samchain/econo-pairs-v1 huggingface dataset:
So it is very helpful that the EMI Council decided with our encouragement in September to ‘welcome and support’ harmonised market conventions on the basis proposed by the market associations. We also welcome the EMI Council’s decision in September to prepare for the computation by the ESCB of an effective overnight reference rate for the euro area. There remains however a good deal to be done everywhere -- in co-ordinating price sources, for example, as methods of redenomination. But in all of these respects London is well up with the game. Conclusion Mr. Chairman, it is sometimes suggested that a perceived threat to its activity if we were “out” will cause the City to press for early UK membership of EMU, and that this will be an important factor in the Government’s decision. I am bound to say that I see very little sign of this. Certainly there are those in the City who advocate our early participation, but there are equally those who are more hesitant -- just as opinions are divided elsewhere within the country. But for the most part, my impression is that City attitudes to EMU, whether for or against, reflect a broader assessment of the respective pros and cons for the country as a whole rather than strong views about the implications for the City in particular. On the whole I find that City opinion is relatively optimistic about its future prospects, “in” or “out”.

In the UK, the real-time gross settlement system which came into operation in the spring of last year is being developed so that it will operate in euro. If the UK joins, the UK sterling system will effectively become a euro system. And, in case the UK is “out”, a parallel euro system is under construction to sit alongside the sterling system: it will enable the members of CHAPS to process euro payments as a foreign currency within the UK and across borders within the EU, through its link to the pan-European RTGS system -- TARGET -- which is being developed. The idea behind TARGET is to link together in euro the national RTGS systems of EU Member States so that large-value payments can be made or received between Member States throughout the EU area, with finality in real time, in exactly the same way as they can at present be made and received within Member States with national RTGS systems denominated in their own national currencies. One of the main purposes of TARGET is to support closer European economic and financial integration by reducing the risks in pan-European payments -- just as national RTGS systems reduce the risk in national payment systems. The other main purpose of TARGET is to integrate the euro money market so as to ensure that the same short term euro interest rate -- determined by the single monetary policy of the ECB -- prevails throughout the euro area. TARGET is a project which we strongly support.
Payments are vital to any real economy and in total nearly 40 billion payments were made in the UK in 2018.4 They are also at the heart of the financial system. This makes London the perfect location for a payments conference, which is focused on “thriving in a hyper-connected world”. Payments are innovating, fast. From the infrastructure and the messages that support each transaction, to new players entering the market and consumers seeking new ways to pay for goods and services. Future of Finance, Future of Payments  While the core mission for the Bank of England is maintaining monetary and financial stability, we also seek to enable innovation and empower competition in the financial system. To support our forward looking and dynamic approach we recently commissioned and responded to the Future of Finance report.5 It considered how financial services might evolve over the next decade, and what this could mean for each of us: for users, the system and the Bank itself. The report highlighted that a new economy and new demographics demand a new financial system. This system must be resilient, fair and dynamic. We have prioritised five areas of work: we are enhancing the payments system for the digital age; we will champion a platform to boost access to finance for small businesses; we will support the transition to a carbon-neutral economy; we will develop a world-class regtech and data strategy; and we will facilitate firms’ use of technology.

At the forefront are the regulatory requirements on banks’ equity capital and liquidity through laws and ordinances by the federal government and FINMA. Moreover, in Switzerland, the self-regulation rules for banks also constitute an important element. Thus, the relevant legal requirements are supplemented by rules and guidelines set by the Swiss Bankers Association, which FINMA can also recognise as a minimum standard. 8 This instrument has been applied several times over the past few years in relation to the mortgage and real estate markets. 8  Cf. finma.ch/en/documentation/self-regulation/ (consulted on 30 August 2021). Page 6/12  At international level, the SNB participates in various committees and working groups, such as the Basel Committee on Banking Supervision. The recommendations and agreements of these bodies in turn have a major influence on our national legislation. One example of this is the CCyB. It was devised at international level and introduced in Switzerland in 2012 by means of a Federal Council ordinance. The CCyB is a key instrument for counteracting imbalances on the mortgage and real estate markets. When activated, banks are obliged to temporarily increase their equity capital beyond the levels imposed by existing capital requirements, depending on the magnitude of the vulnerabilities. The CCyB is designed to strengthen the resilience of the banking sector against the risks of excessive credit growth and also to counter any unsustainable credit growth. The capital buffer in Switzerland has so far been targeted at mortgage loans granted for residential real estate.
First, it is not always easy to take the other side. There may be constraints on the ability to short the asset in question. Such limits on the ability to short sell can arise for many reasons. For some assets, short selling in size might simply not be possible because the markets are not sufficiently developed. Also, even if there were instruments that can be used to go short, it may not be an easy trade to undertake. For example, if a bubble builds up over many years and market participants’ compensation is based on year-to-year performance, there may be disincentives to take the short side. Compensation schemes and other practices that skew incentives may create a bias to simply “trade with the market.” Second, bubbles may simply emerge from the way market participants process information and trade. Experimental work done by behavioral economists has shown that people often trade in ways that generate price bubbles. In many carefully controlled experiments in which the intrinsic value of the asset could be determined with certainty, participants still bid prices up far above fundamental valuations, with the bubbles being followed by sharp declines in prices. BIS Review 43/2010  1  Let me give you an example of one of the seminal studies of this type. In this experiment, all investors start with an identical asset that pays the same dividend generated from a known probability distribution at the end of each trading period.

Such doubts can ultimately lead to an expectation of higher inflation and therefore complicate monetary policy. Seen from the perspective of regulatory policy, demands for the SNB to directly finance government tasks are therefore to be clearly rejected. The SNB’s monetary policy must not be driven by profit or loss. These are just by-products of our monetary policy. Our mandate is to conduct a monetary policy that ensures price stability in the medium and long term while taking due account of economic developments. Price stability is the most important contribution the SNB can make to our country. The SNB will therefore continue to advocate a framework for monetary policy based on the principles of regulatory policy. Page 4/5  The challenge of ensuring price stability Ladies and gentlemen, the current global situation highlights the importance of central banks’ focus on price stability. The monetary policy environment has changed considerably due to the pandemic and the war in Ukraine. After years of expansionary monetary policy aimed at preventing inflation from falling too low, the central banks of many countries are today faced with the challenge of fighting inflation that is too high. I will therefore close by saying a few words about the SNB’s current monetary policy. Inflation in Switzerland is lower than abroad. However, in this country, too, it has still increased much more than was generally expected. At 3.5%, it is at its highest level since the 1990s.
But it is only a short term solution that will quickly exhaust the effects, because devaluation will bring high inflation and in the end only the nominal exchange rate is changed, and the real exchange rate will remain the same. And then again demands for a new devaluation. Look at the history of the European Monetary Union. What was the exchange rate policy of Greece, Italy, Spain, before the introduction of the ECU (the predecessor of the Euro). Instead of structural reforms, they constantly corrected their weaknesses with a devaluation of the exchange rate. When they entered the Euro area it was no longer possible and it has led to what we see today. They require internal devaluation of about 30 percent to restore lost competitiveness. By contrast, countries such as Austria, the Netherlands (Denmark, which still has its own currency) have always led policy of a fixed exchange rate pegged to the German Mark. To be competitive, they had to increase their  4  BIS central bankers’ speeches  efficiency with structural measures. Therefore these countries have no problems with competitiveness today. In a recent interview you gave for Banks and Businesses you recommended that the competitiveness of the Macedonian economy must be improved through complex reforms and dedicated work that includes everybody. Do you see such progress? Yes, I see such progress. The ranking of Doing Business, of the World Economic Forum, is a benchmark for what has been done in the area of ? ?improving the conditions for higher economic growth.

The risks of a setback in economic activity should not be underestimated either. As we Executive Board members pointed out, we are always prepared to make monetary policy even more expansionary if we assess that the upturn in inflation is threatened. But even if the focus of the debate in Sweden is now of necessity on current monetary policy, we must not lose sight of the longer perspective. There is a lively international debate on whether, and if so how, inflation targeting should be changed in the wake of the financial crisis and the ensuing period of a long-drawn out economic recession, very low inflation and very expansionary monetary policy. What do the past eight years mean for the functioning of the economy and for monetary policy? Will we return to the way things looked before the financial crisis? It is important that we also take time in the Swedish debate to focus on these fundamental issues so that the discussions of our own monetary policy framework remain well-informed and productive. This is important not least for the external evaluation of monetary policy in Sweden now being carried out on behalf of the Riksdag Committee on Finance. There are many interesting question that are worth raising. One example that is of immediate interest in the Swedish debate is the question of whether monetary policy should have an explicit target for employment in addition to the target for inflation. This is one question that will be taken up in the external evaluation.
In fact, investment in technology, in which process savings banks have played a notable part, is an additional and important mechanism for attaining greater efficiency. This is because technological development allows processes to be undertaken more easily, simultaneously eliminating certain timeand labour-intensive tasks so that operating cost cuts are achieved. In addition the capacity to process massive amounts of data efficiently in real time allows for better risk management and also for services better tailored to client needs. In line with the foregoing, appropriate human resources management will also be conducive to achieving greater efficiency. The importance of the role of human capital is beyond all doubt, and all the more so in the sector we are discussing today. BIS Review 31/2003  3  Business risk In terms of not changing the risk profile while trying to gain efficiency, business and operational risks deserve some attention. I have signalled before some of the specific features associated with savings banks. Ensuring the objective of efficiency also involves moderation to some extent in those activities and risks furthest removed from their nature and character. A latent danger arising when cutting costs to improve efficiency, is an increase in the level of operational risk. As I mentioned, efficiency improvements may only be understood as such when the risk profile remains unchanged. As you know, operational risk is increasingly under the scrutiny not only of supervisors but also of institutions.

Most economists see this shock as disinflationary and expect it to remain so in the next phase as demand around the world recovers more slowly than supply. The IMF forecasts inflation rates of 0.2% and 1.0% in 2020 and 2021 for the euro area. The European Commission forecasts are roughly the same. Let me remind you that our inflation objective of “below but close to 2%” is both symmetric and mid-  Page 10 sur 10 term: it should not be a ceiling, nor completely ignore past inflation developments. As I said, I fiercely stick to our monetary independence – and oppose fiscal dominance –, and to our mandate focused on price stability. But in the present context, this mandate does not prevent action: in the very name of our mandate, we will probably have to do more, and maintain low interest rates and abundant liquidity for longer. Nor does independence prevent cooperation. On the contrary, the stronger the Economic Union – including its budgetary and financial components – the more effective monetary action will be. Take the example of the Federal Reserve in the United States which can count on a strong fiscal and monetary policy-mix. *** Over the past 20 years, the euro area has essentially forged ahead through crises. Today it is facing another moment of truth. As a golden thread, famously illustrated by Mario Draghi’s “Whatever it takes” in 2012, stands the unlimited commitment of the ECB to the euro.
But the refugee crisis means that we’re also facing a new challenge right now. Is this going to affect economic developments? It is a huge challenge, not only in Germany, but for Europe as a whole. But the refugee crisis is also a great opportunity for Europe if the refugees can be successfully integrated into the labour market. The more Europe stands together in the refugee crisis, the greater is the likelihood that it can be overcome. As a European citizen, I believe that we are now at a historic moment when the EU must demonstrate that it is able to reach a European solution. 2  BIS central bankers’ speeches  Is that realistic? Europe has already overcome similar situations, for example during the debt crisis. In this case, given that we are talking about millions of people who are fleeing to Europe, I personally believe that the EU has a moral obligation to find a joint European solution. The European project is not first and foremost a financial project. Europe always was, and will continue to be, about bringing people together, not about dividing them. The euro area countries cannot even agree on whether or not there should be a common limit on payments in cash. What would you advocate? This is a matter for the EU finance ministers to decide on, not the ECB. There are countries in Europe where cash is very important, and there are others where cash plays a lesser role.

Regardless of the specific details, the key is that differences across individuals can be important for understanding how the economy works, even in the aggregate. For all these reasons, the Research group at the New York Fed is committed to continue our work on heterogeneity, across several dimensions of what we do. We are always looking for ways to expand and deepen our knowledge, to enhance the data that is available to our economists and others to do deep, sophisticated research on these topics, and, critically, to publish the work so that we are adding to the store of knowledge both among academic researchers and among policymakers. We are well-placed to understand what the important questions are, to generate the data needed to answer them and to speak to diverse audiences about the results. This webinar and blog series are important parts of our strategy for communicating about our work and for advancing thought about the critical role that heterogeneity plays in our economy. Thank you. 2/2  BIS central bankers' speeches
[7] 75% of people in 16 major countries expect their government to make environmental protection a priority when planning the postCOVID-19 recovery. See Ipsos  press release (published on 5 June 2020) about the results of a survey conducted between 21 and 24 May 2020 on the Global Advisor online platform. [8] Giuzio, M. et al. (2019), “Climate change and financial stability”, Financial Stability Review, ECB, May. [9] European Commission (2020), “  Identifying Europe's recovery needs”, Commission Staff Working Document, 27 May. [10] Through our ECB Listens portal, we are inviting euro area citizens, organisations and relevant stakeholders to contribute ideas and comments on the way we conduct monetary policy. European Central Bank Directorate General Communications Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany Tel. : +49 69 1344 7455, email: media@ecb.europa.eu Website: www.ecb.europa.eu Reproduction is permitted provided that the source is acknowledged. Media contacts  Copyright 2020, European Central Bank

In view of the prevailing dynamic and often volatile financial environment, this development is important to meet the differentiated demands of investors for a broader range of financial products at more competitive prices and through more efficient and convenient channels. The listing of the Exchange Traded Fund on Bursa Malaysia will also raise awareness and generate interest of domestic and international investors in our bond market, thus contributing towards the development of a deeper and broader bond market in Malaysia. The launch of the Malaysian Bond Exchange Traded Fund would not have been possible without the close cooperation and support of many parties. In particular, I would like to thank the Securities Commission, Bursa Malaysia, the Association of Stock Broking Companies in Malaysia, AmInvest, the fund manager and the market makers for their contributions and commitment in working with the Central Bank to make the listing of the ABF Malaysian Bond Index Fund a reality. The remarkable and strong partnership between the regulators and the industry has been important in resolving significant regulatory as well as operational challenges in order to make the listing of the ABF Malaysian Bond Index Fund possible. Indeed, it represents a strategic cooperation that contributes to improve the overall growth of the financial market. 1/2  I would also like to thank AmMerchant Bank, CIMB and Maybank for their participation as the participating dealers. I also wish AmInvest, the fund manager, every success in managing and promoting the Fund. 2/2
Javier Aríztegui: The financial crisis and the restructuring of the Spanish banking system Speech by Mr Javier Aríztegui, Deputy Governor of the Bank of Spain, at the APIE (the Spanish Association of Economics Journalists) – UIMP (Menéndez Pelayo University) Course, Santander, 17 June 2011. *  *  *  Let me begin by thanking the APIE (the Spanish Association of Economics Journalists) and the Menéndez Pelayo University for inviting me to deliver the closing address at this seminar, which has discussed matters of great interest for our economy and financial system. This is the third year I have come to Santander for this session, and the second year running that I will be briefly reflecting on the financial crisis and the restructuring of the banking system. That I should be here again is no strange occurrence. Indeed, it was foreseen by the organisers since we are experiencing the deepest and most extensive crisis in recent decades, and we face a far-reaching restructuring and reform of savings banks. But my address today is from a different perspective than that of my last visit. In June 2010 the Royal Decree-Law that created the Fund for the Orderly Restructuring of the Banking Sector (FROB by its acronym) had been in force for a year. One of its aims was to boost integration processes to create sounder and more efficient institutions.

Safe and efficient clearing and settlement have been in demand as banks’ trust in each other has weakened. In Norway, our systems have had to handle major problems in two Icelandic banks operating in our country. These problems have been handled smoothly. Times of crisis can also be a turning point, providing the opportunity for change. During the Norwegian banking crisis in the late 1980s and early 1990s, Norges Bank and other public authorities put pressure on banks to increase their income from bank charges, including payment services. I believe that as banks have to focus even more on running a costefficient business, the incentives for developing the payment system further will be strong in times to come. For this conference we have received a large number of high-quality papers. I know that the selected conference speakers represent some of the best researchers in this field. We are especially pleased to have as keynote speakers two of the leading scholars in the economics of payments systems: David Humphrey from Florida State University and Jean-Charles Rochet from Toulouse School of Economics. Let me also extend my thanks to the three other members of the programme committee: Gabriela Guibourg from Sveriges Riksbank, Eirik Gaard Kristiansen from the Norwegian School of Economics and Business Administration, and Bent Vale from Norges Bank. As I mentioned earlier, I visit Nice in the South of France quite often. And from my direct observations, I notice that France has developed very fancy methods of processing cheques.