samchain/econo-pairs-v1 huggingface dataset:
Banks have also tended to engage in transactions that lower capital requirements without reducing economic risk. In addition, it has proved difficult to incorporate into the Accord’s simple risk-weighting scheme the innovations of the last decade in the way banks manage and mitigate risk. As market risk management techniques developed, we were able to incorporate a state-of-the-art, value-at-risk approach in a 1996 Market Risk Amendment. Still, as credit risk management techniques have advanced, and as the importance of operational risk management has increasingly been recognized, it has become apparent that the long run relevance and efficacy of the Basel ratios as an indicator of capital adequacy has been eroded. Supervisors have long known that analyzing simple capital ratios in isolation can lead to incorrect conclusions about the relative strengths of institutions. Thus, we also have relied on a review of banks’ capital plans and on market discipline to assess capital adequacy. In June of last year, the Basel Committee formalized the link between these elements when it released a Consultative Paper laying out our vision for a new, more refined capital adequacy framework. In addition to establishing minimum capital requirements, the proposed framework places increased emphasis on the supervisory review of capital adequacy and the role of market discipline. We refer to these elements - minimum standards, supervisory review and market discipline - as the “three pillars”. Together these pillars mutually reinforce safety and soundness by aligning capital relative to risk and by encouraging prudent risk management.

Mr McDonough discusses sound banking systems: a new growth imperative  Speech by Mr William J McDonough, President of the Federal Reserve Bank of New York, before The Monetary Authority of Singapore, Singapore, on 24 March 2000. *  *  *  I am delighted to be with you today. It’s a special pleasure to be among so many old friends and colleagues. It’s also a great pleasure to be in Singapore under such happy and promising circumstances. Just two years ago, financial and economic conditions throughout Asia were rather grim and the outlook was uncertain. But since then, to the great credit of the people of Asia, significant progress has been achieved. In Thailand, Indonesia, Malaysia and especially Korea, meaningful headway has been made toward recapitalizing the banking systems, ridding banks’ balance sheets of problem assets, and improving supervisory and regulatory frameworks. And that hard-earned progress on the banking front is already bearing fruit. The economic contraction that devastated so many in the region has generally been halted and even, in some countries, impressively reversed. Equity markets have rebounded impressively, and yields on government securities have been cut by nearly two-thirds as foreign capital has begun to return. Without question, this is truly a remarkable turnaround. It must also be acknowledged that the economies of Asia are not out of the woods just yet. Important and even difficult work still lies ahead.
The result is that, when surveyed, most seem to prefer working at home to working in the office. There are some important caveats in saying all that. These benefits are clearly not evenly spread, even for those who can work from home. In general, they have been felt less by workers than by their managers; less by women than by men; less by Black people than by White or Asian people; and less by people working in sectors worst-affected by the Covid crisis – for example, retail and hospitality. In this respect, these results echo other findings about the highly uneven economic effects of the Covid crisis.18 Despite these important qualifications, I was pleasantly surprised by the survey findings. If home-working has led to longer working hours for many people, you might have expected that to have dented well-being, not to have raised it. The WorkL survey also points to rising levels of workplace anxiety since Covid, understandably so, which would also be expected to harm happiness. Yet happiness at work seems, despite all that, to have risen. What is going on? Weighing against these effects appear to be at least two key factors: commuting and empowerment. In well-being studies, commuting ranks just after death and divorce in the unhappiness stakes. A study by Chatterjee and Clarke (2017) showed that an additional 20 minute commute reduced people’s well-being as much as a 19% pay cut. On that basis, home-working would be expected to have boosted well-being, with 17 18  RSA (2020). Blundell et al (2020).

The City of London has been making a positive and constructive contribution to their development by doing what it does best: providing a lead through innovation; and setting the standard for excellence. As a result, all the available evidence continues to indicate that, since the launch of the euro, London has fully maintained its market share. Let me give you a few figures. •  There are 482 foreign banking institutions in London, around double the number in Frankfurt, and more than double the number in Paris. •  The wholesale euro payment system in London, CHAPS euro, has recently accounted for 19% by value of cross-border payment flows in TARGET, the pan-European payment system. This figure has grown from 15% since the launch of the euro, and the UK now accounts for more crossborder payment flows in euro than any other country, except for Germany, even though the UK is not participating in EMU. •  London is estimated to have a 32% share of global foreign exchange turnover, compared with 5% for Germany and 4% for France. •  London's global market share of over-the-counter derivatives is around 35%, compared with 5% for Germany and 6% for France. •  Over 98% of the euro short-term interest rate contracts on the three major European derivatives exchanges (in London, Frankfurt and Paris) are traded on LIFFE.
Haldane, A G (2011), “Capital Discipline”, remarks based on a speech given at the American Economic Association, Denver, available at http://www.bankofengland.co.uk/publications/speeches/2011/speech484.pdf. Haldane, A G (2010), “Patience and Finance”, speech given at the Oxford China Business Forum, Beijing, available at http://www.bankofengland.co.uk/publications/speeches/2010/speech445.pdf. Hicks, J R (1937), “Mr. Keynes and the “Classics”; A Suggested Interpretation”, Econometrica, Vol. 5 (2), pp. 147–159. Jevons, W S (1871), “The Theory of Political Economy”, Macmillan and Company. Keynes, J M (1938), JMK letter to Francis Curzon, 18th March 1938. In Skidelsky, R (2000), “John Maynard Keynes: Vol 3 Fighting for Britain 1937–1946”, Macmillan. King, M A (1972), “Taxation and Investment Incentives in a Vintage Investment Model”, Journal of Public Economics, Vol. 1 (1), pp. 121–148. 14  BIS central bankers’ speeches  LeRoy, S F and Porter, R D (1981), “The Present Value Relation: Tests Based on Variance Bounds”, Econometrica, Vol. 49, pp. 555–574. Lintner, J (1965), “The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets”, Review of Economics and Statistics, Vol. 47 (1), pp. 13–37. Marshall, A (1890), “Principles of Economics”, Macmillan and Company Ltd. Miles, D (1993), “Testing for Short Termism in the UK Stock Market”, Economic Journal, Vol. 103 (421), pp. 1379–1396. MORI (2004), “NAPF/IMA Short-termism Study Report”. National Economic Development Office (1965), “Investment in Machines Tools”, HMSO. Neild, P R (1964), “Replacement Policy”, National Institute Economic Review.

The book has been the first one to include a full set of statistical and historical data showing key indicators in the economic and monetary areas for the countries in South-East Europe, starting from the establishment of central banks in the 19th century to the end of World War II. The book has proven ever since its value and utility. Last year in Vienna, there was a proposal regarding further research work based on the information contained within the balance sheets of the central banks. Looking closer at the structure and the evolution of these balance sheets over time provides experts with useful insight as to how monetary policies have changed and have been implemented, how the main 1/2  BIS central bankers' speeches  operations have evolved, what profit the central banks have made and to what extent central banks have been able to secure and preserve their independence. I trust that the South-East European Monetary History Network could further capitalise on both the researchers’ experience of compiling the statistical and historical data series and the cooperation among central banks. The National Bank of Romania has always shown interest in monetary and banking history. In that respect, we are currently re-organising/redesigning the NBR Museum – which you are going to visit after lunch – aiming to bring to the visitors’ attention both pieces of history and the role of the central bank in shaping the economy, thus shaping history.
Michael C Bonello: The challenges faced by the Maltese economy ahead of euro adoption and their implications for monetary policy Interview with Mr Michael C Bonello, Governor of the Central Bank of Malta, by The Times, 2 March 2006. *  *  *  1. It has been reported that Malta needs a real growth rate of 4 per cent per annum if it is to reach the EU average per capita GDP in 20 years. Growth, in fact, only averaged about 0.5 per cent in real terms in the five years to 2005. Are you preoccupied? More important than expressing concern is the need to understand the reasons for this slow growth. Since the turn of the century the economy has faced challenges of both external and domestic origin, and the recent period of weakness reflects the size of the task ahead. The slowdown began in 2001 with external shocks to the key sectors of tourism and semi-conductors. Since then the relatively slow growth in Malta’s main trading partners has been compounded by the competitive pressures unleashed by globalization and by our integration in the single European market, all of which has forced an acceleration in the pace of restructuring of the manufacturing sector. At the same time that we were opening up our markets, low-cost producers were undercutting our competitiveness, particularly in labour intensive sectors. These, along with the sharply higher price of imported oil since last year, are among the factors that have contributed to the slow down.

The projections for the key rate, inflation, output and other variables are based on our assessment of the economic situation and our perception of the functioning of the economy and monetary policy. If economic developments are broadly in line with our projections,  5  See Staff Memo 2008/3 from Norges Bank. BIS Review 37/2009  13  economic agents can expect that the interest rate path will also be approximately in line with that projected. On the other hand, the interest rate path may shift if the economic prospects change, or if the effect of interest rate changes on inflation, output and employment differs from that assumed. In the Monetary Policy Report, we present two alternative scenarios where demand is higher or lower than presented in the baseline scenario. The yellow lines in the chart illustrate a scenario where growth in private consumption is stronger than expected and the turnaround occurs more rapidly. In this scenario, interest rates may decrease to a lesser extent and move up more quickly. The red lines in the chart illustrate a scenario where the global downturn is deeper and more prolonged, with more pronounced effects than assumed. It will then be appropriate to set a lower interest rate in order to stimulate the economy and thereby prevent inflation from becoming too low. The primary effect of a key rate close to zero will probably come via a weaker krone. It will then be appropriate to consider instruments other than the interest rate.
In the interview Skogstad Aamo flatly denied rumours of a krone devaluation. But before the interview was printed, the news agency NTB reported that the krone had been devalued by 12 per cent. 16 Perhaps the journalist was disappointed but Skogstad Aamo was not criticised for breaking the eighth commandment. Over the last decade, the objective of monetary policy has not been a fixed krone exchange rate, but price stability through low and stable inflation. 17 According to the monetary policy regulation the objective is inflation of close to 2.5 per cent over time. But how long is over time? And what is close to 2.5 per cent? With these formulations, it is no longer that easy to evaluate monetary policy. There are several reasons for this. First, it takes up to one to two years for a change in the interest rate to feed through to inflation. Second, inflation is not only influenced by the interest rate. For example, precipitation levels can have a strong impact on electricity prices. Third, we set interest rates also with the aim of promoting stability in output and employment. If the economy is exposed to severe shocks, we may at times seek to bring inflation rapidly back to target, while under other conditions we deliberately choose a longer horizon. An evaluation of monetary policy cannot therefore be based on the latest figures for inflation.

12 In my lecture here last year, 13 I noted that it can be demanding for the political authorities to ensure price stability because low interest rates are often more popular than high interest rates. An appropriate interest rate may therefore be demanding to  8  See NOU (Official Norwegian Report) 1973:36 Om prisproblemene (On price problems). 9  For an account of economic policy in Norway in the twentieth century, see Tore Jørgen Hanisch, Espen Søilen and Gunhild J. Ecklund (1999): Norsk økonomisk politikk i det 20. århundre. Verdivalg i en åpen økonomi (Economic policy in Norway in the 20th century. Ethics in an open economy), Høyskoleforlaget. 10  See i.e., chapter 5 in the Norwegian Act on Securities Trading. 11  In Norway, the concept is also associated with Jahn Teigen’s contribution “Glasnost” in the national final of the Eurovision Song Contest 1988. 12  During the financial crisis last winter the Government wrote: “Monetary policy is the first line of defence in countering a setback in the economy”. See Report No. 37 (2008-09) to the Storting (Norwegian parliament) “Om endringer i statsbudsjettet 2009 med tiltak for arbeid (On changes in the 2009 Budget and labour measures), Ministry of Finance, p. 6. 13  The lecture entitled “On keeping promises”, remarks by Endre Stavang and Henrik Syse and Francis Sejersted’s summary of the debate have been published in Nytt Norsk Tidsskrift 1/2009. BIS Review 140/2009  3  set in government corridors.
BIS central bankers’ speeches  5  Temporarily restricted autonomy when the inflation target is defended Although small countries with variable exchange rates normally have a certain degree of monetary policy autonomy, this does not, however, prevent specific situations arising in which their central banks become highly dependent on the actions of larger central banks. Recent developments in Sweden provide an example of this. A little less than a year ago, at the start of 2015, the Riksbank was in a difficult situation. Inflation had long been below the target of 2 per cent, while long-term inflation expectations were showing a falling trend and were below target. The Executive Board of the Riksbank considered it particularly essential to get inflation to rise towards 2 per cent, as there was a risk that continued low inflation would lead to inflation expectations continuing to fall and to confidence weakening in the inflation target as an anchor for the formation of prices and wages. 8 The monetary policy easing that had been introduced earlier therefore continued. The situation was complicated because the Riksbank needed to take into account the fact that monetary policy was very expansionary in many other countries. Large differences between monetary policy in Sweden and in other countries could lead to a rapid and strong appreciation of the exchange rate. This, in turn, could impede rising inflation and also have negative consequences for the real economy.

29.04.2022  Presentation of the Action Plan against Financial Fraud* Ministry of Economic Affairs and Digital Transformation Pablo Hernández de Cos Governor  *iEnglish translation of the original speech in Spanish. First Deputy Prime Minister, State Secretary for Security, Chair of the National Securities Market Commission, authorities, ladies and gentlemen, good morning. The protocol we sign here today stands as a milestone in our efforts to enhance and reinforce action against potentially fraudulent offers of financial products and services. It comes at a particularly opportune time, with several factors giving rise to an increase in financial fraud, most notably growing digitalisation. Moreover, it is an excellent example of how a problem for citizens can be addressed far more effectively through collaboration between different stakeholders, be they public or private. In the case of the Banco de España, apart from the evident microprudential and macroprudential concern for the security and resilience of the supervised entities’ IT systems, the impact that fraudulent use of technology may have on the citizens and firms that use banking or credit services has been a concern of ours for some time. Such fraud can also come at a high reputational cost to the financial system, the proper functioning of which depends on mutual trust between supply and demand.
It is my hope that we as regulators show enough courage and determination to tackle the negative externalities a potential financial crisis would entail – before it hits us. Let me finish by saying that the issue of financial integration comprises many more aspects than merely how to set-up supervisory structures for cross-border banks. For example, questions on how to establish proper arrangements for emergency liquidity assistance and deposit guarantee schemes also need to be considered within the same context. And even if these issues are of a somewhat different nature I believe that they do require the same type of supranational considerations I have talked about here. The simple reason is that it is only when the frameworks for regulation, supervision and crisis management match the actual structure of financial markets, that the negative externalities of financial crises can be managed properly. Thank you. 6  BIS Review 83/2007

The total capital ratio remained adequate, above the EU average, but the capital reserve shrank once with the marking to market, because of the fast-paced interest rate rise. Asset quality continued to improve, with the non-performing loan ratio falling to European levels and the NPL coverage by provisions staying at significantly higher levels than the European average; profitability increased. Yet, Romania's banking sector faces a number of vulnerabilities: (i) expectations on a higher risk of default on private sector loans amid worsening macroeconomic conditions, the uncertainty about future developments, and growing debt service due to higher interest rates, (ii) the close link between the banking sector and the government sector, and (iii) the polarization of credit institutions by size. The slowdown in lending, which started in the second semester of 2022, was also due to the rise in financing costs amid the tightening of both monetary policy stance and  2/3  BIS - Central bankers' speeches  credit standards. In the second quarter of 2022, banks tightened credit standards for loans to non-financial corporations and to households, and were expected to continue to do so in the third quarter of 2022. The prolonged energy crisis, the heightened geopolitical tensions and the mounting uncertainty about the economic outlook prompted banks to reassess the level of risk. In respect with challenges raised by climate change and energy efficiency, as of May 2022, the NBR started collecting information on green loans from banks.
Our financial sector has weathered several crises well. But we cannot take this for granted. There will continue to be risks and challenges in the financial and economic environment. The changes to the capital adequacy requirements that I have outlined tonight will help keep our banking system strong, and preserve Singapore’s reputation as a safe, open and dynamic financial centre. BIS central bankers’ speeches  5

Trades that give a false or misleading appearance of market activity, actions to rig the prices of securities or futures, are all prohibited under our law and severely dealt with. MAS works closely with the Commercial Affairs Department to take enforcement actions ranging from civil penalties to criminal action. Last year saw the fruition of MAS’ first civil penalty court action. We secured civil penalties against a fund manager who was found by the High Court to have window-dressed his portfolio by creating a false appearance relating to the price of one of the component shares. The fund manager and its CEO were ordered to pay a civil penalty of $ each to MAS, as well as costs of the court action. The decision was upheld by the Court of Appeal. The assistance that we sought, and obtained, from our foreign counterparts was vital to our success in this case. Similarly, MAS stands ready to assist our international counterparts in their enforcement efforts. Earlier this year, the Australian authorities successfully prosecuted a former fund manager of an Australian bank for insider trading. MAS had referred this case to the Australian Securities and Investment Commission (ASIC) and provided ongoing assistance during ASIC’s investigations. Infrastructure – sound and stable The final component of the capital market ecosystem is the infrastructure that supports the trading of securities and futures. Capital market participants trade either on a multilateral basis through organised exchanges, or bilaterally with each other over-the-counter or OTC.