transact safely and, subject to that, as efficiently as possible and in line with their preferences.

Michael C Bonello: Population ageing - a major challenge for policymakers Speech by Mr Michael C Bonello, Governor of the Central Bank of Malta, at the opening session of two workshops on pension reform, organised in Floriana, Malta, by the World Bank Institute, 9 June 2003. *  *  *  I should first of all like to thank the World Bank Institute for choosing Malta as the venue for this Workshop and to welcome you all to our country. Your presence here continues a centuries-old tradition whereby Malta exploits its location at the centre of the Mediterranean and its reputation for hospitality to bring people and ideas together. Malta is currently undergoing a rapid transformation in a bid to seize the opportunities arising from accession to the European Union and from the further consolidation of its trading relationship with its Southern and Eastern neighbours. The economy, albeit small, has a number of vibrant sectors ranging from high-tech manufacturing to world-class conference tourism. As in the case with many other countries, however, the long-term prospects for economic development in Malta will be inevitably affected by the impact of population ageing. Given that the population support ratio, defined as the number of persons of working age to those of pension age, is expected to halve over the next 25 years to just over 2, this impact is likely to be significant. The global and regional dimensions of population ageing Malta is by no means an exception in this regard.
This would cause a slowdown of economic growth and put the prices of goods and services under pressure. If this downward pressure on prices were to continue for a prolonged period, price stability would be jeopardised. The low reference rate maintained by the SNB is therefore necessary from a monetary policy perspective in the context of the low interest rate environment worldwide and the strong Swiss franc. At the same time, the persistently low interest rate environment presents risks to financial stability. This applies first and foremost to the real estate and mortgage markets. Like global interest rates, mortgage rates in Switzerland have been on a downward trend for some 25 years. Consequently, significant imbalances have built up on the real estate and mortgage markets. This is evident when we look at the developments in both markets since 2000 (cf. slide 20). On an inflation-adjusted basis, prices for single-family houses have risen by more than 50% overall. The volume of outstanding mortgages has almost doubled over the same period. These strong rises on their own do not prove the build-up of imbalances – the increases can be partly explained by fundamentals such as solid population growth. Since 2000, this has amounted to approximately 18%. A growing population produces a demand for more housing. As land for building development is limited, this puts upward pressure on real estate prices. At the same time, demand for mortgage loans grows. 21  20  Both structural and cyclical reasons can cause this downward trend, cf., e.g., Danthine (2013).

Thus, loans do not only benefit the company concerned, but also contribute to raising an entire economy’s productivity, growth potential and prosperity. 5 Households, too, can harness future income for present-day benefits. The obvious example is a mortgage to buy a house. Let’s take a specific case. A young family – we’ll call them the Miller family – is expecting a child and so will soon need larger living quarters. They have found their dream house, but the money they have saved so far is not sufficient for them to buy it. Thanks to the possibility of taking out a mortgage, the Millers can nonetheless purchase the house of their choice and move in without further delay. The family will from then on be using part of their income to repay the loan, thereby reaping present benefit from their future earnings. In other words, they are putting their income to use at a time when they derive the greatest advantage from it, and in doing so they enhance their prosperity. 6 Finally, borrowing can also make perfect sense for a government. Fiscal income and expenditure are not always in balance. During a recession, for instance, a state’s income declines, whereas expenditure increases due to the activation of various countercyclical measures such as the provision of unemployment benefit. The result is a fiscal deficit. Governments can cover the deficit either by temporarily raising taxes or by reducing their spending. Neither of these measures are helpful in a recession. On the contrary, they would merely aggravate the recession.
Even if cash is not used on a daily basis, it comprises a backup option in certain crisis situations. And, as I explained earlier, cash is central bank money and does not involve any credit risk for the holder. I consider some central properties of cash to have a substantial value and expect they will be in demand in the future, too. Now we are approaching the burning question. Should the state accept a development where the general public's access to central bank money is determined by the market and steadily declines over time? You know that I do not consider this an acceptable situation. But what can the Riksbank do? 5 The Swedish Post and Telecom Authority and the county administrative boards have the joint task of securing  access to basic payment services in the areas and out in the countryside, where the market is not meeting these needs. 6 The Riksbank has pointed this out earlier and proposed that tougher requirements be made of the banks with regard to supplying basic payment services, see the Riksbank's consultation response on Access to payment accounts with basic functions, Interim report 2 from the 2015 Payment Services Inquiry (Fi 2015:02). http://www.riksbank.se/Documents/Remisser/2016/remiss_FID_160318.pdf  6 [10]  Should the Riksbank issue e-krona? Let me refer back to my historical summary and talk about innovation. When the first banknote was produced, it was based on a new technology, in this case the printing press, that had become sufficiently widespread and refined.

As you may know, after a while Stockholms Banco began issuing more banknotes than they had cover for in precious metals. After a while, distrust of Stockholms Banco began to spread and people wanted to redeem their banknotes for precious metals. We now had Sweden's first bank run, which one might say was Sweden's first financial crisis. Stockholms Banco was taken over by the Riksdag (Swedish parliament) and later became the Riksbank. It must be said that the banknotes were very popular and highly-valued as long as people trusted in their worth. Compared with coins, they weighed very little and could easily be carried around. They were also considered to be worth more than the corresponding amount in coins. It was not until 1904 that the Riksbank was given a monopoly on issuing banknotes. Prior to this some commercial banks issued their own banknotes. The banknote monopoly meant two things. Firstly, it resolved the trust problem. Unlike commercial banks, a central bank like the Riksbank cannot normally go bankrupt. The holder of a banknote issued by the Riksbank can always be certain that it has a worth corresponding to its nominal value. Secondly, the banknote monopoly established a unique payment standard that is set by the state; in Sweden the legal tender is banknotes and coins issued by the Riksbank. The use of having a uniform standard for payments, and having this standard accepted by all, saves time and energy for individuals to expend on other things.
The chart illustrates developments in the labour force and the number of pensioners in the period up to 2050. The blue line shows that the labour force is projected to increase by about 150 000 from 2000 to 2030. Old-age and disability pensioners will increase by some 500 000, shown by the grey line. This means that the number of persons in the labour force relative to the number of pensioners will fall from 2.6 to 1.8. These rough estimates are among other things based on the assumption that labour immigration remains at the present level. The increase in the number of pensioners will result in a sharp increase in the obligations of old-age and disability pension funds. Expenditure on old-age and disability pensions is expected to more than double as a share of total GDP in the course of the next 30 years. The increase in the number of elderly, especially those over the age of 80, will in time require an increase in resources for nursing and care services. Welfare reforms that have been adopted will also contribute to increasing the need for resources in the public service sector in the years ahead. BIS Review 13/2003  1  With an ageing population and strong growth in expenditure on pensions and nursing and care services, our petroleum wealth will be a welcome source of revenues. This is why it is particularly important that it is managed in a sound manner. Petroleum activities are a substantial component of the Norwegian economy.

Ensuring an easy, predictable path to securitization of standardized mortgage products is essential to making mortgage credit available throughout our country – in traditionally underserved rural areas and urban areas, and to all sorts of current and potential homeowners, provided by financial institutions of different sizes in different locations. A strong regulator whose primary focus is the housing finance system can also help ensure fair access to smaller institutions. In summary, it is my personal belief that housing finance reform must incorporate an explicit government backstop accompanied by significant sources of high-quality first-loss private capital. Thank you for the opportunity to appear before you today. I look forward to your questions. 2  BIS central bankers’ speeches
This Roadshow features posters of Singaporeans, from celebrities to the man-in-the-street, who share how they manage their money. It's worth reading the tips and messages they share and see how they can be applied in your lives. 18. I am also pleased to announce that in the coming weeks, MoneySENSE will launch a series of MoneySENSible awards. MoneySENSE will partner with the media on this. We will ask all of you to nominate people you know whom you think are doing a good job in managing their money. The awards will recognize individuals who have good and sensible habits in each of the three tiers of financial literacy: in basic money management: in financial planning, and in investments. Details will be announced in the next few weeks. Consumers need to take the initiative too 19. Each of us as individuals have to take responsibility for our own financial well being, and that of our family. We can start by getting basic knowledge on money matters. Lack of knowledge often  2  BIS Review 30/2006  results in bad decisions, which can hurt your financial situation. So we are bringing knowledge to more people. I understand that several financial planning associations, the Securities Investors Association of Singapore (SIAS) and Singapore College of Insurance (SCI) are working with MoneySENSE to deliver talks at various community centres.

Many other “known” areas still require further refinement:  from understanding the impacts of deepening adoption of digital technology on productions, labor markets, inflation dynamics, and hence conduct of monetary policy;  2/4   to the emergence of cryptocurrencies and associated payment technologies that may improve financial inclusion and incorporate ‘smart-contracts’, but may have implications on financial stability, consumer protection and even the environment; and  to the various proof-of-concept initiatives using DLT or Blockchain on wholesale Central Bank Digital Currency (CBDC), where design and technology choices are being explored. Meanwhile, there remain many puzzles and unknowns, where the costs and benefits are unclear and require much more research, study, and debate to identify potential impacts or to assess whether a particular development should be pursued. These include unknowns such as introduction of retail CBDC, which can have implications on the business model of banks and the financial sector and on transmission mechanism of monetary policy. Or, broader issues such as the autonomy of central bank’s policy, which will be challenged by BigTechs and cross-border technologies, as much of central banking has been designed based on a world with national borders. Other unknowns will arise in the future; all of which dictate that we have to be nimble and forward looking. Ultimately, when facing the challenges from the knowns and unknowns, the role of central banks is not only to understand key issues and provide stewardship in the right direction but also to ensure that benefits and costs are well balanced and unintended consequences minimized.
On the one hand, micro price Page 5/16  data point to Swiss companies having adapted their pricing policy in recent months in line with the higher rate of inflation (cf. Chart 7). For example, there has been an increase in the proportion of goods and services in the Swiss consumer price index with rising prices, whereas the proportion with declining prices has remained virtually constant. On the other hand, our delegates for regional economic relations serve us well. Their one-on-one discussions with companies allow us to better understand price-setting behaviour. These talks show that companies’ long-standing reluctance to raise prices has largely disappeared. The change in their behaviour has resulted in prices becoming more flexible overall. This is facilitating the spread of price rises to other categories of goods and services. These findings make it clear that the increase in inflation should not be seen solely as a consequence of the temporary supply shocks triggered by the pandemic and the war. This strengthened our resolve in deciding to react relatively quickly to the rise in inflation. The longer-term outlook for monetary policy is also subject to high uncertainty. Structural factors such as the transition to a greener economy, rising sovereign debt worldwide, the demographic transition and ultimately also the fact that globalisation appears to have peaked – at least temporarily – could lead to persistently higher inflationary pressure in the coming years.

As a result of the realignment, the Bank is better positioned to conduct effective surveillance of the financial system; to address regulatory overlaps and duplication within the system; to deal more strategically with the weight of multiple objectives and range of issues confronting the financial system, and more importantly, to preserve regulatory neutrality in the management of similar risks between different financial service providers. Ladies and gentlemen, These emerging trends in the international and regional environment will have an important bearing on the changing climate shaping the banking sector. While it brings new opportunities, it will also bring challenges. Let me return to the theme of this summit – the continued reinvention and transformation that needs to be considered for the industry going forward. I would like to focus on three main areas. The first concerns human capital development. This is vitally important for the future development and growth of the financial sector. Going forward into the future this will become the pivotal factor determining the capacity to reinvent and transform. Financial institutions have two broad options. One would be to “buy talent”. This remains a viable option as long as productivity growth remains aligned with wage increases. Banks, however, need to be wary of bidding up wages without commensurate efficiency improvements or increases in value-add. This would not be sustainable and given the prevailing competitive market conditions, such a strategy will eventually erode the banks' competitiveness resulting from the additional costs. The other option is to “build talent”.