samchain/econo-pairs-v1 huggingface dataset:
Major firms will need to continue to work to on demonstrating these capabilities in the run up to the 2022 deadline for ending ‘too big to fail’. And they will need to keep their capabilities ‘live’. While 2022 represents a clear milestone, it is not the end of the process of ensuring that the UK has an effective resolution regime which continues to be credible, transparent, flexible and proportionate. 10  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  10

Margarita Delgado: Role of the financial sphere in accelerating decarbonisation Speech by Ms Margarita Delgado, Deputy Governor of the Bank of Spain, at an event jointly organised by the Bank of Spain, the World Wide Fund for Nature, the Ministry for the Economy and the Ministry for the Ecological Transition and the Demographic Challenge, 3 December 2020. * * * Good morning, and thank you all for being here, whether in person or online, attending this event jointly organised by the Banco de España, the World Wide Fund for Nature, the Ministry for the Economy and the Ministry for the Ecological Transition and the Demographic Challenge, which aims to boost the role of the financial sphere in the process of decarbonisation. The transformation of our economy into a more sustainable model is an unavoidable necessity to which we have committed ourselves as a society and which we have agreed with our European partners. The draft climate change law includes a set of measures that essentially impact what we call the real economy. There are references to the role of the financial sector in just a couple of its articles. A priori, that would seem natural and logical. Evidently, the CO2 reduction targets directly affect energy production, transport, mining and industrial processes in general. But anybody might well consider that the effects on the services sector or, of course, the banking industry should not be so significant.
Both individually and all together we are absorbers of the shocks coming from the rest of the world, and that rest of the world is 98.75% of the world population (we are only 1.25%); 98.57% of the foreign trade, 98.73% of GDP in 2007. Therefore it is important for us to penetrate as close as possible to the nature of the current financial crisis, to the necessary and true answers to the question how it should be managed, which are primarily sought and ought to be found by the developed countries, what lessons are to be drawn from this crisis, what will be the damage for the region, what is the best way to cushion part of the inevitable impact as successfully as possible. What has actually happened? Starting from August 2007, the world was lapped by an intensive financial disorder, turmoil. Once again the trigger was pulled with a severe downward turn in the USA. First, "Fannie Mac" and "Freddie Mac" were taken into conservatorship. The following weekend "Lehman Brothers" turned out to be incapable of finding a buyer and they went bankrupt. This shocked the market, which expected that it will be saved by the government, as it was the case with  BIS Review 18/2009  1  "Bear Stearns" in the beginning of the year. Then, "AIG" had to be rescued after the rumors about the size of its losses incurred by agreements for commercial debt securities. Hence, the pressures increased enormously for the other dealers in securities.

The introduction of the euro has profoundly changed the environment in which the Swiss economy operates. Since 1999, the Swiss franc has coexisted quite harmoniously with the euro. In fact, the franc has been more stable against the euro than it was against the D mark. This is good news for Swiss companies exporting to the European market. On the other hand, such companies have to contend with a greater concentration of foreign-exchange risks. They are responding to this challenge with hedging policies that are more active than those pursued in the past. Pegging the franc to the euro in order to eliminate exchange-rate risks would entail more problems than advantages, as it would inevitably push up the level of interest rates in Switzerland. Against this backdrop, the National Bank is continuing to pursue an independent monetary policy that takes account not only of economic trends and inflation forecasts but also of the situation on the foreign exchange markets. BIS Review 10/2004  1
the general public on the need for cohesive reforms around the three pillars of robust macroeconomic fundamentals, improving productivity/competitiveness and the improved business environment. Central Bank of Sri Lanka – ROAD MAP 2017  This has been the Sri Lankan experience over several decades, which stands in marked contrast to the policies of the successful East and South East Asian countries. Those countries achieved 5  robust fiscal outcomes, low inflation,  encouraging that it has commenced. low interest rates and competitive  The International Monetary Fund (IMF)  exchange rates. itself has recognised that progress has  We cannot continue with repeating stopgo cycles, with each successive trough becoming more dangerous. We have to change with vigour in order to achieve our objectives. We have missed enough opportunities and we cannot afford to miss them repeatedly. We need decisive policy initiatives implemented with commitment. More importantly, we need to take a longer term view and act accordingly. It is naïve to believe economics can be separated from politics. No country, no society has been able to achieve this. However, we need to ask why Sri Lanka, which was second to Japan in Asia, on most socio-economic indicators, has slipped so far behind today. been made in stabilising the economy. Improved fiscal performance has been at the heart of this improvement. Honourable Finance Minister and his team deserve credit for this. However, the continuing challenge is to have the clarity of purpose, focus and determination to implement the necessary changes.

The Bank set out some ideas on the design of such an open platform for SMEs last year.9  Data collection is also integral to the work that the Bank itself does in pursuit of its wider mission. Without the data we collect, we cannot identify risks, design good policy, and take action in a timely and targeted fashion. That’s why delivering ‘common data standards’, rules and methods that consistently label and describe financial data, are a priority long term reform for us. Reflecting that priority the Bank are setting up a joint transformation programme with the Financial Conduct Authority (FCA) and industry. And Sam Woods, the Deputy Governor for Prudential Regulation, and Nikhil Rathi, CEO of the FCA, recently published a letter to firms providing an update on this work, and asking firms to work with us in partnership to deliver common data standards and other crucial reforms. 10  AI and AIPPF  Yet another rapidly-developing area is the adoption of AI in finance. We know that finance is one of the sectors that has seen widespread adoption of AI in recent years.11 COVID-19 has accelerated this trend. Half of the banks we surveyed reported an increase in the importance of AI as a result of the pandemic. 12 The adoption of AI is already bearing fruit in a number of areas within the financial sector with a very wide range of use cases.
The baseline scenario of the September Report assumes that the CPI’s annual inflation will continue to approach 3% in the coming months, closing 2016 at 3.5%. The CPIEFE will descend to 3% faster than will headline CPI, and by early 2017 it will be below this mark (figure 3). This scenario assumes that inflation will converge to the target somewhat sooner than we expected in June, which partly relies on the exchange rate remaining relatively stable over the short term. As I said, this is subject to significant degrees of uncertainty, as illustrated by the fluctuations that the parity has shown in recent months. As a working assumption, our projections consider that the real exchange rate (RER) will hover around its current levels throughout the projection horizon, in line with the assessment that today it is not far from what can be inferred from its long-term fundamentals (figure 4). Globally, despite the reversal of recent weeks, external financial conditions facing emerging economies have outperformed our projections in earlier Reports (figure 5). This improvement has been accompanied by the markets’ perception that the expansionary monetary policies in the developed world will persist for longer. In this context, the changes in expectations regarding the Fed’s monetary policy conduct have been particularly important because of both its weight in financial markets and the uncertainties surrounding it (figure 6). The markets assume a more gradual normalization of monetary policy than that announced by the Fed.

From now on, we will publish on our website the opinions of the ECB Ethics Committee for cases of conflict of interest and postmandate gainful employment by the members of the ECB’s Executive Board, Governing Council and Supervisory Board.5 This new initiative complements the single Code of Conduct for highlevel ECB officials and demonstrates our strong commitment to integrity and good governance. It will facilitate public scrutiny, thereby enhancing trust in the ECB and ultimately in its decisions. This leads me on to my final point on good working relations requiring trust. Trust, on the one hand, that criticism of the ECB reflects concerns raised by European citizens on matters that fall within the ECB’s mandate. And trust, on the other hand, that the ECB listens and takes such criticism into account. This trust forms the basis for our constructive dialogue, both formal and informal, and ensures that our relationship delivers. And so it does: in response to your call for the ECB to reflect on ways of reducing the reporting burden associated with the collection of statistical and prudential data – an activity which costs the banking sector several billion euro each year – we proposed practical solutions in cooperation with other European authorities and the banking industry, while improving the quality of the data collected.6 At the very beginning of my term of office, you invited the ECB – in full respect of its mandate and independence – to reflect on how its policies could support the green transition.
This achievement should be saluted as citizens of both  BIS Review 15/2009  1  countries will now be able to pay for goods originating from the other country with the currency of that country, hence eliminating the need for currency conversions by citizens. Distinguished Ladies and Gentlemen, this agreement is also a step towards further strengthening trade and financial cooperation between the two countries. It provides the legal basis for commercial banks, bureaux de change and other financial institutions to freely accept each country’s currency and repatriate it through the banking system with full accountability. The agreement will not only enhance trade cooperation but will also increase cooperation between our two central banks. Furthermore, the agreement provides a platform for sharing information on the bank notes in use by the two central banks. This information exchange initiative should not only end at central banks, but be extended to all economic entities that will use and benefit from this development, especially our hard working farmers who should be paid genuine currencies when they sell their produce. Once again, Governor, let me thank you most sincerely for initiating this agreement. Indeed, the signing of this agreement is a testament of the cordial relationship that has existed between Mozambique and Zambia since the days of the liberation struggle. I must add here that, for us, it marks a key milestone towards enhancing regional integration and macroeconomic convergence. As you are aware, Governor, this is our main goal as member countries of the Southern Africa Development Community.

And for the new challenges to be met and the new opportunities to be exploited, there is often the need for new approaches and new initiatives, at both the national and international levels. There is a view, for example, that trade integration in the region has not been adequately served by financial integration, given restrictive controls on capital mobility still being practised in selected jurisdictions. As a result there is some doubt as to whether the long term development potential of the region has been maximised and whether the rapid economic growth the region is experiencing is sustainable. There is further concern from the point of view of the maintenance of monetary and financial stability. New approaches and new initiatives are indeed necessary to promote greater financial integration in the region. I am sure there are many other areas concerning development of the region in which new approaches and new initiatives may be desirable. Being a regional financial institution of strategic importance, it is obvious that the ADB has a significant role to play. I would argue that this should be a role of increasing significance, or even a pivotal role, given the increasing interdependence among jurisdictions within the region and therefore the greater need for regional co-operation. The ADB has the right institutional framework for promoting such co-operation, and I am glad to see that under the leadership of the President there has been increasing involvement of the ADB in regional financial cooperation recently.
Today I intend to take up a couple of questions that I consider relevant to both the debate in Sweden and the international debate. The first question is what role monetary policy should play with regard to promoting financial stability. This is a question that is still raised as one of the most important ones in the international discussions on possible changes in the inflationtargeting framework, although in many countries this has been overshadowed by the recent low inflation figures. A second question that, for natural reasons, is always topical when discussing whether the inflation-targeting policy needs to be modified is whether the level of the central banks’ current inflation targets – usually around 2 per cent – needs to be changed. This is also something that has been discussed quite a lot by academics and in various policy forums since the financial crisis. Internationally, the discussions have focused  BIS central bankers’ speeches  1  on the question of whether the target should be raised, while in Sweden the focus has instead been on whether the target has been set too high. I intend to address the arguments for both points of view and to give my own views on the subject. Should monetary policy take financial imbalances into account? But let me begin with the question of monetary policy and financial stability. One lesson from the financial crisis is that price stability is not sufficient to ensure financial stability in the economy.

Although growth remained high in the emerging economies and exceeded the long-term trend in Europe, economic activity in the US slowed considerably in autumn on the back of the credit crunch on the property market. The last few months of 2007 were characterised by the emergence of considerable uncertainties regarding the future path of the global economy, with the latest energy price hikes and, of course, the destabilisation of the financial markets in autumn being the main sources of concern. Switzerland has not remained unscathed amid all this turmoil. Since the summer, we have seen substantial stock market corrections and a return to lower-risk investments, particularly in Swiss francs. However, we experienced these turbulences during a very dynamic phase in our economic cycle. Despite the volatile climate of recent months, the Swiss economy has continued to enjoy sustained growth. For the fourth year in succession, real GDP growth was significantly higher than the longterm average, reaching 3.1%. We owe this gratifying result to the extremely broad-based nature of Swiss economic growth. As already in 2006, the global economy and the performance of the Swiss franc facilitated exports, accounting for a jump of some 10% in this sector. What is more, robust domestic demand also played a role this time round. Significant increases in real salaries and the continued labour market upturn had a positive impact on private consumption, while the robust financial health of the corporate sector coupled with a rosy business outlook helped to stimulate investment.
Such new applications need to be reviewed as to how they will contribute towards improving product and services delivery, aid in risk management activities, and enhance management capability. Opportunities from regional integration Ladies and Gentlemen: Another important development that is taking place is the growing regional integration, driven by increasing intra-regional trade and investment flows. Asia has seen a rising pattern of intra-regional trade and investment where trade between countries in the region now accounts for almost half of Asia’s trade from just a fifth over a decade ago. Malaysia’s share of trade with ASEAN member countries now accounts for 24% of our total trade reflecting higher intra-regional trade (notably, increased imports from lower-cost suppliers such as Thailand, Indonesia and the Philippines) and better economic performance of ASEAN countries. In 2003, Malaysia recorded strong growth in exports of 29.6% to China and 26.7% to Hong Kong. Large businesses and corporations have begun to review their business architecture more aggressively and have moved to relocate their business operations. Such structural shifts driven by new demand patterns and new ways of organising production have led to increased specialisation and complementarity within the region. ASEAN alone offers a huge growing market of 500 million people. Therein lies the opportunities for the domestic banking institutions, opportunities to support Malaysian businesses and investors who are venturing abroad and opportunities to diversify across geographical sectors and across product range. The role of banking institutions needs to extend beyond the traditional role of being a financier, to manager of financial relationships.

Turning to the future, the big question is what a world of digital currencies like stablecoins and CBDCs would mean for the implementation of monetary policy. How will central banks anticipate and adapt to the changing landscape brought on by the possibility of digital currencies? There is much more to discuss about these important considerations in a fast-changing world. As central bankers, it's critical that we remain focused on carrying out our responsibilities, while keeping pace with the world around us. And that's what brings us here today. This workshop is an important part of learning and understanding the challenges and opportunities that lie ahead so that we can be prepared for and successful in the future. Thank you all for participating in what will surely be thought-provoking and constructive discussions. 1  President's Working Group on Financial Markets, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, Report on Stablecoins, November 2021. 2  Board of Governors of the Federal Reserve System, Overnight Reverse Repurchase Agreement Facility, January 3, 2018.
And, for the past couple of years, you and your representatives at the ACT have also had to grapple with the array of regulatory reforms reshaping the financial system, internationally and domestically. It is clear that credit conditions prior to the crisis were unsustainably loose – reliant upon a financial system whose net worth was too low and which was overly dependent on flighty short-term wholesale funding. Banks of all kinds are themselves having to repair their balance sheets and adjust their business models. They face headwinds in doing so. First, legacy portfolios – bad and impaired loans – act as a drag on profitability. In the UK, that particularly affects the two big banks directly rescued by the government. That matters a lot because they were particularly significant in UK business banking before the crisis, holding just under half of the stock of such loans. Second, the lingering threat of some kind of  BIS central bankers’ speeches  1  implosion in the euro area has led to elevated funding costs for banks. The longer that persists, the more it will be passed on to bank customers. In the UK, the government has introduced a scheme to reduce bank funding costs provided they are passed on to SME borrowers. And on the Continent, where the position is more precarious, the ECB’s long-term repo operations have broadly similar effects, giving banks there time to restructure their liabilities and so leaning against the risk of a sharp contraction in the supply of credit.

As a result, the increase in nominal GDP would be around 4%. At end-2015 the overall general government deficit target (4.2% of GDP) is expected to be met. For 2016, a deficit of 2.8% of GDP is targeted, which would involve attaining – for the first time since 2007 – a figure close to the 3% ceiling established in the Stability and Growth Pact. In turn, the public debt/GDP ratio would stand at 98.2% in 2016, having posted a figure of 98.7% at end-2015, which would mean a decline in this ratio for the first time since 2007. The macroeconomic scenario used to devise the Draft Budget is, as I earlier stated, and with slight upward differences, similar in terms of rates and composition to that I described when referring to the Banco de España forecasts and, more generally, to the consensus of analysts. It is reasonable to expect the improved cyclical position and the reduction in public debt yields to have a positive direct effect on public finances. In this respect, the upward revision of the Spanish economy’s growth prospects means that the budgetary drive required to further the fiscal consolidation process, measured by the change in the primary structural balance, will be very limited, in line with the latest Updated Stability Programme, which anticipated that the fiscal policy stance would be essentially neutral in the 2015–2018 period. Naturally, any slippage in growth or rise in financing costs would hamper fiscal consolidation, making the process more demanding.