samchain/econo-pairs-v1 huggingface dataset:
Such opportunities are available not only in Malaysia but also in the region and globally. The time is opportune for tapping into the Islamic finance market. Malaysia has had a head start in Islamic banking and finance. While we have the largest Islamic banking market in the world, the largest Islamic capital market and largest takaful market, still the potential generated by the unprecedented growth in the global Islamic finance industry is yet to be fully harnessed by the players in the Malaysian financial sector. As Islamic financial products increase in sophistication, a higher level of competencies, skills and structuring abilities of the merchant banking community would be needed. If Malaysia could emerge as a supplier of these high-end services, the nature of merchant banking would change significantly. On the part of the Government, major initiatives have been taken to create the enabling environment and create resources for the next phase of development of Islamic banking and finance. These include  BIS Review 83/2005  3  our efforts to build Shariah expertise, promotion of convergence of Shariah understanding, promoting and hosting IFSB, the international Islamic standard setting body and more recently work is being undertaken to streamline the regulatory regime for Islamic banking and Takaful. These cumulative efforts are aimed at promoting a more conducive environment for enhancing Malaysia's position as a hub for Islamic finance. Law reform work on these matters has already begun and is expected to be completed by next year.

In this year in particular, we are seeing a strengthening of the international dimension of our financial sector. This essentially serves to strengthen our economic and financial inter-linkages with the global economy. Some notable developments in this direction include the liberalisation of the foreign exchange administration rules earlier this year to allow for greater flexibility and efficiency in foreign exchange transactions as well as to increase foreign participation in issuing ringgit papers in our bond market and thus contribute to contribute toward enhancing the depth of the market. Another major development this year was the move to a managed float exchange rate regime for the ringgit. This is essentially to better position the nation to respond and benefit from the structural changes occurring in the region and the global economy. Other further developments to strengthen our international integration include the increase in foreign participation in our domestic financial system. This includes the issuance of new licences for foreign Islamic banks to operate in Malaysia, the issuance of new stock-broking licences to foreign players as well as increases in the permitted foreign interest in our Islamic subsidiaries and investment banks. All this will serve to enhance the international integration of the domestic financial system. The launch of the ABF Malaysian Bond Index Fund is also aimed at promoting greater integration among the regional bond markets. On the domestic front, the year 2005 marks a significant milestone for the merchant banking industry.
Table 6 Sectoral short-termism estimates for the US and UK Full Sample 1985–2004 Industry  1985–1994  1995–2004  x  Significant? x  Significant? x  Significant? Consumer  0.939  Yes  1.007  No  0.94  Yes  Energy and Utilities  0.939  Yes  1.05  No  0.934  Yes  Financials  0.965  Yes  1.087  No  0.963  Yes  Health  0.940  Yes  0.857  No  0.940  Yes  IT  0.902  Yes  0.957  No  0.892  Yes  Industrials  0.926  Yes  1.018  No  0.925  Yes  Materials  0.875  Yes  0.871  Yes  0.874  Yes  Notes: The significance columns refer to a test of x<1 at the 5% confidence level. 5. Short-termism and public policy  These tests of short-termism point to two key conclusions. First, there is statistically significant evidence of short-termism in the pricing of companies’ equities. This is true across all industrial sectors. Moreover, there is evidence of short-termism having increased over the recent past. Myopia is mounting. Second, estimates of short-termism are economically as well as statistically significant. Empirical evidence points to excess discounting of between 5% and 10% per year.

The point estimate of x over the second sub-sample is 0.94.25  24  Because the estimation expected values up to five periods ahead, the estimates only run to 2004. 25  Various robustness checks were conducted. These included dropping gearing from the estimation of the risk premium and varying the effects of taxes. These did not alter significantly the empirical estimates. 10  BIS central bankers’ speeches  Table 5 Short-termism estimates for the US and UK Year  x  Standard error  Evidence of short-termism? Full sample (1985–2004)  0.937  (0.004)  Yes  1985–1994  1.001  (0.008)  No  1995–2004  0.938  (0.005)  Yes  Notes: The significance column refers to a test of x<1 at the 5% confidence level. Table 6 shows estimates of x over the same three samples on a sectoral basis. It echoes the message from Table 5. There is statistically significant evidence of short-termism in the second half of the sample for all seven industrial sectors. And in all of these sectors except health and materials, x is lower in the second half of the sample than the first – in those two sectors x is below unity throughout the sample. Although short-termism appears to be a consistent theme across industrial sectors, there are nonetheless some interesting patterns in the degree of short-termism across sectors. For example, the financial sector does not appear especially short-termist over the full sample. By contrast, the health and materials sectors exhibit short-termism throughout.
As Islamic finance progresses, it will encounter many new challenges. Many of these challenges will be unprecedented and will vary from one country to another. It is from this perspective that as a collective, we need to collaborate even more closely to resolve some of the problems and bring Islamic finance to become an inherent part of society. Whatever we do today, will determine the shape and direction of the industry. For many of you who will become future thought leaders in Islamic finance, take the many opportunities that will come before you, to sharpen and deepen your skills and knowledge. Collaborate, respect and embrace each other’s views on various matters, no matter how far apart you are in your opinions. Celebrate diversity of views. Avoid polemics that trivialise issues. Debate and discuss the more important matters that concerns the ummah. Think, dig deeper and be innovative in approaching problems and solutions. Look at substance rather than form. Let’s not be argumentative. Let’s not get trapped into matters of no significance. Let’s practice and live the norms and the values that led to the glory days of many civilisations. You are a privileged group. As members of a highly diverse and global group of scholars, you are well positioned to make a difference to the world through Islamic finance. Since its inception in 2006, 86 recipients from 20 countries have been awarded the Shariah Scholarship Award. Right now, we have 40 recipients from 12 countries.

Therein lie my earlier point that I alluded, that we need to create a culture of greater collaboration and respect between the world of academia, regulators and industry players. My hope is that applied research and the development Islamic finance becomes mutually-reinforcing, a “virtuous circle”, where extensive research translates itself into great solutions which can then be used to propel Islamic Finance to a new level of excellence. But it will require us to strengthen the linkages in transforming research insights into practice. You can do your part in promoting this close association through active engagements with the industry or by being a member of working groups to look into specific areas with the regulatory authorities. Conclusion I certainly hope you would find time to reflect on your past, and to think about what you could contribute for Islamic finance and the ummah in the future. You were once ISRA scholarshipholders, but even as you enter a different phase of your career, you continue to remain life-long scholars. Continue to pursue the love of knowledge, and use it to make the world a better place. Let me conclude this remarks by quoting a hadith; “He who introduced some good practice in Islam which was followed after him (by people), he would be assured of reward like one who followed it”. (Narrated by Sahih Muslim). 2/2  BIS central bankers' speeches
It is also important that we increase the transparency of shadow banking activities. In this respect, the entry into force of the European regulations EMIR2 and SFTR should be a considerable step forward. As I’ve been talking about macroprudential measures regarding large corporations, and our subject is financial stability, I’d like to bring you up to date on bank lending in France: lending to the private sector – to households and businesses – is growing rapidly in France, at a rate of close to 6% per year. At the next meeting of the High Council for Financial Stability (HCSF) in June, we shall look at whether we need to introduce additional measures. To sum up, we have not yet finished exploring the issue of non-bank finance and I am certain that today’s event will make a valuable contribution to the debate. I would like to pass the floor now to Aurélia End, who will host the round table, and wish you all an excellent morning. 3/3  BIS central bankers' speeches

The Governing Council of the ECB, which comprises the Governors of the 11 national central banks of the participating Member States plus the six members of the Executive Board of the ECB, has assumed this responsibility and is in charge of monetary policy decisions for the euro area. Decisions by the Governing Council will be implemented via the Eurosystem - that is, the ECB and the 11 participating national central banks (NCBs). Indeed, the introduction of the euro marks the culmination of much successful preparatory work over a period of many years. This has been reflected in the very positive and confident way in which financial markets have received the euro in the first three weeks of Monetary Union. Moreover, the enormous technical and logistical challenges posed during the changeover weekend at the start of the year have been surmounted. Monetary Union offers a unique opportunity to establish and maintain price stability within the euro area. It promises a credible and lasting environment of price stability for almost 300 million people. Price stability is at the core of the “stability culture” that we are seeking to establish throughout Europe. By fulfilling the unequivocal commitment of the Governing Council of the ECB to maintaining price stability in the euro area, we shall ensure that the single monetary policy contributes as much as possible to economic welfare in the broadest sense. At the same time, national fiscal authorities and general economic policies also have to demonstrate their commitment to the creation of this stability culture in Europe.
19 Source: https://www.investing.com/crypto/currencies 20 Application of FinCEN Regulations to Persons Administering, Exchanging, or  Using Virtual Currency 21 31 CFR § 1022.10. 22 Chairman Jay Clayton, Securities and Exchange Commission, Statement on  Cryptocurrencies and Initial Coin Offerings (Dec. 2017). Clayton is applying the “Howey” test, a product of the court case SEC v. W.J. Howey Co.,which sets out the criteria for determining whether an instrument qualifies as an “investment contract” (and thus a security) for the purposes of the Securities Act of 1933. 328 U.S. § 293 (1946). An investment contract is “a contract, transaction or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party.” Id. 23 Securities and Exchange Commission, Statement on Digital Asset Securities  Issuance and Trading (Nov. 2018). 24 Marine Bank v. Weaver, 452 U.S. 551, ___ (1982). 25 The Commodity Exchange Act defines commodity to include, among other things,  “all services, rights, and interests in which contracts for future delivery are presently or in the future dealt in.” 7 U.S.C. § 1a(9). At least to district courts have interpreted this to cover virtual currencies. E.g., CFTC v. My Big Coin Pay, 334 F.Supp.3d 492, 498 (D. Mass., Sept. 26, 2018) 26 CFTC Release Number 7678-18, CFTC Charges Randall Crater, Mark Gillespie,  and My Big Coin Pay, Inc. with Fraud and Misappropriation in Ongoing Virtual Currency Scam (Jan. 24, 2018).

At a minimum shouldn’t we aim for clarity on certain essential features, such as clarity on the rights of digital currency holders and the nature of assets that back a digital currency? Third, are there key activities that are cardinal to the functioning of digital currencies that require special attention from regulators? These may include actions to create, distribute, destroy, or and transfer digital currencies, and may also include key infrastructures, such as the technology that underpins a particular digital currency. To the extent that these critical activities are performed by actors that are not within a regulatory purview, should we fill this potential gap in oversight? Fourth, should we agree on a common approach across jurisdictions on least some aspects of a refined regulatory approach? Digital currencies can be designed to be used across borders. Key parties may be situated across the globe. If we are to reach ubiquity in regulation, or at least something approaching it, isn’t coordination the way to do so? The Financial Stability Board and the Basel Committee on Banking Supervision may address some of these questions, but it’s too soon to know what they will conclude. Last, should we consider other lenses through which to view these activities? Common sense dictates that we begin with an approach that considers protections for holders of digital currencies against unfair losses and the potential for certain digital currencies to present risk to financial stability. Are there other factors for us to consider? This is not easy stuff.
There will, of course, be circumstances when a cut in interest rates is compatible with the sustainability of the peg. When this is the case, the Central Bank will not hesitate to reduce interest rates, as it did recently. But those who argue in favour of pursuing growth through monetary expansion should remember that investment is not interest-rate sensitive. Investment decisions are based on a range of factors of which the cost of money is but one. Similarly, bank interest represents only a small fraction of production costs. Finally, some people would have us devalue the currency in an attempt to stimulate growth by improving export price competitiveness. This option carries with it the real prospect of higher import prices and, therefore, a significant cut in real wages and wealth. To the extent that this is not followed by compensatory measures, it would indeed help to increase exports and restrain consumption demand and hence, imports. But it would also imply a decline in living standards. The extent to which the benefits of improvements in cost competitiveness would be reaped in a situation where the export sector is already operating close to full capacity is also doubtful. Past experience, however, suggests that a devaluation would be followed by a nation-wide rise in wage levels as the partial wage indexation system came into play, and this would generate price inflation and erode competitiveness. In Malta, therefore, devaluation would impose immediate costs and leave no long-term benefits, besides weakening the credibility of the lira.

It is for these reasons that changes in the exchange rate level are only a last resort option for an economy like ours. It should be clear, therefore, that isolationist policies and expansionary fiscal, monetary and exchange rate measures cannot be relied upon to generate sustainable economic growth. There are indeed no easy fixes. The only viable option is to compete successfully in the global market-place. I believe that this objective should be approached by pursuing a virtuous triangle of mutually-reinforcing policies: i)  increasing the amount of resources available in the economy and the efficiency with which they are employed, by cutting costs and raising productivity;  ii)  focusing on the market niches in which we can excel;  iii)  ensuring the best international market access for our products and services. On the last of these points, there is at present a lively debate on the pros and cons of different arrangements with our main trading partner, the EU. While not wishing to enter the debate at this point, I cannot fail to observe that the uncertainty surrounding this issue is causing considerable harm to Malta’s economic prospects. It is in our common interest that the direction the country is to take be clarified as soon as possible. And this within a realisation that with Malta’s main competitors themselves seeking closer trade ties with the EU, we cannot afford to fall behind.
A subject that often comes up for discussion is the cost of living allowance or COLA. It has to be recognized that in Malta the allowance is determined on the basis of a basic or social wage, and COLA is a flat euro amount, granted regardless of the level of pay. This limits its impact on competitiveness. Nevertheless, the award of COLA is disconnected from productivity gains and hence may constrain firms’ ability to respond to changing market conditions. It also raises the risk of secondary cost increases after an initial price shock, which may come for example from an increase in imported prices. It may not be possible to neutralise such increases in imported prices and simply compensate for them in wages without significantly losing competitiveness of the enterprises concerned, especially if our competitors are absorbing these external shocks through an internal devaluation. It is relevant to note that the world economy is going through unusual times where some countries are undergoing internal devaluations. Malta cannot afford to be oblivious of the impact that these realities exert on its competitiveness. The list of euro area countries passing through significant corrections is impressive, namely: Ireland, Portugal, Spain, Italy, Slovenia, Cyprus and Greece. This apart from other non-euro area member states that are also going through difficult and corrective changes in their economies.

In doing so, it would steer clear of the pitfalls that other countries have fallen into and maintain its growth path. In this respect, I will focus on a number of important considerations. On the fiscal side, government spending can be increased on a sustainable basis if government revenue increases on the back of a growing economy. Furthermore, increased expenditure on pensions and health services must be financed in a sustainable way. As the population ages we have to pay sufficient attention to the dynamics that this implies, and of the options available, such that the chosen path would not impinge on economic growth. Government policies must, above all, enhance the efficiency of the productive system, promote investment and incentivise entrepreneurial initiative. Labour market The local higher level of labour force skills and qualifications, as well as its adaptability, have been instrumental in attracting investment in new areas of activity and have therefore reduced the vulnerability of the domestic economy to shocks in foreign demand. Chart 9 shows how Malta’s wages compare with those abroad. On the basis of the purchasing power standard which measures wages by taking into account the cost of living, the average Maltese wage ranks towards the middle of a broad range of selected countries that are shown in the chart. The issue arises as to how to increase living standards in a sustainable way, without losing competitiveness. One should be mindful of the relationship between all costs (including wages) and productivity.
Devising 21st century solutions would require re-doing and re-thinking of the nature of learning and development. One perspective is to amalgamate the disciplinary areas of research, teaching and industry collaboration or engagement. These areas once aligned that reinforces each discipline, creating a virtuous cycle that creates a structure that produces employable and productive employees of high quality. Research must be applied-based and relevant to the present and future needs of the industry. Teaching ought to give focus on critical and creative thinking because these skills would equip a person with the necessary ability to enable innovative solutions. BIS central bankers’ speeches  1  Teaching also ought to focus on the development of skill sets that create an aptitude that could push the boundary of knowledge and ideas. Industry collaboration and engagement are equally important. The concept of action learning, where industry and the world of academia could interface, gives the opportunity to students and teachers to solve real business issues in the work environment. Action learning leads to mutual benefits to all parties ~ For the industry, both in terms of costs efficiency and freshness of ideas and solutions, and for faculty and students, acquisition of knowledge that is contemporary and “future relevant”. Bank Negara Malaysia has over the years done its own “Design Thinking”. Over the last few years we had designed a human capital developmental map that creates an environment conducive for the supply for a healthy talent pipeline from the entry to the senior levels positioning.

This designation will be the Gold Standard in banking  2  BIS central bankers’ speeches  qualification and recognition. It will be jointly awarded with the Chartered Institute of Bankers. This award, I am confident, will be the catalyst that significantly elevates professionalism in the banking industry. I am most inspired by the theme of this year’s conference. It is pragmatic, realistic and aptly sums up the importance of talent management as we steer through the evolving financial landscape. Topics such as “Asia 2.0: Leading the Next Wave of Growth” and “Global Workforce Strategies CEOs Deploy to Achieve Leading Business Result” would be significant especially for HR practitioners managing multinational companies in Asia. Besides, topics such as “Are Our Graduates Employable?” will also be an interesting meeting point for HR practitioners and educators. I wish you an insightful and productive discussion. I trust that today’s conference is merely another step in the journey of intellectual quest that will continue long after this conference has ended. BIS central bankers’ speeches  3