samchain/econo-pairs-v1 huggingface dataset:
Accounting standard-setters were also explicit concerning the need to take into account the exogenous and, in principle, transitory nature of the crisis when applying the rules, which incorporate the flexibility needed to accommodate this situation. The rapid European reform of capital requirements (informally dubbed the “quick fix”) contributed to these same objectives. Finally, forceful fiscal policy action has helped alleviate the declines in household and corporate incomes. Some of these measures have, precisely, focused either on making it easier for banks to lend, in particular through the public guarantee programmes, or on easing payments arising from their indebtedness through moratoria. The banking sector has played a key role in the application of some of these support measures, smoothing the transmission of monetary policy decisions and the implementation of certain financial and fiscal initiatives, such as the moratoria and public guarantee programmes. As a result of all these measures, and despite the severe economic downturn, the CET1 ratio has increased by 71 basis points (bp) to 13.3%.3 One means of showing the impact of these measures on the sector’s resilience is to calculate their effect on banks’ capital ratios in the stress test exercises mentioned.

I am confident that these issues I shared with you provide a summarised vision of some of the main directions of our work during this period. BIS central bankers’ speeches  3  Looking forward to a productive exchange during the proceedings of the conference, I thank You for your attention! 4  BIS central bankers’ speeches
They have established branches, cooperations and merged with or acquired institutions in other Nordic countries. Some of them also focus on other countries in Northern Europe, such as the Baltic states, Poland and Germany. However, their business strategies vary somewhat. What is the reason behind this Nordic expansion? It is easy to point to integrated markets, through trade and direct investment. However, this cannot be the only explanation as there are also other neighbouring countries in Europe that are closely integrated. A common history, small cultural differences and similar languages - at least within the Scandinavian countries - are probably of particular importance to Nordic integration. There are also more industry-specific explanations. Strategic positioning - perhaps as a defensive measure against competition from non-Nordic institutions - is one explanation. It could also be that Nordic expansion is just a first step towards further international expansion, perhaps in selected market segments. I’m sure there are people in the audience who are better qualified to predict future developments than I am. I will instead focus on another important issue: production costs and the size of markets. Geographic expansion gives institutions an opportunity to sell existing products to new customers in new markets. As a result, the institutions can spread their costs over a larger customer base. However, one may question whether regional or national markets or even the Nordic market - at least in some product segments - are large enough to give the institutions’ production activity the necessary size.

Conclusion  Finally, I would like to make a few concluding remarks. Finland, Sweden and Norway all experienced a severe banking crisis in the early 1990s. That taught us how costly financial crises can be, and how important it is to prevent their recurrence. In the last 20 years three-quarters of IMF member countries have experienced a banking crisis. Not even a perfectly healthy macroeconomic policy and an effective supervisory system constitute a guarantee against crises if participants in the financial sector behave imprudently. The most important preventive measure is thus to promote prudent behaviour. The authorities will contribute to this end. However, I would like to emphasise that responsibility for sound practices primarily rests with market participants themselves. Banks are at the core of the financial system, and will probably remain so in the foreseeable future. However, they face increasing competition from several quarters. Unless banks adapt to this new environment, their profitability and financial strength might suffer and they may be tempted to engage in unhealthy risk taking. The authorities should look at the restructuring of the banking industry with an open mind. Structural changes may be necessary to reap the benefits of factors such as new technology and globalisation. 11  BIS Review 78/2000
Many economists, our Chicago Fed staff included, have been working long and hard on research related to this topic. In my remarks today, I will briefly talk about some of our results that touch on several of the most contested labor market issues on the table today. These involve labor force participation, job openings and wages. To give you the punch line, this research and work done by others in the field lead me to conclude that, although we have made great strides, a good deal of slack remains in the labor market. Labor force participation and employment As everyone in this room is aware, the labor force participation rate has fallen throughout the recession and recovery and is now at a 35-year low. 2 Much of that decline is due to trends that far predate the Great Recession. The movement of baby boomers into retirement age and the long-running declines in teenager and prime-age male participation would have significantly reduced labor force participation rates independently of the economic downturn. 1  See Yellen (2014). 2  The labor force participation rate is defined as the share of the population aged 16 and older who are either employed or unemployed. To be unemployed, a person has to not have a job but be actively looking for work in the prior four weeks and to be currently available to work. These data are collected by the U.S. Bureau of Labor Statistics as part of its monthly Current Population Survey.

(external),” Brookings Papers on Economic Activity, Spring. Lockhart, Dennis, 2014, “Thoughts on liftoff,” speech, Global Interdependence Center, Sixth Annual Rocky Mountain Economic Summit, Jackson Hole, WY, July 11. Mueller, Andreas I., Jesse Rothstein and Till M. von Wachter, 2013, “Unemployment insurance and disability insurance in the Great Recession,” National Bureau of Economic Research, working paper, No. 19672, November. National Association for Survey(external), August. Business  Economics,  2014a,  NABE  Economic  Policy  National Association for Business Economics, 2014b, NABE Business Conditions Survey(external), July. Shierholz, Heidi, Lawrence Mishel, and John Schmitt, 2013, “Don’t blame the robots: Assessing the job polarization explanation of growing wage inequality,” Economic Policy Institute, working paper, November 19. Yellen, Janet, 2014, Federal Open Market Committee press conference, transcript(externalpdf), Washington, DC, September 17. 10  BIS central bankers’ speeches
The purpose of bank supervision is to ensure that supervised firms are resilient to all of these risks.1 Banks are becoming increasingly attuned to the heightened financial risks from a changing climate. These risks can manifest in a number of ways: the impairment of collateral due to severe weather events; mark-to-market losses from the devaluation of companies with stranded assets; stress to contractual cash flows as regional shocks are realized; or the reduced provision of financial services as business strategies adapt. All of these are salient concerns for financial firms and their supervisors. Financial firms are now incorporating these risks into existing risks management frameworks. Many firms view climate change as a cross-cutting risk driver that spans familiar risk categories, broadly affecting risk management approaches. Moreover, some firms are considering governance issues, the use of scenarios analysis, disclosure options, and thinking about the strategic implications of a transition to a more sustainable economy. Understanding the impact of climate change, however, comes with significant challenges including the long time horizon, data gaps, the need for new model development, inherent complexity and fundamental uncertainty. All of this suggests that there is much work ahead of us. Taskforce on Climate-Related Financial Risks Just as banks are building awareness of climate-related risks, the supervisory community is similarly developing capacity in this area. I will now turn my attention to the specific work of the 2 The Committee Basel Committee’s Task Force on Climate-Related Financial Risks (TFCR).

Noyer: There was probably during the period of time that preceded the crisis an excessive belief that the combination of the growing importance of emerging economies, which brought a disinflationary force in the manufacturing sector, and the credibility attained by central banks globally had created a world where inflation could be kept at bay quite easily. There was insufficient focus on some of the effects of low interest rates for a long period, like the fact that it facilitated asset bubbles and asset bubbles may lead to burst bubbles and economic and financial crisis or the transmission into pressure on inflation. We’ll probably be more attentive in the future. WSJ: The ECB has upped its vigilance on inflation in the euro zone, but if interest rates were to b e raised earlier than expected, it could be a problem for countries in the periphery that depend on the ECB’s support through its bond-buying program. Would it be possible for the ECB to raise rates to address rising inflation in core countries while keeping nonstandard measures in place to prop up peripheral states? Noyer: Generally speaking, it is technically feasible. I am not signaling that we are going to raise interest rates. As a matter of fact we have done a lot to start unwinding nonstandard measures. Excess liquidity in the euro-system has decreased dramatically and the situation has normalized. Now the market is working much better.
Our plans for a deposit insurance scheme which will provide a safety net for small depositors in the event of a bank failure - are progressing well. Consultations on the technical details are continuing, and we expect to be able to introduce the necessary legislation in late 2002. The aim of all these measures - and the first duty of any banking regulator - is to maintain and improve the stability and strength of the system as a whole. During these times of difficulty, there is a further impetus to seek, where possible, to alleviate some of the burdens carried by the community, if only for the purpose of safeguarding the asset quality of the banks. A balance needs to be drawn between efficiency, profitability and prudent risk management - which are the essential ingredients of banking stability - and concessions to the individual customer, however desirable these may seem. But banks in Hong Kong have shown that, by balancing the two in an imaginative and sensitive manner, these aims are not incompatible. Banks have, for example, generally been careful so far to ensure, in their setting of fees and charges, that vulnerable groups are not excluded from basic banking services. They have - far more perhaps than has been acknowledged - been both forbearing and constructive in their treatment of mortgage-holders facing difficulties; in particular, they have responded positively to our recent measures to enable them to be more flexible in offering relief to homeowners in negative equity.

The spread of the Delta variant has so far not required lockdown measures to be reimposed. But it could slow the recovery in global trade and the full reopening of the economy. Consumer spending is increasing, although consumers remain somewhat cautious in the light of the pandemic developments. The labour market is also improving rapidly, which holds out the prospect of higher incomes and greater spending. Unemployment is declining and the number of people in job retention schemes has fallen by about 28 million from the peak last year. The 1/3  BIS central bankers' speeches  recovery in domestic and global demand is further boosting optimism among firms, which is supporting business investment. At the same time, there remains some way to go before the damage to the economy caused by the pandemic is overcome. There are still more than two million fewer people employed than before the pandemic, especially among the younger and lower skilled. The number of workers in job retention schemes also remains substantial. To support the recovery, ambitious, targeted and coordinated fiscal policy should continue to complement monetary policy. In particular, the Next Generation EU programme will help ensure a stronger and uniform recovery across euro area countries. It will also accelerate the green and digital transitions, support structural reforms and lift long-term growth. We expect the economy to rebound firmly over the medium term. Our new staff projections foresee annual real GDP growth at 5.0 per cent in 2021, 4.6 per cent in 2022 and 2.1 per cent in 2023.
It is the Riksbank's task to stabilise inflation around 2 per cent and we have assessed that it is better to act with monetary policy than to wait and see and risk being surprised by continued high inflation that requires even greater tightening later on. 5/10  BIS - Central bankers' speeches  Inflation thus needs to fall clearly this year, and it is important that underlying inflation also falls. We assessed in February that the interest rate needed to be raised and that we will probably need to raise it in April as well. As usual, it is the outlook for the economy and inflation that is decisive for monetary policy, and we are well aware that it takes time for the Riksbank's policy rate increases to have a full impact on the economy. As it is difficult to know how quickly the impact will be and how great the effects of the increases will be on the real economy and inflation, it is still important to follow new outcomes and new indicators to obtain a picture of inflation prospects. Inflation has already started to decline in some countries, but as we noted in February, we see few signs that underlying inflation has started to decline in Sweden. Nor has this picture been changed by the new information on inflation that has come in since our decision. On the contrary. In February, inflation excluding energy prices rose and the outcome was significantly above our latest assessment.

The proposed transfer fell through – apparently the Directors of the Bank viewed the Canadian as ‘too Keynesian’. What that tells us about his views on monetary activism I do not know. But it is perhaps worth noting that Towers’ first Deputy Governor was a Mr. Osborne, who agreed to move to Canada from the Bank of England for a spell of ‘up to 5 years’. Sadly, the partnership between the Canadian Governor and Mr. Osborne lasted only three years, before the latter departed. But, Chancellor, remember that history doesn’t always repeat itself. In Britain, and especially in the City, we have always welcomed talent from around the world in academic, business, artistic and sporting life. Why should central banking be different? George, you are to be congratulated on Mark’s appointment. I shall of course be sad to leave. But Governors come and Governors go – it is institutions, and the ideas they embody, that matter more. I leave behind a strong, independent, muchchanged Bank now focused on its two main responsibilities. The lessons of recent years have been learnt and it is up to us all to remember them. The test of our monetary arrangements is to see them work successfully under new leadership, none of whom were present at the creation. No doubt some things will change. No doubt some things need to change. After all one does not change an institution in order to set it in concrete. A successful institution, just like the City as a whole, always adapts to new circumstances.
This significant strengthening of the trade relations with the EU member states is mostly a result of the intensified trade with Germany, and moreover, such development is fully conditioned by the increase in the exports of RM to Germany. Thus the share of the export of goods to Germany in the total export of goods of RM in 2008 equaled 14%, while in 2013 it climbed to high 36%, or in absolute amounts, from Euro 383 million, for only five years, it reached Euro 1,154 million. It is a significant increase, a triple increase. It means that, despite the crisis in the Euro area and its negative implications, the strong economy based on sound and solid economic fundaments – such as the German, proved to be our certain partner for placement of more than a third of the exports. Besides the traditional export products, i.e. the export of the domestic textile and metal manufacturing industry, in the last two years, Germany is important destination for export of the new capacities in the technological industrial development zones (TIDZs), i.e. for the export of machinery and equipment and equipment of automotive industry. Second, Germany is our significant investor, which in 2013 advanced on the list of the ten most important foreign direct investors (9th).

Banks from small countries with independent currencies are more exposed to this risk than, for instance, banks within the euro are. Second, country size and bank size relative to countries matter for the viability of bailout options. To take an example, the balance sheets of Iceland’s three cross-border banks were 10 times Iceland’s GDP, and 2/3 denominated in foreign currencies. Nationalising them or guaranteeing their debt would have turned a failure of private banks into sovereign default and national bankruptcy. Third, the design of the deposit insurance system inside the EU violates the insurance principle of pooling, which calls for EU-wide insurance. In many applications, it also ignores the difference between insuring deposits in domestic currency and in foreign currencies. The issue here is that there is a link between the ability to stop runs through LOLR operations and the ability to insure deposits. The bottom line is that we cannot have a level playing field in banking inside the EU/EEA, except perhaps in risk-adjusted terms, as long as the EU passport is not matched by EU supervision and an EU-wide safety net, which is the logical solution. But is it politically and practically feasible? I have my doubts. Potentially, a more practical solution would be to change the European passport system by having two types of bank licences.
With considerable capacity to meet large investment requirements, opportunities therein lie in the more effective and efficient channelling of the  2  BIS central bankers’ speeches  sizeable surplus funds towards the vast productive investment opportunities within and across the emerging economies. These trends are being reinforced by the rapid expansion of financial institutions in emerging economies that have ventured beyond national borders. Financial institutions from the emerging economies have grown significantly in size and strength in this recent decade to now account for almost half of worldwide financial industry market value. Eight out of the twenty largest global banks, including the top two, are emerging market financial institutions. As the emerging market financial institutions continue to regionalise and internationalise, their role and importance can be expected to further expand. Another key development is the integration of financial markets amongst emerging economies, driven in part by the increased economic inter-linkages and the increased liberalisation trend in the financial sector. The rapid internationalisation of Islamic finance is reinforcing this trend and has enhanced the economic and financial connectivity between the emerging economies. The high level of savings and wealth accumulation in several of the emerging economies, including in Asia and the Middle East, need to be effectively channelled towards productive investments including for large infrastructure development. In this environment, Islamic finance has emerged as a viable and attractive form of intermediation including financing of large scale infrastructure projects.

Going forward, it is important that the international standard setting process allows and continues to promote the more effective integration and exchange of perspectives between Islamic and conventional finance to ensure a coherent global framework that is consistent across similar risks, promotes a better understanding of risk interactions between conventional and Islamic finance activities, and accelerates progress towards best practices based on the sharing of research, experiences and frameworks. Conclusion Let me conclude with a statement from this year’s Per Jacobsson Lecture given by Sir Andrew Crockett on what should guide us in our “efforts to devise a new and stronger financial system”. “It should be global, it should be robust, it should be an effective servant of the real market economy”. This is what the new Islamic financial landscape has evolved to achieve. With its inherent close links to the economy and its trend towards internationalization and the robust institutional arrangements and regulatory standards being introduced and implemented, it will indeed enhance the potentials for Islamic finance to not only serve the economy but to achieve sustainability in this more challenging environment. 4  BIS central bankers’ speeches
But, at the same time, in the interest of the entire system, there may be occasions that we have to do that. So, please understand the rationale for our regulation. We are responsible for financial system stability and you, in an indirect way, are also responsible for that. 4  BIS Review 55/2008

In 2018, Banque de France organized more than 800 training and information sessions, attended by over 16,000 social workers. 2/ How digitalization changes the way we approach financial inclusion 2/5  BIS central bankers' speeches  The examples I have been mentioning from Banque de France experience give an illustration of what can a public authority like a central bank does to promote financial inclusion. But it is essential to also consider how this can be done. And here, Fintechs and digitalization of the financial sector are creating new ways to bring about more inclusion. Many examples of this “Financial inclusion 2.0” will be presented this afternoon and how specific technologies such as blockchain can play a role. There are many areas where Fintechs can help bring more financial inclusion, but let me name a few: Improving access to financial services, for instance via mobile devices; Gathering more and better data, which allows for more tailored and better priced products; Driving down operation costs, and making relationships with fragile clients more profitable. This also means major change for public authorities. Fintechs means dealing with new firms, new technologies, new ideas. To be reactive and engaged, many authorities have set up Fintech units, which is the case for ACPR in France. We work in close cooperation with our counterparts worldwide, and in particular with MAS, which is spearheading these developments. As public authorities, we also encounter new risks and challenges related to financial inclusion in a digitalized world.