samchain/econo-pairs-v1 huggingface dataset:
The trust deed and prospectus of the PAIF, which comply with laws and regulations of Hong Kong and Singapore and are in line with international standards, served as a model for the drafting of fund documents for the ABF2 Single-Market Funds. This has helped to promote the adoption of international best practices among EMEAP economies. 2  BIS Review 79/2005  ABF and financial stability 15. Let me turn to the other question that I have been asked specifically to address, and this is how the ABF initiative can contribute to financial stability in the region. I must confess that, even though the central banks in the region have been enthusiastic in the development of the project, the benefits of ABF to financial stability in the region have not been clearly articulated in our deliberations. I can assure you, however, that this is not a reflection of any lack of brains on the part of Asian central bankers or because the objectives have not been clearly defined, although there may be a lack of a clear road map. But it should be all right, as Deng Xiaoping pointed out, to cross the river by feeling the stones. The lack of a clear linkage between ABF or indeed debt market development generally and financial stability is more a reflection of the difficulty of defining what financial stability is. 16.

When the couple passes away, and if their children choose not to redeem the property, the bank will recover the outstanding loan with accrued interests by selling the property in the open market. Any surplus will be returned to the children of the borrowers or their designated estate. If there is any shortfall, the HKMC will take care of the difference because the borrowers, when taking out the Reverse Mortgage, have already bought insurance from the HKMC to cover the shortfall risk. This scheme would not have been commercially viable for the banks without the insurance provided by the HKMC to cover the potential shortfall risk due to either falling property prices, rising interest rates or increasing longevity of the borrowers. So far, over 2,500 households have joined the Reverse Mortgage Programme. The initial take-up rate was not fast but is picking up steadily. It has taken some time for Hong Kong people to get to understand and appreciate this new product. Also, it is quite common amongst Chinese parents wishing to pass their properties to their children without encumbrances, which will not be the case if they have joined the Reverse Mortgage Programme. However, there is increasing awareness amongst retirees that they do need to take care of themselves rather than suffering from a steady drop in living standards due to insufficient recurrent cash flows. Life Annuity Scheme 2/4  BIS central bankers' speeches  6.
It is important to remember that the interest rate forecast is a conditional forecast and not a promise. The interest rate path has been revised frequently, and sometimes fairly substantially – as during the financial crisis and in the wake of the oil price fall in 2014. Nor are market 2/7  BIS central bankers' speeches  expectations of future interest rates necessarily aligned with Norges Bank’s interest rate path. On the contrary, the two curves have often diverged to some extent, particularly at somewhat longer horizons. Norges Bank’s analyses nonetheless indicate that we are successful in steering market expectations in the desired direction (Brubakk et al (2017)), for example by publishing the interest rate path. The analyses also find that central bank and market revisions of interest rate paths in the periods between monetary policy meetings are strongly correlated. This suggests that market participants have a good understanding of the central bank’s response pattern and of how monetary policy will react to new information about economic developments. Need for alternative reference rates Chart: From key rate to money market rate … Market expectations of future interest rates are reflected in the Norwegian monetary market rate – three-month Nibor. This rate can be decomposed into the average expected key policy rate over the next three months and a risk premium, usually referred to as the money market premium. Over time, three-month Nibor has tracked the key policy rate.

Individual borrowers may be keen to stretch themselves financially to buy a bigger house, expecting their earnings to grow or house prices to rise. And individual lenders may be happy to provide a larger loan to receive more income. But should a recession hit, not only will we see defaults, but overstretched borrowers will reduce their spending as they struggle to pay their mortgages. And this reduction would ultimately spillover to the rest of the economy, making the downturn worse. Macro-prudential policy takes these spillovers into account. By ensuring borrowers in aggregate are not overstretching themselves and financial institutions in general are lending responsibly, macro-prudential regulators can ensure that the whole system is more resilient to shocks. 3 2/7  BIS central bankers' speeches  2. Markets are not necessarily efficient or complete3. Market prices may not reflect the real value of assets4, not every market is perfectly liquid and risks may not be as welldispersed as they might seem. These imperfections can lead to two types of risk to financial stability: cyclical and structural. Cyclical risks arise because financial conditions can suddenly reverse.5 The simplest example is of financial institutions taking on too much risk in booms, in the expectation that the assets they purchase will always be in demand. When the cycle turns, asset prices can fall rapidly, leaving institutions with losses. This is why we have countercyclical tools – to ensure the system can build up resilience in good times, and use it in bad times.
Conclusion  6.1 In concluding, let me re-emphasize that technological advances and changing industry structures are two key forces that impact on payment system developments, of which retail payments is a critical component. However, attention to public priorities, i.e. integrity, accessibility, efficiency and the safety of new retail payment methods, has been low. There is, therefore, an urgent need for coordination between policy makers/regulators and the private sector to ensure that they cater to the general public. 6.2 There is a clear role for banks, service providers and technical solution providers in the SAARC countries to take forward the region’s retail payments development. First, we need to understand the environment in which we work by estimating gaps in the systems. The SPC has already begun the preliminary work in this regard. Banks in the SAARC region will have to coordinate with their respective central banks and national payment councils in taking forward the SAARC payment initiative. 6.3 Development of the retail payment system is crucial for the development of financial markets in South Asia, particularly at a time at which faster growth requires supportive financial services. It is necessary for all stakeholders to be involved in the area of payment system development in preparing a realistic agenda within the national jurisdiction, as well as taking into consideration cross country legislation. In doing so, it is essential to understand the critical issues in the retail payments area and try to minimize the inefficiencies and improve safety issues involved in some of the popular payment modes.

And third: I'd like to wish everyone a happy Valentine's Day. As Rihanna sang at the Super Bowl, I hope you all have someone to stand under your umbrella. Inflation Is Still Too High Economic developments over the past three years have been extraordinary. The pandemic contributed to dramatic swings in our economy - and economies around the world-that we are still grappling with today. At the onset, we experienced the deepest but also the shortest-recession in U.S. history, as well as an immediate spike in unemployment, the highest since the Great Depression. Then, along with Russia's war against Ukraine, the pandemic contributed to skyrocketing inflation, which reached 7 percent last June, as measured by the personal consumption expenditures (PCE) price index . That's a level we had not seen for four decades, and one that is well above the FOMC's longer-term goal of 2 percent. High inflation hurts everyone, but it's hardest on those who can least afford essentials like food, housing, and transportation. Persistently high inflation also undermines the ability of our economy to reach its full potential. The Federal Reserve has a dual  1/5  BIS - Central bankers' speeches  mandate, set by Congress, to promote price stability and maximum employment. And price stability is essential for the achievement of maximum employment on a sustained basis. Over the past year, the FOMC has taken strong actions to bring inflation down. Although we have seen some moderation in recent months, the inflation rate remains far too high at 5 percent.
It is worth emphasising that for no fewer than 12 years before the launch of the euro, six of the currencies which now make up the euro—and represent close to two thirds of the GDP of the euro area—had proven to be remarkably stable, not being subject to any realignment within the E.R.M. This high level of confidence is also supported by the homogeneous functioning of the Eurosystem: the European monetary team, composed of the ECB and the national central banks of the -nowst twelve euro area countries as we have welcome, on the 1 of January 2001, a new member, the Bank of Greece. All the components of the Eurosystem work constantly hand in hand. The Eurosystem is a single monetary team, with the ECB acting as a coach and the NCBs as the players on the field, with a single team spirit and this team spirit is one of the priceless assets of the euro area. c/ Third, the credibility of the Eurosystem rests, fundamentally, on its stability-oriented monetary policy strategy. I would like to allay the fears and doubts expressed by some observers as regards the clarity of our monetary policy strategy. The Maastricht Treaty has given us a mandate for maintaining price stability. We have decided to be as clear and as transparent as possible by announcing a clear definition of price stability, featuring a year-on-year increase in the Harmonised Index of Consumer Prices for the euro area of below 2%.

We Central banks should investigate the many questions it raises – and we have started this work at the Banque de France –, and then decide on its own merits. III. Green finance, “a new frontier for the 21st Century” Let me now turn to green finance. For me, it is “a new frontier for the 21st Century”. First and foremost, I would like to pay tribute to the Governor of the Bank of England, my colleague and friend Mark Carney, who was a pioneer when he pointed out “the tragedy of the horizon”2 in 2015. Much has already been undertaken since then. We are currently witnessing a growing awareness from central banks, supervisors and 2/4  BIS central bankers' speeches  financial institutions about climate-related risks. Clearly, green finance and climate risks management have gone from the “nice to have” to the “must have”, from emotion to reason. In financial institutions, climate change is no longer confined to Corporate Social responsibility (CSR) policy. Concerning central banks and supervisors, the creation of the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) in Paris in December 2017 has been a decisive step forward. In 18 months, this coalition of the willing has increased from 8 founding members to almost 50 members and observers from all 5 continents, with the Banque de France acting as its permanent Secretariat and the active involvement of the Bank of England.
1  See A. Espitia, A. Mattoo, N. Rocha, M. Ruta and D. Winkler (2021), Pandemic Trade: COVID-19, Remote Work and Global Value Chains, Policy Research Working Papers, no 9508, World Bank  2 www.ecb.europa.eu/press/key/date/2017/html/ecb.sp170825.en.html 3 www.oecd.org/officialdocuments/publicdisplaydocumentpdf/? cote=ECO/WKP(2018)63&docLanguage=En#:~:text=We%20find%20that%20the%20EU%20ETS%20led%20to%20a%20statist  4/4  BIS central bankers' speeches

Let me briefly outline some of these roles: •  The MAS, as the statutory regulator, will monitor compliance with the laws and regulations that govern the integrity of the markets, seek enforcement of the laws, and propose amendments in order to keep them relevant in a changing market environment. We have undertaken a substantial review of our securities laws in the last year. Insider trading is now both a criminal and civil offence, and we have recently proposed to amend the laws to capture a wider pool of persons who seek to take advantage of inside information. The proposed new Securities and Futures Act (SFA), to be put to Parliament later this year, will contain other substantial changes. I will elaborate on one of these, concerning the 1 prospectus registration regime later in the speech. •  The Singapore Exchange (SGX), with its frontline interface with the industry and markets, plays a key role in preserving fair and transparent markets. It is responsible for the listing  1  The SFA would also incorporate the provisions concerning the raising of capital that are presently found in the Companies Act, thereby creating a single compendium of laws governing the securities industry. BIS Review 14/2001  1  rules for companies that raise capital and have their shares traded on the exchange. It is also responsible for ensuring that conditions exist for orderly trading of listed securities. •  The conduct of issuers themselves is at the core of a system of market discipline.
Chart 4: MPC over-predicted demand coming out of the pandemic  Sources: ONS, Bank of England and Bank calculations.The money-based forecast is based on an error correction model of consumption estimated over 1992-2019 that includes separate terms for liquid assets and illiquid assets in both the longterm relationship and short-term dynamics. It is based on a consumption function set out in Aron et al (2011)  . Nor does the pattern of price rises, over the past couple of years, fit the story. A pure, moneydriven inflation affects all prices equally. What we've actually seen are huge shifts in relative prices – first the jumps in those of non-energy traded goods in 2021 and then, in 2022, the enormous  Page 7  rises in the costs of imported food and energy. The important point here is that, however you measure it – whether in terms of prices (interest rates) or quantities (monetary aggregates) – monetary policy operates with a lag. During that interval, and at least until policy can react to them, there are lots of things – “shocks and disturbances” (as the MPC’s remit puts it) that can affect inflation. In this case it’s clear what those have been: the hits to the supply of non-energy goods during the pandemic, to those of energy and food during the war, and the resulting rise in their global prices. Thanks to the significant hit to real incomes they involved, these shocks have also had sizeable second-round effects on domestic wages and prices.

That is enough to offset a reduction in GDP of some 1.5%10 – three times the Bank’s estimate of the hit from the direct effects of the tariffs implemented so far (Table 1). Indeed, the scale of market moves suggests a shock to US and Chinese business confidence and investment analogous to what has happened in the UK (Table 3). Table 3: A significant confidence shock could lower US GDP by more than 1½ % Change in level of GDP (%) US  China  Euro area  UK  World (PPP-weighted)  Severe shock to business confidence in the US and China  -1.8  -1.8  -0.7  -0.7  -0.9  Direct trade effects if all measures are implemented  -2.1  -1.2  -0.6  -0.4  -0.8  Total  -3.9  -3.0  -1.3  -1.1  -1.7  See sources and notes to Table 1. 8  Currently a sample of over 7,000 companies. More details on the Panel are available at https://www.bankofengland.co.uk/statistics/research-datasets. 9 Similarly, in the Deloitte Survey of CFOs, 54% of respondents rated the level of uncertainty as high or very high in 2019 Q1, up from 25% in 2018 Q2. 10 This assumes a multiplier of 1 – that is, a 1 percentage point fall in the federal funds rate boosts US GDP by 1%.
We have launched and will build upon our responsible lending guidelines and practices. The important next steps for us on the banking side in terms of the green initiatives would be to improve disclosure, which, under any scenario and initiatives, remains a critical and essential building block to make all the others work. Aside from that, another critical initiative is the development on a green taxonomy that is consistent across the financial sector so that we do not end up working at cross purposes and can leverage upon each other’s efforts. I am happy to say that the Bank of Thailand has been working very closely with our colleagues at the Securities Exchange Commission, the Office of the Insurance Commission, the Stock Exchange of Thailand and the Ministry of Finance to try to develop a consistent taxonomy in green that extends across the financial sector in Thailand. Also, we hope that this will eventually be a taxonomy that is consistent across the region as well as within the ASEAN region. This is particularly important because the climate challenge will be, in many ways, won or lost here in Asia. While everybody has a lot to do, we have seen clear initiatives being taken in Europe, and obviously, more needs to be done both in Europe and the United States. Given where we are in our cycle of development, a lot of climate challenges is going to take place in Asia, not particularly within ASEAN itself, but also within broader Asia.

16 On the supply side, we too have seen healthy interest from Asia-Pacific issuers in the development of an APAC market for catastrophe bond issuances, due to the proximity to and better understanding of the underlying risks. 17 Given the above, the MAS has thus taken progressive strides towards developing the catastrophe bond market in Singapore. 18 As a first step, we have formed an alternative risk transfer work-group comprising industry experts in the ILS space. Chaired by Jon Paradine of Renaissance Re, the work-group advises the MAS on specific initiatives that will support the development of Singapore as an ILS hub. 19 Today, I am happy to announce one such initiative – the newly created ILS grant scheme. To catalyse the development of Singapore’s ILS market, the MAS will fund 100% of the upfront costs incurred in issuing catastrophe bonds out of Singapore. This grant will run from 1 January 2018 and will be applicable to ILS bonds covering all forms of risks beyond just natural catastrophe risks. 20 It is my hope that this grant scheme will encourage insurers and reinsurers to consider issuing a catastrophe bond here. In fact, MAS is already working with key industry players such as IAG Re Singapore with a view to issuing a catastrophe bond in Singapore. This is but the first step of a longer journey, as we look forward to working more closely with the industry to further deepen our ILS ecosystem here.
Another telling determinant of the low profitability of the banking business in Spain is the significant decline in income since the outbreak of the crisis, associated with the strong reduction in the size of bank balance sheets. During the upturn prior to the crisis, against a backdrop of high demand for bank lending and of very easy financing conditions, banks expanded their balance sheets notably, the reflection of which was a strong increase in typical revenue in the banking business. To cater for this surge in activity, banks increased their capacity by means of increasing the number of offices and staff, thereby raising operating expenses; but given that such expenses grew more moderately than income, the operating efficiency ratio underwent no erosion and results improved. With the onset of the crisis it became clear that the aggregate debt levels of Spanish households and firms were unsustainable, which triggered an intense and lengthy process of deleveraging. The ensuing reduction in the size of bank balance sheets has undoubtedly affected net interest income. Banks reacted to this contraction in activity and in operating income by cutting back their capacity, both in terms of offices and of staff, a correction which was assisted by the ongoing concentration in the banking industry. Despite the notable adjustment in productive capacity, operating expenses declined to a lesser extent than operating income, the result of the existence of certain overheads and of the expansionary behaviour of certain items. The upshot has been a decline in the profitability of the banking business.

Puerto Rico endured a serious downturn lasting for over five years and is now just beginning to show signs of stabilization. Why was the downturn in our region less severe than in many other parts of the country? Part of the reason is that the effects of the housing boom and bust on the region’s economy were less consequential. Of course, we have seen declines in construction employment, losses of housing equity and people losing their homes. However, as in most mature regions, the housing market tends to be less influential here than it is in parts of the country where population growth has been more rapid. This is particularly true across much of Upstate New York, which experienced little in the way of a construction boom, home price growth or subprime mortgage penetration. While many areas in downstate New York and northern New Jersey did experience a more significant boom and bust, the changes there were not on the same scale as in hard-hit states, such as Nevada, Arizona or Florida. Also, while the financial crisis was a key driving force behind the recession, employment in New York City was not affected nearly as much as some had predicted. Instead, it turned out that the finance sector held up better than expected. The pace of recovery in our region, though somewhat stronger than at the national level, has nonetheless been disappointing. Growth has been weak and the unemployment rate has remained stubbornly high. This slow pace of recovery continued into the second quarter of 2011.