samchain/econo-pairs-v1 huggingface dataset:
Eddie Yue: Evolution of financial consumer protection and education in Asia Speech by Mr Eddie Yue, Deputy Chief Executive of the Hong Kong Monetary Authority, at the HKMA-SFC-OECD Asian Seminar, Hong Kong, 13 December 2012. *  *  *  André (Laboul),1 Ashley (Alder),2 distinguished guests, ladies and gentlemen, Good morning. It’s my pleasure to be among such distinguished company, and for such an important topic. On behalf of the Hong Kong Monetary Authority (HKMA), thank you all for joining us and I look forward to the discussion here today. In discussing consumer education and protection, the focus must of course be on benefiting the consumer. That said, there is more than an element of enlightened self-interest for the rest of us. For the pathway to profit does not divert around the consumer interest. It runs right through it. Indeed, the best companies – those with long-term sustainable models of growth – operate on the basis of a natural synergy between what is good for customers and good for business. This is an old lesson – but it’s one we are relearning in the aftermath of the global financial crisis. One of the gripping aftershocks from the crisis has been the mis-selling complaints against some financial institutions. Such cases are, of course, deeply damaging to those individual institutions. Yet they also impact on us all. When the dust settles after each successive scandal, the lasting impression threatens the reputation not just of individual firms, but of whole sectors.

The reforms since 2011 to the public pension system (the progressive raising of the retirement age; the definition of a sustainability factor linking the initial pension to changes in life expectancy; the introduction of a new pension indexation system; and the segregation from the system of specific non- contributory pensions that should be financed through general taxes and not through social security contributions) have been in the right direction as far as the sustainability of the system is concerned. Apart from these reforms, there are insurance and saving mechanisms that can help supplement the unfunded pension system. But, as I said earlier, a key factor for the public pension system is the buoyancy of employment. It is in this nexus between employment, pensions and public finances where, I believe, the “hard core” of the difficulties facing our economy in the years ahead is concentrated. 3. The reduction in private debt and in the net external debit position  The third challenge facing the Spanish economy is high private debt and the heavy dependency on external financing. The Spanish economy’s net external debit position stood at around 93% of GDP at end2015, far above the level in other euro area or developed countries in a debit position, not to mention core Monetary Union economies such as Germany, Belgium and the Netherlands, which run an external credit position.
The financial crisis has emphasised the close links between the health and behaviour of banks and the state of the economy. We are remembering a very uncomfortable lesson from history that should not have been forgotten. But, forgotten it was. We have a very big programme of reforms under way, with the central objective that we must not let a financial crisis of this scale happen again. At the heart of this programme we are trying to knit together monetary policy and financial stability in both its macro- and micro-prudential forms, something that has not been done properly for a long time. I say that quite deliberately, because such coherence was not present prior to the reforms of 1997, so this is more than a change to recent arrangements. The new macro-prudential approach to financial stability will see the establishment of the Financial Policy Committee (FPC), charged with the primary objective of identifying, monitoring and taking action to remove or reduce systemic risks with a view to protecting and enhancing the resilience of the UK financial system. In June, the Chancellor announced that the government would amend the Bill to give the FPC a secondary objective so that, subject to being content on the first objective, it should support the economic policy of the government, including its objectives for growth and employment. Currently, the FPC is acting in an interim capacity to undertake as far as possible the future statutory FPC’s macroprudential role.

In 2008, the Bank of Zambia issued banking licences to 5 new banks to operate in Zambia. As at 31 May 2011, Institutions under Bank of Zambia supervision as at 31 May 2011 were:   18 commercial banks,    10 leasing finance companies,    3 building societies,    51 bureaux de change,    1 savings and credit bank,    1 development finance institution,    26 microfinance institutions (MFIs) and    1 credit reference bureau (CRB). The sector has also recorded tremendous growth in business with growth witnessed in various innovative activities carried out by the banks in order to meet the needs of increasing number of customers. Some of the innovations include:   An increase in automated teller machines (ATMs) including deposit taking ATMs;    E-banking;    Telephone banking services;  BIS central bankers’ speeches  3    In-store banking services – banks can provide some banking services within the premises of stores;    Mobile top-up services – banks can sell airtime on behalf of mobile phone providers through ATMs;    Truck-banking services – the model entails engagement of agents for provision of cash-in/cash-out transactions for clients where banks have no footprint;    Bancassurance – banks can sell insurance products on behalf of insurance companies; and    Introduction of Visa debit and credit cards.
It is about innovation, inclusion, and inspiration. Everything we do in FinTech must always have a larger purpose – to improve the lives of individuals, to build a more dynamic economy, to promote a more inclusive society. This is the FinTech spirit. And over the next five days of this Festival, may you find that spirit and may you be inspired to break new ground, and seek a better, newer world. Thank you all for your support. Have a great FinTech Festival! 9/9  BIS central bankers' speeches

It is against this background that financial sector supervision should also be directed at financial institutions that pose the greatest risks, such as, non-bank financial institutions. In this regard, the adoption of the risk-based approach allows the supervisor to devote more supervisory effort to those areas that have a high-risk profile. This therefore, entails that supervisory authorities should shift their focus from the traditional Capital, Assets, Management, Earnings, Liquidity, and interest rate Sensitivity (CAMELS) approach to a more risk-based approach. A risk-based supervisory approach would involve the identification of key risks, the level of these risks and the key risk areas. After identifying these risk factors, a comprehensive supervisory framework with appropriate resources is then assembled to mitigate the risks. The amount of resources required is dependent on the level and intensity of the perceived risk. However, suffice to mention that this does not mean that the risk-based supervisory approach ignores the strengths of the CAMELS approach, but rather addresses the weaknesses by putting more emphasis and resources on areas with potentially higher risk. Ladies and Gentlemen As many of us are aware, financial sector operations have become complex nowadays, as they entail, among others, managing financial, market and operational risks, which depend, to a large extent, on public confidence in the financial system. In this regard, proper supervision is critical to minimising risks as well as ensuring the stability of the financial sector and engendering public confidence.
Along with purely statistical procedures, the estimation of the long-term equilibrium level of the non-financial private sector’s long-term financing that the calculation of these indicators requires can be done using models that include the determinants of the demand for credit [Galán y Mencía (2021)]. In any event, the decision to activate the CCyB, which is reviewed quarterly, should not follow an automatic rule based on the trend of this indicator; rather, the regulations in force emphasise the need to take other complementary indicators into account. The Banco de España also tracks potential imbalances in house prices, and in the current account balance, among others. This latter variable reflects how in small, open economies, when the financial cycle is in expansion, a portion of this financing is usually obtained abroad, consequently materialising in a current account deficit. It is moreover crucial to analyse the sectoral disaggregation of credit indicators to identify risks that may be originating in specific sectors. Lastly, we pay particular attention to the output gap, which I will discuss in greater detail later. 13  As to the cross-sectional dimension of systemic risk, the key indicators seek, inter alia, to measure the relative size of a bank, its centrality in the national banking network, its interconnectedness to the rest of the financial system and to other countries’ financial systems, and the complexity of the activities it pursues.

Challenges facing the Spanish economy First, regarding fiscal policy, let me stress that maintaining high public debt over a prolonged period may have negative effects on economic growth: it raises financing costs for the economy; it makes it necessary to run substantial primary surpluses that demand higher tax levels or lower levels of productive spending; it lessens the room for countercyclical fiscal policy measures to address potential adverse shocks; and it is a source of vulnerability in the face of changes in market investor sentiment. Accordingly, resuming fiscal consolidation is a priority, so as to enable the progressive reduction of the public debt/GDP ratio and of the structural deficit, in line with the demands of European and national fiscal rules. The fiscal consolidation process should, moreover, be compatible with an improvement in the quality of public finances. The adjustment needed should be anchored in a mediumterm programme in which the measures allowing the attainment of budgetary objectives should be spelt out, along with a prudent macroeconomic and public revenue forecast. Furthermore, the composition of the adjustment takes on particular importance, as it should be conducive to a greater contribution of public finances to the economy’s potential growth. Population ageing is also a challenge of the highest order for the sustainability of public finances. Specifically, the latest estimates of its impact on public spending on pensions, health and long-term care reveal a significant increase in expenditure on these areas over the next three decades.
An insurance company like GE Life, which is located in the heart of a dynamic growth region, is well-positioned to capture the growing opportunities. Achieving sustainable long-term growth, however, is highly complex. Among the many segments in financial services, the life insurance industry has probably the longest time horizon. The industry takes on assets and liabilities that literally last a lifetime. Good actuarial data and analysis provide an important basis for risk pricing and management. But future trends and developments such as increasing longevity or medical breakthroughs are harder to predict. Hence, a sound framework on asset-liability management and a continual focus on risk management are critical. At the same time, markets are changing and innovating rapidly. Competition comes from many sources, while the needs of customers will continue to evolve. To keep up with the competition, intermediaries have to continue to invest in research and development, and provide value-adding products and services in risk management, underwriting, actuarial analysis, investment and financial advice. This is especially important in the context of Singapore’s maturing population who will need good retirement planning services in order to remain financially independent through their golden years. Another key implication of the long time horizon is the special relationship with the policyholder. In general, both the insurance company and the policyholders are entering into a long-term financial commitment. In any long-term relationship, the quality of trust is of utmost importance. This relationship of trust can only be sustained by good advisory and sales practices.

At the company level, the FICS accreditation status recognizes GE Life’s commitment to benchmark the competencies of its workforce to international best practices. At the staff level, the FICS certification status helps promote individual attainment of the standards of professional competency and fair dealing in the insurance marketplace. We hope that GE Life will continue to keep up the momentum to participate in industry-wide efforts to raise the  2  BIS Review 97/2008  professionalism in the industry. We hope that we will catalyse a whole-of-industry involvement in this FICS effort. Conclusion I am therefore delighted this afternoon to present the FICS Accredited Assessment Service Provider award to GE Life. It is both a celebration of your achievements over the last 100 years, and an affirmation of your commitment to continued excellence, building on the core values that have served you so well. May I also congratulate the 12 pioneer candidates who are awarded FICS Certification today. The industry looks to you to uphold the high standards of personal integrity, competency and professional conduct expected of all agents. On this note, I congratulate Mrs Fang Ai Lian and the staff of GE Life on this happy day, and wish you greater success for the next 100 years to come. BIS Review 97/2008  3
Stefan Ingves: Housing and monetary policy – a view from an inflation targeting central bank Speech by Mr Stefan Ingves, Governor of the Sveriges Riksbank, at the Federal Reserve Bank of Kansas City's Economic Symposium, Jackson Hole, Wyoming, 1 September 2007. *  *  *  I am honoured to have been asked to participate in this final panel debate in such distinguished company. What I intend to bring to this panel is an account of how Sveriges Riksbank, an inflation targeting central bank, takes into consideration developments in asset prices, house prices in particular, and our experience thus far of doing so. Hopefully this account will be of interest, since it illustrates some of the challenges – analytical and pedagogical – that policy makers face when deciding on the appropriate way of bringing asset price developments into monetary policy decisions making. In going through events in the past few years I will also touch on the criticism that the Riksbank has received from various directions – members of the public in Sweden, financial market participants, and from some members of academia. As a matter of fact, some of the criticism levelled at the Executive Board has come from within the Bank, i.e. from members of the staff. As I will elaborate below, this reflects that there are no simple answers to the question of what the proper role is for house prices in an inflation targeting framework.

Let me say at the outset what I and other members of the Executive Board have said on many occasions – Sveriges Riksbank does not have a target either for the level of house prices or for house price inflation, or for any other asset price for that matter. However, when we observe long periods of high growth rates in asset prices and debt, growth rates that appear to be unsustainable in the long run, our view is that it is not reasonable to completely ignore that there may be risks associated with this, even though it is difficult to give consideration to these risks in any simple manner in our regular forecasting process. What this view has meant in practice is fairly marginal changes in the timing of our interest rate changes and substantial public oral and written focus on the issue. Having said that, and for the benefit of those not familiar with the monetary policy framework in Sweden, let me provide a short background. Sveriges Riksbank is an inflation targeting central bank, having adopted an explicit target for inflation in 1993, effective from 1995. Our goal is to keep inflation at 2 per cent in terms of changes in the CPI. The regime has now been in place for well over ten years, and there is broad agreement that the regime has been a successful one; CPI-inflation has been low and stable over the period, averaging around 1.3 per cent, while the real economy has experienced annual growth of around 3 percent.
Given its proven success at maintaining market rates in line with Bank Rate, as well as the benefits of operational continuity, the Bank is minded to keep using a variant of the current floor system for controlling market rates. And, as the quantity of reserves supplied falls towards the quantity demanded by market participants, we will stand ready to meet SMF participants’ demand for additional reserves through regular open market operations. In addition, there is a strong case for holding some longer maturity assets, such as gilts, to back the stable portion of demand for banknotes, and indeed we had already started to do this ahead of the financial crisis. 29  How large a quantity of reserves SMF participants will demand, and therefore how large our future balance sheet will be, is an open and difficult question. As well as changing our own monetary policy toolkit, the financial crisis has changed the behaviour of financial institutions, including in ways that are significant for the size of our balance sheet. In particular their demand for reserves and for liquid assets more generally, is much greater than it was before the crisis. That reflects a combination of tighter regulation which requires them to hold larger buffers of liquid assets, and more prudent management which means that banks have learnt the lessons of the crisis and the value of maintaining liquidity, as well as the fourfold increase in the number of SMF participants. This change was not caused by QE and the expansion of our balance sheet.

Finding the right balance Speech given by Dave Ramsden, Deputy Governor for Markets and Banking  Society of Professional Economists Annual Conference, London 28 September 2018  With thanks to Amy Lee and Tom Smith for their assistance in preparing these remarks and to staff across Markets and BPFR and elsewhere in the Bank for their many contributions, as well as to my colleagues on the MPC and among the Governors for their helpful comments and suggestions. 1  All speeches are available online at www.bankofengland.co.uk/speeches  Introduction It’s an honour to be invited to talk here for the Society for Professional Economists (SPE) today, and I’m very grateful to Bloomberg for the opportunity to speak again in their fantastic HQ. Although I’ve spoken many times at the Society’s events over the years either in my previous role at the Treasury or in in my ongoing role as President of the SPE this is the first time I’ve spoken at the Society in its new guise as the Society for Professional Economists and in my role as the Bank of England’s Deputy Governor for Markets and Banking. This week is national inclusion week in the UK. And in that spirit I do think the SPE’s new moniker, which Kevin Daly has championed, is more inclusive and speaks to a wider group of economists. That is borne out by the excellent turn-out today. At the same time we need to improve diversity in today’s economics 1  profession, in central banking and in finance more generally.
The Association has built a strong foundation for its important role in bringing the industry to new heights with the full support of the industry players to realise the shared vision under the industry’s five-year Strategic Blueprint. We have made tremendous strides in setting a clear path for the future. I am confident that the best for this industry is yet to come. Well done to the Association on a great first year. 4  BIS central bankers’ speeches

Just as in Finland, the Swedish price stability target was initially a self-imposed commitment on the part of the central bank, but afterwards it received expressed support from the Swedish parliament and government. I shall now briefly describe developments in Sweden following the introduction of the inflation target. The Riksbank's target of an inflation rate of 2 per cent +/- 1 percentage point would apply, according to a decision by the General Council in January 1993, with effect from 1995. During the interim period from allowing the krona to float free until 1995, inflation and expectations would be brought down from the high levels that had prevailed during the 1980s. Confidence would be regained. The Riksbank decided to publish regular Inflation Reports in order to attain greater understanding for the drawing up of our policy and the bases on which our decisions are made. The importance of transparency was reinforced in conjunction with the Riksbank being made more independent and its objectives being laid down in a special act, as of 1999. Transparency makes it easier for our employers, the Swedish parliament, to evaluate us. The Riksbank now publishes four Inflation Reports a year, where we describe clearly and in detail actual inflation trends, report the bank's assessment of the future path of inflation and draw conclusions for the direction of monetary policy. In Sweden we have also chosen to publish minutes of monetary policy discussions at our meetings and to report how the Executive Board members vote on this issue.