samchain/econo-pairs-v1 huggingface dataset:
Once again, this is an area where technology, data management and analytics can help banks enhance their risk management functions and strengthen their resilience. Banks need to ensure that they have robust capital and liquidity levels, as reflected in a traditional stability matrix, to absorb shocks and effectively manage their risks. But they can further enhance their risk identification and management by analyzing economic, market and customer data in real time. Institutions will no longer have to wait for analysts to review the market at monthly or quarterly intervals and then map this back to the customers, assets or the bank’s off-balance sheet exposure. Through artificial intelligence, machine learning and predictive analysis, banks can remain up-to-date on risks and exposures in real time, from detecting individual cases of fraud to overall balance sheet exposure across products and business functions. As the market moves and news breaks, tools based on data analytics can immediately update executives on the potential impact of these events on their business. v. Battle for Talent None of the battles can be won without the right people. People are at the core of everything we do, and they are the ones who will bring everything together. This brings us to the fifth battle: the battle for talent.

A critical front in this battle is the leveraging of technology and data. Banks need to use available data to improve their predictive analysis, not just for operational efficiency and planning, but also for insights into customer behavior and preferences. What is particularly surprising to me is that banks, though custodians of vast quantities of customer and transactions data, are not utilizing it effectively. Banks will need to change the way they segment customers, not by their income levels or types of accounts, but potentially by their life cycle, growth potential, and behavior patterns. Data analysis can provide a bank with actionable insights into multiple factors that impact its business, allowing it to improve its strategic and operational decision-making. Moreover, banks will need to overhaul their operations, accelerate end-to-end digitization, modernize their technology infrastructure, and transition towards digital channels. McKinsey estimates that banks worldwide could save more than $ billion a year in direct costs by shifting traditional customers to digital platforms, reducing the service cost by 80 to 90%. By winning the battle for efficiency, banks will not only be able to better engage with customers and achieve higher satisfaction rates, but also curtail operational cost. Central Bank of Kuwait - Public ‫ عام‬- ‫بنك الكويت المركزي‬  - 12 -  iv. Battle for Resilience Winning the battles for customer loyalty, value and efficiency will help banks to grow and remain relevant. But that growth should not compromise banks’ soundness or sustainability. This bring us to the fourth battle: the battle for resilience.
Joseph Yam: Exchange fund notes Opening remarks by Mr Joseph Yam, Chief Executive of the Hong Kong Monetary Authority, at the signing ceremony for the appointment of retail exchange fund notes distributors, Hong Kong, 3 May 2005. *  *  *  I have often emphasised the need for diversification in the financial intermediation channels to maximise the contribution of the financial system to economic growth and development. Diversification can also promote financial stability through reducing the over-dependence of financial intermediation upon one particular channel. Such diversification is therefore clearly in the public interest, to the extent, I think, of requiring the involvement of the public sector in its promotion, if the free market does not produce the desired results. Indeed, Hong Kong’s non-interventionist Government finally got around to this view back in 1989 and on 14 March 1990 the first weekly issue of 91-day Exchange Fund Bills, amounting to $ million, was launched. Since then the Exchange Fund Bills and Notes Programme has become a central feature of Hong Kong’s debt market. The total amount of Exchange Fund paper now outstanding is $ billion. And it was not just a matter of bringing supply to the market to meet demand. We developed a benchmark yield curve, a market-making system and a sophisticated market infrastructure, including a paperless clearing and custodian system. But more needs to be done.

Our own forecast for the interest rate has the advantage that it is produced together with the forecasts for GDP, inflation, employment and so on. Moreover, market expectations can vary substantially over time, which can lead to the information content in the macro forecasts as a whole declining. The evaluators also consider that the Riksbank’s schedule for the different stages in the monetary policy process does not correspond to how the forecasting and policy-making work is carried out since the new repo rate path was introduced. In their view, the changes have meant that, in practice, the actual interest rate decision has been brought forward. They therefore recommend that the Riksbank should announce the monetary policy decision and  2  BIS central bankers’ speeches  interest rate path earlier, namely directly after the meeting of the Executive Board that is held a couple of days after the second monetary policy group meeting. However, we consider this proposal to be difficult to implement. Although the analyses and forecasts are largely complete by the second monetary policy group meeting, the monetary policy decision is made at the monetary policy meeting and not before then. Any reservations against the decision are put forward at this meeting, too, and not earlier. In conclusion, let me once again thank Professors Goodhart and Rochet for their valuable contribution to our continued work on both monetary policy and financial stability.
The prevalence of SME sector in the structure of WSE debuts is the factor behind these statistics. Consequently, the supply-demand imbalance on the stock market was one of the reasons for the strong price rise, which may not always be explained by fundamental factors. For example, the P/E ratio for medium-sized companies included in the mWIG40 index rose from 9.0 to 34.7 between January 2005 and June 2007, and this growth was even higher in the category of smaller companies. Excess concentration of investments on a small number of markets poses a particular challenge, should an asset bubble develop and burst. This development would be the more dangerous that open pension funds cannot hedge their portfolios against the fall in prices. It is worthwhile to mention that pursuant to the Regulation of the Council of Ministers of 13 September 2005 8 , it was anticipated that as from 1 January 2006, open pension funds could take recourse to derivatives to provide hedging to their investment portfolios. Regretfully, in December 2005, this Regulation was repealed 9 , and henceforth, as of today, should prices go into a significant decline, open pension funds have no other instruments to hedge the value of their portfolios but to sell some of their equities . Given a high value of share portfolio, such a sale would significantly aggravate the decline.

Krzysztof Rybiński: Innovations in the financial markets – globalization of the infrastructure Panel presentation by Mr Krzysztof Rybiński, Deputy President of the National Bank of Poland, at the conference “Innovations in the financial markets 2007”, Warsaw, 16 October 2007. *  *  *  Ladies and Gentlemen, Since I have little time to deliver this presentation, I will skip the introduction and the anecdote and get straight to the point. The global financial markets have recently reported episodes of strong volatility; liquidity was suddenly lost, some markets failed to perform their functions in an adequate manner, others ceased to operate altogether. The liquidity and solvency of some financial institutions were put at risk, whereas some investors suffered loss. Disturbances originated from underestimation of risk by a number of agents on financial markets, ranging from subprime lenders to institutions which purchased structured credit facilities offered by banks and their vehicles. A thorough review must be performed with a view to examining the role of rating agencies and supervisory authorities, which appear to have underestimated the risk generated by the rapidly expanding market of asset-backed instruments and the market of credit derivatives. It is not yet certain whether the worst stage of disruptions is over. In the light of the above, strong asset appreciation, especially visible on the emerging markets, should be assessed with caution.
In contrast, between 1999 and 2008, the real effective exchange rate generally remained below its long-term average. It had started to increase around August 2007, then gaining over 30% between that time and the end of June 2011. With these numbers in mind, the additional changes registered this summer are quite extraordinary. Between early July and 9 August, when the Swiss franc reached its historic peak, its real value climbed another 17%. Estimates show that the currency was then almost 40% above its long-term average and more than 50% above its pre-crisis level.15 It can be argued that the Swiss franc is strong because the Swiss economy is faring well in absolute terms and, most importantly, in comparison with many of the country’s neighbours. Indeed, the Great Recession was less pronounced in Switzerland than in most other developed economies. The ensuing recovery was also relatively dynamic. The Swiss economy was one of the first advanced economies to return to the pre-crisis level of GDP and, in striking contrast with many other countries, Switzerland emerged from the crisis with solid public finances. Indeed, this explains why, in the crisis years, the country’s overall debtto-GDP level fell below 40%. Exchange rate movements, like those observed this summer, strongly suggest, however, that such explanations do not suffice. Slow-moving economic fundamentals or macroeconomic drivers can almost certainly not account for the sudden large movements of our exchange rate in July and August.

Jean-Pierre Danthine: The strong franc and the future of Switzerland’s financial market infrastructure – two current challenges for the Swiss National Bank Speech by Mr Jean-Pierre Danthine, Member of the Governing Board of the Swiss National Bank, at a Money Market Event, Geneva, 3 November 2011. *  *  *  The speaker would like to thank Marlene Amstad, Anna Faber, Peter Kuster, Angelo Ranaldo, Andy Sturm, Dominik Salierno and Andreas Wehrli for their valuable support in drafting this speech and preparing this presentation. Introduction In today’s global economy, central banks face no shortage of challenges. Of the many issues we confront, I will discuss two that are currently of particular relevance to the Swiss National Bank (SNB). The strength of the Swiss franc is on everyone’s mind. This summer it became a predicament of unprecedented dimensions and it continues to put tremendous pressure on the Swiss economy. I will address this topic in the second part of my speech. By contrast, the challenge I will discuss first – the future of Switzerland’s financial market infrastructure (FMI) – is not making headlines at present. Essentially, the term FMI encompasses the exchanges, central counterparties, settlement systems, central securities depositories and other service providers which support the financial system. This infrastructure is central to the functioning of financial markets. It is crucial for the implementation of monetary policy and participants’ access to central bank liquidity. As long as the FMI functions smoothly, it rarely attracts public attention.
M R Pridiyathorn Devakula: Efficiency enhancements and risk management Remarks by Mr M R Pridiyathorn Devakula, Governor of the Bank of Thailand, at the Asian Bankers’ Seminar, Bangkok, 16 March 2006. *  *  *  Distinguished Guests, Fellow bankers, Ladies and Gentlemen, Today’s seminar covers wide-ranging topics of interests to the banking community ranging from efficiency enhancements to risk management needed to achieve sustainable business growth. While these issues are topical and useful to bankers, I believe that one cannot simply reduce risks by relying on risk management process alone. An effective risk management system has to be supported by proper governance of the bank’s Management and its Board of Directors. One of the painful lessons of the 1997 crisis was that improper governance practices at the Board level were amongst the root causes of the downfall of too many financial institutions. Back then, it was not unusual for banks to lend to related parties with close connections to their owners, directors, and management without the proper credit analysis. Board members of banks often neglected their responsibilities to blow the whistle against these imprudent activities. Many Board members also did not have adequate and timely access to the necessary information to detect such misdeeds so that appropriate actions could be taken to prevent the resultant damages. The concept of “governance” as understood in Western society and now introduced into our business organizations, including financial institutions, has served as a good starting point to rectify some of the root causes of the crisis.

15.02.2023  Latest monetary policy developments in the euro area Consejo Empresarial Alianza por Iberoamérica (CEAPI) Madrid Pablo Hernández de Cos Go verno r  Ladies and gentlemen, let me begin by thanking Consejo Empresarial Alianza por Iberoamérica for inviting me to address you all. Today I will focus on recent and future monetary policy developments in the euro area. In the first part of my address, I will explain the rationale behind the monetary policy decisions that we adopted in our European Central Bank (ECB) Governing Council meeting earlier this month. In the second part, I will lay out a number of factors that will require close monitoring going forward. Our February monetary policy decisions In order to explain the rationale behind our February decisions, it is useful to first go back to our decisions and communication at our December monetary policy meeting. As you may recall, in that meeting we raised our key interest rates by 50 bp. More importantly for the purpose of my address today, we also announced that interest rates would still have to rise significantly at a steady pace to reach levels that are sufficiently restrictive to ensure a timely return of inflation to the 2% medium-term target. The ECB Governing Council’s assessment of the inflation outlook is based on a wealth of information, in which the ECB/Eurosystem staff’s macroeconomic projections – prepared on a quarterly basis – play a prominent role.
First, why is price stability the backbone of financial stability? Financial stability can be achieved on a sustainable basis if financial resources are not misallocated. Past experience, as well as a large number of economic studies provide evidence that inflation brings about distortions in the allocation of resources. For instance, the calculation of returns is biased, due to the fact that the replacement cost of fixed assets is structurally underestimated. This may result in sub-optimal investment decisions, and over-optimistic credit risk assessment. Conversely, in the case of deflation, the solvency of indebted companies may be jeopardized, as the value of cash flows decreases over time, while the face value of debt remains stable. Second, why does financial stability matter for the efficiency of monetary policy? The efficiency of monetary policy relies on the effectiveness of the transmission channels of monetary policy. Central banks have direct control over short-term interest rates only. The impact of monetary policy decisions on prices goes through various channels – acting directly on the anticipations of economic agents, influencing banking credit conditions, the exchange rate and other asset prices. Uncertainty may arise when these channels do not act in a predictable way nor with relatively stable time lags. In this respect, financial instability may affect the transmission channels of monetary policy. For instance, large fluctuations in asset prices may modify the behaviour of agents by decreasing the level of confidence.

For instance, assets held by pan-European investment funds represented 8 25% of total assets at the end of 2000, up from 12% in 1998 . The development of a genuine pan-European approach is also illustrated by the introduction of various European stock indexes. The turnover on options based on these indexes –for instance, the volume of options traded on the Eurostoxx50 contract– now matches the turnover of options based on well-established domestic indexes such as the CAC in France. This provides evidence that large investors are looking for – and actually have recourse to– hedging products that are suited to a cross-border oriented strategy. However, this evidence of a strong impetus towards integration does not necessarily support the argument that a brand new asset allocation is overwhelmingly dominant. Let me emphasise two aspects. First, pan-European sectoral strategies have also embraced non-euro area stocks in order to reach an appropriate level of diversification. This is the case in sectors such as pharmaceuticals, or telecom equipment, with stocks listed in non-euro area countries such as Switzerland, the United Kingdom and Sweden. This is in line with some theoretical assumptions, which are stating that currency risk is outweighed by the risk-return parameters, as far as investing in equities is concerned. This leads me to the second aspect: the sensitivity of stock market to general macroeconomic events suggests that domestic macroeconomic variables still influence stock prices.
Unemployment is likely to become entrenched – particularly in Europe where the labour market is less fluid and the ability to adapt weaker. This can be illustrated by comparing unemployment developments in the 1980s with current developments. Unemployment fell back fairly quickly in the US, while it remained high in the  BIS Review 15/2010  3  UK and other European countries through the decade. Entire youth cohorts did not achieve labour force attachment. Small countries such as Norway are dependent on a growing global economy with free trade and free capital movements. There is a risk of a renewed weakening in financial markets. Some countries may be caught in a continuous downward spiral. But so far the IMF has been able to provide support. There is also a risk that countries experiencing deficits and substantial unemployment resort to protectionism when their businesses are not sufficiently competitive. However, the rules of the World Trade Organisation, the WTO, have generally been respected so far. Mercantilist attitudes may also gain ground in surplus countries. Investment behaviour in these countries may be motivated by broader strategic considerations, which may prompt retaliatory measures and result in restrictions on cross-border capital flows. The Norwegian economy – two golden decades The downturn in Norway has proven to be mild.

Allow me to conclude with a somewhat different perspective this time. 10  18  Including road toll funding, cf. National Transport Plan 2010-19, tables 5.2 and 6.6. BIS Review 15/2010  Claes Gill was born in Odda a hundred years ago this year. Many of you will remember Claes Gill as an actor when television was still in its infancy. He lived in New York during the depression in the early 1930s, but was arrested as an illegal alien, brought in for questioning at Ellis Island, deported from the US and sent back to Norway. He wrote his two collections of poems at that time, which have remained his legacy and which were an early expression of Norwegian modernism. The Governor reads a poem by the Norwegian poet Claes Gill, describing the beauty of his home region on the west coast of Norway. BIS Review 15/2010  19
An even more far-reaching change that many have suggested would be the creation of a new institution to handle and store currency on behalf of others; this could dramatically reduce the costs of holding currency. The institution contemplated would have a single, highly trusted, party start a currency warehouse, which would consist of a large secure vault and excellent record-keeping and shipping facilities. Individuals could then deposit currency in the currency warehouse, receive receipts for their deposit, and then make payments with the warehouse receipts. Such an innovation could conceivably lower the cost of holding currency as an investment, and yield investors a return close to zero, but still slightly negative. Because of these dynamic considerations involving innovative actions to avoid negative rates, we could add a corollary to our proposition. Specifically, we posit that different economic agents will be less willing to invest in negative rate investments over time to the extent that innovations reduce the costs of handling currency or make available other zero, or near-zero, interest rate economic arrangements. Some economists since Silvio Gesell – notably, Willem Buiter, Marvin Goodfriend, Miles Kimball, and Ken Rogoff – have suggested that currency be eliminated, taxed, made nonredeemable for deposits in banks, or made redeemable only in units that reflect an exchange rate that varies over time. 2 These are all other ways of imposing negative nominal rates universally across the alternative means of payment people use.

As they stand, the current technical proposals put forward for consultation by the Basel Committee do not respect this commitment: they must therefore be revisited. Second, we should be careful not to oversimplify the regulatory framework and loose the risk sensitivity. Adjustments to the internal models approach should not amount to imposing the standard approach on all, either explicitly, or implicitly by applying poorly calibrated “output floors”. *** Let me conclude with some words on the strengths of the Paris financial centre itself: robust banks and insurance companies, a dynamic asset management industry, strong financial market infrastructures, a highly skilled labour force. And you can be assured of three points: 1. First, French authorities, including the Banque de France, attach utmost importance to making sure Paris is one of Europe’s strongest financial centres. This is crucial for employment, for investment, as well as for the strength of the euro area economy as a whole. 2. In addition, we are already making every effort to build an innovation ecosystem: through the recent and efficient ACPR-AMF cooperation on FinTechs; through our support for the development of new tools – such as ESNI on securitization and Euro GC+ on repos, or our upcoming project to test interbanking information sharing processes based on blockchain technology; and also through our partnerships with many French universities renowned for their excellence and their Masters in Finance. 3.