samchain/econo-pairs-v1 huggingface dataset:
To many, financial planning can be a fairly complicated task. Identifying personal financial needs requires consideration of an impossibly wide array of factors, finding the right solutions for them even more so. For years, financial advisers have played the crucial role of condensing the vast technical complexities of finance into practical, reliable advice on a personal level. It is a role whose prominence I am certain can only grow with time, but only if it successfully adapts to a rapidly transforming financial and social landscape. In this connection and before elaborating further on the concept of a trust, I would like to draw your attention to three major trends that are shaping the industry as we speak. 1/5  BIS central bankers' speeches  First, demographic shifts. Malaysia is a relatively young nation. 40–50% of our workforce are aged between 21 to 35, also known as Gen Y. This remains a largely untapped market for financial advisory services, and for a reason – many individuals within this age group are skeptical of, or distrust financial advisers. According to a survey by the Asian Institute of Finance in 2015, only 37% of these individuals had sought advice from a financial adviser. Of this, only 26% trusted the advice they received. This is complicated by the fact that these are highly connected, tech-savvy individuals with broad access to online platforms that act as a primary source of information and advice.

With the scorecard, remuneration of intermediaries will be more closely aligned to the suitability of products for prospective customers and the overall quality of service. I believe that such a shift in incentive structures will encourage advisers to build more enduring relationships with customers. More can be done beyond the realm of regulation. In other countries – such as Australia, United Kingdom and India – financial advisers are voluntarily adopting a fee-based model. The combined effect of increased customer awareness and bargaining power are also pushing financial advisers to reduce their commission-based income. In India for example, several firms have successfully shifted to largely fee-based models. This is, however, not a painless transition. In doing so, some have parted ways with customers who were unwilling to pay these fees. I believe that the move towards a fee-based model is an important signal that the advisers’ incentives are aligned with those of their customers. To ensure a successful transition to a feebased model, financial advisers will need to enhance their value proposition to ensure that customers receive the standard and breadth of advisory services that would be worth paying for. 3/5  BIS central bankers' speeches  This is no easy undertaking, but I am confident that it is one that our financial advisory firms will be able to achieve. Adaptability to change At the beginning of my remarks, I had highlighted three key trends affecting the industry. How well financial advisers respond to these developments will determine the industry’s relevance in the years to come.
The composition of financial institutions will also show much greater diversity: with banks, insurers and takaful operators offering higher value-added services to serve the more sophisticated customers, with more developed venture capital industry and angel funds providing risk capital for innovative firms, and with development financial institutions stepping up to widen the base of financial services to all Malaysians. In addition, new and existing forms of financing that have thus far remained at the fringes of the financial system such as factoring, leasing and credit companies are expected to become more significant. Spurred by new technologies, such as greater adoption of electronic invoicing and receivables  6  BIS Review 146/2010  exchanges, it will generate more competition to the traditional players while enriching the product offering, particularly to the SME segment. The evolution of the financial sector will also focus on the new growth areas that will catalyse Malaysia’s transition to a higher value added economy. These include areas of financing such as for green technology, infrastructure development, education, and entrepreneurship and innovation. These are key focal points that will yield increased national productivity, drive innovation and stimulate the formation of businesses. It is anticipated that a significant portion of new frontier industries will be spearheaded by young, innovative SMEs that would require substantial investments in research and development, and for the commercialisation of the research and development. To support these endeavours, a more diversified financial structure, involving new financing modalities will be essential.

V.  Conclusion  Let me conclude: Considerable uncertainty remains in the outlook for the global economy and we must thus remain vigilant to emerging risks. Second, in a more complex and interconnected environment, broader prudential and economic considerations must factor more prominently in financial institutions’ management of risks. Third, while we believe our regulatory and supervisory system has served us well, we are not complacent and will continue to work hard to place the financial sector on firmer ground so that our ability to manage future shocks will be further improved. And finally, we are confident that with a clear vision, focus and effective implementation, our strategies to bring the financial sector to a new level in this next decade will deliver better outcomes for our financial system and our overall economy. Thank you. 8  BIS Review 146/2010
The ECB is taking measures to ensure the proper transmission of its monetary policy and maintain price stability, which buys time for this adjustment to continue. Completing the euro area’s institutional architecture To stabilise EMU over the long-term, however, requires a more fundamental reform of the institutional architecture. The minimalist approach pursued at Maastricht was found to be inadequate in the context of highly integrated financial markets. In recognition of this, the Presidents of the European Council, Commission, Eurogroup and ECB have been asked to lay out a roadmap to complete EMU over the next decade. They presented their interim report to the European Council in July and will present a final version in December This Report does not aim to identify what features we would ideally like for the euro area, but rather what features it cannot do without. Having been thoroughly stress-tested over the last three years, we now have a much clearer idea of what rules and institutions are essential for monetary union to function effectively. In the view of the Four Presidents, a stable EMU needs to be built on four pillars: financial union, fiscal union, economic union and political union. Let me explain each in turn. Financial union The first and most urgent pillar is financial union or, as it is more commonly known, banking union.

Aside from a single currency and a fiscal brake, EMU’s institutional architecture was minimalist: governance of economic and financial policies remained firmly a national competence. What lay behind these expectations? Of course, political considerations were a dominant factor, insofar as governments had incentives to limit the centralisation of fiscal, economic  BIS central bankers’ speeches  1  and financial policies. But to an extent, it also reflected the economic thinking that prevailed at that time. The rational expectations, perfect foresight paradigm was – and to a large extent still is – dominant. Many of its followers are, of course, aware of its limitations but hope to successfully expand the theory to encompass new aspects of reality. Standard models feature unboundedly rational agents and complete knowledge of all variables’ probability distributions in all possible future states of the world. They do not foresee significant credit cycles or irrational asset price bubbles. Moreover, information is fully symmetric and complete state-contingent contracts can be written and enforced. Default – a situation in which debtors cannot repay due debt in some states of the world – was also ruled out. The optimal lending contracts in such an environment do not even resemble a debt contract. Agents use so-called “Arrow-Debreu” securities. The set-up allows a different payback for every future eventuality so that borrowers are always able to meet due repayments.
Our Remit builds in important accountability and transparency mechanisms. One of which is the requirement for the Governor to write an open letter to the Chancellor if inflation moves away from its 2 per cent target by more than one percentage point. Inflation developments I am in the middle of a likely sequence of such open letters – I have another one due next month – on account of the record low inflation the UK is experiencing this year, currently at zero per cent. Such letters must explain, among other things, why inflation has deviated from target and what policy actions the Monetary Policy Committee (MPC) is taking in response. The “why” is straightforward. The bulk of the shortfall of inflation below target can be explained by the sharp fall in the prices of commodities and other imported goods since last year. Of these, the single most important factor has been the steep drop in energy prices globally. The rise in the value of sterling has also played an important role in lowering non-energy import prices, which have fallen over the past twelve months. The sum total of these effects has been to drag inflation below target by around 1½ percentage points. This temporary period of below-target inflation has provided a welcome boost to real household income. Inflation looking ahead The MPC’s intention is to return inflation to target in a sustainable manner within two years.

Bank of France reports industrial output generally stabilized in May 1997 BANK OF FRANCE, MONTHLY BUSINESS SURVEY, 17/06/97. According to business leaders surveyed by the Banque de France, industrial output generally stabilized in May, following a sharp upturn in April. The automobile sector was the only one to register a decline, which was accentuated by calendar effects. The capacity utilization rate fell back slightly from one month to the next. Overall demand changed little. On the domestic market, inter-industry demand was less buoyant than in April, whereas foreign demand, boosted by the strength of the dollar and the pound sterling, remained firm. Orders continued to stream in from English-speaking, Asian and East European markets. Order books were considered to be at normal levels across the different sectors, and they appeared on the full side in the business equipment sector. Inventories, which fell back, now seem to be at the desired level. Over the coming months, industrial output is likely to advance appreciably in all sectors. The best performances are expected from the food-processing industry and the capital and intermediate goods sectors. Commodity prices edged up, notably in the food-processing and capital goods sectors. These increases were only partially passed on to finished product prices, which rose only in the food processing industry, while remaining unchanged for consumer and intermediate goods and dipping in the capital goods and automobile sectors.
Consequently, this policy can only be effective if the authority responsible for defining and implementing is credible. The conjunction of a clear, overriding objective of price stability (which has been explicitly laid down in the statute of the ECB), with well-established institutional independence ensures the continuity of the monetary policy decisions made by the authorities. •  Secondly, the emergence of a globalised market has quite naturally led to new developments in monetary policy instruments. Interest-rate instruments have gained in importance to the detriment of quantitative and regulatory instruments. Third consequence: renewed set of risks to the stability of financial systems First of all, it is worth noting that financial liberalisation did not eliminate the occurrence of financial crisis. The development of new financial instruments, increasingly mobile and rapid capital flows, and faster reactions on the part of the players have rendered markets more volatile. Moreover, stock market prices and interest rates in the various financial centres have become closely correlated due to increased arbitraging between currencies and financial products and the spread of disintermediated financing.

Zeti Akhtar Aziz: Developing effective leaders in Asia Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Launch of the Iclif’s Asian Leadership Index, Kuala Lumpur, 1 April 2014. *  *  *  It is my pleasure to welcome you here this morning for the launch of Iclif’s Asian Leadership Index. The Asian Leadership Index, is part of an important stream of global research on the expectations on leaders in today’s world. The world is rapidly changing, and is becoming more challenging. Effective leaders must act in full recognition of the fact that their best followers will demand more of them. This is because in many cases their expectations of leaders have shifted in an age where information flows have intensified and where travel has removed all our known boundaries. The Asian Leadership Index is a substantive, broad-based research on Asia. The focus on Asia is because the region is becoming increasingly more significant in the global landscape. And yet, there exists little, if any, systematic study of leaders doing business in Asia.
Demand-side factor are especially important for companies, which attribute their low demand for credit to the shortage of investment projects (figure 8). Considering the usual revision to the growth projection range for the current year that we must do in this MP Report, the Board estimates that GDP will expand between 1% and 1.75% in 2017, while for 2018 it foresees a range between 2.5% and 3.5%. The changes owe mainly to the fact that mining activity fell more than expected in the first months of this year and that its subsequent recovery has been slower, as the growth prospects for the rest of the sectors have not changed much. Thus, it is still believed that the return to growth rates in line with potential growth and closing gaps, is consistent with an economy that shows no major imbalances, a gradual dissipation of some of the factors that have hindered a better performance in the past few years— such as the sharp drop in mining investment in the last three years—and the recovery of confidence indicators. Plus a more expansionary monetary policy and a greater external impulse than in recent years. As for fiscal policy, it is assumed that the consolidation announced by the Government will continue (table 1). On the external front, the data of recent months do not show great divergences with respect to forecasts. Developed economies continue to show signs of recovery in a context in which their inflation indicators have stabilized and their monetary policies remain highly expansionary.

The Treasury Markets Forum, as a broad-based and authoritative group, can help explore opportunities for closer co-operation with the Mainland on market development issues. Since the establishment of the Treasury Markets Forum, we have made visits to the Mainland financial regulatory bodies and the China Association of Banks to deepen our mutual understanding of the markets in two places. They were interested to learn about the work of the Forum, including those in raising the professionalism of our practitioners. The Forum also participated in the Hong Kong Financial Services Expo held in Shanghai in September to promote our treasury markets services to Mainland financial institutions and enterprises. We will also organise a seminar for the Mainland to promote their understanding in our financial markets, and responses from the Mainland have been very favourable. In addition, we will maintain close contacts with major overseas financial centres. In particular, we intend to invite major members from New York and London foreign exchange committees to meet with the Forum to facilitate the exchange of views on issues of mutual interest. In the past half year since its establishment, the Treasury Markets Forum has made good progress in its work. We will continue to work closely with industry associations with a view to enhancing the competitiveness of Hong Kong’s treasury markets and promoting Hong Kong’s status as the preferred hub for treasury markets services.
The central bank sets the interest rate, and in all of these countries monetary policy is currently based on the understanding that in the long-term there is no trade-off between inflation and employment. This applies regardless of whether they have introduced inflation targeting or not. Among the countries with positive economic developments in the last ten to fifteen years, different degrees of confidence in the nominal anchor early in the 1990s have probably been decisive for the choice of inflation targeting as a monetary policy regime. When confidence was lacking, it was costly to reduce inflation. For many countries it was important to establish a system that could build confidence. Inflation targeting is tailor-made for this purpose. It is possible that the disturbances in the world economy were particularly large in the 1970s and 1980s, and that later it has been easier to stabilise inflation and output.8 In the 1970s and early 1980s, oil prices rose sharply. We have not had similar disturbances in the last fifteen years. On the other hand, monetary policy is probably more robust now. Disturbances are not allowed to spread in the same way as earlier. Many countries have been exposed to major disturbances in the last fifteen years as well. 7  Consensus Forecasts Inc. provides an overview of different institutions’ inflation forecasts for different countries. This may be a measure of inflation expectations.

But experience showed that this was not an available option. An attempt to increase output beyond the level that is consistent with stable inflation will over time lead to steadily rising inflation. Economic agents will eventually incorporate higher inflation into their inflation expectations. In the long run, the result will only be higher inflation, not higher employment. Output and employment will return to their potential level. Another important lesson from the 1970s and 1980s was that economic agents look to the future when they make decisions about consumption and investments, wages and prices. They will take into account not only current economy policy, but their expectations of future economic policy. If economic agents expect that tomorrow’s policy will result in high inflation, the cost of reducing inflation may be high in terms of increased unemployment. Therefore, it is important to establish confidence in monetary policy and the objective of price stability. There must be consistency between the stated objectives of economic policy and what is actually done to achieve these objectives. This is the most important reason why the implementation of monetary policy has been delegated to the central bank in Norway, as has been the case in other comparable countries. In Norway, responsibility for interest rate decisions was delegated to Norges Bank through the 1985 Norges Bank Act and through adaptations in practice in 1986. However, confidence in the inflation target also requires that government finances are in order.
Likewise, the Employment Law and the changes in unemployment benefits seek to ensure compatibility between protecting the most vulnerable and providing appropriate incentives for job seekers. Looking ahead, public employment services need to play a more prominent role in job mediation (currently very minor) and their training and vocational integration activities need to be more effective. This requires appropriate professional profiling of the unemployed, rigorous assessment of training and vocational integration programmes and, on the basis of this assessment, sufficient funding for these programmes. Squaring protection for the more vulnerable groups with appropriate incentives on the labour supply-side calls for greater coordination between active and passive policies. The capacity of migration policies to effectively smooth any mismatches arising in the Spanish labour market also needs to be continuously monitored. The fifth factor I wish to refer to is confidence in institutions and their management capacity. Both these types of confidence are currently low in comparison with other European countries.24 The efficiency of public administration may have a key role to play in overturning this perception. For example, efficiency indices for the Spanish judicial system stand below those in comparable countries. In this respect, one of the priorities of the Spanish Recovery, Transformation and Resilience Plan (RTRP) is public administration modernisation. Specifically, the aim is to improve the efficiency of public administration through, among other measures, a digitalisation drive, strengthening the public policy assessment framework and reducing the proportion of public employment that is temporary.

Zeti Akhtar Aziz: The development of Islamic finance Welcoming address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the Global Islamic Finance Forum 2010, Kuala Lumpur, 25 October 2010. *  *  *  These are defining moments in the development of Islamic finance. In this current global economic environment of extraordinary challenges and uncertainties, Islamic finance is becoming very much a part of the journey to bring the world towards a new level of stability, prosperity and international integration that is inclusive. Whilst Islamic finance has come a long way and is set to continue its growth trajectory, new capabilities and strategies are needed to tap the immense opportunities from the growing internationalization of Islamic finance. It is my great pleasure and honour to welcome you this morning to this Global Islamic Finance Forum (GIFF) 2010. Allow me to express our gratitude to Duli Yang Teramat Mulia Raja Dr. Nazrin ibni Sultan Azlan Shah for gracing and addressing our gathering today, and to the Honourable Prime Minister of Malaysia, Yang Amat Berhormat Dato’ Sri Mohd Najib bin Tun Haji Abdul Razak for officiating this important forum. Since the dawn of this 21st century, Islamic finance has undergone the most dramatic transformation to its landscape. This period in the history of Islamic finance is remarkable for its many significant milestones and for the rapid growth that has been sustained.