samchain/econo-pairs-v1 huggingface dataset:
First, I would underscore the importance of good corporate governance, the basic elements of which include: •  independent and competent outside directors;  •  capable and experienced management;  •  a coherent corporate strategy and business plan; and  •  clear lines of responsibility and accountability. Together, these elements contribute to an overall operating process conducive to long-term health and prosperity. A tightly run ship with a disciplined crew led by an experienced and competent cadre of officers is far better able to survive a long journey that will inevitably confront sudden storms. Closely related to good corporate governance and critical to any banking institution’s well-being is a rigorous internal control apparatus. Of course, effective internal control systems have always been centrally important to sound banking. This point becomes clear if we consider for a moment their basic purposes: •  to provide reasonable assurance that the bank’s and its customers’ assets are safeguarded, that its information is timely and reliable, and that errors and irregularities are discovered and corrected promptly;  •  to promote the bank’s operational efficiency; and  •  to ensure compliance with managerial policies, laws, regulations and sound fiduciary principles. With these purposes in mind, it is clear that the success of any banking organization depends on the effectiveness of its internal control apparatus. And never has this been more true than today.

The flexibility of credit and liquidity that banks provide - stemming from this unique capacity to create transaction account liabilities - is vital to the smooth development and growth of market-based economies. Other essential functions This money-creating capacity also enables banks to perform other essential functions. For example, banks serve as the primary and back-up source of liquidity for other classes of institutions, financial and non-financial. Even in advanced financial systems, the capital markets rely heavily on the banking system to meet day-to-day cash flow needs and to provide standby financing facilities. In addition, the banking system is the mechanism, or transmission belt, by which the policies of the central bank regarding money and credit creation are implemented, and the pace of economic activity determined. Simply stated, without an effectively functioning banking system for encouraging, collecting and deploying society’s savings, providing the means for quick and reliable payment, and performing these other essential functions I’ve just mentioned, there would be little hope for any economy to mobilize the real resources necessary for economic growth and stability. If money and credit are the lifeblood of a market economy - and they are - the banking system is its beating heart. Public confidence - the key to intermediation But banks’ ability to collect and mobilize society’s savings by attracting deposits is only half of the story. Their ability to retain those deposits is just as critical. This may seem an obvious point, but the retention side of the banking equation is too often forgotten or overlooked.
D ia g ra m 3 b  R ea l w a g e s a n d em p lo ye d p erso n s, N eth erla n d s a n d S w ed e n , 1 9 7 0 -9 6 In d ex 1 9 7 0 = 1 0 0 N eth erlan d s  S w ed en  170  170  170  160  160  160  160  150  150  150  140  140  140  130  130  130  130  120  120  120  120  110  110  110  100  100  100  90  90  90  80  80  80  R e a l wa ge s  150  E m p lo y m e n t 70  72  74  76  78  80  82  84  86  88  90  92  94  96  98  170  R e a l wa ge s  140  110  E m p lo y m e n t  100 90 80  70  72  74  76  78  80  82  84  86  88  90  92  94  96  98  S o u rce : O E C D  BIS Review 38/1997  -8-  Europe, however, does have some positive examples.

This has shown up in increased productivity and weakly rising employment. The opposite has occurred in the United States: sluggish real wages have limited the need to rationalise labour and invest in capital-intensive equipment and this has resulted in rapidly rising employment.7  6  Krugman, P. (1994), "Past and Prospective Causes of High Unemployment," in Reducing Unemployment: Current Issues and Policy Options, Federal Reserve Bank, Kansas City. 7 See Lindbeck, A. (1996), "Sysselsättningsproblemet i Västeuropa" (The problem of employment in Western Europe), Ekonomisk Debatt 24:7.
Sterling’s recent depreciation will give a further impulse to import prices; and so, other things being equal, may stretch out the period of uncomfortably high inflation, endangering inflation expectations. Moreover, there remains a risk of continuing inflation impulses from the persistence of imbalances in the global economy. Global inflation, global imbalances and the international monetary regime The rate of nominal expansion in much of the emerging market world has remained brisk. From our point of view, up until recently that seemed to add to the upward impetus to commodity prices, exacerbating the upward pressure on our firms’ costs. Of course, part of the rise in commodity prices over the past few years is explained by a profound structural shift as the world economy is joined by large, rapidly developing economies which are increasingly energy intensive. In addition, nominal demand has probably played a role recently. Some EMEs have exchange rates that are fixed, more or less, to the US dollar, and so have been importing a monetary easing, which they hardly needed, as the FOMC cut the Fed funds rate to address domestic US circumstances. In other countries, there has also been less than complete sterilisation of the monetary effects of exchange rate intervention. Absent offsetting policy action, eventually the nominal expansion permitted will be dissipated in rising inflation and so an appreciation in real exchange rates.

First, while papers are still produced in the tradition that “macroeconomists can safely go on ignoring finance”, we – policymakers – are having to make sense of a macro environment in which the supply of credit has been interrupted by problems sourced in part to swings in risk premia, and quite possibly swings in risk aversion. Models incorporating risk premia – and, indeed, embracing bubbles – might just help us with that. But it is striking that, so far, the progress in finance hardly features in the macro models used around the world for forecasting. Indeed, such models barely recognise the existence of financial instruments beyond risk-free bonds and equities. 19 In modern DSGE models, asset prices (and so risk premia) merely reflect economic developments; they are not “actors” in any way. Even if we were to accept that risk premia are not “actors”, for policymakers they might serve as useful diagnostics of what is going on in the economy – of the nature of the underlying shocks – given that asset price changes are typically apparent some time before the associated real economy adjustments. On that view, we need research that will help us read the “risk premia” tea leaves. For example, an increase in premia that could be traced to an increase in the correlation between consumption and investment returns, might point to a prospective increase in households’ precautionary saving.
The second is that we want competition and innovation in financial services – it can increase efficiency, functionality and resilience. Setting out the regulatory approach allows those who want to innovate by providing better products and services to understand the risks that need to be managed as they develop those products. It also ensures that innovation is not simply competing by taking higher risks. This approach has been a key element in the evolution and adoption of innovation in payments in the UK in recent years. Against the background of increasing digitalisation of everyday life, the combination of technological advance and appropriate regulatory frameworks[1] - both to foster competition and to manage risks – has transformed the way we pay. It has also stimulated the growth of the UK Fintech sector which is now the second largest in the world[2]. Contactless’ card payments are now used by close to 90% of people and make up almost a third of all payments in the UK, Nearly a third of UK adults use mobile payment apps such as ApplePay or GooglePay. Seven million consumers and three-quarters of a million SMEs are using Open Banking products. Several digital only challenger banks operate in the UK providing competition and innovation to the UK banking sector. These changes have not only transformed the way people pay but also the type of money they pay with. Two types of money circulate in the UK today.

It also raises questions about the operation of anti-money laundering and other regulation to prevent illicit finance. An alternative to allowing tokenised deposits to circulate freely and be directly transferable would be to require transactions on new forms of ledger, for example transactions in smart contracts involving tokenised deposits, to be settled ultimately by the adjustment of bank ledgers as happens now. In other words a transfer of tokenised deposits on one set of ledgers would trigger the adjustment of individuals’ bank account balances and be settled by a transaction between the banks involved. In that case, deposit money issued by a bank could only ever be held in an account at that bank. It is important that as we develop the regime for payment stablecoins, we also develop the approach for tokenised bank deposits. This will allow, banks and non-banks alike, that want to develop payment solutions using new technologies to understand clearly what is possible and what is required in the respective regulatory regimes. The PRA intends to set out its approach in this area alongside the Bank’s consultation on the payment stablecoin regime. It is of course possible that commercial banks might wish to offer payment stablecoins as opposed to tokenised bank deposits. In such cases, I think we will need to be very alive to the risks of confusion on the part of customers as to protections they are entitled to and confusion of business models within the bank itself.
The tools for exercising greater pressure may entail, for instance, changing the requirements regarding an individual bank or several banks if necessary. But such tools are not usually at the disposal of the central banks; they are held by the financial supervisory authorities. The problem is that these supervisory authorities often do not have the task of supervising banks  BIS Review 138/2009  11  and other financial agents from a system perspective at “macro level”. They more often examine the individual participants at “micro level". This task is of course very important. However, there may be systemic risks that need correction, but which are not evident when individual banks are examined separately. The recent crisis has clearly shown that supervision is necessary, and also the opportunity to take measures at both micro level with regard to individual participants and macro level from both a national and an international systemic perspective. The financial supervision map is being redrawn. Bearing in mind the experiences of the recent crisis, I believe for instance that the Riksbank and Finansinspektionen will work more closely together than before. Greater cooperation between the authorities is one part of the solution, but I believe that the central banks also need to have slightly “sharper teeth” – more and sharper tools in this area. Cooperation and trust When it comes to handling and preventing a global crisis like the one we are currently emerging from, something more is needed, namely trust.

A stronger krone reduces the cost of imported goods and services for enterprises and households. Imported inflation is lower. So far this year, the import-weighted krone exchange rate has appreciated by about 3 per cent. Substantial uncertainty surrounding international economic developments There is considerable uncertainty attached to international economic developments. 4  BIS Review 47/2001  In the US, industrial output and retail sales have weakened markedly over the last three months. Between March and April employment declined by more than 200 000. GDP growth slowed from an annualised rate of a good 5 per cent in the first half of 2000 to about 1 per cent in the fourth quarter of last year and the first quarter of 2001. US equities, as measured for example by the Dow Jones index, declined markedly through 2000 and in the first quarter of this year. Stock markets in other countries also fell during this period. Equity prices have picked up again since the beginning of April, however. In addition, industrial commodity prices and oil prices have risen over the last month. Moreover, long-term interest rates have increased. These developments may indicate that many operators in financial markets and commodity markets have again become somewhat more optimistic about the prospects ahead. Household and business confidence also deteriorated through the latter half of last year and early this year, but has remained steady over the last two to three months, as illustrated by the confidence indicators in this chart.
But the crisis has not yet been overcome – which is hardly surprising, since structural reforms are also required if this is to be achieved. It is important to acknowledge the efforts that have already been made in this respect in the affected countries, and as an onlooker one should be cautious when making recommendations. Yet there is broad consensus that additional structural reforms are needed and should be implemented consistently. Such reforms should increase the growth potential of the countries affected and allow them to significantly and sustainably reduce their high level of unemployment and debt. Additional efforts are also required in the banking sector. Consequently, the bank review to be carried out by the ECB is extremely important. Only a healthy banking sector is capable of supplying the economy with sufficient credit. However, risks also exist outside the euro area. The global recovery could be held back by political tension in several regions as well as structural weakness in major emerging economies. A further source of potential turmoil is uncertainty about the future path of monetary policy in the major currency areas. In particular, the divergence in the monetary policy direction could increase. Overall, monetary policy in the advanced economies is likely to remain very expansionary since production capacity is underutilised and inflation is low. But while in the US the Federal Reserve is preparing the ground for a gradual normalisation of monetary policy, the ECB is considering whether it should undertake further monetary policy easing.

To this end, the Bank continues to spearhead the Financial Sector Development Plan, which is aimed at strengthening the Zambian financial sector as well as guiding efforts for realising the vision of a stable, sound and market based financial system that would support the efficient mobilisation and allocation of resources necessary for economic diversification and sustainable growth. In concluding, I wish all entrants to this competition, the best of luck. I further with to congratulate in advance the ultimate winners of this inaugural business plan competition – VentureComp 2010. I thank you. 2  BIS Review 5/2010
Two weeks ago, the HKMA issued a circular to banks providing guidance on the importance of sound governance and good corporate culture and what they should do to promote them. I won’t go into the details now as the main themes of these new guidance circulars will be covered in the Conference later today. 8. Today is going to be a long day for you because the Conference won’t end until 5:45 pm. However, I sincerely hope that by the end of the Conference there will be some takeaways that you will find helpful in your capacity as INEDs of banks. 9. Fellow INEDs, I have talked long enough and now is the time for me to introduce to you our keynote speaker for this Conference. We are honoured and highly privileged to have Mr Andrew Bailey, Chief Executive Officer of the UK Financial Conduct Authority, to fly all the way from London to join us today. Andrew needs no introduction. Before he joined the FCA last year, he was the Deputy Governor in the Bank of England and Chief Executive Officer of the Prudential Regulation Authority from April 2013 until June last year. So Andrew is truly exceptional in the sense that he has been in charge of both the prudential and conduct sides of banking supervision, and is very well-respected internationally. He is therefore uniquely well placed to share with us his experience and insights. Mr Bailey, please. 2/2  BIS central bankers' speeches

Durmuş Yilmaz: Financial education and awareness – challenges, opportunities and strategies Speech by Mr Durmuş Yilmaz, Governor of the Central Bank of the Republic of Turkey, at the International Conference on Financial Education and Financial Awareness: Challenges, Opportunities and Strategies, Istanbul, 10 March 2011. *  *  *  Distinguished Minister, Esteemed Participants, Esteemed Guests and Members of the Press, Welcome to our conference on financial education and financial awareness. As you know, these concepts have progressively come into prominence in both developed and developing countries in recent years. After a brief conceptual introduction, I will continue my speech by talking about the financial education in Turkey and efforts of the Central Bank in this respect. Distinguished Participants, Financial education has always been an important concept in terms of allowing individuals to manage their budgets, arrange incomes and expenditures, manage their investments and savings effectively, and protect themselves from possible losses. With the increased variety and complexity of financial products in today’s world, this issue is becoming even more important for both individuals and the financial system. On the back of globalization, the liberalization trend in economies, the easing of restrictive regulations in the financial sector and the liberalization of capital flows at international level since the early 1980s, more and more individuals participate in financial markets as investors in many countries, primarily in developing ones. In this framework, financial education assumes greater importance in terms of minimizing financial risks for those who do not have sufficient experience of capital market instruments.
The second point I wanted to make is that the conclusion of the exercise was preceded by a significant amount of front-loaded measures taken by the banks. Since July last year SSM banks have undertaken various measures to strengthen their balance sheets by more than € billion, including € billion of capital increases. These front-loaded measures are part of the overall successful outcome of the exercise. Some of the measures taken in 2013 had an impact on what could be detected by the exercise, and so reduced the results of the exercise accordingly. And some of the measures taken in 2014 count for the mitigation of the capital shortfalls that were found. Third point, the comprehensive assessment provides the ECB SSM with substantial information on the banks that will fall under its direct supervision and will help its efforts in creating a level playing field for supervision in the future. And fourth, the repairing of the banks’ balance sheets that will follow the results, and the resilience revealed by the vast majority of the banks in spite of the severity of the exercise, guarantee that the economic recovery will not be hampered by credit supply restrictions coming from the banking sector, provided that there is enough aggregate demand. I will now go through the slides. Let me underline the main results of the exercise. A total of € billion capital shortfalls were identified across 25 participating banks as a joint result of the AQR and the stress test.

We recognize that timely and accurate information about our region, which is highly valuable to us, can also help to reduce uncertainty and inform the economic and financial decisions of regional residents, businesses, communities and governments. To that end, we make our various regional measures and analysis available to the public through our website and a variety of outreach activities. These activities include making presentations on topics of current concern to business and community organizations throughout the District. We welcome you here today to brief you on our views of the current state of activity and employment in the regional economy and to review the rich portfolio of resources that we make available to help monitor economic conditions across the region. 2  BIS Review 49/2010
Central banks have fought hard to establish credibility by focusing on measurable goals, maintaining clear communications with the public, and being transparent and accountable in achieving these goals. The focus on inflation, a simple observable variable has helped. Having a central bank with multiple mandates creates risks of policy dilution and conflicting goals. In contrast with inflation, or even employment, financial stability is a fuzzy concept with many dimensions that are hard to encompass in a single indicator. Attempting to do so risks ending with a narrow view of financial stability, but having a broader, less precise definition of financial stability makes it hard to establish credibility and accountability for achieving it. On a more pragmatic front, there are good reasons to have banking supervision conducted outside the central bank (which I will not address now), and many countries follow this institutional arrangement. This should be considered when thinking about the involvement of the central bank in financial stability because it is desirable that micro and macro aspects of financial regulation be well coordinated to avoid sending conflicting messages to regulated entities. For these reasons, the institutional setting for monitoring and preserving financial stability will likely vary across countries. But the natural interest of central banks in financial stability and their advantages in providing a systemic view of the financial sector and the economy suggest that they should be involved at some level.

In addition, from an operational perspective, if evidence shows that transition and physical risks have an impact on the risk profile of certain assets, central banks should draw a logical conclusion and incorporate these financial risks in their collateral framework. **  Page 6 sur 6 I would like to conclude with the message that Paul Romer gave during his Nobel Prize speech: “Humans are capable of amazing accomplishments if we set our minds to it.” On climate-related risks, in less than one year, central banks and supervisors have accomplished concrete steps to mainstream green finance in all their activities. Notwithstanding the political progress we would all wish for at international level, we are determined to follow our “flight plan” as financial authorities. Thank you for your attention. i  Banco de Mexico, Bank of England, Banque de France/Autorité de Contrôle Prudentiel et de Résolution, De Nederlandsche Bank, Deutsche Bundesbank, Monetary Authority of Singapore, People’s Bank of China, Swedish Finansinspektionen. ii BaFin, Banco de España, Bank al Maghrib, Bank Negara Malaysia, Bank of Finland, Banque centrale du Luxembourg (BCL), Banque nationale de Belgique (BNB), EBA, European Central Bank (ECB), Japan FSA, Oesterreichische Nationalbank (OeNB), Reserve Bank of Australia, Reserve Bank of New Zealand. iii Bank for International Settlements (BIS), European Bank for Reconstruction and Development (EBRD), OECD, Sustainable Insurance Forum (SIF), World Bank (Group) + World Bank (IFC/SBN).