samchain/econo-pairs-v1 huggingface dataset:
This means that the number of hours worked could increase by an average of 0.8 per cent annually instead of 0.4 per cent  4  BIS Review 44/2003  during the period up to 2008. If it was also possible to break the negative trend for persons born abroad and bring them into the labour market to a greater extent than now, this would also increase the number of hours worked. In 2002, 75 per cent of the working-age population was employed on average, while the figure for those born abroad was 60 per cent. If it were possible to increase the employment rate for this group to the national average, the number of hours worked would increase by approximately 0.1 percentage points more up to 2008. Ensuring that persons with a non-Swedish background can enter the labour market is a central issue, partly because the net addition to the working-age population will come from this group over the coming decade. If no measures are taken to increase the labour supply, the Swedish economy's long-term growth prospects are likely to be subdued for a fairly long period. The Riksbank usually states that the potential growth rate lies in the interval 2-2.5 per cent. If nothing is done, it is likely that potential growth will decline. In concrete terms, this means that the Swedish economy could reach its capacity ceiling at an earlier stage.

The Riksbank after the referendum The result of the referendum was, as we all know, a "no" vote. What this means for the Riksbank is that we will continue to focus our operations on our statutory objectives; to maintain price stability and to promote a safe and efficient payment system. Quite simply, it will be "business as usual" for monetary policy. This means that under normal circumstances we will continue to follow our simple monetary policy rule: if future inflation is forecast to be higher than the inflation target of 2 per cent, we will raise the interest rate, and vice versa if inflation is forecast to be lower than 2 per cent. This clear intellectual framework makes it easier to influence expectations of monetary policy in society and to evaluate the policy afterwards. Both we ourselves and external analysts can take a stand on whether the policy appears sensible in relation to the target, whether the forecasts we make are reasonable, and whether we follow the principles we claim to follow for attaining the inflation target. Even if the monetary policy framework remains intact, this is no reason to become too comfortable. During the spring we began work on a review of the process used to produce the information on which our interest rate decisions are based. This includes considering how one of our most important documents - the Inflation Report - can be improved. It also involves improving our ability to predict price trends.
We have recently discussed this subject at the Bank Association forum, because we are convinced that consumer rights to clear, appropriate and fair financial products are being violated in this case. At this juncture, protecting financial consumers is top priority. We will only stop tightening our conduct supervision when we signal to the financial industry our satisfaction with interactions between financial institution and consumer being transparent and beneficial to both parties. In that area, we intend to take advantage of the legislative changes that have passed, including in the spring session. A very important law, passed recently at the initiative of senators, specifies financial instrument sales rules, including the right to ban sales and demand the repurchase of non-transparent products that are unprofitable for buyers. Thank you very much for this law. From 1 October, testing will be open to unqualified investors who want to buy complex instruments. As you remember, Ms Speaker, you and I discussed this matter with banks. With your support, that law passed very quickly. We understand that the problem is more than just sales of non-transparent financial products to consumers, but also about additionally imposed services and insurance sold together with standard financial products. That problem remains relevant. To stop the practice, a law was adopted to introduce a so-called end-to-end cooling period. Consumers have two weeks to cancel any tied services and receive a refund after they realise that they were misled or deceived.

It is the cost of long-term (seven, and ten-year) OFZs that banks price in their interest rates on long-term loans — investment loans and mortgage loans. Those are the types of loans that shore up growth, and in the case of mortgage lending, they are of great social importance, too. I also have to say that the opposite is true: rising inflation makes both short and long-term loans more expensive, while people become poorer as inflation erodes their incomes and savings. Economic history provides numerous examples when a late withdrawal from anti-crisis measures or prolonged accommodative monetary policy propelled a strong rise in inflation, higher yields of government bonds and higher interest rates on loans. It did not matter whether the central bank maintained a low policy rate: high inflation drove loan rates up. That occurred because the central bank rate was unreasonably low, and excessively stimulating. In those cases, central banks are often forced to raise their interest rates and switch to monetary tightening, and they have to do that in a more drastic manner, and for a longer period. Such a course of action is dictated by inflation, inflation expectations, and early signs of bubbles signalling risks to financial stability. Ultimately, inflation rates become unacceptable to either society or the economy, and credit is unaffordable. There are such examples today. Statistical data for some developing countries already suggest double-digit growth in inflation, with no signs of a slowdown in store (we will provide the data later).
However, the market asks for more certainty and it may be that this must ultimately be provided in the form of a regulation. I would strongly urge the appropriate authorities to work on this issue so that the clarity needed at the European level can be provided. An additional European card scheme – which is as safe and efficient as the best performing schemes today – is a necessary element of an integrated and competitive cards market. New Year’s resolution number four: let’s innovate Europe is still a patchwork of national online markets, and Europeans are prevented from enjoying the benefits of a single digital market. Traditional payment instruments still dominate payments for e-commerce. However, they were not designed to cope with the needs of the online world and often cannot be used for cross-border transactions. Among these payment instruments, cash on delivery, credit transfers upon receipt of an invoice and the provision of card credentials to merchants play an important role. In all but a few countries, card transactions based on secure payment protocols and e-payments based on online banking are still in the minority or are only used for domestic transactions. We have to ensure that Europe does not lose any more ground in e-commerce, compared with the United States and emerging online markets. Therefore, there is a clear need for efficient, low cost, secure and readily available online payment solutions throughout Europe – and ideally beyond.

One of these messages was our expectation that the cards industry in Europe will issue “chip-only” cards from 2012. But if the industry decides to retain the magnetic stripe on cards for practical reasons, we would ask that any data enabling the processing of magnetic stripe transactions should be removed. This should ensure that sensitive account information can no longer be copied. The current levels of fraud clearly show that something needs to be done urgently in this respect. The increasing level of card-not-present fraud carried out over the internet can be addressed by the introduction of secure payment protocols (e.g. 3D Secure or virtual cards). To encourage the use of such security measures, a liability shift – which has been used, for example, as an incentive for EMV migration – could be applied. BIS Review 159/2010  3  Clearly, SEPA requires a harmonised minimum level of security for retail payments to ensure transparency and a level playing field. In order to achieve this, we need to have more clarity about the security requirements as well as about the actors involved in setting these requirements. We have recently launched the idea to set up a Forum for Security Issues and have received a positive feedback from banks. Such a forum would monitor market developments. In addition it could enable the relevant authorities, including banking supervisors and central banks, to align their expectations on security. The Eurosystem is currently investigating what could be the precise mandate and composition of such a forum.
Many of these Middle Eastern banks service Islamic financing needs. Singapore welcomes more banks from the Middle East to set up here and to partner us in the growth of our financial centre. Beyond Middle Eastern banks, we have also seen international banks such as Citigroup and Standard Chartered introduce Islamic finance and murabaha products from Singapore. More financial institutions are using Singapore as a launch pad for innovative new Islamic products. Singapore will continue to co-operate with market participants and other countries like Malaysia, Indonesia, Bahrain, Kuwait and the UAE on the development of Islamic finance. Integration of Awqaf into Islamic finance Let me now turn to waqf. Historically, the revenue generated in waqf has been applied to traditional uses like maintenance of religious buildings. But this is changing. Proceeds from the estates are now used to contribute more widely to society. Rules governing the administration of waqf have become increasingly progressive. In Kuwait and Qatar, revenue from waqf has been used to build hospitals, universities and commercial and office complexes. Townships have even been built in Morocco. Such innovative financial uses help to unlock the economic potential of waqf. In Singapore, we have the example of an integrated mixed-development at Bencoolen Street, comprising a mosque, service apartments and a commercial complex. This was made possible through the innovative financing solution provided by the launch of the musyarakah bond. MUIS, which administers a number of waqf, has also made use of the proceeds to fund Islamic education.

Mr. Chairman, by publicising the actions of the central bank, the media has become an important agent in facilitating the desired behavioural response of economic agents to monetary policy actions of the central bank. Due to the critical role of the media in the successful execution of public policy, the central bank needs to have a clear communications policy that supports the goals of the Central Bank. One of the major goals of communication policy, for instance, is to help anchor inflation expectation by promoting credibility and understanding of monetary policy. Indeed a notable change in central banking over the past 15 years has been a world-wide movement toward increased communication by central banks about their policy decisions, the targets that they seek to achieve through those decisions, and their view of the economy's likely future evolution. Mr. Chairman, It is argued that increased willingness to share the central bank's own assumptions about future policy with the public has increased the predictability of policy, in ways that have improved central bank's ability to achieve their stabilization objectives. Public information serves the dual role of conveying fundamental information as well as serving as a focal point for better coordination. As financial markets become more efficient in a country, and as the economy becomes more open, the central bank’s communication policy needs to adapt to these on-going changes.
There is often a web of details to be ascertained in each case of possible misconduct. Any premature updates to the public can also compromise investigations. In such situations, regulators would avoid alerting suspects who are under investigation at the outset, so as not to prejudice the investigations, in the process of evidence gathering. As a matter of due process, the MAS does not reveal information during ongoing investigations until the investigations have been concluded. Some of these considerations equally apply to the SGX as the frontline market regulator. 2/4  BIS central bankers' speeches  Notwithstanding this, the MAS supports putting out more information on our investigation outcomes and of our enforcement approach. Some of our recent measures include: (a) Press updates on our enforcement actions as well as publishing these on our website. (b) Enhanced disclosure of the MAS’ enforcement statistics through the use of infographics and dashboards in our Annual Report. This is to provide the public with a better overview of enforcement actions that the MAS has taken over the past year. Where appropriate, we will provide more information on our investigations that could be of public interest, as long as these do not compromise the reviews. (c) In 2016, we also published a monograph that explains the role of enforcement in the supervision of Singapore’s capital markets. We are in the process of updating the monograph by later this year.

For market discipline to work, it is essential that companies provide relevant and meaningful disclosures. Investors, in turn, can play an important role by scrutinising disclosures and providing relevant feedback to companies where boilerplate disclosures are ambiguous or unhelpful. Companies must similarly play their part to engage their stakeholders proactively. The engagement between companies and shareholders should be conducted responsibly by both parties. Companies should avoid taking an overly-legalistic approach in their dealings with shareholder queries as that can only engender distrust. Rather, they can have more regular dialogues with their investors to facilitate understanding with their investors, and to build a strong relationship that is based on openness and mutual respect. The rights of all shareholders should be respected. Investors in turn should engage companies in a constructive manner, and avoid unfounded allegations or speculative attacks. Industry associations are another key enabler group to foster strong market discipline. The Singapore Institute of Directors, as the national association of directors, advocates good governance practices through its conferences, training sessions and publications. The Securities Investors Association (Singapore) also serves to connect and empower minority shareholders, through efforts such as its initiative to raise the standards of queries at AGMs. 3/4  BIS central bankers' speeches  Other players in the CG ecosystem matter too. Journalists, analysts, academics, lawyers, other advocacy groups and the general public – all can contribute to raising of industry-wide CG standards through their reports and research.
The scale of the challenge is such that economic policies will have to operate all these levers in tandem, albeit to varying degrees. As regards borrowing costs, the outlook prior to the crisis pointed towards interest rates remaining at very low levels for a very prolonged period of time, in a context in which various central banks, in particular the ECB, had taken emphatic action aimed at drawing inflation rates closer to their monetary policy objectives. Following the current crisis, all indications are that monetary policies will continue to be very expansionary for a prolonged period of time. Moreover, in the euro area, as I have already mentioned, the ECB has launched various actions aimed at preventing a repeat of the bouts of financial fragmentation like those seen during the sovereign debt crisis at the start of the last decade. Everything therefore seems to suggest that borrowing costs will remain at low levels for an extended period of time, if they are accompanied by national economic policies geared towards budgetary consolidation and fostering long-term economic growth. Some pick-up in inflation rates towards the medium-term objective of monetary policy is expected to help reduce the public debt burden by stimulating the nominal economic growth rate. However, we cannot rule out that deflationary forces stemming from weakening demand may prevail for some time over other countervailing forces derived from recent rises in certain goods prices. As such, inflation is not expected to contribute to any great extent to alleviating the debt burden at present.

François Villeroy de Galhau: The challenges of the euro area at the dawn of 2019 Speech by Mr François Villeroy de Galhau, Governor of the Bank of France, at a seminar at the Bank of Portugal, Lisbon, 22 February 2019. * * * Acccompanying slides of the speech. Ladies and Gentlemen, [meus caros amigos], It is a real pleasure to be with you in Lisbon – Cidade da Luz e Rainha do Mar [City of light and Queen of the Sea] – the first bridge between Europe and Asia thanks to the audacity of your descobridores [explorers]. And still today, your country is an inspiring example of economic recovery thanks to its courageous reforms. I wish to express my warmest thanks to my friend and colleague, Governor Carlos Costa, for his invitation. Before focusing on our challenges for 2019, let me start my speech on a more positive note, as this same year marks the 20th anniversary of the euro, and elaborate a bit on its success. I. The euro’s success was built on three principles that are now more vital than ever As to whether the euro has been a success, there are few among us today who would have any doubts. It is more interesting to look back on the reasons for this success, which, to my mind, was built on three founding principles: the Eurosystem’s mandate of maintaining price stability; the means employed to carry out this mandate, i.e. independence; and the spirit that drives its action – general European interest. 1.
Our largest firms have access to the international commercial paper, bond and asset-backed markets; and to derivative markets for managing their financial risks. For smaller firms, compared with a decade or so ago, there seems to have been an expansion in asset-based financing options enabling them to utilise collateral more effectively.7 Taken together, a richer supply menu may leave firms and households somewhat less exposed to being severely credit rationed in an economic downturn; and may enhance their ability to cope with cyclical economic fluctuations. If that helped to dampen the effect of shocks, output growth and inflation may vary a little less than otherwise, and monetary policy may need to respond less aggressively than in the past to keep the economy on a stable path. But, again, it can be difficult to disentangle cyclical from more durable changes. A topical example is the risk premium priced into financial instruments. To pick just one indicator, corporate credit spreads have been falling for a few years, to levels that last prevailed in the mid-90s (Chart 12). In degree, that seems likely to reflect a relatively benign global macroeconomic environment together with balance-sheet strengthening in the corporate sectors of a number of major industrialised countries. But, conceivably, it also reflects better diversification of risk – facilitated, for example, by the rapid growth of new instruments such as credit derivatives and by greater cross-border investment of savings.

The discussion will specifically focus on aspects of central bank boards as well as lessons and conclusions drawn from the February Seminar. Ladies and Gentlemen, I have no doubt that deliberations of this Seminar will be of great benefit to all of us. I also hope your journey to Sri Lanka will give you a chance to see a little of our country and meet our people. We have arranged for you to see some places of interest in Sri Lanka. Let me conclude by wishing you a productive Seminar and pleasant stay in Sri Lanka. Thank you. 2/2
Slide 19  Chile’s financial market at a glance Chile’s financial market  Total debt of non-bank loans (*)  (percent of GPD; ratio; percent)  (percent of GPD) 140  2013  2014  2015  2016  120  Total Assets/GDP  112  119  123  122  100  NPL (%)  2.0  2.0  1.8  1.8  Loans/GDP  83  85  88  88  Loan/Total Deposits  1.3  1.3  1.3  1.3  ROE (%)  15.0  17.3  14.4  11.1  40  ROA (%)  1.2  1.4  1.1  1.0  20  CAR (%)  13.3  13.4  12.6  13.8  0  Local bonds Factoring, leasing and others External loans and trade credit  Local bank loans External bonds Debt related to FDI  80 60  09  10  11  12  13  14  15  16  (*) Based on firm-level data, expect for factoring, leasing, and other securitized bonds; and commercial paper. Source: Bank of International Settlements, Central Bank of Chile, and SBIF.

In periods of zero interest rates, such purchases help to counter the risk of deflation. The Swiss economy faces an exceptionally difficult year in 2009. Economic activity is set to pick up again gradually over the course of 2010, thanks to the extremely expansive monetary policy. This is, however, conditional upon an economic recovery by our main trading partners, as well as a return to stability on financial markets. The SNB measures are also aimed at reducing the risk of deflation in Switzerland. Despite the creation of massive amounts of liquidity, the SNB remains committed to ensuring price stability in the future. We will use all means at our disposal to reduce liquidity again in good time, so as to prevent any upsurge of inflation in Switzerland once the crisis has ended. BIS Review 33/2009  1