samchain/econo-pairs-v1 huggingface dataset:
A number of reports2 also found weaknesses in the implementation of effective risk management. In many cases, risk was not managed on an enterprise-wide basis and Boards were not fully apprised of the level of risk facing the company. Overseas regulators are now reviewing the role of Boards in providing guidance on the alignment of corporate strategy with risk-appetite, as well as on appropriate internal structures in risk management. Not surprisingly, remuneration practices have attracted the most public attention. The alignment of executive and Board remuneration with the longer term interests of the company and its shareholders is a widely accepted corporate governance principle. Nonetheless, compensation practices that rewarded staff handsomely for short-term gains, without any corresponding penalties for longer-term losses, have been blamed for encouraging excessive risk taking in some institutions. A number of jurisdictions, such as Australia and the US, are considering legislation that will address this by empowering shareholders to have a more direct role in setting remuneration. Creation of the Corporate Governance Council Financial institutions in Singapore have generally been prudent in their business, and have weathered the crisis well. Listed companies in Singapore that have maintained high standards of governance have similarly withstood the crisis. Nevertheless, we must not be  1  Kirkpatrick, Grant (February 2009), "The Corporate Governance Lessons from the Financial Crisis", OECD.

As the core issue is the holistic management of risks across the institution, MAS will, in our implementation of these Principles, incorporate these into the Corporate Governance Framework. That way, the various governance elements pertaining to risk management can function in a balanced and coherent manner. Role of advocacy bodies So far I have spoken mainly on the role of regulators in setting out good corporate governance Codes and practices. However, the quality of corporate governance depends critically on people and values. Industry groups such as SIAS have an important role in formulating and implementing higher standards of corporate governance practices. I would like to take this opportunity to applaud SIAS for being a tireless advocate of investor rights. Mr. David Gerald, in particular, has contributed significantly in this area. SIAS has played its part in empowering securities investors through education and information, most recently with regard to structured products. It has also played a role as a "corporate integrity watchdog" by actively engaging corporations that have fallen short of good corporate governance practices. The effort to promote good corporate governance practices and to cultivate ethical corporate culture and behaviour is also supported by advocates in the media, academia and professional associations. Our local media have highlighted good and bad practices. Several journalists have written thoughtful pieces. It is useful to have discerning commentary that points to deficiencies in specific firms without over-generalising.
When we think of “innovation and disruption”, it usually brings up images of companies acting to ward off imminent threats from challengers to their business. “Innovation and sustainability” on the other hand, focuses on opportunities to do things better, increase long term value and strengthen a company’s agility to adapt and respond to changing conditions. Put another way, “disruption” often keeps an eye on your competitor, while “sustainability” focuses attention on the customer and understanding one’s own inherent strengths and weaknesses to build stronger, more responsive and more resilient companies. It would be a mistake to associate innovation solely with technology, or assume that it can only be achieved with huge investments in research and development. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. Steve Jobs underlined the point that innovation is not about the money, but the people you have, how you’re led and how much 2/4  BIS central bankers' speeches  you get it. Einstein famously said that “we cannot solve problems with the same thinking we used when we created them”. He reminds us that innovation is fundamentally concerned with solving problems, having an open mind to ideas and the ability to convert those ideas into an organized and disciplined process to create a positive and lasting impact. Viewed in this perspective, the frontiers of innovation are almost boundless; limited only by our ability to define problems and our imagination.

On the way to price stability, the inflation target is determined jointly with the government. As you know, these targets have been determined and announced as follows: 5 percent for 2006, 4 percent for 2007, 4 percent for 2008 Our primary objective is to attain these targets. The Central Bank will support the growth and employment policies of the Government, unless it conflicts with this objective. Likewise, with the Law No: 1211, the Central Bank has been entrusted with the power of establishing the “exchange rate regime” jointly with the government. The floating exchange rate regime, which was introduced within this framework, will continue to be implemented, preserving its basic implementation framework. Turkey has grasped a golden opportunity to get rid of the damage created by inflation with which it has had to live more than 30 years. The period of “Declining inflation” is about to end. Our next objective will be to achieve and preserve the price stability. This will be the most significant contribution of the Central Bank in mobilizing the growth potential of our country. Thank you. BIS Review 33/2006  1
Public and private balance sheets continue to be repaired. World demand remains weak and the appreciation of sterling will hold back the expansion of net exports. And there remain strains in the financial system despite good progress on post-crisis repair. These persistent headwinds mean that, even in the medium term, the level of interest rates necessary to sustain low unemployment and price stability will be somewhat lower than before the crisis. In the jargon, the equilibrium real interest rate, which has been negative for much of the period since the crisis, will eventually turn positive again, but it is likely to remain well below historical norms. Escape velocity won’t come cheap. The Bank of England is helping to build the foundations for Britain’s future success: the conditions for recovery while maintaining price stability; a financial system that is safe and does not impose losses on the taxpayer. On those foundations, Britain’s businesses can build again, through investment and innovation, the country’s future prosperity. 6  BIS central bankers’ speeches

Eddie Yue: Financial markets in Asia - turning challenges into opportunities Speech by Mr Eddie Yue, Deputy Chief Executive of the Hong Kong Monetary Authority, at the International Swaps and Derivatives Association (ISDA) 34th Annual General Meeting, Hong Kong, 10 April 2019. * * * Thank you for inviting me to speak at the ISDA Annual General Meeting. For those of you coming from overseas, let me welcome you to Hong Kong and the very dynamic Asian region. By now, I hope you have experienced and enjoyed the vibrancy of the city. Indeed, this same vibrancy runs through Asia, which has got strong economic momentum with a promising outlook. But as central bankers, our job is to be on the lookout for future challenges and how to overcome them. So today I’d like to start by outlining two near-term risks on my radar screen, and then discuss two longer-term challenges for Asia. I would then offer some thoughts on how financial sector developments, including a lot of the efforts that ISDA has been involved in, can help overcome these challenges. Challenges for the Asian Economies Asia has seen remarkable economic growth over the past several decades – its GDP, on a purchasing power-adjusted basis, now accounts for more than 44 percent of global output, up from just 30 percent in year 2000. Living standards have improved dramatically, and per capital income has more than tripled over this period.
Some of the key reforms introduced include an increase in the quantity and quality of minimum regulatory capital and the creation of capital buffers. New prudential requirements have also been introduced, such as the limits on large exposures, a maximum leverage ratio and two liquidity requirements, at the same time as the reform of the frameworks for evaluating market risk and securitisations has been launched. In addition, last December, a second wave of reforms introduced within the framework of the Basel Accords was completed. The focus of these measures has been the calculation 3/14  of risk-weighted assets, i.e. the denominator of the capital ratio, in order to improve the comparability of capital ratios across banks and jurisdictions. Another lesson of the crisis was that it is necessary to prevent and mitigate the effects of an excessive build-up of risk in the financial system as a whole. An exclusively microprudential based regulatory framework is clearly not sufficient to achieve this. New instruments were considered necessary to help moderate and address cyclical systemic risks (such as, for example, those associated with the credit cycle) and cross-sectional systemic risks (for example, those linked to the risk arising from, among other aspects, the size, complexity and density of the interconnections between financial institutions). With regard to cyclical systemic risks, a countercyclical capital buffer has been introduced, with a view to preventing risks arising from excessive credit growth at the aggregate level.

Necessary conditions for bond markets To develop a domestic bond market, we need three essential components:  1  BIS Review 30/2000  First, there must be a deep and liquid government bond market to serve as a benchmark against which corporate papers can be priced. To ensure that the government bond market can continue to provide the benchmark yield curve, the supply of government bonds must be regular, predictable and transparent. In short, the framework of the budgetary process as well as debt management operation must support the continuing supply of bonds through operations such as automatic refinancing or refunding of maturing debt. Tools such as re-opening of benchmark issues, government bond buy-back schemes or repurchase operations are also essential for the efficient functioning of debt management operation. Second, there must be adequate infrastructure, both legal and operational, to support the trade and transfer of instruments and funds. Operational infrastructure includes such things as a delivery versus payment system that is safe, rapid and efficient to ensure finality of fund transfers. An efficient bond registration system is also essential to provide legal protection of ownership of bonds. Rules and regulations to support trading and financing operation such as repurchase agreements, securities lending, short positioning as well as hedging practices are all essential elements. Third, there must be a pool of market participants comprising both intermediaries such as dealers or inter-dealer brokers as well as end-users such as mutual funds, provident and pension funds, insurance.
2  Of course the Bank also relies on other data and data sources to meet our remit, for which we rely on many providers, and in particular the UK’s Office for National Statistics. 3  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  3  Plan to improve data collections In response to this challenge, as articulated by of our response3 to the Future of Finance report from 2019, we committed to review our data collections process, to find ways to reduce the burden on industry and to increase the effectiveness of the process. That led to a Discussion paper in 20204, and now, working with colleagues at the FCA, to our data collection transformation plan, published in February5. At the heart of the plan is our aspiration that the Bank gets the data it needs to fulfil its mission, at the lowest possible cost to industry. And we know that what data we need will change over time: the regulatory framework will evolve, with post-Brexit changes and the climate change agenda to name just two obvious developments that reporting will need to respond to. We need a reporting framework that can adapt to these new demands as smoothly, quickly and efficiently as possible. So how do we achieve that vision? We have identified three long-term reforms that we think can transform our data collections, and also bring wider benefits. I will mention the first two, before focusing on the third and most fundamental reform for the rest of these remarks.

From master masons to information architects: how standards can transform reporting (and bring benefits well beyond it) Speech given by Gareth Ramsay, Executive Director for Data and Analytics & Chief Data Officer  Webinar hosted by The EDM Council 14 April 2021  I am grateful to Aaron Shiret and Angus Moir for their assistance in writing these remarks, and to Nicola Bennett, Ben Broadbent, Victoria Cleland, Matt Corder, Michael Davey, Dayo Forster, Andrew Hauser, Russell Jackson, Richard Lewis, James Proudman, Vicky Purkiss, Laurie Roberts, Paul Robinson, Beju Shah, Martin Udy, Mark Walsh and Rebecca Whitwam for their helpful comments and assistance 1  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  Hello all – it’s a great pleasure to be speaking to you. I’d like to thank John Bottega and the EDM Council for virtually hosting us today. I want to begin by talking about cathedrals. The great cathedrals of Europe were built in the Middle Ages by teams of skilled stone masons. To get the dimensions of the building right, it is said that each team would use measures based around the body of the master mason: his foot, his stride, his arm, and so on. And so a local standard was born. Those standards were designed with one specific use in mind – the construction of that cathedral. And very useful they were, too. But they were closed systems – the foot and the yard used to build one cathedral were different from those used to build another.
After analysing the different alternatives, the SNB decided to use a combination of SNB Bills and reverse repos. These instruments are perfectly in line with our monetary policy strategy. There is, however, still a range of alternative instruments available, should there be a need for them. Let me explain briefly how the method chosen by the SNB works. As I have already mentioned, the SNB aims to keep the three-month Libor within a certain target range. This rate depends on the level of liquidity in the financial markets. If there is excess liquidity, the SNB must withdraw a certain amount to influence the level of the Libor. In so doing, it uses a two-pronged approach: on the one hand, it issues SNB Bills with different terms. Banks or investors who purchase these bills pay the SNB with liquid funds, which are thus drained from the financial system. On the other hand, the SNB also makes use of reverse repos in order to complete the withdrawal of liquidity achieved by the use of SNB Bills. In a reverse repo, the SNB delivers securities to a bank in exchange for liquid funds, thereby absorbing liquidity from the financial system. Reverse repos with a term of, in general, one week are used to manage short-term liquidity. SNB Bills, on the other hand, are used to manage liquidity in the longer term (one month or more).

This would enable us to also seize opportunities to tackle these “twin challenges” in an integrated manner. It is my sincere hope that today’s event, along with the release of the report, will encourage broader dialogue and increase awareness around nature-related risks and opportunities, in turn paving the way for concrete action on this important front. I would like to thank the World Bank for this fruitful collaboration, and the esteemed speakers joining us today. I look forward to the engaging sessions ahead. Read Report: An Exploration of Nature-related Financial Risks in Malaysia See also: BNM’s Climate Change website 1  IPBES. 2019. “The global assessment report on biodiversity and ecosystem services: summary for policymakers.” [Link to IPBES]  2 World Economic Forum New Nature Economy Series [Link to PDF] 3 2/3  BIS central bankers' speeches  3 UN Biodiversity page [Link] 4 SDG 8. 5 SDG 3. 6 "Life on land” is SDG 15, “Life below water” is SDG 14. 7 Network for Greening the Financial System. 3/3  BIS central bankers' speeches
Industry representatives had expressed the view that while many important advances had been achieved in the management and measurement of various risks arising from trading activities, neither the existing market risk capital rules nor Basel II went far enough in recognising them. We are now evaluating these views. Because the treatment of the trading book is of great interest to banks and to securities firms, we are collaborating with the International Organization of Securities Commissions (IOSCO) to clarify the Basel II rules and to find risk-sensitive capital treatments for certain trading book exposures that are compatible with Basel II. Just last month, for example, the joint working groups completed a survey of trading book exposures in banks and securities firms, focusing on three main topics. The first concerns the criteria that firms use to determine whether an exposure qualifies for inclusion in the trading book versus the banking book. The second deals with the practices banks and securities firms use to value and measure the risk of trading positions. The third part sheds light on the treatment of counterparty credit risk issues  4  BIS Review 66/2004  related to repo-style transactions, securities financings and unsettled trades and credit derivatives. Our working groups are currently evaluating responses to the surveys and will draw on the surveys to help inform their discussions on clarifications and guidance that the Basel Committee can offer to banks and supervisors regarding the treatment of the trading book.

If households and businesses believe that the Fed has run out of tools to provide monetary policy accommodation or is unwilling to use certain tools for that purpose, the risk of inflation expectations becoming unanchored to the downside would increase, which would make it even more difficult for the central bank to achieve its goals. For these reasons, LSAPs should be viewed as a viable tool in our arsenal to be used when the zero lower bound is a relevant policy concern. In terms of calibration, if LSAPs are not as powerful as some of the event studies imply, the answer is not to simply discard the tool, but instead to look for ways to enhance its efficacy and use it more aggressively. In this respect, I believe that LSAPs work best when they are openended. In such circumstances, the use of the tool is likely to be helpful in reducing tail risks and making the bad states of the world less likely rather than signaling to market participants a significant deterioration in the Federal Reserve’s outlook. LSAPs may also be a useful means of making forward guidance more credible.
Johnsen underscored the seriousness of the potential consequences for the Norwegian economy if the Government did not intervene resolutely in the crisis: 9 “The gravity of the situation is simply this: A collapse of the banks will also break the backbone of the Norwegian economy. If we do not implement extensive measures now, a good many ordinary people may lose their savings.” But the Minister of Finance made an important reservation. In the same account, he also stated that the banks’ owners could not expect to escape unscathed: “At the same time, the instruments are designed so that banks themselves will have a principal responsibility for solving their financial problems. They will not simply be able to send the bill for their misjudgements to the government.” That was also the case in practice. The shares in banks that lost all their equity capital were written down to zero, in line with the principles pertaining to the bankruptcy of other enterprises. The capital injections banks received were made on the condition that they restored order to their organisations while cutting unnecessary costs. In other words: we bailed out the financial system, but not the banks’ owners. On the other hand, practically no creditors lost their assets, even in the banks that had lost more than their equity. Creditors were bailed out through the government’s recapitalisation of the failed banks. In the aftermath of the crisis, the Banking Law Commission was tasked with drafting a new law on crisis resolution.

A few countries went further, and sought to curb transactions in home currencies in offshore markets. At the same time, there has been an ongoing effort to develop bond markets in Asia. Issuance of domestic government bonds has increased sharply in most Asian countries. Certainly, a large part of the increase reflected the spike in fiscal deficits resulting from the debt restructuring operations in the financial sector during the Asian crisis. Nonetheless, corporate bonds have also grown. There is a trade off between tightening up the capital account, and developing the bond markets. Measures to restrict offshore foreign currency trading have been effective, in so far as reducing or eliminating offshore markets is concerned. But these safeguards come at a cost – they also hinder the development of capital markets, especially the bond markets. Size and liquidity are essential attributes for a market to attract international interest. Already in size and liquidity, we clearly lag behind our counterparts in the West. If Asian markets are fragmented and unable to grow, they risk being ignored by global investors. In the immediate aftermath of the Asian crisis, countries that have suffered at the hands of the markets are understandably disinclined to err on the side of fewer restrictions, especially as the benefits from bond market development are not likely to be large given structural problems in the economy.