samchain/econo-pairs-v1 huggingface dataset:
Academic research also has a large part to play in this process, in both identifying the issues and proposing or evaluating policy responses. A lot of discussion is taking place around disentangling different forms of complexity in the market place. For example, regulators are promoting more transparency around funding and legal entity structure within complex financial institutions. And there is also a growing body of work that is exploring clearing houses and exchanges as important structural vehicles to mitigate the increased inter-connectedness driven by the growth of derivatives1. The approach taken in this paper is to look at some of the details of how risk-taking is executed and the underlying market structures. These micro-foundations can have a profound impact on systemic stability beyond the normal consideration of formal regulations. In particular, we focus on one aspect of market structure: contracts where, because of a failure to take into account how the financial system as a whole operates, the true value of the contract is different from what it was intended to be – by at least one of the counterparties who struck the contract. This can arise either because in states of the world in which a particular contract is designed to have value there is high correlation with other events or where, in that state of the world, full adherence to the legal structure would cause large unintended consequences in terms of signalling or reputational damage.

William Ryback: Launch of two-factor authentication for internet banking in Hong Kong Speech by Mr William Ryback, Deputy Chief Executive of the Hong Kong Monetary Authority, at the launch of two-factor authentication for internet banking, Hong Kong, 30 May 2005. *  *  *  Good afternoon, ladies and gentlemen. A very warm welcome to all of you to today’s press conference, which marks the launch of two-factor authentication by the banking industry in Hong Kong. It is a great pleasure that I am joined this afternoon by Mr He, Chairman of the Hong Kong Association of Banks, and Mr Man, Senior Superintendent, Commercial Crime Bureau, Hong Kong Police Force. They will be sharing with you shortly about the benefits of two-factor authentication to bank customers and its effectiveness in combating Internet banking frauds. We will be happy to answer your questions afterwards. The acceptance of Internet banking services has been growing rapidly in Hong Kong over the past years. At the end of 2004, over 2.7 million personal Internet banking accounts (an increase of 23% from a year ago) and 107,000 business Internet banking accounts (an increase of 60% from a year ago) were established in Hong Kong. To date many of the banking services are available online. In view of the growing acceptance of Internet banking services and sophistication of Internet banking frauds reported locally and overseas, the banking industry in Hong Kong reached a general consensus last year to strengthen the Internet banking security by implementing two-factor authentication.
That also requires managers' attention, in a setting in which there is a greater likelihood that the accommodative stance of monetary conditions will progressively be normalised and that the slowdown in house prices that appears to have begun will continue and even intensify. BIS Review 60/2006  9  The forceful increase in banking activity, and particularly in credit to the resident private sector, has not been accompanied to the same degree of intensity by the raising of funds through traditional liabilitiesside instruments such as deposits. In this respect, there was a stronger tendency in 2005 to seek additional financing on the financial markets through the issue of mortgage covered bonds and other securities, or through asset securitisation. Although this usually entails more costly financing than the raising of more traditional resources, it is no less true that Spain's incorporation into a stable zone, such as the euro area, has provided our institutions with access to efficient capital and interbank markets. Access to international markets, mainly in the euro area, has assigned to credit institutions a central role in the channelling of saving from the rest of the world to our economy, and, in the case of securitisation, it has helped transfer part of the risk to foreign investors. This may mean that the external financing conditions for credit institutions and for the Spanish economy may be more sensitive to the circumstances of capital markets and to developments on property markets in our country.

At the level of monetary measures, the Central Bank of Kuwait cut the interest rate several times in March 2020 down to all-time low 1.5% to reduce the borrowing cost and ensure that the temporary liquidity issues at the CBK-regulated units would not turn to permanent issues to their solvency. This step was followed by a series of measures related to financial stability including activation of its emergency plans and those of the banking sector to address the requirements of the pandemic, as well as taking a package of measures within the macroprudential policy to ease the regulatory requirements upon the outbreak of the crisis, the most important of which was releasing the prudential capital buffers of 2.5%, facilitating liquidity requirements to provide a wider lending space for banks, and reducing the risk weights related to exposures to small and medium enterprises, thus supporting the vulnerable sectors. As regards, the financial stability, the measures included payment moratoriums for the affected customers, obligating banks not sell or seize the collateral, and instructing banking sector units to conduct a comprehensive review of their credit and investment portfolios. To mitigate the economic and financial damages, and maximize the benefits from the aforementioned monetary and financial measures, the Central Bank developed and implemented a clear plan to follow up on the situations during the pandemic, in light of the data on the conditions and spreading infection.
It is not part of our mandate. This is more effectively done by fiscal policy. I don’t believe any other central bank specifically takes this into account either. • But going forward, the Swedish parliamentary committee on finance has asked the Riksbank to evaluate the distributional effects of the expansionary monetary policy in recent years. So this is an area we are working on now and will continue to do so. • As the theme of this conference is “reshaping globalisation” I would like to end by adding some words about my views on the global perspective on equality and the possible explanations for increased inequality in many developed economies during recent decades. As I have said, the contribution from monetary policy to equality should in my view in general be minor. • I do not think you can talk about globalisation without also talking about technology. Some argue that increased inequality in many countries is due to the latest technological progress having been skills biased, resulting in a rise in the skill premium and the decline of some labour market institutions in advanced economies, emerging markets and developing countries 4.

SPEAKING POINTS DATE:  2017-12-07  SPEAKER:  Deputy Governor Cecilia Skingsley  VENUE:  International Economic Forum of the Americas, OECD Conference Center, Paris  SVERIGES RIKSBANK SE-103 37 Stockholm (Brunkebergstorg 11) Tel +46 8 787 00 00 Fax +46 8 21 05 31 registratorn@riksbank.se www.riksbank.se  What role for monetary policy in achieving inclusive and sustainable growth? • I intend to say a few words about the role of monetary policy in achieving inclusive and sustainable growth. • I would like to start by saying that in general, a well-balanced monetary policy, including a price stability target, contributes to sustainable growth, and that sustainable growth is normally positive for equality. • Achieving the monetary policy goal of keeping inflation low and stable leads indirectly to positive effects on equality, as households with low incomes don’t have the possibility to shield themselves from the costs connected with high and volatile inflation. • The press release from 15 January 1993, when the inflation target in Sweden was announced, stated: “Price stability is a prerequisite for sustained economic growth as well as full employment and it prevents an arbitrary redistribution of income and wealth”. • If inflation is higher than expected, borrowers benefit because the value of their debts declines, while lenders and those with large savings lose out. This type of large, arbitrary redistribution between lenders and borrowers was common in Sweden during the 1970s and 1980s, but is now history.
Forging ahead Bilaterally, individual ASEAN countries are already increasing their economic links with China and India. But we should complement these individual efforts with combined ones, either several ASEAN countries which are ready proceeding first, or the whole of ASEAN working together as a group. We are negotiating an FTA with China, and targeting to conclude the goods chapter by middle of this year. By 2010, we should have an FTA between China and the original six ASEAN countries. By 2015, all ten ASEAN members will be included. India is also negotiating to establish an FTA with ASEAN by 2011. Japan, which has been a key investor in ASEAN, has also proposed a Japan-ASEAN Comprehensive Economic Partnership, which both sides are now working on. The US, too, has announced the Enterprise ASEAN Initiative, under which it will pursue various agreements with ASEAN countries, taking into account their respective progress in economic liberalization. So we are strengthening our linkages with all our key trading partners. Last October, the Leaders committed to an ASEAN Economic Community by 2020. This is an ambitious vision which will see the creation a single market for goods, services, capital and talent in ASEAN. But 2020 is a long time from now, and we must make progress long before this deadline. Beyond trade in goods, ASEAN needs to step up its integration in other areas. For example, much work remains to be done in forging common investment rules, and in liberalising and integrating the services sectors.

Although gaining a hearing for the policy of low inflation was an uphill struggle to start with, we can see that the idea enjoys growing support today. Studies show that more and more people back the Riksbank’s inflation target. The fact that the Riksbank now has an independent legal status is perhaps a sign that Swedes have come to accept the price stability regime. Results in recent years It may be interesting against this background to examine developments in the last few years. Are there any indications that the policy shift around 1990 has already had some effect? Obviously, the return to price stability is not the only change that has taken place. Economic policy has changed in other respects too. For example, budgetary policy has been tightened up, public expenditure has been cut and deregulation and other structural reforms have been implemented. One way to understand the impact of the policy shift is to compare developments in recent years with the preceding 20-year period with a high-inflation regime. Naturally, all such comparisons must be made with great caution, since the outcome depends very much on which periods you take as your starting-point. The argument for low, stable inflation is that it ensures a better environment for investment, improved productivity, economic growth and increases in real wages and, in the long run, higher employment too.
See also Anjan V. Thakor, “Bank Capital and Financial Stability: An Economic Trade-off or a Faustian Bargain?,” Annual Review of Financial Economics, 2014, 6:185–223 for a review of theoretical and empirical findings. 4 In the early 1980s, for example, there is some evidence that a shorter exam cycle contributed to an increase in  the number of bank failures in FDIC, History of the Eighties – Lessons for the Future, 1997. See Bank for International Settlement, 2010 on costs and benefits of higher capital requirements. 5 Kevin J. Stiroh, A Perspective on Supervisory Objectives, and Trade-offs, February 23, 2017. 6 For example, Thakor, 2014, reports that higher capital levels are associated with higher lending, higher liquidity  creation, higher bank values, and higher probabilities of surviving crises and Beverly Hirtle, Anna Kovner, and Matthew Plosser, The Impact of Supervision on Bank Performance, Federal Reserve Bank of New York, Staff Report No. 768, September 2018, find that increased supervisory attention results in lower risk without significantly reduced performance. 7 There may be certain states of the world where the frontier is not upward-sloping, e.g., in a downturn or crisis  period, restricting intermediation might increase financial stability risk. 8 Board of Governors of the Federal Reserve System, Supervision and Regulation Report, November 2018; Vice  Chair Randall Quarles, Semiannual Supervision and Regulation Testimony, April 17, 2018; and Vice Chair Randall Quarles, Supervision and Regulation Report, November 14, 2018.

Kevin Stiroh: Policy efficiency in supervision Remarks by Mr Kevin Stiroh, Executive Vice President of the Financial Institution Supervision Group of the Federal Reserve Bank of New York, at the conference "Bank Regulation, Lending and Growth", sponsored by The Bank Policy Institute and Columbia University’s School of International and Public Affairs, New York City, 1 March 2019. * * * As prepared for delivery  Introduction Good morning. Thank you very much for the kind introduction. I am very happy to participate in this conference on “Bank Regulation, Lending, and Growth,” sponsored by Columbia University and the Bank Policy Institute. The agenda covers a number of important banking issues and I will talk about the idea of policy efficiency from a supervisory perspective.1 Before beginning, let me emphasize that the views I express are my own and do not necessarily reflect those of the Federal Reserve Bank of New York or the Federal Reserve System. Public policy strives to be efficient, but efficiency is not a simple concept, particularly in the context of the supervision of large financial firms where the world is complex, the official sector has multiple objectives, and impact lags are long and uncertain.2 For example, supervisors care about the safety and soundness of individual financial firms, about the provision of financial services to support the real economy, about consumer welfare and financial inclusion, and about financial stability.
In the words of the famed American economist, Paul Samuelson, “what we know about the global financial crisis is that we don’t know very much”. And so, policymakers around the world continue to direct their energies towards searching for signs of the next crisis, and preparing themselves to deal with it when it comes. But as you can imagine, when there is much that we still do not fully understand, this is far from straightforward. The conundrum here is that the next crisis will likely come from where we least expect it. Our understanding of the sources, drivers and transmission channels of systemic risk remains incomplete. While many had warned of pressures building in the subprime mortgages industry before the crisis hit, few, if any, had imagined the scale and impact of the blow up on the global financial system or economy. Our challenge isn’t just a question about where, but when a crisis is going to strike and how it will spread. And therefore when, how and with what instrument policymakers should act. The permutations presented by these questions alone in any single economy are almost boundless. Add to that, financial systems that have become far more complex and the relentless pace of technological advancements, and one quickly gets a sense of the daunting challenges facing authorities who are tasked to maintain financial stability. Or even engender some sympathy from those who believe that there should be much less regulation.

The more inclusive process to global standard setting is therefore very much welcomed and needs to be further enhanced through continued open dialogue and support for implementation approaches that are more responsive to unintended consequences at a jurisdictional level. Today, the Bank will communicate its intention to extend the observation period for the Net Stable Funding Ratio, or NSFR, in Malaysia for another year to 2020. This takes into account the Bank’s intention to conduct further on-site assessments to validate the maturity and robustness of the liquidity and funding practices of banks, and uneven progress in implementation at the global level. 3/4  BIS central bankers' speeches  The Bank remains committed to implementing the NSFR requirements as part of overall liquidity standards applicable to licensed banks in Malaysia. At present, all banks maintain adequate liquidity buffers against short term liquidity stress, and the vast majority of banks already report NSFR levels above the minimum 100% based on observation data. Let me now draw my remarks to a close. The task of financial stability authorities is to prepare for the worst, and work for the best. There are rarely easy fixes to the issues that we face, but also no shortage of diverse experiences to draw from and to guide our path. It is my hope that this conference will serve to generate useful discussions that will help inform our own preparations to confront any eventuality, and strengthen our conviction that being prepared is better than being right.
It meant that during the autumn the Riksbank had cut the repo rate from 4.75 per cent to 2.00 per cent. The ECB has also cut its policy rate over the past two months to the current 2 per cent and in the United States the policy rate is close to zero. We Executive Board members were agreed that a large cut in the repo rate was necessary to dampen the rapid economic downturn that had become evident. Inflation had already begun to decline and is expected to undershoot the Riksbank’s target of 2 per cent in 2009. However, underlying inflation, which is when the effects of our own interest rate cuts and falling energy prices are excluded, will be close to 2 per cent during 2009, according to the forecasts in the Monetary Policy Update. A complicating factor is that the relationship between the repo rate and market rates has not been normal in recent months. Market rates fell less than might have been expected when the repo rate was cut in October. The spread between the repo rate and the banks’ lending rates increased. But towards the end of the year the repo rate cut had a greater impact. For instance, short-term mortgage rates have been lowered more or less as much as the repo rate up to January. But in other areas the difference between the repo rate and market rates is much greater. The financial crisis has also affected the Swedish krona.

Financial integration in Europe and in the euro area had been growing steadily before the financial and sovereign debt crisis. However, the system was not structurally integrated and when the crisis financial erupted integration quickly reversed, exactly when it was most needed. In response to global and local shocks almost all financial markets became highly fragmented and retrenched inside domestic borders. These developments represented an existential threat to the Monetary Union and the single currency. That fragmentation has reversed along several dimensions in the last few years. But significant room for further improvements in financial integration remains, for example in the integration of retail banking services and in the financing of the corporate sector. Financial integration provides risk sharing mechanisms which can reduce the impact of countryspecific shocks and contributes to macroeconomic stability. Internationally diversified portfolios – cross-regional and cross-border asset holdings, including firm ownership claims – are more resilient to global and local shocks and can mitigate the impact of such adverse scenarios. This is particularly true when integration occurs also in the equity markets as opposed to the current bias towards debt finance intermediated by banks.2 For countries in a monetary union, this risk sharing mechanism is particularly important because the single monetary policy is unable to address asymmetric shocks, since other important adjustment mechanisms, for example related to fiscal policy and exchange rates, are limited.
The technical committee of the IFSB is now in the final stages of the formulation of the prudential standards on capital adequacy and risk management. The IFSB has also commenced work on standards for corporate governance. Whilst appropriate regulations and standards are vital to mitigate the risks involved, of equal importance is the oversight and monitoring of the Islamic financial institutions through effective supervision by the regulatory authority to ensure that the prudential requirements are observed. Lack of oversight, inadequate check and balances, and over exposure to risks are amongst the factors that may result in vulnerabilities to the system. The best of regulations and financial safety nets would not be able to avoid vulnerabilities if early warning systems are not in place. To effectively perform the supervisory function it is important to not only identify the risks involved in the various Islamic financial  BIS Review 47/2004  3  transactions but also to be able to detect any contravention of Shariah principles in financial transactions and operations. A central feature of the regulatory framework for Islamic financial institutions is financial transparency and disclosure. This is particularly pertinent for Islamic financial transactions. For example, investment depositors in the Islamic banking institutions have the role of quasi shareholders that are not only entitled to share the profits of the Islamic banking business but are also exposed to the risks of losing their capital in the event of losses.

I am positive that, like in the banking sector, the society will benefit from this. It will result in more efficient production, lower prices, better service quality and curb the power of the monopolistic producers. To date, as in the early 1990s, we again face the question of what is the right fiscal policy. Of course, today this problem is raised in a slightly different way. But, in essence, it is the same question - what fiscal policy shall ensure the stable development of the Estonian economy within the fixed exchange rate regime and as part of the euro area. I shall return to this question towards the end of my presentation. Thus the economic policy key issues we are facing in the beginning of the 21st century resemble in many aspects the problems we tried to resolve in the beginning of 1990s. We have achieved progress in finding solutions to some of the problems, others have remained unresolved. One thing is clear - undue postponement of tough issues is no good to anybody. If we want to be treated as equal partners in the European Union, if we want to sustain the rapid growth rate and  2  BIS Review 51/2002  growing income level, we must tackle these problems with similar resolution and energy we did 10 years ago. B. Challenges facing Estonian economy on its way to the European Union - internal policy  So - what are today’s and tomorrow’s challenges facing Estonian economy?