samchain/econo-pairs-v1 huggingface dataset:
But we also have to consider what happens if our expectations are not met. In the first instance; where significant gaps exists we will work with home state supervisors and firms to address this as a priority. However, where this information is not able to be provided on a systematic basis, and/or where the PRA does not have sufficient influence on outcomes, the PRA may ultimately expect either a branch or a subsidiary to operate on a more standalone basis. Governance  It is not breaking news that we place great supervisory emphasis on the quality of governance at firms. Our requirements in this area remain stable and consistent. However, I do want to emphasise two points:  1. For subsidiaries, we expect the local board to play an active role. This means it should be joined up with its parent board in terms of information flows and it should ensure the PRA is sighted on relevant group developments. 7  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  7  2. We also recognise explicitly that for some small subsidiaries it may be appropriate for a group executive to play a role in the local board (e.g. a small UK subsidiary of a large overseas bank) that we would not consider appropriate in a larger firm. So we can be open to having group executives, as say Chair, but the firm will still need appropriate independent challenge on the board. On branches.

66 former European Economic Area (EEA) passported branches have entered the Temporary Permissions Regime (TPR) and are applying for authorisation as third country branches (TCBs)2 ;  b. A small number of former EEA branches have been authorised as subsidiaries as they have material retail deposit taking activity; and c.  Many UK banks and large international groups who have subsidiaries here have established and built out their EU subsidiaries, meaning changes in their structure and the nature of their booking models. The fundamental philosophy underpinning the statement is responsible openness A good place to start is with the guiding philosophy underpinning the PRA’s approach to international supervision – responsible openness. The UK has long been a vibrant financial centre, with banks from around the world coming here to contribute to, and benefit from, the efficiencies and diversification provided by international trade. Our banking system is characterised by: a. the scale of international business undertaken here - around one fifth of global banking activity is undertaken in the UK with overseas banks playing an important part. They account for almost half of the banking assets held in the UK; b. the range and diversity of participants - approximately 150 branches and 90 subsidiaries from 50 countries and all of the Globally Systemically Important Banks (GSIBs) have entities operating in the UK; and c.  its global interconnectedness – with significant amounts of business booked cross border into and out of the UK.
It is a question of monetary policy, as I said earlier, being first and foremost aimed at ensuring there is a credible nominal anchor in the economy. As long as this nominal anchor does not risk coming loose, monetary policy can be aimed at stabilising the real economy. I shall return to this shortly and for now merely emphasise that the key word here is stabilise the real economy and nothing else. It may be interesting to note in this context that the experiences from the period of low, stable inflation have meant that price stability is now increasingly perceived as both an objective in itself and as a means of achieving other macroeconomic objectives 5 . There are many indications that price stability has beneficial effects on efficiency and growth in the economy. The reasons can be those I just mentioned, i.e. that the price system functions better as a signalling mechanism in a low inflation environment and that households and companies can spend more time on productive activities instead of trying to protect themselves against inflation. Essentially it is a question of price stability being a necessary condition for an efficient payment system, as I said earlier. In addition, the period of low and stable inflation has also been characterised in many countries by less fluctuations in growth in the real economy than was previously the case.

The differences compared with developments during the inflationist and unstable 1970s, often entitled “The Great Inflation”, have been so notable that this development has been awarded its own title in academic research – “The Great Moderation” 6 . Although the reasons for the greater real economic stability are not entirely clear; there are hypotheses that economies have undergone various types of structural changes which have subdued the fluctuations – such as improved stock management among companies and financial innovations – or that the shocks to the economies have quite simply been smaller than during the 1970s. However, it is most likely that a better monetary policy has played some role in the increased real economic stability. We have thus established what a central bank’s primary tasks should be: to maintain price stability, to promote stability in the financial system and – as long as the nominal anchor formed by the price stability target is not threatened – to try to stabilise the real economy. There may nevertheless be reason to provide an example of what is not an appropriate objective for a central bank. As I have tried to emphasise, the real economic objectives that central banks have entail stabilising real quantities such as production and employment. By stabilising I mean that one tries to reduce the fluctuations around the long-term trend. However, it is important to realise that this long-term trend development is not something that monetary policy can directly influence.
And third, I will argue that we need a credible long-term path towards more convergence and stronger resilience in the euro area so as to foster durable growth and ensure that the return of confidence is long-lasting; this is about the commitment to perform right up to the end. I refer to this long-term policy effort – not to qualify for participation in EMU, but to maintain successful participation in EMU – as “convergence process 2.0”, as I will explain in a moment. The state of the euro area The European economy is undergoing a moderate recovery, but complacency would be unwarranted. To really overcome the crisis, there are some remaining major challenges still to be faced. First, the euro area’s debt has stabilised, but remains at high levels.1 Second, euro area unemployment is still high and the youth are suffering disproportionately.2  1  In 2013 public and private sector debt reached respectively 95.1% and 168.0% of GDP. The debt level is especially high in some Member States: for instance, public debt stood at 175.1% of GDP in Greece and 132.6% in Italy, while private sector debt amounted to 319% of GDP in Ireland and 252% in Portugal. 2  Euro area unemployment rose to 12.0% in 2013. Youth unemployment reached 24.0% in the euro area and increased dramatically in Greece and Spain to 58.3% and 55.5% respectively.

Joseph Yam: Exchange fund notes Opening remarks by Mr Joseph Yam, Chief Executive of the Hong Kong Monetary Authority, at the signing ceremony for the appointment of retail exchange fund notes distributors, Hong Kong, 3 May 2005. *  *  *  I have often emphasised the need for diversification in the financial intermediation channels to maximise the contribution of the financial system to economic growth and development. Diversification can also promote financial stability through reducing the over-dependence of financial intermediation upon one particular channel. Such diversification is therefore clearly in the public interest, to the extent, I think, of requiring the involvement of the public sector in its promotion, if the free market does not produce the desired results. Indeed, Hong Kong’s non-interventionist Government finally got around to this view back in 1989 and on 14 March 1990 the first weekly issue of 91-day Exchange Fund Bills, amounting to $ million, was launched. Since then the Exchange Fund Bills and Notes Programme has become a central feature of Hong Kong’s debt market. The total amount of Exchange Fund paper now outstanding is $ billion. And it was not just a matter of bringing supply to the market to meet demand. We developed a benchmark yield curve, a market-making system and a sophisticated market infrastructure, including a paperless clearing and custodian system. But more needs to be done.
In summary I would like to conclude by emphasising the need for fiscal prudence, further efforts to maintain international competitiveness and continued vigilance in the banking sector, in the context of ongoing uncertainty in international financial markets and in the global economy. BIS central bankers’ speeches  7

The Bank of Zambia is in the process of engaging the banks with a view to finding a solution to the high cost of banking which is often cited as the main hindrance to access to finance. I therefore appeal to all the banks operating in Zambia to critically assess the level of their charges and to continue playing the supportive role to development that they have in the past. In this regard, I am particularly pleased to make mention of the spirited efforts that Standard Chartered Bank continues to make in financing SME’s and Micro-finance. The experiences of many economies show that these sub sectors have the capacity to create a middle class and  BIS Review 163/2008  1  to emancipate both rural and urban dwellers from their poverty trap. Zambia has many promising entrepreneurs whose only constraint is affordable funding. As you explore the opportunities that this new venture will bring you, I urge you to focus on the customers who may appear small today, but could grow with the bank if they are given the right support. I wish you every success as you embark on this journey into North Western Province. 2  BIS Review 163/2008
The national governments can contribute by ensuring that combined fiscal policies in the euro area comfortably comply with the Stability and Growth Pact; this is not yet the case. Measures that improve labour markets can also help to enhance conditions for the success of the monetary union. In the same way, the institutional changes and economic developments in Sweden in recent years herald good conditions for a stable krona. The framework for both monetary and exchange rate policy has been strengthened. The status of the Riksbank is being made more independent and the budget process is now considerably more disciplined. Certain flows in the currency market may be generated simply as a consequence of the new currency’s introduction but what ultimately matters is the economic fundamentals. This suggests that the advent of the single currency - the euro - will not lead to any marked changes either in the krona’s role in the Swedish community or in its value. BIS Review 68/1998

The 20-year SGS has extended the benchmark yield curve as a price discovery mechanism and liquid hedging instrument for the broader Singapore debt market. The corporate debt market has also seen good growth. As at the end of last year, outstanding corporate debt securities were up 14% from a year earlier. This represents an increase of more than 6 times in size since 1996 to $ billion. Another encouraging development has been an increase in the diversity of issuers. We have seen more real-estate borrowers and foreign issuers tapping the SGD bond market. Almost one-fourth of SGD-denominated bond issuance, or $ billion, was made up by foreign entity issuers. We have issuers from the US, Europe and more recently from Korea, Latin America and the Middle East. In line with the growing sophistication of the investor base, the asset securitization market in Singapore has also taken off. For 2006, ABS issuance amounted to more than $ billion. There is also an influx of more structured products into our market such as convertibles and synthetic Collateralized Debt Obligations. Turning to wealth management, Assets Under Management (AUM) has continued to grow strongly. 2005 was the fifth consecutive year of double-digit growth for Singapore, with AUM increasing 26%. This trend has continued in 2006, evidenced by the expanding wealth management community in Singapore. This underscores Singapore’s emergence as a wealth management center. Singapore is strategically placed to capitalize on the significant wealth building up in Asia.
The euro area repo market has also been largely unscathed by the pandemic, remaining a fully functional market even at the peak of the crisis. According to data from the International Capital Market Association (ICMA), the total value of the outstanding repo contracts has barely changed from December 2019 to December 2020 at EUR 8,300 billion (including both repo and reverse repo transactions). This is an all-time high with a repo market size up by more than 40% in 10 years. However, the euro area repo market can be affected by collateral scarcity and seasonality, especially at the end of the year, considering also the important share of Hold-to-maturity investors. In this regard, Eurosystem has made available government bond holdings for securities lending since April 2015. The Eurosystem securities lending programme has been successfull in helping to normalize market rates and in acting as a backstop facility for market participants. For instance, in April 2021, EUR 71.5 billion of public sector bonds were lent out on average with a breakdown of EUR 59.5 billion against securities and EUR 12.0 billion against cash collateral. Another key feature, which has helped to support the liquidity of the euro area repo market, is the dominant share, two-third, of repo market trading cleared via central clearing counterparties (CCP), despite the absence of any mandatory clearing on these instruments.

Consequently, CCPs registered record volumes, in March 2020, in some case for more than 15 trillions of euros, reflecting both cash raising transactions but also special collateral borrowing transactions (notably for French and German securities), leading for the former to temporary wider rates and for the latter to tighter repo rates. Of note also, despite increase in margins demands (associated with higher volumes), breaches and fails have also remained very low. The structure of repo clearing in Europe, significantly changed since the migration in 2018–2019 of all euro-denominated sovereign debt transactions from CCP LCH Ltd to the Paris-based LCH SA. With this migration, around 700 billion euros have been transferred to LCH SA and hence to an EU-based CCP. Today, the European repo clearing sector is largely conducted in two European CCPs, LCH SA which has a dominant market share and Eurex Clearing. From a financial stability perspective, this relocation of euro-denominated repos within the euro zone is welcome, in particular given the key role of these instruments, essential for government funding. It ensures that this activity is subject to the stringent requirements set by EMIR, under the close and integrated supervision of national and European authorities through EMIR Colleges, and shields this important funding market from any potential regulatory divergence or supervisory conflicting interest between UK and EU competent authorities. This successful migration of repo activity could serve as a reference to shape future evolutions on other clearing segments that are systemic to EU’s financial stability.
Low interest rates are leading to unusually rapid growth in lending and to a rise in asset prices. Companies have ample liquidity and thereby good scope for investment. Nevertheless, employment is responding very slowly – instead of employing more staff, employers are using their existing labour more intensively and efficiently. There are parallels here to what we have seen in the labour market during previous years in the similarly IT-intensive United States, where employment has increased with a lag relative to the cyclical upswing. This is because employers have initially pushed their organisations to the limit and got the most out of their earlier heavy IT investment before resorting to new recruitment. Given the intensive global competition and considerable scope for outsourcing operations, the labour market is constantly undergoing change with new opportunities for rationalising organisations. Many people are moving from an increasingly labour-scarce manufacturing sector to a service sector that is also rationalising. Data show that few of the sectors cutting staff in an economic downswing begin re-employing when economic activity improves again. The redundant employees are instead forced to move on to other occupations. The Swedish labour market appears to find it difficult to meet these structural changes. The major differences in unemployment between regions and between professions indicate that there is less mobility in the labour market than there could be and that few people are finding new job opportunities in new sectors or new locations.

BIS Review 41/2005  1  Moreover, there is another new trend, which was less evident one to two years ago, namely the speed at which competition in the food retail sector would intensify. The restructuring of the retail trade that took place earlier in the United States has now come to Sweden, albeit in a different form. New foreign companies and new business models reduce the labour-intensity and price levels in the retail food sector, where prices for staple products can differ as much as 30 per cent from low-price chains to normal food stores. There were few who could predict the speed of this change, with new food store chains that all together plan to establish hundreds of new low-price stores in one year. The very nature of these forecasting errors is important to the way we assess the consequences. As employment has been weak during this economic upswing, and total unemployment is at a high level, many debaters have emphasised the link between low inflation and the labour market. They wish to imply that demand in the economy is insufficient because of an excessively tight monetary policy. But this is hardly the case; all of the effects the forecasters have underestimated are supply effects, which reduce inflation because of better and more efficient conditions for production, and not effects that reduce demand. What we are seeing is the reverse; that the expansionary monetary policy has a fairly tangible impact.
For nearly 20% of companies the premium was more than 150bp. Today, in almost no case is it more than 150bp. (slide 5)  But according to the models used by banks to assess creditworthiness, based on company balance sheet characteristics, default probabilities have barely changed. 3  In global debt markets, investors seem to be willing to take the same risk for less compensation. Appetite for risk taking has increased. Now, coming closer to home, consider this:  2  That confidence is also apparent in measures of interest rate volatility implied by options and in the pricing of credit default swaps. These model assessments are submitted to Credit Benchmark, to whom I am grateful for permission to use the data (www.creditbenchmark.com) 3  4  All speeches are available online at www.bankofengland.co.uk/speeches  4  As I noted back in February, the premium on a basket of sterling-denominated investment grade bonds is close to zero.4 (slide 6)  While the average sterling-denominated investment-grade corporate bond has got riskier in recent years, with a longer duration and lower credit rating, this basket has a fixed composition. And the compression of the yield premium has been even more pronounced at the riskier (‘high yield’) end of the market. The focus of explanations of these developments, globally and in the UK, is often on QE.

Collateral is always there to compensate not just for the market value of the derivative position at the time of the default but also additional losses that may be incurred in closing out or replacing the position. But consistent with our duty to consider the future as well as the past, we are now diving to search for new hazards that could lurk beneath the surface in this area. With collateral now dealing with questions about the solvency of counterparties, our focus is on what its much greater use means for resilience of markets. As Governor Carney has observed: “Collateral management is a cornerstone of resilient markets”. 16  Greater reliance on collateral today means that although changes in counterparty credit quality are not met with collateral calls, market adjustments prompt much greater flows. The avoidance of asset fire sales rests on those from whom the collateral is called having the means to meet the call. So we are investigating how market adjustments could translate into calls for additional collateral from market participants. Perhaps we should term this the sister of Value at Risk: collateral at risk or ‘CaR’. 17  And we are investigating how those calls would be met. Do participants have liquid assets to meet them or would they need to sell less liquid assets to get them? (slide 11). Regulations are in place that require banks to hold a buffer of liquid assets to be able to meet derivative margin calls – and other outflows – over a 30 day window.