samchain/econo-pairs-v1 huggingface dataset:
William C Dudley: Global financial stability – the road ahead Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the Tenth Asia-Pacific High Level Meeting on Banking Supervision, Auckland, New Zealand, 26 February 2014. *  *  *  It is a pleasure to have the opportunity to speak here today. This is my first time in New Zealand (not counting a brief stop at the Auckland airport). I’m delighted to be here and am heading down to the South Island tomorrow. Today, I am going to talk about the challenges that face us in ensuring stability in the global financial system. While we have made considerable progress in strengthening the financial system – for example, large global banks have considerably more capital and liquidity resources than prior to the financial crisis – there is still a significant amount of hard work ahead for all of us. For example, we need to develop resolution mechanisms that will work on a global basis and we need to ensure that the clearing of standardized over-the-counter (OTC) derivatives through central counterparties (CCPs) is done safely. We also need to improve our ability to aggregate and share data. We need to do this in order to develop a coherent view of the global financial system so that we can deal with emerging vulnerabilities in a timely and effective way. As always, my remarks today reflect my own views and not necessarily those of the Federal Reserve System.

On the other hand, the experience with models based fully on rational expectations sometimes shows that certain aspects or policy implications are at odds with what is considered reasonable. One example is the forward guidance puzzle, i.e. the unrealistically large responses of inflation, long-term rates and output to the announcement of the future path of interest rates. Therefore, we as macroeconomists want to reconsider the assumption of superrational agents and replace it with something more realistic. The second session on Friday will be devoted to two papers that may challenge our ideas about the economy and the way we think in terms of our usual models. It is always extremely useful to listen to new concepts and visions and to rethink our current approaches. Discussing thoughtprovoking and stimulating papers is the only way to avoid rigidity in ideas and opinions. Rigidity that will – sooner or later – lead to wrong attitudes and decisions. I believe that good policymaking will always benefit from cutting-edge research. I would therefore like to thank the participants of the high-level policy panel, the presenters and commentators in the individual sessions, and all other participants for coming to our event. Ladies and gentlemen, thank you for your attention. I wish you all an interesting conference, fruitful discussions and an enjoyable stay in Prague. 2/2  BIS central bankers' speeches
Singapore's faster payment system is called PayNow. It is linked to a central addressing scheme that allows money to be sent to individuals using their mobile numbers as proxies and to businesses using their unique enterprise numbers. There is no need to share details of bank account numbers to receive payments. Linking the faster payment systems of countries is an efficient way to carry over the benefits of cheap, fast, seamless payments from the domestic to crossborder arena. Singapore has been actively working to connect our PayNow with the faster payment systems of other countries. We started with Thailand's PromptPay, with a bilateral linkage launched last year, and are now completing our linkages with India's Unified Payment Interface and Malaysia's DuitNow. These linkages allow users in Singapore and our partner jurisdiction to transfer funds directly to one another's bank accounts. But such bilateral linkages are time consuming and expensive to implement. The effort to connect each payment corridor in every region is not a trivial process. As one of our industry partners put it, three countries require three bilateral links but 20 countries would require 190 bilateral links. We need a multilateral solution to efficiently link up countries' faster payment systems. 2/8  BIS - Central bankers' speeches  The BIS Innovation Hub's Singapore Centre is developing a central platform for multilateral linkages to be built on countries' existing faster payments infrastructure. If successful, it will facilitate rapid scaling-up of retail payment systems connectivity. We call it Project Nexus.

As before, it will bring together thousands of people from across the world – finance professionals, technology experts, FinTech entrepreneurs, policymakers, regulators, academics, inventors, and many more – to make connections and to make an impact. As this will the first in-person Festival since 2019, do join us in Singapore for a week-long celebration next month. In the meantime, I wish you a fruitful SIBOS conference and success in your endeavours. 8/8  BIS - Central bankers' speeches
That is also why  3  BIS Review 6/2000  pre-emptive interest rate hikes not infrequently encounter criticism from some quarters. But a central bank has a job to do and must perform its statutory functions. But neither, of course, should monetary policy unnecessarily obstruct a further reduction of unemployment if that is feasible and firms are actually able to recruit labour without encountering problems. This obviously entails complicated deliberations and assessments. Unemployment in Sweden is still historically high. That might suggest that the labour market has plenty of unutilised resources at its disposal, in which case the Swedish economy may be able to grow, at least for a time, at a rate that is above its long-term speed limit. Labour shortages to date have been most marked in the metropolitan regions and other university cities. The recruitment difficulties have mainly concerned technicians, computer specialists and construction workers. Although the proportion of firms reporting difficulties in filling their labour requirements did not rise last year, recruitment problems did grow in certain regions and they spread to additional occupations. Moreover, shortages of teachers and care personnel may arise in the future. A pattern with a gradual accentuation of labour market shortages can normally be expected as an economy moves closer to its capacity ceiling. There may also be a growing propensity to resort to labour disputes, as well as pressure on firms to compromise on their labour requirements in order to keep up with demand for goods and services.

With the new Executive Board, it is also a matter of combining six individuals’ personal perceptions of this picture and of policy’s formulation into a joint picture and a joint interest rate decision. There is no reason for me to anticipate matters. The result of our deliberations and joint assessment will be present on Friday next week. 5  BIS Review 6/2000
However, a positive signal was sent thanks to the agreement reached between the EU Council, the European Parliament and the European Commission at the end of December on the terms of reference of the impact study on long-term guarantees. This study will give impetus to the discussions and I count on the contribution of the institutions chosen by the ACP. Insurance companies must take advantage of the extra time before Solvency II comes into force: in coordination with EIOPA at the European level, we consider that it is already possible and necessary to make use of certain definitive elements in the Solvency II directive, in particular concerning governance and the ORSA (Pillar 2), and reporting to the supervisory authority (Pillar 3). 2  BIS central bankers’ speeches  2.2  In the banking sector, credit institutions must continue strengthening their solvency – a process that is already well underway – and they must intensify their initiatives to adapt to future regulations concerning liquidity. The Prudential Supervisory Authority has organised a series of meetings designed to familiarise the French financial sector with the changes resulting from the implementation of the Basel 3 reforms. In terms of liquidity, the coverage ratio (LCR) is now stabilised. In my New Year address of January 2011, I said that the work on liquidity ratios was unsatisfactory and that it clearly needed to be reviewed. This has now been done.

However, I call upon the institutions of the Paris financial centre to continue demonstrating prudence and responsibility in their search for client resources. The Banque de France and the Prudential Supervisory Authority will be vigilant in this respect. It is vital that market conditions be fully accounted for in setting the level of interest on financial products, whether offered by banks or life insurers. It is also best if preference is given to the collection of long-term savings that are indispensable for financing the economy. Indeed, I am actively seeking the support of the government with regard to this objective. The Bank will seek to ease the individual adaptations required by these numerous new regulatory frameworks. In particular we will strive to facilitate the management of liquidity and collateral, notably by continuing to support the mobilisation of lending to the economy via refinancing operations with the central bank, but also via markets. In this perspective, and at the initiative of the Banque de France, a Paris financial centre working group has been set up to develop innovative and safe securitisation mechanisms that should allow banks to make better use of the pool of claims on their balance sheets and to strengthen their financing capacities. The Bank will also continue to mobilise all parties concerned, and in particular companies, in order to accelerate and successfully implement France’s migration to SEPA payment instruments that should be finalised by 1 February 2014 for credit transfers and direct debits.
Seven awkward questions Speech given at a roundtable to mark the fifth anniversary of the PRA's Secondary Competition Objective Sam Woods, Deputy Governor, Prudential Regulation and Chief Executive Officer, Prudential Regulation Authority Bank of England Thursday 17 January 2019  1  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  Thank you all very much for coming to our event today, and in particular to our panellists for agreeing to take part. Indeed, I speak on competition with a degree of humility in front of this panel – and particularly in front of Sir John because my first real engagement with these issues took place under his chairmanship when I was working for the Independent Commission on Banking back in 2010. For that reason, and in view of the expertise of this audience, you will be relieved to hear that I am going to avoid giving you a fifteen-minute-long list of all the things we’ve done over the last 5 years to advance our secondary competition objective. Of course I have to do a bit of that or I’m not doing my job! But I’ll just pick out a few items and keep it brief. Nor will I focus too much on some of the hardy perennials of this debate such as low switching rates, because I’m sure others on the panel can do better on those if we want to get into them.

The circular is aimed at ensuring that directors and senior managers have sound reputation and are persons of integrity and honesty. Furthermore, over the past two decades, SAMA has issued additional governance related regulations and guidance to banks operating in Saudi Arabia. These include circulars on Internal Controls; Know Your Customers rules, Anti-Money Laundering and Combating Terrorism Financing and Prevention of Fraud. Also, there are specific regulations on the Role of the External Auditors and on the Internal Audit function. SAMA also requires the Board of Directors to establish a specialized Compliance Function that monitors the compliance of the organization with regulations and standards, and has a reporting line to the Board or one of its committees. Moreover, SAMA requires all banks to apply the International Financial Reporting Standards, and that two firms of external auditors are to conduct an annual audit. Furthermore, SAMA has required banks in Saudi Arabia to meet the corporate governance guidance emanating from the Basle Committee on Banking Supervision and more recently from the Islamic Financial Services Board. In this regard, I should mention that SAMA is participating in the IFSB Technical Committee and in various working groups that are developing standards of corporate governance for Shari'ah compliant financial institutions. The leadership role played by SAMA, over the past decades, in promulgating corporate governance standards and in promoting a governance culture has been reflected in the emergence of strong financial institutions and a credible banking system.
Such a status quo is not beneficial, for instance, in the context of euro adoption, as it favours asymmetric shocks and uneven effects of public policies. These imbalances can be mitigated, first and foremost, through investment in infrastructure. For instance, the construction of highways is essential for connecting Romania’s regions, encouraging regional trade and investment, with favourable effects on regional development and cohesion inside the country. 3. LOOKING FOR A WAY OUT OF A LABOUR MARKET DILEMMA Another area that deserves particular attention is the labour market, at a time when the Romanian one is facing considerable challenges. As a catching-up open economy, within a European Union based on the free movement of capital and labour, our country was bound to find itself in a dilemma sooner or later. More precisely, there are contradictory arguments with regard to the adequate path of the wage level in the Romanian economy. On the one hand, wages should be governed by productivity dynamics, so as not to erode the competitive position. On the other hand, they cannot be considerably below those in other economies, as this would simply result in a labour force drain, with dramatic consequences if not addressed quickly. Specifically, we are facing an emigration problem today, as more than three million Romanians (a significant percentage of the population) have left their homeland for other EU Member States. Therefore, to limit emigration, wages should increase. As noted above, the only way to do that without hindering competitiveness is to boost productivity.

Foreign direct investment has helped total factor productivity in recent years, yet if wages reach too high levels, attracting investment may become a problem. We therefore need to ensure that wage levels are compatible with attracting investors, but at the same time acknowledging that, at least in certain areas, wages need to go up at present, in order to mitigate the labour force drain that affects the private and public sectors alike. However, pay rises in the private sector should not be triggered only by an increase in public sector wages. While raising the minimum wage has been necessary, we should be very careful not to hurt employers, as they represent an important engine of the economy. The key is, in my opinion, to increase wages at an adequate, sustainable pace, in order for Romanians to ultimately benefit from an improved living climate reflected in a higher purchasing power, but also from preserved macroeconomic equilibria, as well as higher-quality public goods – especially highways connecting different regions of Romania, but also our country with the West. After all, wages are not the only side of the emigration story. 4. KEEPING THE EXTERNAL DEFICIT IN CHECK The wage matter is also closely linked to the topical issue of ensuring a balanced external position. To the extent to which the upward path of wage costs is too steep, it gets very difficult to preserve competitiveness, not only on external markets, but also on the domestic market.
That said, Roger Ferguson, a former Member of the Fed Board and Chairman of the FSF,  BIS Review 49/2007  5  argues that the well established global network among central banks, such as through the BIS, gives central banks a comparative advantage in informal information sharing and cooperation 5 . Which role remains for the central bank? Ensuring jobs for the central bank staff is not a valid reason for retaining bank supervision in the NCB. Hence, the question is: Which would be the primary tasks of the NCB if supervision is moved out? Of course, the task of conducting monetary policy would remain with the NCB. The NCB will also run the large-value payments system, or at least exercise oversight over it. In addition, the NCB should always have the responsibility for the oversight of overall stability in the financial system. Financial stability is a necessary condition for efficient monetary operations and is in itself an important component in a country’s sustained macro economic growth. Since the NCB will still be the lender-oflast-resort the knowledge gained from its financial stability analysis will be crucial in a crisis situation. But the NCB cannot perform an efficient financial stability analysis, nor act as lender-of-last-resort without close cooperation with the supervisory authorities. The other authorities will also benefit from the stability work by the NCB. Conclusions Let me try to sum up. My first conclusion is to use the American expression “If it ain’t broke don’t fix it”.

I take this opportunity to point out that the Bank of Albania’s efforts to keep inflation in check and anchor inflationary expectations, as well as its regulatory and supervisory measures to guarantee financial system stability managed to reduce shock-buffering costs and prevented undesirable consequences. Second, as regards the economy’s expected performance in the medium and long run, the conclusion reached after the two-week long consultations was that the Albanian economy is expected to remain in positive territory of economic growth. However, growth rates will clearly depend on the resurgence of the domestic demand, which is suffering from insecurity related to national and international developments. Consumption and investments continue to suffer from added prudence by economic agents, while financial conditions and banking system capacity to credit the economy are improved. Furthermore, higher inflation rates, noted during the first months of 2011, are expected to drop in the upcoming period. This reveals the foreign origin of shocks that have led to increased prices and reflects internal economic and financial conditions as well as our monetary policy. The joint examination of the Albanian economy found that the fiscal and external sectors are the two main ones that would require our attention and our work in the future. The Bank of Albania has long held that public finances’ long-term stability is a precondition for sustainable economic growth. The daily world press illustrates channels through which indicators such as budget deficit and public debt affect financial markets and in turn the real economy.
Consequently, it is not the Committee’s intention to use the update of the Core Principles as a way of dragging countries towards Basel II implementation. The revised Framework is in no way a necessary prerequisite for compliance with the revised Core Principles, even though, as I have just said, I think there are powerful reasons for holding Basel II up as the direction in which regulation and supervision should be moving. The revision followed two basic directions. The first was to limit the changes to those aspects that were essential and key to maintaining the effectiveness of the Core Principles without removing the continuity and comparability with the previous standards. Examples of these essential changes are the inclusion of a new “umbrella” principle recommending that banks have integrated risk management systems, which covers all the aspects common to the various types of risk. In the same vein, the emphasis has been placed more on risks that received less attention in the existing version of the Core Principles: interest rate, operational and liquidity risks. Finally, it should be noted that the criteria on the prevention of money laundering and terrorism financing have been updated. Thus the revision does not call into question the work carried out on the basis of the 1997 Principles, or indeed the planning of reforms on that basis.

This document, which we hope to be able to publish shortly, once we have incorporated a number of comments received during the public consultation period, does not resolve all the problems, but it does represent a significant step forward in improving coordination and the distribution of tasks between supervisors. We are also keeping a close watch on how cooperation is being handled in practice between countries with supervisory responsibility for institutions belonging to international banking groups. In this respect, the AIG is gathering and sharing information and experience on the functioning of bilateral agreements and of supervisory colleges. In my view, either of these two collaboration methods can be fully valid, depending on the size and complexity of the group concerned. Over the years, these kinds of agreements on the exchange of information and reciprocal cooperation have been established among supervisors as a means to perform effective crossborder supervision. Time has shown that such agreements are more effective when the relations between home and host supervisors are based on mutual trust. In this regard, I believe that we as supervisors should steer clear of excessively formalist and legalistic approaches and try to be pragmatic. I think that the questions which need answering are more operational than legal in nature. It is a matter of finding a way of cooperating that makes us all more efficient in the use of our resources, reduces the supervisory burden for the banks and improves the stability of the financial system.