samchain/econo-pairs-v1 huggingface dataset:
For tail risks in particular, the dark corner where we shine the light may not necessarily be the place where those risks reside. Many of the risks inherent in Islamic Finance are similar to those of conventional finance, including credit risks, market risks, market conduct risks, operational and reputational risks. However, the exposure to those risks could differ between conventional and Islamic finance. For instance, Islamic banks are generally exposed to substantially more liquidity risk than their conventional counterparts, as the range of liquid instruments and hedging instruments are more limited. Islamic banks tend also to be more exposed to the property and infrastructure sectors, in part because these are the prevalent asset classes in the Gulf and also in part because Islamic finance has to be based on physical assets. Given the “large and lumpy” nature of such transactions and the tendency for asset bubbles to build up quickly, it is a risk that merits special attention. In addition, there are also risks unique to Islamic Finance such as Shariah-compliance risk. If products are later found to be non-Shariah compliant, the institutions not only face reputational damage, but also costly unwinding of such structures, with possible losses to investors. The third point is that to achieve a good outcome, an effective regulatory approach needs to embrace a tripartite approach. Regulators, financial institutions and investors all have a role to play. Allow me to share briefly the approach that MAS takes.

RIX-RTGS is a Real-Time Gross Settlement-based service. What characterises such a service is that each payment is settled immediately and individually. This differs from a deferred-based service where payments are settled after a certain time span, gross or net. Real-time gross settlement, together with the fact that funds are exchanged on central bank accounts, eliminates credit risks. Further, as RIX also offers intraday loans to banks that temporarily lack funds, liquidity risks are reduced. RIX and its current services have contributed to financial stability and served the Swedish banks well for a number of years. However, the requirements to a modern central bank payment system develop over time. Increasing globalisation leads to growing demands for harmonisation. New functionalities are requested, and more participants raise the operational burden and risks. Also, new types of threats arise, especially related to cyber-attacks, which need special attention in terms of security measures. With this background, the Riksbank recently decided to take preparatory steps towards using the Eurosystem’s future T2 platform for the next generation of RIX. T2 will replace the Eurosystem’s current RTGS system, TARGET2. It will include a number of enhanced services compared to TARGET2 and be based on the global ISO 20022 messaging standard. What is more, like TIPS, T2 will be able to facilitate payments in several currencies – that is, among them perhaps the Swedish krona. T2 will be launched in November 2022. Importantly, as a twin decision, the executive board concluded to initiate a similar process regarding TARGET2-Securities, T2S.
•  First is the introduction of the “open sky” policy which has opened up opportunities for new potential players, at a scale large enough to create a strong viable network of airlnes providing regular services with more competitive prices. •  Second, investment in necessary infrastructure has been undertaken, such as airport facilities, landing slots, and aeronautical radio networks to facilitate flight communication. •  Third, rules and regulations, especially on cross-border of services, were more harmonized to support the airlines’ operation. Visa requirements and custom procedures were also streamlined to accommodate travelers. •  Fourth, authorities lifted up standards for pilots, crews, and airlines’ staff, driving the airlines to actively promote their human resource development to be on par with international standards. •  Lastly, the airlines have been encouraged to leverage on investments in specialized facilities in other countries in the region to lower costs, for instance, by using common aircraft maintenance centers and pilot training facilities. This combination of the right business model and appropriate policy supports has yielded tangible benefits to the region. A stronger regional airline network brings in higher competition, lower costs and better service quality, thus improving people’s livelihood and paving way for other types of businesses to benefit and grow. Ladies and Gentlemen, The bigger question is how to replicate the low-cost airlines’ success story in other service industries in the region, where large rooms for improvement have yet to be addressed and a lot of potentials to be unlocked.

Although the electronic platform being launched today will not be able to meet all of these, I still hope that it will prove to be the starting point for something new and contribute to an eagerly-awaited renaissance for Swedish fixed income trading. Good luck! BIS Review 37/2001  3
At the international level, the Islamic Financial Services Board and other standard setting bodies have an important role to harmonise the practices and complete the framework by setting the broad governance framework for international application. It is with this integrated and cumulative approach, insyaAllah, that strong and effective corporate governance framework will be successfully implemented. Each one of us regardless of our position, as regulators or bankers, is accountable. Let me conclude with reference to the saying of the Prophet, "Each one of you is a guardian, and each guardian is accountable to everything under his care". 4  BIS Review 39/2005

At the end of that process of realising the assets in the rump, the Deposit Insurer learns how much it has lost. I want to stress that the DI typically incurs losses but discovers how much ex post. BIS central bankers’ speeches  3  Now imagine that the commercial bank subsidiary in question is big and complex. The realisation of the assets via a standard rump-administration is liable to destroy a lot of value, increasing the Deposit Insurer’s losses. And in any case that strategy may not be consistent with maintaining stability (or containing disorder). A way of cutting through that would be to bail in the Deposit Insurer. Rather than the Deposit Insurer waiting until the end of the process of a potentially destructive realisation of the assets, it would hear up front how much it had lost. In the scenarios I have described, its losses should be smaller that way. That approach could, if necessary, be applied in different regions to different distressed subsidiaries of the group. In the world of real banks, the firms have uninsured as well as insured deposit liabilities, and they typically combine deposit taking with some bond issuance. That means that, after equity and subordinated debt holders were extinguished, losses would be shared amongst the DIS and those bonds etc that could be bailed-in. Whether they got bailed-in together or in sequence (bonds first) would depend on whether a jurisdiction operated depositor preference in its insolvency regime.
3/17  Many of these vulnerabilities have been corrected during the current decade, in particular those relating to the high indebtedness of the non-financial private sector, which is now at similar levels to those of the euro area, having fallen by 69 percentage points of GDP since peaking in 2010. However, new vulnerabilities have emerged, such as public debt. This, among other consequences, limits fiscal policy’s future room for manoeuvre. However, I would like to focus today on the financial sector and the challenges it will have to address. A decade of transformation and downsizing of the Spanish banking industry As I have already mentioned, the crisis highlighted the need to adjust the size of the banking industry. Since non-financial private sector debt was excessive by any reckoning, its reduction had to be matched by a slimming down of the financial sector and, thus, banks, whose assets accounted for two thirds of the total assets of the sector. This capacity adjustment, moreover, had to be confined to business in Spain, since business abroad was one of the main factors behind the resilience of some institutions. 4/17  In fact, the geographical diversification of Spanish banks, especially their participation in emerging economies, which were little affected by the international financial crisis, allowed Spanish banks with an international presence (which accounted for almost half of total bank assets) to limit their overall losses and to continue to cover part of their capital requirements internally.

However, the industry must lose no time in tackling the restructuring that is needed, particularly in the traditional segments. In the area of alternative products, Switzerland has admittedly been successful in the fund of funds business. It is to be hoped that its financial industry will build on this success and become even more of a centre of excellence for alternative investments too. BIS Review 24/2006  1
It sets out: our assessment that a digital pound issued by the Bank of England is likely to be needed; the next phase of work necessary to enable a firm decision to be taken in the future on whether to implement the digital pound; and consults on the model we now propose to develop. The consultation will run for four months and end on the 7th June 2023. The Bank and the Treasury will then review the responses and consider whether changes to the proposed model are necessary. We will publish our response to the consultation. We will then engage with private sector firms and other stakeholders on the next stage of work. This will include technological experimentation, particularly through collaboration with the private sector on proofs of concept[17]. This work will support the feasibility of the proposed model, the refinement of the associated technical requirements and the development of a technological blueprint for the digital pound. Such a blueprint will provide evidence that will allow us to evaluate the feasibility and costs of developing a digital pound. This will be the keystone of our assessment of whether or not to proceed to build. We have made no decision yet on whether a digital pound would use DLT. Our technology working paper sets out high-level requirements for a ledger, and makes clear that in principle these could be fulfilled by conventional or DLT technology. But it is clear that experimentation with DLT, whether private or public, will be important to ensure it is appropriately considered.

For purposes of this discussion, I will split our economy in two--the real economy and the financial economy. Let me begin my explanation of the present structure of the economy with real variables. - The Turkish economy is a continuously growing, dynamic economy. Its longterm average annual growth rate is over 4 percent and its average annual productivity increase is around 2 percent. In each of the last two years, GNP has increased by around 7 percent, well above most OECD countries. Along with this rapid growth, the composition of the gross domestic product (GDP) has shifted during the last two decades, toward the industrial and services sectors, while the GDP share of agriculture has greatly declined. The share of the public sector in industrial output has also decreased. - Spending on investments has been increasing since the first quarter of 1995. Normally, periods of investment aimed at increasing production capacity last for about 20 months, but the increase in investment activity spending remained focused on increasing production capacity throughout 1995 and 1996. The Economic Trend Analysis of the Central Bank of Turkey shows that no earlier period of expectation of rising investments has ever lasted longer. - Official records show that Turkey’s unemployment rate has been holding fairly constant at around 7 or 8 percent, which is very low compared to the other OECD countries. In April 1996, total employment rose by 2.6 percent and unemployment fell to 6.3 percent. The urban and rural unemployment rates were estimated at 9.3 percent and 3.8 percent respectively.
This can push up risk premia and credit spreads, and push down stock prices—which can more than offset the impact of an easier monetary policy. Divergences between short-term interest rates and financial conditions often appear to be larger and more persistent in the United States than in most other advanced economies. There are several reasons for this. First, the U.S. financial system depends less on its banking system to 2/6  BIS central bankers' speeches  intermediate financial flows than in other countries. The share of credit supplied by the banking sector fluctuates around 50 percent in the United States, which is much lower than in the euro area, Japan and the United Kingdom (Exhibit 2). Second, in contrast to most other countries, U.S. residential housing is financed mainly by 30-year fixed-rate mortgages, rather than—as is the case in most other countries—adjustable-rate mortgages with rates that much more closely track their central banks’ short-term interest rate targets. Third, the equity market plays a much more important role in the United States than elsewhere. The total market capitalization of the U.S. equity market is considerably higher than in the euro area and Japan (Exhibit 3). Because the evolution of financial conditions can diverge from the path of the federal funds rate, financial conditions need to be carefully considered in the conduct of monetary policy. However, I want to reiterate that what we care about is not financial conditions themselves, but rather their influence on economic activity.

Øystein Olsen: The conduct of monetary policy Introductory statement by Mr Øystein Olsen, Governor of Norges Bank (Central Bank of Norway), at the hearing before the Standing Committee on Finance and Economic Affairs of the Storting (Norwegian parliament), Oslo, 15 May 2014. *  *  *  Accompanying charts can be found on the Central Bank of Norway’s website: Charts (PDF). Please note that the text below may differ from the actual presentation. I would like to thank the Chairman of the Committee for this opportunity to report on the conduct of monetary policy. My statement here today is based on Norges Bank’s Annual Report for 2013 and has been updated based on new information and assessments up to the monetary policy meeting last week. Norges Bank’s operational conduct of monetary policy is oriented towards low and stable inflation. The operational target is annual consumer price inflation of close to 2.5 percent over time. Monetary policy shall also contribute to smoothing fluctuations in output and employment. The key policy rate is the main instrument of monetary policy. Chart: Inflation and capacity utilisation In 2001, an inflation target was assigned to Norges Bank. The experience has been positive. Over the past ten years, consumer price inflation has on average been somewhat below, but close to 2.5 percent. The world economy has to a large extent been marked by imbalances through this period. Growth in the Norwegian economy slowed in the wake of the financial crisis, but has since been close to a normal level.
First, in general terms, Europe is more advanced both economically and institutionally than Asia (even if there are notable exceptions, such as Singapore, Hong Kong and Korea). 9 Advanced economies have higher “debt tolerance,” because of their stronger institutions, a more favourable composition of debt and a more stable fiscal revenue base (less dependent on a small set of goods, such as commodities). 7  8  See: Dornbusch, R., I. Goldfajn and R.O. Valdés (1995). “Currency crises and collapses,” Brookings Papers on Economic Activity 2, pp. 219–293. See: Eichengreen, B., R. Hausmann and U. Panizza (2005). “The pain of original sin”, in B. Eichengreen and R. Hausmann (eds.) Other people’s money, Chicago University Press, pp. 87–102. 9  One measure of institutional quality is reported in the World Economic Forum’s annual Global Competitiveness Report. 4  BIS central bankers’ speeches  Thus while the dynamics of financial crises may be similar, the level of debt at which they occur may be different. Of course, this can be a mixed blessing. The ability to accumulate more exposures may permit the pre-crisis boom to last longer. But it may also mean that the subsequent downfall is deeper. The second difference is that, by having a national currency, even if it is rigidly pegged to an external anchor, as in the case of Argentina’s dollar currency board prior to 2001, the EMEs retain scope to devalue.

Source: Average values by estimates of Chinn (1998), Goldstein (1998), Tornell (1998) and Berg and Pattillo (1998). BIS central bankers’ speeches  15  Chart 15 Current account balances in East Asia and the euro area East Asia (1996) – Euro area (1999)  Note: % of GDP. Source: Haver Analytics. Chart 16 Fiscal costs of recapitalisation as % of GDP  Note: high scenario. Source: IMF (1999). 16  BIS central bankers’ speeches  Chart 17 Argentina public sector debt as % of GDP  Share of foreign currency denominated debt in 2001: 97.59% Source: Haver Analytics. Chart 18 Exchange rates vis-à-vis the USD for selected emerging Asia countries  Note: 02/01/1997=100. Source: Federal Reserve Board of Governors. BIS central bankers’ speeches  17
Calculations made show that the crises that took place between 1975 and 1997 have on average cost developing countries 10 per cent of GDP in lost production.1 The corresponding cost for emerging economies was 12 per cent. Most of the crises - around 30 of them - have taken place in emerging economies. Oversight of the financial system is necessary because the system fulfils important functions and the effects of a financial crisis can be extensive. The banks’ inherent properties make oversight particularly difficult. Their methods of financing - deposits or loans from other banks - could rapidly disappear, while their assets take longer to realise. Problems in one individual bank could spread to other banks and thus create risks for the entire system. One reason for this is that the banks have liabilities to one another because of loans or securities trading or quite simply because they all participate in the payment system. Another reason is that they all have similar operations and can therefore suffer in the same ways if problems arise in the world around them. As in the case of the Swedish banking crisis, contagion effects can arise merely as  1  “Financial crises’ characteristics and indicators of vulnerability”, IMF World Economic Outlook, May 1998, Chapter 4. BIS Review 68/2004  1  a result of other operators suspecting that there are links between the institutions, even if this is not the case. These suspicions can be self-fulfilling prophecies.

In response to the changing landscape following the collapse of Lehman Brothers, the HKMA expanded its efforts to protect and educate consumers, and this change resulted in the creation in April 2010 of our Banking Conduct Department. I will focus first on our work to strengthen consumer protection before going on to saying something about our work on consumer education. HKMA & consumer protection In terms of consumer protection, first, the HKMA has introduced new requirements on banks and issued guidelines on the selling of investment products. These include (a) requiring audio-recording the customer risk profile assessment and sales process to provide audit trails for reviews by banks and the regulators; (b) implementing a pre-investment cooling-off period in the sale of unlisted structured products to less sophisticated customers (such as the elderly or first-time buyer); and (c) requiring banks to carry out continuous reviews of product risk and inform investors of any upward changes to the risk ratings of the products they have purchased. These requirements were in addition to existing measures introduced by the Hong Kong Securities and Futures Commission (SFC) on the supervision of securities companies’ selling activities. Second, the HKMA is active in monitoring banks’ compliance with these and other regulatory requirements through thematic on-site examinations. Banks are expected to have control processes and procedures in place to ensure adherence to the conduct regulations. In addition, to monitor compliance levels among banking staff, the HKMA conducts mystery shopping trips. Third, the HKMA has strengthened consumer protection by working with partners.
Let’s get ready for the next stage of the race. Intro Ladies and gentlemen, Let me first of all thank The Economist for inviting me to this distinguished panel. Almost exactly ten years ago, the Olympic triathlon took place here in Vouliagmeni. On race day, the weather was as hot and as dry as it is today. The athletes needed to have two important attributes in order to be able to compete in a triathlon in these conditions: resilience to withstand the heat and commitment to endure all three disciplines with equal passion. Economic and Monetary Union (EMU) is a political triathlon. It requires resilience when the heat is on and it requires commitment and resolve for participants to perform well at all times in the three policy disciplines that mark a currency union: fiscal policy, economic policy and financial policy. But there is one important difference with a triathlon: EMU is a team effort. Only if every participant performs well can the euro area team be strong. This is the most important lesson from the crisis. Today, I want to discuss what this means in terms of the policy efforts that could be part of – as the panel title calls it – “the big rethink for a stronger Europe”. I will start with an analysis of the outstanding challenges – or the heat – that the euro area still faces. I will then outline what has already been achieved to bring stability and confidence back to the euro area.

There are three relevant dimensions of economic stability: price stability, financial stability and macroeconomic stability, including the health of public finances. In all these areas, we have made substantial progress in recent years. During the crisis, the ECB took all appropriate measures to ensure that price stability provided an anchor in an uncertain and volatile economic environment. As for financial stability, the establishment of the European Stability Mechanism and the launch of banking union, with its Single Supervisory Mechanism and Single Resolution Mechanism, have been milestones in this respect. As a third dimension, the crisis has shown us the kind of existential threat to monetary union that can be brought about by the build-up of excessive imbalances, i.e. by the lack of fiscal and macroeconomic stability. New growth will not be generated by new debt. Sound fiscal policies are essential for growing out of debt. Therefore, the existing rules should be applied in a credible manner. That said, we cannot claim “mission accomplished”. What has been achieved so far is not enough. The answer to the remaining challenges could take the form of a “convergence process 2.0”, which should have an agreed timeline and milestones. But convergence can only be sustainable if it is associated with a commensurate deepening of integration, if it is a race towards best practice institutions and policies rather than towards mere nominal outcomes.