samchain/econo-pairs-v1 huggingface dataset:
Unlike organised exchanges, OTC markets are subject to little, if any, transparency or regulatory requirements, raising the risk of price ramping, collusion and other misconduct. International Financial Architecture: International Co-operation for Reform So what can be done about all this? Following the outbreak of the financial crisis, various international forums and multilateral financial institutions have devoted a great deal of effort to improving the stability and functioning of financial markets. Working group after working group has been formed to look into specific issues. There were the three G-22 working groups, the working BIS Review 47/1999  4  group under the Basle Committee on Banking Supervision, the two transparency and disclosure working groups under the Committee on Global Financial Systems, and now the three working groups of the G-7 Financial Stability Forum to be formed. And I should not forget the very useful work done by the IIF, and by other forums in this region. Many helpful reports have been prepared, including the two reports by the IIF released in March this year on risk management and on transparency in emerging markets finance, all of them produced in a highly co-operative atmosphere. I welcome in particular the Institute’s readiness to work with relevant public sector bodies on appropriate disclosure for private financial institutions active in the international capital markets. I am sure this international co-operative spirit, not only among international financial institutions, national finance ministries and central banks, but also with the private sector, will in the end produce helpful blueprints for action.

In fact, Newton has left us with more than one insight. Newton surmised that once inertia is overcome, an object achieves momentum and acceleration, but not without force being applied first. In a similar way, the same areas of corporate inertia today can be harnessed to drive the momentum of tomorrow. But only through a combined force of action and leadership can we truly achieve this. 3/3  BIS central bankers' speeches
The outlook for price stability is also favourable, although inflation is expected to rise somewhat in the near future. This is mainly a result of the recent strong increase in energy prices. The fact that regional discrepancies in price increases amounted to up to 2 percentage points does not, by any means, conflict with this assessment. This phenomenon, which is almost typical for large-sized monetary areas and is also to be found in the United States, can reasonably be explained. *** So far, I have limited myself to considering the internal aspects of EMU, but the introduction of the euro also has implications that extend far beyond the boundaries of the European Union. As the currency of an economic area with a population of nearly 300 million people and one sixth of the world’s gross domestic product (GDP), the euro is already the second most widely used currency in the world after the US dollar. Moreover, as investor confidence grows and as more EU Member States join the euro area, in particular following EU enlargement, the euro’s role as an international currency is destined to gain in importance. This is not to say that the Eurosystem will actively promote an international role for the euro, or that there is a policy of trying to supplant the US dollar as the world’s leading currency.

Policy shifts and the proliferation of binding “one-size-fits-all” regulatory prescriptions however, goes against the grain of regulation that is proportionate to risk which has been a well established principle of sound regulation. There is therefore considerable risk to simply following new “trends” which may lead us down yet another potentially misguided path. In particular, the significant efforts made in the region over the recent decade to bolster financial sector efficiency and innovation, which in turn promotes financial integration, could be disproportionately curtailed. In addition, it has only been recently that the global attention has also turned to enhancing supervisory intensity and effectiveness as an essential component of the financial reform effort. This is a welcome move and will add a critical dimension to the consideration of future reforms by national authorities. In Asia, financial reforms were already accompanied by a significantly strengthened supervisory approach and safety net arrangements, which served to check unfettered innovation and reckless risk-taking behaviours and promote strong incentives for prudent risk management. For these reasons, our banking systems have been resilient through the global financial crisis and have continued to remain strong since, despite continued risks in the global economy. As we contemplate the raft of reforms that will continue to occupy the global agenda in the next few years, our considerations should be to pursue domestic and regional solutions that will deliver a more resilient financial system without impairing the continuous provision of efficient financial services that are vital for our economies. Let me conclude my remarks.
As a central banker, I will of course argue that the role of the central Bank is crucial. It should be the guardian of the health of the "financial ecosystem" through reinforced surveillance and a continuous improvement of the regulatory and legal framework. Sound supervision must be promoted by an independent body, which may be more or less related to the central bank. In France as in India, banking supervision is indeed implemented by the central bank staff. Sound supervision and a clear legal framework in turn are likely to encourage foreign participation and maximise the associated benefits in terms of best practices. The need for appropriate supervision is indeed not reduced but modified or may even be increased in case of financial liberalisation. For instance, a working group in process at the BIS, in which both the RBI and the BDF are currently participating, shows that the development of local bond markets changes the types of risks faced domestically from currency risks to interest rate risks or maturity mismatches. This requires to enhance and control adequate risk management in the banking sector and in those institutions in which the risk may have been transferred. Indeed financial innovations such as credit risk transfers may well spread risks but risk does not disappear. The central bank is also responsible for producing and disseminating various sets of monetary and financial statistics whose quality is of utmost importance for policy makers and investors.

The lessons that can be drawn from a comparison with the French experience may seem limited since, in the 1980s, France was facing capital outflows, whereas emerging economies are now often facing speculative capital inflows. However, I believe that, while the challenge has become more demanding, successful financial liberalisation for EMEs still rests on the same two key conditions that applied to France: •  Building a resilient domestic financial system while or before opening the capital account. •  Shaping appropriate institutions and policies. I will illustrate these two conditions in the reminder of my speech. BIS Review 64/2007  1  1. A successful liberalisation requires to strengthen the domestic financial system while, or sometimes before, opening the capital account  I will briefly remind you why and how this can be done. First, why? This is because an efficient financial sector ensures both a better financing of and a better protection for the economy. On the one hand, it ensures a better financing of the economy by broadening the investor base and enhancing their ability to make use of diversified financial instruments. Not only does competition within the financial sector contribute to limiting the cost of capital but it also fosters innovation and thus allows for more efficient risk management. For example, securitisation provides financial institutions with instruments to manage the composition of their balance sheets and thus contributes to buttressing credit distribution while supporting the development of financial markets.
In the short term, under the adverse scenario there could be a substantial price correction on financial markets, and economic growth could slow markedly. Such a scenario would affect the two big banks in particular. For domestically focused commercial banks, the main risk stems from a potential fall in Swiss real estate prices over the medium term. This risk increases the more market prices diverge from those justified by fundamentals. Given the high risks in the economic and financial environment, the SNB considers that there is a need for action by big banks and domestically focused commercial banks alike. The SNB’s recommendations are aimed at strengthening the resilience of the Swiss banking system, to ensure that it is in a position to continue performing its essential functions for the Swiss economy, even if the adverse scenario I have just described were to materialise. Situation at the big banks I would now like to present the key points of our assessment of the big banks. Since June 2011, both big banks have made further progress in improving their resilience; first, by increasing their highest-quality capital – by which I mean loss-absorbing capital – and, second, by reducing their risk-weighted assets. CDS spreads, for example, suggest that the market considers the solvency of both big banks to be above average compared to other international banks. This is partly explained by the fact that they are only moderately exposed to the most vulnerable peripheral euro area countries.

1  Swiss National Bank, “Implementing the countercyclical capital buffer in Switzerland: concretising the Swiss National Bank’s role”, fact sheet, June 2012; available at www.snb.ch, Financial Stability, Publications. 4  BIS central bankers’ speeches
Timescales In preparation for the QIS, we will shortly be releasing an information request to firms which use the MA. We are asking for granular asset data, and asset and liability cashflow data, relating to 4/6  BIS central bankers' speeches  the relevant firms’ Matching Adjustment Portfolios under the existing regime. I’d strongly encourage firms that use the MA to engage with this at an early stage. We intend to release the QIS over the summer and it will be relevant for a broader set of firms – including both life and non-life. It will cover the MA and risk margin as well as elements of the Transitional Measure on Technical Provisions (TMTP). Whilst at the moment we are not expecting to test changes to the Standard Formula, we still encourage Standard Formula firms to participate as they may be impacted by the other changes. Participation is voluntary, but we will be writing to a variety of firms in each sector strongly encouraging them to participate. In addition we will publish the QIS templates on our website so that any firm is able and indeed welcome to participate. We would like a wide range of participation so that we and the government can understand the impact of reforms not just on the industry as a whole, but importantly on sub-sectors. The PRA will set out plans shortly on overall timelines, and how we intend to engage with firms during the QIS.

Cooperation between the BdF and MAS has strengthened significantly, particularly since the opening in 2020 of the Asia-Pacific Representative Office, here in Singapore, which is one of the most innovative financial centres (with a strong Fintech sector), and a highly important region in today's world. MAS, BdF and ACPR have deepened and diversified their linkages across key and cutting-edge areas, such as (i) cybersecurity, with an international cyber crisis management exercise conducted jointly in June 2022, (ii) Fintech, with a MoU between MAS and ACPR, (iii) post-quantum cryptography, where ongoing work is joining BdF and MAS, (iv) green finance, with a milestone achieved together with the FranceSingapore Conference on Sustainable Finance in May 2022, and finally (v) tokenisation of finance, with Central Bank Digital Currency experiments involving cross-border payments. My warmest thanks go to Ravi Menon and MAS staff, and also to the colleagues of the BdF's office in Singapour, who have helped the strengthening our bilateral ties. I wish to also express my sincere and special thanks to François Haas for his proactive engagement for making this MAS-ACPR-BdF cooperation flourish. François was the right man in the right place to take up the challenge of launching and leading our rep office here, building notably on his former experience as head rep for the Americas. Your achievements François are all the more remarkable when considering that you took office exactly when in person, face to face, interactions, were hampered for a long while by lockdown measures.
Nevertheless, developments in the krone are of considerable importance to interest-rate setting because exchange rate developments have an impact on inflation and output. When there are prospects of moderate economic activity, low wage growth and low inflation, Norges Bank will reduce the interest rate. This will normally result in a depreciation of the krone. Prices for imported goods and services will increase. A weaker krone strengthens the competitiveness of Norwegian enterprises and indirectly leads to higher output, employment and inflation. Themes in foreign exchange markets shift. In periods, investor focus on stock returns feeds through to exchange rate movements. During periods of political and economic unrest, investors may choose individual currencies as a safe haven - often the Swiss franc. In the autumn of 2002, the Norwegian krone was probably also perceived as a safe haven. Wide fluctuations between major currencies have a tendency to result in a weaker krone. In the past 12-18 months, developments in the interest rate differential between Norway and other countries appear to have had a particularly marked impact on our currency. Norwegian interest rates have been pushed down to the level prevailing abroad. Chart 10.

Inflation Per cent  6  6 Goods and services produced in Norway  4 2  4 2  Underlying inflation  0  0 -2  -2  Imported consumer goods  -4  -4  -6 1999  -6 2000  2001  2002  2003  2004  Sources: Statistics Norway and Norges Bank  Consumer price inflation in Norway declined sharply through 2003. A number of factors appear to have contributed to the decline. The appreciation of the krone through 2002 pushed down import price inflation. Chart 17. Price indicator for imported consumer goods Foreign currency. Percentage rise  3  3  2  2  1  1  0  0  -1  -1  -2  -2  -3 1992  -3 1994  1996  1998  2000  2002 2003  Source: Norges Bank  12  BIS Review 11/2004  A change in trade patterns and external economic conditions have resulted in an unexpectedly sharp fall in import prices, even when measured in terms of what Norwegian importers pay in foreign currency. Chart 18. Price indicator for imported consumer goods Foreign currency. Index.
Marzunisham Omar: Comprehensive approaches to monetary and financial policy making in ASEAN-5 countries Welcome remarks by Mr Marzunisham Omar, Assistant Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the third BNM-IMF Seminar, Kuala Lumpur, 17 July 2019. * * * In his remarks at this seminar last year, Odd Per quoted the book Enchanted; “First time is luck, second time is a coincidence and third time is a tradition.” Here we are gathered today for the third BNM-IMF Seminar to celebrate this “tradition”, a tradition I hope will continue for many years as we can all agree that candid and open dialogue between the IMF and ASEAN-5 central banks is mutually beneficial. Let me take this opportunity to thank the IMF and the team at Bank Negara Malaysia for organising this Seminar and to my colleagues from the region for being highly supportive of this effort. The topic today – “Comprehensive Approaches to Monetary and Financial Policy Making in ASEAN-5 Countries” – is indeed timely given the ongoing work at the IMF on the “Integrated Policy Framework”. I hope today’s Seminar will help shed greater insights on how central banks in ASEAN economies, which are small, open economies, navigate through increasingly complex, interrelated issues in our pursuit of preserving monetary and financial stability. I have no doubt that we in ASEAN will also find today’s Seminar useful in understanding the IMF’s latest thinking on these issues. There are two parts to my brief remarks today.

Ladies and Gentlemen As has been done for many years now, Zambia joins the international community in commemorating the World Savings Day which is celebrated every year on 31 October to emphasize the significance of savings for individuals. It is important to note that there are various forms of savings which include among others Government securities, listed securities and equities, pension and insurance funds, savings accounts and other investment products. It is important that Zambian citizens are aware of the different types of products and services that are available to help them save, in a sustainable  1/4  BIS - Central bankers' speeches  manner. These campaigns are therefore aimed at creating awareness to enhance skills, attitudes and behaviours on personal financial management amongst children, youth and adults. All citizens should be aware of the effect their decisions have on the environment. This is critical if they are to have the confidence and motivation to make sound financial decisions, use appropriate financial services to improve their financial well-being and contribute to sustainable national development as adults in the future. Distinguished Guests Sustainable Finance can only be effectively entrenched when individual financial decisions are aligned to sustainable practices. Individual behaviours are shaped early in life, therefore the focus on financial education being incorporated in our education system is quite critical.
Ajith Nivard Cabraal: Harnessing sustainable growth in emerging markets Keynote address by Mr Ajith Nivard Cabraal, Governor of the Central Bank of Sri Lanka, at the 2nd World Management Summit 2008, Karachi, Pakistan, 11 March 2008. *  *  *  As salaam Aleikum, Ayubowan, Good Morning. Mr. Chairman, Distinguished Delegates, Ladies and Gentlemen, At the outset, I wish to thank the organizers of this World Management Summit for inviting me to deliver the keynote address. I am also greatly touched by the wonderful hospitality accorded to me in this very interesting and historic city of Karachi. Mr. Chairman, I consider it a privilege and honour to share my thoughts and views on a very timely topic, “Harnessing Sustainable Growth in Emerging Markets” at this important forum. I hope I would be able to plant a few seeds in your distinguished minds so that such seeds may be nurtured by you in your deliberations to follow. As a first step, let us examine the current global and regional trends in relation to World Economic Growth, so that we could deal with this topic in a wider perspective. As we know, over the past few years, the global economy has been experiencing one of its’ strongest sustained periods of growth, since the early 1970s. This expansion is projected to be very strong even after accounting for the impact of the recent financial market turbulence. Significantly, this growth has, as its foundation, the strong results of the emerging markets which have been leading the way.

At our recent Governing Council meeting on 3 February, we acknowledged that “inflation is likely to remain elevated for longer than previously expected.” As Christine Lagarde said, these forces are expected to play themselves out gradually as the economy re-equilibrates and returns to its potential growth rate and the impact of the energy price shocks dissipate. I will not comment further on the expected outlook for inflation – this will be for our next projections on the 10th of March. I will, however, be discussing (i) the theory and practice of forward guidance, in such uncertain times, (ii) and how the ECB might need to adjust its current guidance to manage the path towards a normalisation of monetary policy. I. FG in theory and practice Originally, as proposed by Eggertsson and Woodford in 2003, forward guidance is a clear and powerful instrument at the effective lower bound on nominal interest rates when conventional policy is impotent. Under this strategy, a central bank commits to provide extra stimulus in the future once the underlying adverse shock is over. It does so by announcing it will keep interest rates low for longer, departing from its standard reaction function. As long as financial markets understand this, medium-term nominal interest rates will be lower. In addition, rational forwardlooking agents recognise that this will generate above-target inflation in the future, which lowers expected real interest rates over the whole period, further stimulating demand and inflation from today. This works perfectly in the textbook.
Broadly speaking, economic and monetary developments and prospects provide growing signs of an ongoing recovery, mostly indicating that the upswing will gain momentum during the coming winter. Some slack still exists in the economy, however. There are no clear signs of a turnaround in the labour market and seasonally adjusted unemployment has still not decreased. Leading indicators such as credit growth, business surveys of labour demand, and growing turnover and imports nonetheless strongly suggest that demand will rise in the near future. Boosted by increased quotas during the  4  BIS Review 45/2003  coming fishing year, more public sector construction projects and aluminium industry investments, a reasonable level of output growth can be expected this year. However, since the growth rate is below estimated potential, the slack in the economy will increase slightly compared with 2002. The growth rate in 2004 is expected to exceed estimated potential at 3½%, meaning that the output gap could turn positive next year. Inflation will nonetheless remain below the Central Bank’s target until the final quarter of 2004, according to the forecast. This is explained by the low current rate of inflation and excess output potential. Two years ahead, inflation is forecast to creep above the target. On the whole the future looks fairly bright, but as always we should not allow the celebrations to get out of hand. BIS Review 45/2003  5

Freeing up entry to wholesale banking First, we will significantly broaden participation by foreign banks in the domestic wholesale market. We have to do more to encourage quality international banks to use Singapore as their Asian base. Granting them more access to corporations and high net worth individuals will strengthen their business case to develop their operations in Singapore. Opening up the wholesale market to international banks will also benefit industries in Singapore. It will give our industries better access to world-class financial products and services that will help them develop their businesses. MAS will make a fundamental shift, towards a licensing regime that distinguishes between retail and wholesale banks, away from the 3-tier licensing regime of Full, Restricted and Offshore Banks. We will rename the existing Restricted Bank licence as the "Wholesale Banking" licence to better reflect the wide range of activities that can be already conducted under the licence. We will phase out the Qualifying Offshore Bank and Offshore Bank licence, and upgrade all existing QOBs and OBs to Wholesale Bank status over time. The upgrading will allow these banks to accept $ fixed deposits above $ and operate $ current accounts. It will also remove limits on the amount of $ lending that they otherwise face as offshore banks. We plan to grant some 20 Wholesale Banking licences over the next two years. Banks will be admitted to Wholesale Banking status in priority of their financial strength and ability to contribute to Singapore's financial industry.