samchain/econo-pairs-v1 huggingface dataset:
This is important to ensure a sustained supply of human talent to support the long-term growth of Islamic finance. To meet this requirement, a complete training infrastructure has been established. Islamic Banking and Finance Institute Malaysia (IBFIM), which is an industry-owned training institute, will now focus on providing technical programmes in Islamic finance. The recently launched International Centre for Education in Islamic Finance (INCEIF) will provide professional certification as well as postgraduate programmes. The INCEIF flagship programme, the Certified Islamic Finance Professional certification programme, is scheduled to begin on 1 June 2006. For leadership development programmes, ICLIF will play its role in developing leaders to serve the industry, providing facilities for education in Islamic finance to not only support the development of the domestic Islamic financial system, but to also position Malaysia as an international centre for education in Islamic finance. And in so doing, this will contribute towards the global development of Islamic finance. Industry players therefore have the opportunity to assist their staff to acquire the necessary skills at these institutions. The Islamic financial institutions also require forward-looking leaders to steer the industry in the more demanding and challenging environment. Ladies and Gentlemen, The huge potential in Islamic finance can only be realised if sufficient resources and drive are accorded to it. In conclusion, let me take this opportunity to congratulate the AmBank Group on the initiative to establish its own Islamic banking subsidiary and provide the necessary resources and support to ensure its success.

The GFC has also taught us that even the largest banks in the world are not immune to failure in risk control and management and, when they failed, there would be devastating effects on systemic stability and on the society at large. 4. Fellow INEDs, while you may have come from a rather diverse background, I believe most of you know each other quite well already. This is because all of you have worked for decades in your respective fields, crossing the paths of a wide spectrum of industries, and have achieved proud accomplishments in different shapes and forms. It is your unique experience and expertise, your reputation and your willingness to serve the banking sector that have brought you together as INEDs today at this Conference. 5. As INEDs, you play a crucial and irreplaceable role in the governance of the banks in Hong Kong, serving not only the shareholders but also the public at large, given the special and important role of banks in the society. I think you will agree with me that in the interest of good governance, a board of directors has to provide the needed steer, guidance and checks and balance to the bank. Clearly this can only be achieved if the INEDs can function effectively and efficiently. Without functioning INEDs, the board is just another gathering of the senior bank management. We may as well abolish the board of directors as it would serve no real or useful purposes. 6.
This is reflected in the diversity of banking services and products offered in the Kingdom and their highly advanced level. Currently, 15 banks are operating in the Kingdom with a network of 1,251 branches at the end of the first quarter of 2006, including the branches of Gulf and foreign banks such as the Gulf International Bank, the Emirates Bank, BNP Paribas and Deutsche Bank which was opened last week. In addition, licenses were granted to several Gulf and foreign banks to open branches in the Kingdom. Also, the establishment of a Saudi bank with a paid-up capital of Rls 15 billion has been approved. Preparations are currently underway on finalizing the procedures of its establishment under the name of “Bank AlEnma”. On this occasion, I congratulate the NBK on the commencement of its operation in the Kingdom, and I wish the Bank and its staff good luck and success. BIS Review 70/2006  1

•  The published Allsopp analysis included a challenge from the major central banks to the major market participants to develop a new settlement mechanism. In short, find a solution or we will find one for you! I recount this history to highlight the magnitude of the achievement CLS represents. The establishment and growth of CLS is undoubtedly one of the most significant accomplishments in global financial markets in the post-war period and a major breakthrough in managing settlement risk in an over-the-counter market. BIS central bankers’ speeches  1  •  The largest part of the achievement, of course, is the difficult job of making it happen. CLS was actually the third major concept for FX settlement. It succeeded because the industry collectively got firmly behind CLS and because of the hard work of the many people in the CLS organization, whose commitment and efforts continue to this day. Let me highlight three dimensions of CLS’s success. First, its growth and its scope. When it went live in 2002, CLS began settling FX transactions in just seven currencies with 39 settlement members. Today it settles in 17 currencies with 63 settlement members and 16,000 third party users. Volumes and values of transactions settled via CLS have also expanded significantly. Today CLS is settling average daily values of nearly $ trillion and average daily volumes of 1 million transactions. On its peak settlement value day, March 19, 2008, CLS settled over 10 trillion U.S. dollars equivalent. Second, adaptation to a rapidly changing foreign exchange market.
Lastly, Patricia Mosser, now a Senior Research Scholar here at SIPA, used to work at the New York Fed, and a number of Banque de France staff have had the privilege of working with her over the years. So, Patricia, allow me to thank you warmly for organising this lecture on the ECB’s monetary policy and the resilience of the Eurozone. In Europe, the euro construction process is pretty well-known, while the ECB monetary policy is often debated. In the United States, it may be the reverse: the monetary policy is often better understood than the euro construction process. Thus I will deal successively with both issues before turning to the future and a call for action in Europe. 1. The euro has strong foundations. Political foundations As you know, the single currency was officially launched with the Maastricht Treaty in 1992 and introduced in 1999. But Maastricht and the euro are naturally part of a broader history: the history of Europe, and its singular achievement of making the transition from war to peace. As early as 1946, Josef Müller, who was a leading figure in the German resistance to the Nazis and the founder of the Bavarian CSU, acknowledged that “we need[ed] a European currency, because countries that share a currency will never be at war”. The euro has indeed provided us with a strong symbol of unity among European nations.

Our banking sector has reached its historically highest profitability levels. The ratios of capital adequacy and liquidity are above the average for the EU. Consequently, I would propose two brief topics to ponder on:  2/4  BIS - Central bankers' speeches  Just think of it, where would Bulgaria have been if the other economic, and not only economic, sectors had similar results? Also, remember where the BNB and the banking sector were not very long ago, in 2014 and 2015. The turbulences that we went through in those years spread well beyond the boundaries of the banking sector. How did this transformation happen, from the state in which this sector was in 2015 to the state in which it is today. The answer is – extensive and determined reforms leading up to full integration into the nucleus of the EU, what essentially the euro area is. I think this is a completely valid response to the challenges facing the country today. Let me finish on a more prosaic note. What is the BNB doing on this matter now? As you are probably well aware, no formal criteria and requirements apply to the BNB. And how so? Because the BNB and the banking sector have succeeded in fulfilling all these criteria and requirements by 2020. It is precisely the compliance with these formal criteria and requirements that allowed Bulgaria to join the European banking union in 2020, one of the key euro area institutions, and the Exchange Rate Mechanism.
This would hold back consumption spending, and hence GDP growth, in the oil importing countries. Not surprisingly, the world economy is expected to slow in 2008, led by the US and other developed economies, amidst falling asset prices and tighter credit conditions as well. The US is weighed down by falling house prices, weak consumer spending and continued credit market distress. Domestic demand in Europe is expected to be subdued while softer external demand and the strong Euro could constrain export growth. Some slowdown is to be expected in Asia, although firmer domestic demand conditions should offset some of the weakness in exports. The region would also be buoyed by continued strong growth expected of China, India and the Middle East, which would help to mitigate the impact of the softer G3 economies. Indeed, inflation has emerged as a bigger concern in Asia, particularly among the faster growing economies I have just mentioned, including Vietnam. Thus, governments and central banks in the region not only have to deal with slower growth prospects, but also guard against rising inflationary pressures arising from strong domestic monetary expansion as well as higher commodity prices. High commodity prices would shape manufacturing decisions and define future trade flows. Higher shipping costs from fuel hikes have eroded the wage advantage of low cost producers such as China and Vietnam especially in inexpensive items that have high freight cost relative to final sale price.

According to BIS data, global turnover in commodity derivatives (measured in number of contracts) grew from 420 million to 489 million in the first quarter of 2008. On a year-on-year basis, turnover grew 52%, led by agricultural and energy products. BIS Review 90/2008  1  Others have pointed the finger at speculators for the historically high commodity prices although the extent of this has not been well established. There are concerns over speculative activities giving rise to a disconnect between the physical and futures markets. In the US where commodities are actively traded, there are claims that speculators’ interest in crude oil now account for about 70% of all trading in West Texas intermediate crude on the New York Mercantile Exchange ("NYMEX"), compared with 37% in 2000. On the other hand, some have attempted to make a distinction between speculative trading (which at the core, means taking positions based on one’s view of the market) and market manipulation (or collusive trading that interferes with the free play of demand and supply, and has an illicit element). They argue that speculators play a vital role in providing liquidity and take the risk that hedgers want to avoid. Without speculation, consumers would likely pay more for energy and other commodities. Whatever the causes, whether physical demand and supply or speculation, the world now has to grapple with higher commodity prices. What are the implications and effects of the commodities boom? Clearly the hike in oil prices, for instance has crimped the real incomes of households.
However, the creeping commodification of finance over the years has gradually blurred the nature of finance, with excessive risk accumulation driven by greed and perverse incentives. Serving the needs of the real economy is key. That is why issues such as financial inclusion, financial literacy and financial planning are so important to us as our nation progresses. As professional bankers, we should think beyond profits and understand how to meet the evolving needs of the economy. Like the medical profession, we cannot begin to prescribe a solution without first diagnosing the needs of the customer. As an industry we should aspire that one day, consumers may walk into a bank, safe in the knowledge that bankers will always have their best interest in mind. That each encounter with the consumer is viewed not as opportunities to extract value, but as a privilege, to contribute towards financial wellbeing of the community we serve. It is an aspiration worth pursuing. Closing remarks Let me conclude. Like the physicians, my hope is that as bankers we will always uphold the high standards expected of our profession. Like the physicians oath, an old banking maxim used centuries ago reads “my word is my bond”. Our knowledge of bonds and financial instruments may tell us what we know. But our bonds to society tell us about our existence. 4/4  BIS central bankers' speeches

This time round, the strong credit market from 2003 to 2005 have lulled investors into placing big bets in high-yielding structured credit instruments, on the assumption that such favourable credit conditions will continue unabated. The second point is on proper risk assessment. Back in 1997, lenders were providing funds without executing necessary scrutiny or appropriately balancing the risks against returns. Likewise, the recent credit turmoil has highlighted the importance of assessing risks. The  BIS Review 11/2008  1  distribution of risk through leveraged structured vehicles or conduits, and complexities in the structures have made it extremely difficult for investors to disaggregate the risks in times of stress and volatility. As a result, over-reliance has been placed on financial models and ratings without full comprehension of the risks of the product and misunderstanding the scope of the ratings that measures default risk. Third, excessive leverage in both crises has exacerbated the problems triggered by the mounting default rates. Excess liquidity led to massive domestic lending; at the same time, investors geared up aggressively and bet on continually rising asset prices as collateral. When the crisis broke, the use of leverage accentuated the losses, which led to widespread risk aversion and uncertain market sentiments. The loss of confidence along with the repricing of credit risk have intensified the volatility in the financial markets; and this contagion spread rapidly beyond the structured credit space and across markets. So what does all this mean for Asia?
With pressures on their capital and new capital expensive where it is available, banks are likely to attempt to increase their margins and to slow down new lending, thereby reducing their capital requirements, for example by tightening non-price terms and conditions on new loans. One factor which regulators are watching carefully at present is the impact of the shift this month to the Basle II system of capital requirements for European banks. While Basle II improves on its predecessor and removes many undesirable incentives, it retains some procyclical features and any transition needs to be managed carefully. 8 The impact on expectations and confidence The other channel by which the financial market turbulence is likely to have macroeconomic effects is by prompting more cautious behaviour by households and firms. This might simply reflect uncertainty about the future. Firms may temporarily postpone investment because of greater uncertainty about the future path of demand. We saw an effect like this after 9/11 for example. But it might also reflect a revision by households and firms about the sustainable path of income and wealth in the coming years. The change in expectations may reflect the higher costs of borrowing and a higher risk of unemployment. Again a reduction in confidence about future growth may lead directly to lower consumption and investment. It is also likely to affect equity and property markets. Potential buyers may decide to wait before purchasing if they sense that there is a chance that prices may fall. Such behaviour can be self-fulfilling.

(b) Coordinated central bank measures announced (12th  6  00  01  02  03  04  05  06  07  Jan 2008  Source: Dealogic. Data to end-December 2007  BIS Review 7/2008  Dec 2007).
Looking ahead, increased domestic capacity for electronics production in both China and the US will likely lead to a substitution of imports. The US-proposed Chip 4 alliance with Taiwan, South Korea, and Japan for semiconductor production could potentially divert trade flows away from countries that are not part of this arrangement. At the same time, it is also possible that some trade could be diverted from China to lower cost regions such as Vietnam, India and Mexico, which are emerging as competitive assembly locations for final electronics products. The result of all this geoeconomic fragmentation is most likely slower global growth. Several studies show that the long-term effects of receding globalisation are costly. According to an IMF study, a scenario of limited trade fragmentation would reduce global GDP by 1.2%. [5] A WTO study found that under a more adverse scenario of a full technological decoupling from 2020 to 2040, the loss in GDP would be 8.0-12.0% in individual countries during this period. [6] Ultimately, low-income developing countries furthest from the technological frontier will suffer most acutely from reduced knowledge diffusion from advanced economies. Supply chain diversification will increase inflationary pressures. First, relocating operations will incur high upfront costs. Even if governments have the fiscal resources to subsidise duplicate supply chains, there may be insufficient labour to sustain it. Second, restrained global competition will increase the market power of larger firms or domestic oligopolies, resulting in reduced innovation and higher prices.

What are the investments that run the risk of being stranded assets in a net-zero world? What are the investment opportunities as the world transitions to a low-carbon economy? There have been significant policy moves on the sustainability front that will attract keen investor interest in the years to come. In US, the introduction of the Inflation Reduction Act will direct nearly $ billion in federal funding to incentivise low-carbon investments – in areas such as clean energy generation and storage, electric vehicle manufacturing, and carbon capture. In Europe, the REPowerEU Plan will mobilise up to € billion of investment in areas such as renewable energy, storage and energy efficiency, to achieve the 2030 target of a renewables share of 45% in energy production. There are also significant opportunities for sustainable investing in Asia. According to McKinsey’s estimates, net zero by 2050 would require about $ trillion of investment per year. Out of which, around one-third or $ trillion would be in the Asia Pacific. Southeast Asia has high potential for climate action. Estimates from Bain shows that five sectors - renewable energy, electric vehicles, forest conservation, built environment and sustainable farming - account for 60% of Southeast Asia’s carbon abatement potential [7] . For example, renewables such as solar and wind will reach an annual $ billion opportunity by 2030, while electric mobility will be an annual $ billion opportunity by the same period. To meet these needs, we need to catalyse blended financing.
International developments will be weak this year The world economy was in a slowdown phase even before September 2008. Since then the deterioration in the world economy has been rapid. All of the large, developed economies are now in recession. During the fourth quarter of last year GDP growth in the United States and the euro area fell by around 6 per cent calculated on an annual rate. In Japan the fall was even greater, more than 12 per cent calculated on an annual rate. In the wake of the weak development households and companies have become more pessimistic about the future. Confidence indicators have been in free fall and are now at alltime lows in many countries. For example, the purchasing managers index has never before been so low. Share prices have largely halved since the top levels in 2007. The great uncertainty is also reflected in the large fluctuations in stock market rates. For the world as a whole we are now expecting more or less zero growth this year. Growth and developing economies appeared for a long time to be coping relatively well. But they have now also been affected by the crisis. In China, growth slowed down significantly during the final quarter of last year. The oil-producing countries in the Middle East and Russia have  BIS Review 25/2009  3  also experienced a sharp slowdown in economic activity. A few years ago GDP growth in the growth and developing economies was on average around 7 per cent a year.

However, I think the evidence shows that over the past 25 years most supply shocks have been transitory – and have had no long-lasting imprint on longer term inflation, or on inflation expectations. Nonetheless, recent historical trends do not always continue, so it is important to monitor inflation dynamics very closely to make sure that this pattern is continuing in the incoming data. In particular, I will look intently at whether there is any evidence that the expectations of underlying inflation have changed. To date, expectations seem quite stable and show no evidence of diverging from the recent past. I am committed to responding decisively, and as forcefully as necessary, to ensure that long-term inflation expectations remain stable and that food and energy price increases are not passing through to other prices.7 Given the important role of labor costs in a developed, services-focused economy such as the United States, it is important to closely monitor trends in labor markets. Currently, wages  6  The average annual expected price change they expect over the next 5 to 10 years. 7  See for example the comments on commodity price pressures and monetary policy by my colleague William Dudley, president of the New York Federal Reserve Bank and Vice Chair of the Federal Open Market Committee: “Inflation expectations are well-anchored today and we intend to keep it that way.