samchain/econo-pairs-v1 huggingface dataset:
17  See Rochet and Vives (2004). 18  See http://www.bankofengland.co.uk/markets/Documents/money/publications/liquidityinsurance.pdf. 19  See Ferguson (1999). BIS central bankers’ speeches  7  International engagement to shape an open global system In an era of renewed globalisation securing monetary and financial stability requires more than a purely domestic focus. To realise globalisation’s promise and deliver strong, sustainable and balanced growth, policymakers must re-build an open, integrated and resilient global financial system. As the leading global financial centre, the UK will be central to this task. There are two elements that are particularly important. First, the Bank of England’s actions will help shape the functioning of core markets. The combination of the eventual exit from Quantitative Easing and new liquidity regulations will shape demand for central bank reserves. A host of financial reforms, such as those to derivative markets, will fundamentally change the role of collateral, to which the Bank of England’s facilities must respond. And most fundamentally, given the serious issues raised by the Libor and foreign exchange scandals, changes must be made to both the hard and soft infrastructure of core markets to ensure they are fair, effective and efficient. These are massive issues which require focus, discipline and innovation. Those are some of the reasons why we have created a new Deputy Governor role for Markets and Banking and why my colleagues and I are thrilled that Minouche Shafik has accepted this extraordinarily important task.

The model used for monetary policy of decisions being made by a committee made up of both Bank of England executives and independent experts has been expanded to financial stability with the creation of both a Financial Policy Committee and a Board of Prudential Regulation. As I have argued, those policy committees will be more effective if they have access to the broadest range of the Bank’s analysis and information and are as well informed as possible about each other’s reaction function. The now very wide range of the Bank’s responsibilities also creates a need to strengthen the oversight arrangements for the Bank as a whole. For delivery of our statutory objectives, the Bank is accountable to the public, through Parliament’s Treasury Committee. That accountability is being reinforced. Parliament has created an Oversight Committee of 8 non-executives who are in the Bank but not of the Bank. The Government has today announced the appointment of Anthony Habgood to lead the Bank’s Court of Directors and the Oversight Committee. I welcome the appointment of someone of his depth and breadth of corporate experience. Independent oversight by the committee he will chair can strengthen the Bank’s legitimacy and effectiveness. The Oversight Committee has access to internal papers, is able to observe meetings of policy committees, and is responsible for reviewing all aspects of the conduct of the Executive of the Bank, including the delivery of policy, the design of and adherence to rigorous processes and procedures, and the monitoring of our transparency and openness.
These countries have imported low interest rates and experienced rapidly rising house prices and debt (Chart 14). They have introduced measures to limit household debt in order to prevent imbalances from building up further. In Norway, stricter mortgage lending requirements have been imposed on banks. These measures have probably contributed to the recent correction in Norwegian house prices. 1)  Chart 14 Nominal house prices. Index. 2005 = 100 220 200  220  Australia, Canada, New Zealand and Sweden Norway US, euro area and Japan  200  180  180  160  160  140  140  120  120  100  100  80 2005  2007  2009  2011  2013  2015  80 2017  1) Latest available quarterly data for 2017 are used as estimate for 2017 (broken lines). Series is GDP−weighted. Sources: Eiendomsverdi, Finn.no, Real Estate Norway, Thomson Reuters and Norges Bank  The exchange rate places a limit on how far Norwegian interest rates can deviate from foreign rates. But with a floating exchange rate, monetary policy can help to stabilise the economy when it is exposed to shocks. In addition, the krone exchange rate acts as 13  an important shock absorber, as we last witnessed when oil prices fell in 2014. With confidence in the inflation target, monetary policy has been able to underpin a weaker krone.

1990 = 100 350  350  300  300  250  250  200  200  150  150  100  100  Finance and insurance Mainland Norway  50 1990  50 1994  1998  2002  2006  2010  2014  Sources: Statistics Norway and Norges Bank  In parallel, banks’ branch networks have changed. In 1987, there were almost 200 bank branches in Oslo, while today there are fewer than 40. This has cut costs substantially for both banks and the general public. Our payment system is now among the world’s most modern and cost-efficient. 4 Salvanes, K.G. (2017): “Omstillingsevnen i norsk økonomi under finanskrisen” [The adaptability of the Norwegian economy during the financial crisis], Arbeidsnotat 2017/7, Ministry of Finance (Norwegian only). 4  The payment system is facing an era of change. Use of cash is on the decline, while deposit money is becoming available in ever newer forms. The next innovation is instant settlement, which will make it possible to transfer funds from one account to another immediately, regardless of amount. Maybe your car purchase can be paid by pressing “send” on your mobile phone and, at the very same instant, the seller can safely hand you the keys. Norges Bank Economic perspectives 15 february 2018  Banks continue to play a dominant role in the payment system, but there are clear signs that their position can be challenged. New regulations and technology are making it easier for new participants to take market share.
The trap many European countries fell into was accumulating debt and spending borrowed money in good times, leaving them without the fiscal muscle to pursue a rational countercyclical policy in the face of crisis. This has made the economic downturn even heavier to bear. A number of European countries have experienced stagnation or a fall in GDP – some have faced a considerable decline in nominal GDP. As a result, debt to revenue ratios have increased, further reducing the ability to escape the debt crisis. The unrest surrounding Europe is not making matters any easier. The Russian economy is struggling. There is war in the Middle East and Libya. And on top of high levels of debt and mass unemployment, countries all over Europe are now facing terrorist threats and a refugee crisis. Only a few north European countries – including Norway – still have room for manoeuvre in fiscal policy. These countries have a savings surplus and export capital. But there are few northern European countries, including those within the EU, willing to finance southern Europe’s expenses over the tax bill – be it for refugees or for investment. With a common currency, euro area countries cannot rapidly adjust relative intra-area wages and prices. And there is no European federal government to enforce large-scale transfers from the north to the south. Building up even more debt is rarely the way to resolve a debt crisis.

In making financial decisions, consumers require various information and details about the processes and documentation involved, the relevant fees and charges to be incurred and the risks and benefits of each type of financial product or service. This will allow consumers to be aware of the opportunities available, actively manage their financial position while at the same time, safeguard their financial future. The avenues to seek redress must also be easily accessible and available. Of importance is the need for all parties involved in the Islamic financial transactions to understand and appreciate the unique characteristics and features of Islamic banking and finance. Clear understanding on the conduct of the Islamic financial transactions would lead to the appropriate execution of Islamic financial contracts that truly reflect the Shariah tenet. Active consumerism will also prompt the desired efficiency in the Islamic financial industry. For the Islamic financial institutions, understanding the dynamics of customer segmentation, building customer relationships and addressing the requirements and preferences of specific segments are vital not only for strengthening the existing customer relationships but also to secure new businesses. This would  BIS Review 56/2004  1  contribute towards the expansion and sustainability of the market share of the Islamic financial activities. Fundamental to achieving greater customer-centricity is to ensure that the processes, and workforce orientations, are aligned towards meeting customers’ expectations and delivering superior services. This needs to be effectively communicated, shared and understood by all levels of the workforce, in particular, those at the front office.
In order to deal with this problem, it is important that the new exchanges establish clear rules regarding participation and price quotation as soon as possible in the process of starting their operations. Finally, I would like to say a few words about electronic money. E-money is still very much in its infancy but has the potential to develop. In the euro area, various e-money schemes exist. Although the volume of e-money in circulation currently remains very low in the euro area, the number of devices already in circulation suggests that usage could expand rapidly ("Issues arising from the emergence of electronic money", November 2000 edition of the Monthly Bulletin of the ECB, p.49-60.) In this context, it was important that the regulatory framework was clearly set up at an early stage so as to reduce uncertainty. In my view, this will encourage innovation. I am glad to say that the framework adopted in the European Union has the advantage of ensuring a high measure of security for customers, in particular through providing protection against counterfeiting and money laundering. For monetary policy, there are three main issues arising from the emergence of electronic money. First, it is important that electronic money does not jeopardise the unit of account function of money. In other words, electronic euros stored on a payment card must have the same value irrespective of when and by whom the card was issued. This important principle has been safeguarded in European legislation through the imposition of a redeemability requirement for e-money.

Dimitar Radev: Positive trends in the banking sector are expected to continue in 2019, however with possible increased challenges Publication by Mr Dimitar Radev, Governor of the Bulgarian National Bank, in the Quarterly Bulletin of the Association of Banks in Bulgaria, issue 56, January 2019. * * * In 2018 the banking sector continued to maintain high level of capital adequacy and liquidity, also generating historically high annual profit. Deposits in the banking system increased, lending grew, and the share of nonperforming loans dropped. We expect these positive dynamics in the sector to continue altogether through 2019. Loan portfolios are a primary source of operating income for the banks in Bulgaria, but credit growth is by definition associated with assumption of new risk. At this stage of credit expansion, banks should continue making adequate efforts to manage the credit risk accumulating on their balance sheets. Large part of the central bank’s recent activities, in our capacity as a regulator and supervisor of the banking system, is focused on the risk associated with bank lending. The BNB Governing Council decided to activate the countercyclical capital buffer from this year. In December 2018, the National Assembly passed new legislative amendments, proposed by the BNB, which provide us with an additional macro-prudential toolbox of measures regarding bank lending. It includes for example BNB’s new powers to require enforcement of limiting the loan-to-value ratio or the debt-to-borrower’s income ratio.
We have no convincing answer to why Swedish consumers are less willing to use card payments than are their Nordic neighbours. One possible explanation is that card payments are, or are just considered to be, more costly, more complicated or more risky, in Sweden than elsewhere, by consumers or by terminal keepers. I will come back to this issue later. 2. Swedish consumers use debit cards rather than credit cards (fig. 2). Concerning preferences between debit and credit cards, clearly, Swedish card users favour debit cards, both in terms of value and volumes of transaction. In the year 2001, the number of debit card transactions amounted to just above 80 per cent of the total. Charge cards dominate the remaining 20 per cent. Credit cards with revolving credit arrangements do not seem to appeal to Swedes. In this respect, Swedish consumers' preferences are in line with those of consumers in the other Nordic countries and with those of continental Europeans. On the other hand, consumers in Anglo-Saxon countries seem to demand pure credit cards to a larger extent. Cultural factors may account for the different preferences between credit and debit card products. At least in Sweden, consuming out of credit is still considered to be somewhat irresponsible. In the old days of bank regulation, banks were not supposed to give credit for consumption purposes since available credit recourses should be channelled into productive investments. 3. The use of checks is negligible (fig. 3).

Cards have increased their share of non-cash payments from less than ten per cent in 1990 to nearly 30 per cent today. The increase is partly reflected in a corresponding decrease in the share of check payments. In fact, checks have virtually disappeared from the Swedish payment market. However, the rapid decrease in the use of checks can not explain the growth of the card payment market. The share of checks has never been large in Sweden, since giro payments have always comprised a large share of non-cash payments. 4. Cash is still the king (fig. 4). Given the rapid increase in the use of cards in Sweden, particularly in the late 1990's, cash should have been expected to fall in importance. This, however, does not seem to have happened. The use of cash, measured as the ratio of the value of currency in circulation (M0) and GDP, fell during the first half of the decade, but have been fairly constant since then, lately even increasing somewhat. In the other Nordic countries the ratio of currency to GDP has been fairly stable, with the exception of Norway, where it has been falling. Furthermore, the level of cash to GDP is considerably lower in the other Nordic countries, perhaps reflecting their more widespread use of cards. In a longer perspective, starting 1950, the use of cash in relation to GDP has been falling considerably also in Sweden, from 10 down to four percentage points (fig.5). BIS Review 4/2003  1  5.
The medium income countries today finance their growing industries and their infrastructure with the aid of the savings capital from us in the rich part of the world. At the same time, those who save money - not least all those saving for pensions can benefit from the growth potential that exists outside of their own country’s borders. Free capital movements have also made it possible to diversify savings capital and thus reduce risks. This gives greater financial security both among those who invest and those who use borrowed capital. Globalisation brings many benefits that are not only economic. Contacts with the surrounding world have increased and developments in IT make it increasingly difficult to isolate a country. Openness is increasing in all areas, facilitating the exchange of knowledge and information and receives further nourishment from growing economic prosperity. In addition, since it has become less costly to travel and easier to undergo education in other countries, more and more people have had personal experience of everyday life in other countries. Criticism of globalisation Nevertheless - despite the very positive development in many respects - there are many that regard globalisation as a threat rather than an opportunity. There are a lot of organisations with many different views in this area. However, they seem to share some of the concerns about trends in the world economy. This may concern the following: •  Trade and new technology increase competition and the requirement to change.

Our board representatives receive guidance from their home countries on important issues and statements in the board are coordinated among our countries in advance. In Sweden, the Riksbank has the main responsibility for contacts with Washington, but all issues are coordinated with the Government Offices where the Ministry of Finance is our contact. In certain cases, there is also consultation with the Ministry for Foreign Affairs. The Nordic and Baltic countries are small on the board - our combined voting power is just over 3.5% of that of the IMF as a whole. Our opportunities to pursue policies on the board are in having sensible points of view on the proposals that are on the agenda and, together with other countries, trying to influence proposals so that they move in the direction we want them to. To some extent, we have an advantage in appearing independent on the board, since we represent neither the most influential creditors within G7 nor the large group of debtor countries. This means that our statements sometimes have more weight than our voting powers indicate. Let me give three examples of issues where our countries have been actively involved in the IMF. The first concerns the transparency of the IMF. In Sweden, we are accustomed to authorities publishing their decisions and their way of dealing with items. Many international organisations on the other hand operate behind closed doors.
BIS Review51/2001  7  In the Bank of England, interest rate decisions are made by the Monetary Policy Committee, which has nine members. Four of the members are external economists appointed by the Chancellor of the Exchequer. In practice, they work full time for the central bank, but they are not part of line management. The Bank of England presents an inflation report four times a year. The report is prepared by the Bank’s administration, but the work is directed by the Committee. The report provides projections of economic growth and inflation. The Bank of England has developed a method that illustrates the Committee’s subjective view of the uncertainty associated with forecasts for GDP growth and inflation. Uncertainty increases with the time horizon, so that the illustration of uncertainty takes the form of a fan. This fan has gradually acquired a central role. The introduction to the report states: "Although not every member will agree with every assumption on which our projections are based, the fan charts represent the MPC’s best collective judgement about the most likely paths for inflation and output and the uncertainties surrounding those central projections." The Bank’s view of the outlook for the interest rate is not stated directly, but is implicit in the discussion of the fan around the inflation projection and an associated table. Twelve monetary policy meetings are held each year. Decisions taken are made public immediately, but without an explanation, and meetings are not followed by press conferences.

Asian bond markets are growing healthily and Asian bonds are an essential component of any balanced and diversified portfolio. Over the last five years, Asian bond 4  issuances grew at a compound annual growth rate of more than 10%. Asian bonds now make up over 30% of the J.P. Morgan Emerging Markets Government Bond Index. Since last year, 2 Asian countries received rating upgrades, notably Indonesia to investment grade1. 5 . Asia is expected to remain the fastest-growing region in the world. The IMF places Emerging Asia at the top of the global growth league table, with average growth rates of 6.3% p.a. from now to 20222, outstripping expected outturns in the developed economies3 as well as all other developing regions. China and India, the two largest Asian markets, are expected to grow by 6% p.a. and 7–8% p.a. respectively, while activity in the ASEAN-5 economies is expected to expand at around 5% p.a.4. 6. The rosy outlook translates to two significant implications for capital markets:  a. On the demand side, relatively favourable demographics, the emergence of a rising middle class and rapid urbanisation will stimulate more savings and investments; b. On the supply side, there is much scope in Asia to improve infrastructure, technology and innovation, the success of which will go a long way toward raising productivity and incomes even further. To finance these important structural needs, Asia’s ability to raise long-term capital for sustainable growth would make cross-border capital market activities even more important.
BIS Review 66/1998  -5In this context I should like briefly to rehearse the role of the exchange rate in monetary policy. The Riksbank does not target the exchange rate; monetary policy focuses instead on a target for inflation. The exchange rate can be seen as one of a number of indicators—albeit one of the most important—that we use to predict inflationary pressure in the Swedish economy. If the krona weakens or strengthens permanently, then this—all else equal—will affect inflation. The difficulty accordingly lies in assessing the permanence of exchange rate movements and incorporating the assessment in the overall picture of inflation. The economic fundamentals favour an appreciation of the krona in the coming years. For this reason we believe that the current weakening is temporary and will be followed in time by a renewed appreciation. It should be underscored, however, that if the krona’s weakening to date can be regarded as permanent, then there are also reasons for expecting that the weaker exchange rate will lead to inflation at a higher rate than we foresaw in the June report. That would have consequences for monetary policy, always assuming, of course, that other factors have not simultaneously contributed to a better outlook for inflation. The recent weakening of the krona, together with increased concern about continued turbulence in Asia and global stock exchanges, has shown up in money market pricing. The market’s earlier assessment was that room existed for further interest rate cuts. Today the picture is less clear-cut.

What I am objecting to here is not that the forecasts are adjusted with assessments that take into account factors that affect the forecasts but are not captured in the usual models. On the contrary, I have always advocated such an approach and have even discussed how this can be done more systematically in a number of research papers. 7 I think that it is quite correct to take into account house prices, indebtedness, imbalances and so on to the extent that they affect the forecasts for inflation and the real economy. All information that affects the forecasts is relevant. The problem arises when one allows these factors to undermine target attainment for inflation and resource utilisation. In practice, this gives them the status of separate targets for monetary policy. This makes monetary policy unclear and hard to understand. Moreover, as I see it, the Sveriges Riksbank Act and its preparatory works do not provide scope for any other targets for monetary policy than inflation and resource utilisation. 8 I believe that it is important that the Riksbank’s decisions and communication in the future do not give the impression that monetary policy is focused on anything other than inflation and resource utilisation. In their 2006 evaluation of Swedish monetary policy in the period 1995–2005, Giavazzi and Mishkin (2006) also say that the Riksbank’s statements on housing prices led many people to perceive the Riksbank’s message as confusing, which made things unclear and undermined confidence in monetary policy.