samchain/econo-pairs-v1 huggingface dataset:
The BNB Governor also outlined the second work block in this direction, on which the BNB is currently working, i.e., the overall framework of determining the amount of funds to be contributed by banks to the Single Resolution Fund and the amount and way of transferring funds from the Bank Resolution Fund in Bulgaria, which was set up in 2015, to the Single Resolution Fund. The third work block covers the overall activity of planning and conducting resolution activities, including the distribution of responsibilities and tasks between the Single Resolution Board and the BNB after our country joins the Banking Union. With regard to the expected effects on the economy and the business, the BNB Governor highlighted that it was positive to reaffirm Bulgaria’s strategic course, and that the process is already being filled with content and specific timeframe. The whole process stands as a positive counterbalance against the more general uncertainty from the global and European economic environment. 1/2  BIS central bankers' speeches  Among the more direct positive effects from this first stage on the path to the euro area is the anticipated improvement of the country’s credit rating, as announced by the credit agencies, should the process run successfully in the short-term. That would improve the funding conditions in the country. At the same time, the effects of joining ERM II will not be tangible in regard to the macroeconomic policy and neither will our monetary regime change.

Dimitar Radev: Accession to the euro area - a catalyst for social and economic prosperity Summary of a statement by Mr Dimitar Radev, Governor of the Bulgarian National Bank, at the Annual Government Meets the Business conference, Sofia, 29 January 2019. * * * During the Annual Government Meets the Business conference dedicated to Bulgaria’s path to the eurozone, the Bulgarian National Bank’s Governor, Mr. Dimitar Radev, outlined the activities of the central bank in this process and the anticipated effects for the economy and the business from the national currency’s entry into the Exchange Rate Mechanism (ERM II) and the adoption of the euro in Bulgaria. Provisionally, the work will be conducted in two stages: a short- and long-term. The short-term stage is linked to the preparation for simultaneous accession to the Banking Union and lev’s entry into ERM II. The second stage is Bulgaria joining the euro area. Mr. Radev underlined that the BNB is currently focused on the first stage, the outcomes of which will determine the next steps to follow. In terms of content, the first stage consists in joining the Single Supervisory Mechanism and the Single Resolution Mechanism. As regards the Single Supervisory Mechanism, the BNB is concentrated on three work blocks. The first one is creating the necessary regulatory framework. Overall, work in this direction was completed with the adoption of the necessary package of legislative amendments by the National Assembly at the end of last year.
Muhammad bin Ibrahim: Of perception, sentiment and reality Opening remarks by Mr Muhammad bin Ibrahim, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Persatuan Pasaran Kewangan (PPKM) Annual Dinner &quot;Of Perception, Sentiment and Reality&quot;, Kuala Lumpur, 17 November 2017. * * * Thank you for the invitation to address the members of the financial market industry at this Financial Market Association of Malaysia’s (FMAM) annual dinner. l always look forward to this event as it provides the central bank with the platform to share our thoughts and expectations for the industry. We are operating in a very dynamic environment. Last year, I stood here and explained in detail why it was a challenging year. This year is no different. As the operating climate changes rapidly around us, we need to adapt. The theme of my speech will be a bit different this year. Titled “Of Perception, Sentiment and Reality”, it will be a bit longer than usual. I shall cover four parts; financial market review, factors that drive the level of the exchange rate, comments on ringgit exchange rate and interventions, and initiatives to build resiliency and liquidity for our market. Part I – Financial market review It has been an eventful year and our financial market industry has gone through significant changes and developments. The ringgit, for one, has seen significant developments. Last November, it was one of the most volatile currencies. A year later, it has not only strengthened but has greatly stabilised.

It continues to record robust activities in the financial market, reaching daily volume as high as USD16.1 billion compared to USD14.1 billion recorded in 2016, The onshore market volume on forwards and swaps alone has surpassed the observed offshore forward market volume which now records an average of USD1.0 billion a day. In addition, there is a narrowing of bid-offer spreads that would indicate an improvement in liquidity. Anecdotal evidence suggests that market participants, including corporates, continue to access the market to meet their business needs; Risk exposure from high non-resident participation in the onshore market has effectively reduced. Risks from high non-residents holding have significantly subsided as footloose short term positions have exited the market in the early part of the year. The non-resident investors that remain in the domestic market comprise mostly of long term investors. They are less affected by short-term market dynamics. Their investments tend to remain stable and at times act counter cyclically to short-term investors, providing stability to the overall bond market; 4/7  BIS central bankers' speeches  On reserves, our level is sufficient to meet our needs. A point often overlooked, is that the central bank’s international reserves is not the only source to meet external liabilities. The availability of external assets and also currency denomination of the external liabilities are alternative sources of funding. In fact, BNM holds only 25 percent of the system’s foreign currency reserves. The rest is with the financial system itself.
We therefore aim to agree a glide path to the new level, which, depending on circumstances at the time, could involve a multi-year transition period of incremental increases. But let me emphasise one perhaps rather obvious but nevertheless vitally important aspect of this – that a clear path to profitability (whilst meeting full capital requirements) is a necessary condition for success in this part of the climb. Two other points are worth emphasising here. The two factors that invariably provide a harness to firms that are successful in climbing the competitive and regulatory mountain are the quality of their governance and the strength of their relationship with the PRA. Our expectations of boards are high – and rightly so. Good, proactive governance is key to delivering a sound and well-run business. And, I should note, the opposite is often a leading indicator of a firm in trouble, and the root-cause of firm failure. In addition, just as mountain guides require an increasingly diverse set of skills as they ascend the varied terrain of the mountain, so too does the board. This means the board composition will invariably have to change as the firm grows, not only to become predominantly independent but also to ensure sufficient diversity of specialisms to support the executive and hold it to account. Relationships with the PRA need to be open, honest and constructive too. And for local entities of international groups, this is true not only for the local entity but for our relationship with the group and home state supervisor.

BIS central bankers’ speeches  7  Similarly, reforms designed to reduce bottlenecks to new investment that come from onerous business conditions should also have mainly benefits in the short-term. This would include measures such as reducing the administrative burden on young firms, or speeding up insolvency proceedings that raise the opportunity cost of investment by tying up capital for years longer than initially assumed. For many euro area countries there are several “low hanging fruit” that can still be picked in this area (Chart 10). The EAGLE simulations show that if reforms are also well coordinated across the euro area, the short-term benefits for a medium-sized country can be further maximised, especially in terms of limiting the downward effects on inflation (Chart 12). This reinforces what I have said about the need for stronger common governance of structural reforms in the euro area: if all countries reform together, then all countries benefit more. And these findings hold even under the assumption that monetary policy is constrained. Interaction with other policy measures But it is also important to underline that this assumption is in fact inaccurate for the euro area today. Contrary to models in the literature, monetary policy is not constrained because we have reached the lower bound. Rather, as I laid out in a recent speech in Washington, I think we have demonstrated in recent months how effective monetary policy can be when it has to resort to unconventional measures.
Hamad Al-Sayari: Corporate governance for banks in the Kingdom of Saudi Arabia Speech by His Excellency Hamad Al-Sayari, Governor of the Saudi Arabian Monetary Agency, at the High-Level Roundtable Discussion for Bank Executives on Corporate Governance for Banks in Saudi Arabia, Institute of Banking, Riyadh, 22-23 May 2007. *  *  *  Dear Distinguished Audience It is a great pleasure for me to welcome you, and I am delighted by your participation at this important conference on "Corporate Governance" organized jointly by the Institute of Banking and the IFC. Corporate Governance is popularly defined as a structural organization and executive procedures used to direct and manage business to achieve the objectives of the company and ensure its financial stability. In the past decade, this subject has taken increasing worldwide prominence because of its importance and relevance for the enhancement of macro-economic development and growth and the stability of the national financial systems in particular. In spite of the scarcity of books issued in Arabic on this subject, it is worth referring to two books; the first entitled "Corporate Governance" issued by Mr. Abdulmajeed Al-Bastati in 2004 and the second entitled “The Way towards a Governing System for Corporations" issued by Dr. Ibraheem AL-Muneef in 2006. The latter refers to a third book, which I have not read, issued by Mr. Saleh Ali Husein in 2003 under the title "Practicing and Managing the Authority in Business Organizations".

3  3  All speeches are available online at www.bankofengland.co.uk/news/speeches  3  And all these systems in the UK – whether card or bank payment – still depend on existing core infrastructure meaning they either carry the associated costs and limitations on speed or they require the right point of sale infrastructure for their full benefits to be realised. The scope for improving cross border payments is bigger still. These can cost up to 10 times their domestic equivalent.9 Anti-money laundering checks that are rightly required can be cumbersome, and settlement is slow with money taking up to a week to reach the recipient. Most fundamentally, the new payment system must end the inequity that the people with the least money pay the most for financial services. The revolution of payments may not be driven by the old bank-based systems but by a new architecture. Major changes are on the horizon, bringing enormous advantages but also more than a few new challenges. That’s why the Bank fully supports the Payments Strategy Review the Chancellor has launched this evening. To support private innovation and to empower competition, the Bank is levelling the playing field between old and new. This means allowing competitors access to the same resources as incumbents while holding the same risks to the same standards. The Bank is in the midst of an ambitious rebuild of its Real Time Gross Settlement (RTGS) system, which processes £ billion of payments on average every day.
Germany is growing rapidly, led in part by an expansion in exports to the booming Asian economies. The countries of the periphery are, however, struggling in the face of significant fiscal and structural challenges. While the countries of the euro-area periphery are each confronted by specific challenges, they all need to restore their competitiveness without the option of devaluation. Instead, in the absence of effective structural reform, they face the prospect of sustained low growth in order to drive down wages and prices. That itself makes the task of stabilising public debt harder. Support to Greece and Ireland from the IMF and rest of the European Union has given those countries a breathing space in which to undertake the necessary adjustments. Financial support for other countries may or may not prove necessary – only time will tell. But the important thing for us is whether an intensification of the difficulties in the euro-area periphery could also derail the recovery here. 2  Analysis of the earlier phases of quantitative easing both here and in the United States suggest that purchases of the order of 12–14% of GDP have lowered longer-term government and corporate bond yields by around 70–100 basis points relative to where they would otherwise have been.

Arthur Yuen: Remarks Discussant´s remarks by Mr Arthur Yuen, Deputy Chief Executive of the Hong Kong Monetary Authority, at the AMPF 2021 and MAS-BIS Conference on Macro-Financial Stability Policy, 28 May 2021. * * *  Opening 1. It gives me great pleasure to share my views on Hong Kong’s experience in the use of macroprudential measures to safeguard financial stability. I am grateful to Mr (Robert) McCauley and Professor (Catherine) Schenk for their research efforts, and their recognition of the effectiveness of the macroprudential measures implemented by the Hong Kong Monetary Authority (HKMA) since the 1990s. The importance of macroprudential policies 2. Today’s discussion on macroprudential policies is timely considering recent market developments. The accommodative monetary policies adopted by major economies in response to the COVID-19 health crisis have provided renewed impetus to rising property and asset prices in many markets. How to rein in asset price inflation and prevent it from endangering financial stability in the event of an abrupt price adjustment is a topical issue within the central banking community. 3. As mentioned in Robert and Catherine’s joint paper, the HKMA’s macroprudential measures on mortgage lending were first introduced in 1991. They have helped Hong Kong weather several crises including the Asian Financial Crisis, during which property prices plunged by as much as 70% between 1997 and 2003. Being an early adopter, we are encouraged to see that macroprudential measures have gained wider international acceptance after the Global Financial Crisis (GFC).
When speaking at the monetary policy meetings I have gone a stage further. On these occasions I have in principle never discussed underlying measures, but focused entirely on CPIF inflation. What have we learnt? There can be a lot of white noise in the time series data used for economic analysis. This applies in particular to monthly data. One therefore needs to adjust the data for white noise and seasonal variations. If one wants to analyse the development of inflation, for instance, one must make these adjustments. The purpose is to calculate the underlying rate of inflation, or, in other words, core inflation. There are largely two different ways of doing this. One is to use more or less advanced statistical methods to adjust for white noise and temporary changes. It is also possible to exclude goods and services groups that have proved to have volatile prices. Today I have presented a number of examples of measures calculate with the different methods. There are a number of important properties that one wants these measures to have. They should, for instance, show the same basic development as the non-adjusted series. There are measures that are better or worse with regard to how well they fulfil the criteria for desirable properties. But there is no measure that is unequivocally better than all the others. And this is where the problems arise for the monetary policy decision-makers. There is, on the one hand, a need to approach the existing data with caution and to regard them from different perspectives.

These small value purchases are concentrated in newly issued agency MBS in the To-Be-Announced (TBA) market, which is expected to undergo changes next year due to the FHFA’s Single Security Initiative and the introduction of Uniform MBS (UMBS). Given these changes, the Desk plans to develop its operational readiness for conducting transactions in UMBS and, to more efficiently manage the SOMA portfolio, convert some of its agency MBS holdings to UMBS where appropriate. See the Statement Regarding Agency Mortgage-Backed Securities, September 14, 2018. 14  5  limited impact from the reduction in holdings on Treasury yields and MBS spreads thus far. As shown in Figure 6, comparing a matched sample of survey respondents in our July 2017 surveys to the September 2018 surveys, the expected impact on 10-year Treasury yields and 30-year MBS option-adjusted spreads (OAS) during the two-year period following implementation of the change to the reinvestment policy has declined, likely in part reflecting expectations for the balance sheet to normalize at a larger size. 15 Looking forward, the median respondent currently anticipates the cumulative impact over the next two years to be 17 basis points for the 10-year Treasury yield, and 12 basis points for the 30-year MBS OAS. This gradual expected increase contrasts with the experience of the so-called “taper tantrum” in 2013, which showed that markets can have outsized and sharp reactions to changes in balance sheet policy even before they happen.
Over the last ten years, Nordic banks have increasingly established operations in other countries in the region and have begun to offer their services to households and companies across national borders. Swedbank, for example, accounts for almost 45 per cent of total lending in Estonia, while SEB accounts for  1  I have chosen to define the Baltic region as Sweden, Denmark, Finland, Northern Germany (i.e. the federal states of Schleswig-Holstein, Mecklenburg-Vorpommern and Hamburg), Poland and the Baltic states – Lithuania, Latvia and Estonia. 2  Refers to the population of EU25. BIS Review 105/2009  1  30 per cent of lending in Lithuania. 3 Prior to the beginning of the crisis, the operations in the Baltic states also generated an increasing proportion of the earnings of these two banks (see Figure 1 and Table 1). Other major players are Nordea and Danske bank, which can now regard practically the entire Baltic region as their domestic market. This financial integration has many economic advantages, but it also poses major challenges. I do not intend to discuss this further here, but will simply say that when the financial systems of different countries become intertwined, the risk increases that problems will spread across national borders. As far as Sweden is concerned, this has resulted in a decline in confidence not just in the Baltic economies but in the Swedish economy too. This is because there is a risk that developments in the Baltic states will entail substantial loan losses for the Swedish banks.

This is reflected, for example, in the fact that the credit spreads, that is the difference between the interest rates on corporate bonds and the interest rates on government bonds, have returned to the levels that applied before Lehman Brothers filed for bankruptcy protection. The difference between interbank rates and the expected policy rate has also decreased (see Figure 15). The credit markets are also steadily improving. Companies that just a few months  BIS Review 105/2009  7  ago found it difficult to issue bonds now have access to the market again. Companies with a good credit rating can now borrow at a lower cost, at longer maturities and with lower collateral requirements than before the summer. It thus appears that the situation on the financial markets is beginning to ease and that confidence is slowly returning. This is in turn a precondition for the continuation of the recovery of the real economy. Global monetary and fiscal policy is still highly expansionary and there is plenty of spare capacity in most countries. It is not unreasonable to assume that a rapid recovery of the financial markets can also facilitate a more rapid recovery in the real economy. There are thus several reasons why it is reasonable to be cautiously optimistic. We must also remember, however, that we are still emerging from a severe recession and it may therefore take time before global demand recovers completely.
Dimitar Bogov: We will need foreign loans also in the coming years Interview with Mr Dimitar Bogov, Governor of the National Bank of the Republic of Macedonia, in Utrinski Vesnik, conducted by Ms Nina Nineska-Fidanoska and published on 22 August 2013. *  *  *  Mr. Bogov, in June, lending grew by only 3.7 percent, which is considered a very low rate. Few months ago, businessmen called for an annual credit growth rate of 8 to 10 percent. Is there a chance to reach that goal and when? It is usually considered that credit growth should be two times the nominal growth of the gross domestic product. This means that if we want to achieve long-term real GDP growth of some four to five percent and inflation of two to three percent, then certainly I would say that credit growth of 10 to 15 percent is normal and desirable. But we were in a period of slower economic growth, so that the credit growth rate was relatively low in the last year. This year it continued, and in June we had an annual credit growth rate of 3.7 percent. It is low, but in line with our projections. For the entire year we expect credit growth of 7 percent and we believe we will achieve that rate. In June and July we already have a more intensive monthly credit growth compared to the previous months and we expect that trend to continue.

Large economies like Turkey or Poland can afford a floating exchange rate, but small economies cannot. It is much better to have a fixed exchange rate and disciplined policies. A few weeks ago you said that a reduction of the budget deficit to the level that does not increase the public debt should be considered. What did you actually want to say? I gave the same or similar statement a few times in the past. And it is not very different from what competent ministers think and say. In 2008, after the outbreak of the global economic crisis, we had a large room for fiscal support, because we had a low public debt, previously we had no budget deficit and the fiscal policy significantly supported the economic growth in the period when private consumption and external demand were shrinking. But in the past four years, the level of government debt increased to 34 percent of GDP. Although it is still a moderate level, a gradual reduction of the budget deficit to a level that will stabilize the level of public debt should be considered. What is the level of budget deficit that is optimal for Macedonia? There is no clear limit as to that level. Any limit we set might be a mistake. It depends on a number of factors – what is the economic growth in the country, at what interest rate we are borrowing, what is the creditors’ trust in our economy.