samchain/econo-pairs-v1 huggingface dataset:
Miguel Fernández Ordóñez: Taking of stock of the Toledo Pact Testimony by Mr Miguel Fernández Ordóñez, Governor of the Bank of Spain, before the Non-Standing Committee for the Monitoring and Assessment of the Toledo Pact Agreements, Madrid, 15 April 2009. *  *  *  Five years since the last assessment of the Toledo Pact, and under a new assessment process initiated by Parliament in 2008, I appear today before this Committee to convey my views on the situation of and possible reforms to the pension system. These opinions are the summary of a note drafted by the Banco de España Research Department, which will shortly be forwarded to you. Before I begin, I should stress that the content of the Toledo Pact, i.e. the pension system and its reform, does not come under the purview of the Banco de España. Defining specific reforms to the pensions system is an eminently political matter and is thus for the legislature to decide upon. Accordingly, the note the Research Department is finalising and whose content I shall outline for you today should not be considered as a reform proposed by the Banco de España. It is simply a summary of what may be taken as a consensus among experts regarding the diagnosis of our pension system and its attendant problems, and the potential means for tackling them. Indeed, the summary is an update of that presented before this same Committee by the Director General of the Research Department in 2000.

Thomas Jordan: Real estate prices falling in the US, rising in Switzerland – implications for the SNB’s monetary policy Summary of a speech by Mr Thomas Jordan, Member of the Governing Board of the Swiss National Bank, at the Hochschule für Technik und Wirtschaft, Chur, 18 December 2007. The complete speech can be found in German on the Swiss National Bank’s website (www.snb.ch). *  *  *  Developments in the real estate market are important for monetary policy. Real estate markets can influence inflation and economic cycles, but also the stability of the financial system. Property bubbles can result in a massive misdirection of capital and thus give rise to lengthy and difficult adjustment processes. Therefore, the SNB closely monitors developments on the real estate markets both in Switzerland and abroad. The economic outlook is still clouded by undesirable developments on the US real estate market, notably in the period 2004-2006. Given the size of the United States and the broad international spread of investments in the US mortgage market, these distortions have had a serious impact on the world’s financial markets and on global economic development. For some years now, Switzerland too has been experiencing a construction boom and a relatively sharp rise in property prices in certain regions and in given market segments. Comparison of the Swiss and US real estate markets shows, however, that these markets differ in a number of key respects.
Let me take a few examples: steps have been taken in harmonising elements of insolvency frameworks, such as ‘early restructuring’ and ‘second chance’. But these do not cover the conditions for opening insolvency proceedings nor the ranking of claims. As such, they are not enough to facilitate cross-border investment. Similarly, more should be done to remove overlaps in cross-border withholding taxes and reduce home bias in investment strategies. In my view, we need a single rulebook in a wide range of areas also covering consumer protection, anti-money laundering, or accounting rules for a successful CMU. Another reason for a limited “CMU effect” is that some of the agreed initiatives were only recently implemented. Take the securitisation package, for example. Important technical regulatory acts are still pending which prevent the new framework from being applied in full and are a source of uncertainty for those who would like to use it. It is therefore too early to assess the success of this measure. More importantly however, some proposals will not deliver their full potential. In the case of the pan-European personal pension product, the recent agreement gave birth to a rather complex product for which key elements are left to the discretion of Member States. Lack of ambition in the cross-border portability of the instrument may limit its capacity to facilitate labour mobility and the mobilisation of savings across borders in the absence of geographical diversification requirement for investments.

Fora such as the one this afternoon play an important role in bringing together various stakeholders to deliberate on possible strategies to address these challenges, facilitate the development of waqf assets and increase their productivity. Limiting waqf to land and immovable property is another misconception. With the emergence of contemporary reinterpretations of fiqh rules and Islamic finance, there are new techniques that can inject new life into waqf. One such concept is cash waqf, which is a waqf of a liquid asset that gives returns which can be utilised to meet the intended objectives under the waqf charter. In this regard, I welcome the Waqf Fund initiative by the Association of Islamic Banks in Malaysia (AIBIM) whereby six islamic banks have come together to collaborate with State Islamic Religious Council of ten states to provide channels to collect and manage cash waqf in a more coordinated and structured manner. The returns have so far been utilised for economic empowerment, education and health projects. In addition, the concept of temporary cash waqf, introduced by ISRA and endorsed by the ISRA Council of Scholars in 2016, opens up a new interesting potential. Funds collected through temporary cash waqf, such as through sukuk, can be used to develop Shariah-compliant profitgenerating projects. The completed projects would be declared as waqf assets upon maturity of the sukuk, and its future benefit could be enjoyed by waqf beneficiaries in perpetuity.
Gent Sejko: Role of the banking industry in the future development of Albania - challenges and opportunities Address by Mr Gent Sejko, Governor of the Bank of Albania, to the discussion meeting with senior banking sector officials, Tirana, 29 May 2019. * * *  Dear banking system executives, Dear guests, dear colleagues, I have the pleasure of welcoming you to this event, which brings us together to address some issues of particular importance to the banking sector and the Albanian economy as a whole. Today, we will be discussing the role of the banking sector in the development of Albania’s economy, from short, medium, and long-term perspectives. This is, in our opinion, a matter of both private and public interest. I am confident that the discussions around this table will yield a tangible product. Our aim is to adopt a common development philosophy that will guide the banking industry into the future, as well as to agree on a concrete and detailed plan of measures for improving the quantity and quality of lending and enriching the array of financial products. This meeting takes place only two weeks after the Third Conference of the Albanian Association of Banks, which was dedicated to the sustainable development of the banking sector in the future.

Before I elaborate on this topic, let me emphasise two key moments. The first moment pertains to a misunderstanding we often encounter in the public opinion, even within the professional discourse, that is the Albanian banking sector is not lending. This is not true. Our data show that, excluding the accounting effect of the exchange rate and the write offs, the portfolio of bank loans has recorded 6% annual growth in the last year. Moreover, the pace of growth has shown an improving trend, in line with the overall context of the performance of the economy. In parallel, the expansion of the bank loan portfolio has shown a more balanced composition in terms of both the currency structure and the destination of funds. I would also like to underline that the term to maturity of the bank loans portfolio is short, which means that it is renovated frequently. Thus, regardless of the pace of change in the size of the portfolio, the Albanian banking sector continues to lend. To illustrate my point, only in 2018, the banking sector has granted new loans amounting to around EUR 1.1 billion (equivalent) to fund business investments, house purchase and consumption. The second moment pertains to the responsibility and the diligence of the banking sector vis-àvis lending. As the administrator of public savings, responsibility and due diligence in lending are non-negotiable conditions. Measures undertaken to bolster the short and medium-term development of Albania should not run against its financial stability in the long term.
It continues to record robust activities in the financial market, reaching daily volume as high as USD16.1 billion compared to USD14.1 billion recorded in 2016, The onshore market volume on forwards and swaps alone has surpassed the observed offshore forward market volume which now records an average of USD1.0 billion a day. In addition, there is a narrowing of bid-offer spreads that would indicate an improvement in liquidity. Anecdotal evidence suggests that market participants, including corporates, continue to access the market to meet their business needs; Risk exposure from high non-resident participation in the onshore market has effectively reduced. Risks from high non-residents holding have significantly subsided as footloose short term positions have exited the market in the early part of the year. The non-resident investors that remain in the domestic market comprise mostly of long term investors. They are less affected by short-term market dynamics. Their investments tend to remain stable and at times act counter cyclically to short-term investors, providing stability to the overall bond market; 4/7  BIS central bankers' speeches  On reserves, our level is sufficient to meet our needs. A point often overlooked, is that the central bank’s international reserves is not the only source to meet external liabilities. The availability of external assets and also currency denomination of the external liabilities are alternative sources of funding. In fact, BNM holds only 25 percent of the system’s foreign currency reserves. The rest is with the financial system itself.

The value of the banknotes and coins in circulation has fallen from 9.6% of GDP in 1950 to 2.9% in 2010. So, the question is: Should cash be compared with the extinct Neanderthals or the surviving Crocodiles? But why is this of interest to the Riksbank? Well, a first obvious answer is because it is the Riksbank that issues banknotes and coins. Another, and more complicated, answer is because one of the tasks of the Riksbank is to promote a safe and efficient payment system. This may sound a little high-flown, but it means, among other things, that we should promote the development of safe and efficient payments. This is why we have a natural interest in cards and cash. Hence, we are interested in the evolution of the market for payments, and that is why I am standing before you today. What I intend to talk about today is why I believe that cash will continue to play an important role in our payment system for the foreseeable future (even though not 85 million years) and why cards and other technological developments will not be able to fully take the place of cash. Ironically, part of the explanation for this lies in the strong position that debit and credit cards hold on the Swedish market. As usual I would like to make clear that my speech is an expression of my own views and that it may not necessarily be shared by my colleagues in the Board of the Riksbank.
Banks are now able to reach out and deliver more financial services with good user experience to a wider spectrum of customers via mobile phones and other online channels. 5.Secondly, if we take a closer look at the tech community’s involvement, it is not difficult to see that many of the initiatives I just mentioned are the result of collaboration between the banking industry and the tech community. Since the upgrade of our Supervisory Sandbox last November, 1/4  BIS central bankers' speeches  tech firms have directly accessed the Sandbox’s Chatroom in more than 110 cases to seek the HKMA’s early regulatory feedback on their projects and ideas. This means they are better prepared to collaborate with banks to launch fintech products and services. These uses of the Chatroom are on top of around 50 cases used by banks. The rollout of the Open API Framework, and the phase one implementation roadmaps submitted by banks to the HKMA, show there will be an even higher level of integration and collaboration between the banking industry and the tech community. 6.Thirdly, more than 70 firms, including local and overseas technology and financial firms, have expressed interest in establishing virtual banks in Hong Kong. As of 31 August, we have received about 30 applications to operate a virtual bank. Some of those applications are already “substantially complete”, so we would include them in the first batch of applications for processing.

Even if there are no unequivocal solutions, some measures are valid for several countries: raising the retirement age, eliminating early retirement incentives, reduction in replacement rates, integrating public pensions within a system which allows future payments to be financed so that the ageing of the population does not create imbalances between generations. Should men and women retire at the same age? This is a sensitive and important issue triggering a whole host of reactions and different points of view. Apparently, in accordance with current jurisprudence, I would say they should retire at the same age, as the European Court of Justice maintains that there should be no discrimination or distinction between men and women in any area. How urgent is pension reform? Extremely urgent, in all euro area countries. When we look at demographic trends, we tend to put it off as we are talking about long-term developments. It seems that the movement is slow and long, and that there is time. However, it is a complete illusion because it is an issue that has to be tackled as early as possible. The more radical left-wing and the unions are opposed to it and say that you are technocrats who only pay attention to numbers. As an important international leader, do you not believe that there are also social costs which need to be taken into consideration? We are, after all, talking about millions of people and all the weakest categories of the population. It is a crucial factor.
Gent Sejko: Launching of the new Albanian banknote serie Address by Mr Gent Sejko, Governor of the Bank of Albania, at the launching of the new Albanian banknote serie, Tirana, 12 September 2019. * * * Honourable Minister Denaj and Minister Shalësi, Your Excellencies, Distinguished guests, Ladies and gentlemen, It is a great pleasure to have you with us in this very important day for the Bank of Albania and our national currency. In the history of the modern Albanian state, the establishment and modernisation of its monetary and financial systems has a substantial place. The Albanian currency is a symbol that has been present throughout the development of the country, bearing distinctive features of each era in the history of Albania. It is not a coincidence that one of the key objectives in the creation of a national bank was, among others, the issue of the Albanian currency, immediately after the sublime act of the Declaration of Independence that laid the foundations on which the Albanian state was created. In 1926, one year on from its founding, in 1925, the National Bank of Albania presented and put in circulation, for the first time, a complete series of Albanian banknotes and coins. Subsequent developments in the centralisation and later modernisation of the Albanian state dictated the need for continuous improvements of banknotes in terms of both content and design. It has always represented, however, the economic, social and political development phases of Albania.

The new series of Albanian banknotes combines maximum security, modern design, artistic communication of the historical message, and a longer lifespan. It consists of six denominations: 200, 500, 1000, 2000, 5000 and 10000 lek. While the first two denominations – 200 and 5000 lek, 1/2  BIS central bankers' speeches  issued in 2017 – are ready to be put in circulation in September 2019, the other banknotes of the series will be put in circulation gradually over the coming years and will be legal tender alongside the existing denominations. The presentation of the new series demonstrates the continued commitment of the Bank of Albania to further enhance the quality and security of banknotes in circulation. Both these attributes guarantee the absolute integrity of our banknotes and represent with dignity the Bank of Albania and the Albanian state itself. In this context, today’s ceremony marks the culmination of a voluminous work started four years ago. In addition to Bank staff, many renowned academics, historians, Albanologists, numismatists and experts from the most experienced companies in the field of banknote production have actively and intensively provided their invaluable contribution. The combination and cooperation of specialists from various fields of expertise, coupled with the latest technological innovations in banknote printing, enabled the refinement and presentation of a new series of banknotes which are simple to use, boast a contemporary design and strike a balance between innovation and current tradition.
Crisis management  Analyses of the Norwegian banking crisis provide a positive assessment of how the crisis was managed. The IMF relies to a large extent on the solutions applied to the banking crises in the Nordic countries as a model for its proposals for resolving the current banking crises in Asia. The division of banking crisis management into three elements has gained general acceptance in Norway. The first element is that the banks’ earnings and capital shall serve as the first line of defence. This limits moral hazard. The second line of defence is the collective guarantee system for the banking industry. The third line consists of government resources that will be made available should the collective guarantee schemes fail to resolve the crisis. Liquidity support from Norges Bank is part of the third-line defence. I would like to underscore the importance of the conditions that were attached to the capital injected by the government. The banks’ share capital was written down to zero. A change in management was required and the banks’ operations were subject to strict criteria. The approach was transparent and won broad political support. The Bank Guarantee Act provides the private guarantee funds with a remit that extends far beyond paying guarantee amounts. It also provides for support measures to ensure that a member is able to honour its obligations and continue operations, and if necessary to transfer its activity to another bank.

Banks that believe the authorities consider them to be too big to fail may assume excessive risk and their creditors may supply them with credit at a cost that is too low. For instance, if banks believe that the central bank will solve any liquidity problem, this will weaken their efforts to prevent such problems from arising - and if they occur, from solving problems in the interbank market. The use of credit on special terms in situations where financial stability is not threatened is associated with indirect costs. The situation must thus be carefully examined before loans on special terms are granted. If it is widely known and recognised that if an institution’s problems are confined to liquidity, it should be possible for the institution to raise loans in the market. A problem bank’s creditors - often other banks - will in such a situation make their own assessment of the bank’s solvency. In principle, it is not a foregone conclusion that the central bank and other authorities would be in a better position to evaluate an institution’s solvency than its own creditors. Implicit insurance schemes, which are in fact what loans on special terms are, may impair the effective functioning of markets and lead to excessive risk-taking among banks. It may take a long time before the costs come into evidence. In a crisis situation it is important to take into account the long-term benefits of not providing support such as better functioning markets and more appropriate risk-taking.
Among the foreign institutions, I would like to highlight the successful cooperation with the Bank for International Settlement, the International Monetary Fund, the World Bank, EUROSTAT, etc. in the area of exchange of statistical information. I would particularly like to note that this year, the National Bank officially became a member of the Irving Fisher Committee on central bank statistics that operates within the International Statistical Institute, and represents a forum of central bank economists and statisticians. This is a good opportunity to improve the statistics of the National Bank, since the primary objective of the Committee is to promote an exchange of viewpoints between the economists, statisticians and central bank policy makers, on all relevant statistical issues of interest for the central banks. The State Statistical Office, as an institution responsible for the official state statistics, that produces data covering various sectors in the economy, is an indispensable source of data for the needs of our analyses. So far, we have a successful cooperation with the State Statistical Office, underpinned by the Agreement on Mutual Cooperation and Exchange of Data. Our macroeconomic analysis mainly make use of the data covering the real sector of the economy, such as data on prices, economic activity, employment, wages, etc., as well as data on the foreign trade sector.

Second, how can central banks more broadly balance between supporting financial innovation whilst ensuring financial system safety and soundness? Third, what can central banks collectively do to this end? In 1963, John F Kennedy famously said “Change is the law of life. And those who look only to the past or present are certain to miss the future.” On that note, let me thank you again for being here and I wish you productive discussions in the Forum. 3/3  BIS central bankers' speeches