samchain/econo-pairs-v1 huggingface dataset:
This event is especially important as it touches on new areas such as the regulation and supervision of the takaful industry as only minimum guidance is currently available. Ladies and Gentlemen, 3. Before I continue with this keynote address, let us all take a moment to remember Allahyarham Dr. Mohamed Aboulkhair Zaki Badawi, a great thinker and collaborator for the cause of Islam, and particularly in the area of Islamic finance . He has devoted so much of his time and energy for the benefit of the Ummah. We will always remember his numerous contributions to the development of Islamic finance. We cherish his involvement, among others, in the introduction of Shariah-compliant mortgage, the establishment of the Shariah council to reconcile conflicts between Islamic and conventional laws and the establishment of the first Islamic financial institution licensed in the United Kingdom. In Malaysia, he has made his mark a long time ago with efforts in setting up a dedicated Muslim College and the teaching of Islamic Studies at the University of Malaya, Malaysia. He was also involved in the development of Islamic finance in Malaysia by being the Shariah advisor to RHB Islamic Bank and the Labuan Offshore Financial Services Authority. In appreciation for his contribution, let us pray that God Almighty grants him a place in His paradise with the prophets, the martyrs, and the righteous, insyaAllah. Ladies and Gentlemen, 4.

The takaful sector needs to develop strategic and high-performing leaders who will be able  BIS Review 13/2006  3  to lead the way and are committed towards building a stronger organization that is able to contribute towards the tremendous growth potential for takaful. 16. In the area of technical expertise, the takaful sector has to intensify its efforts in the training and development of expertise in such areas as actuarial, underwriting, specialist claims and product development capabilities. In the actuarial area, for example, an issue that needs to be addressed is the scarcity of qualified actuaries to serve the takaful sector. The expertise of actuaries is needed to quantify the appropriate contribution rate to be charged to the pool of takaful participants. Additionally, the proper pricing of the contribution rate will ensure the ability of the takaful fund to fulfill the requisite obligation to participants. The actuarial methodology is also required to ensure prudent distribution of surplus to participants. The increasing roles of the actuary in the family as well as general takaful underscore the importance of developing takaful actuaries who have the understanding of the takaful business and the unique characteristic of the takaful operation. 17. Perhaps it is timely for me to share initiatives taken by Malaysia in talent development at all levels in Islamic finance.
As national authorities we are all convinced that our national discretions are worth fighting for and we take pride when they are included in the final drafts. Perhaps we should ask ourselves more often whether our discretions are motivated by a fundamental need or just deep-rooted tradition or, even worse, our unconscious caving in to special interest groups. I realise this might be naïve but why not take this opportunity of change and think new instead of designing EU regulation on the basis of existing, often imperfect, national regulation. The need for a common rule book for big cross-border banking groups is often raised by the industry. In principle, we are sympathetic to this wish. If a common rule book means “just” common rules we are certainly moving in that direction. One of the main objectives of the Committee of European Banking Supervisors (CEBS) is to promote convergence of supervisory rules and practices. However, in the sense of common or centralised decision making by authorities, I think it is still far away from coming true. As long as the implementation and interpretation of directives and rules is done on a national level it will take time before we have a common rule book. Still, the aim should be to eliminate or reduce as much as possible these differences. Remaining differences in supervisory practices between countries should be clearly disclosed in order to improve the predictability of the EU regulatory system – which is another area where the CEBS is doing important work.

Arjuna Mahendran: Role of the Central Bank in the Sri Lankan context Speech by Mr Arjuna Mahendran, Governor of the Central Bank of Sri Lanka, at the Sri Lanka Legal Summit 2015 “Governance, Regulation and Investment – The Way Forward“, Colombo, 5 March 2015. *  *  *  Ladies and Gentlemen, I am greatly privileged to address your distinguished audience on this topic with which I am reasonably conversant. The Central Bank of Sri Lanka today is a talking point among the public. Further, world over, central banks are in the public eye due to their specific role in staring off the global financial crisis, which caused a mini depression in 2009. The Central Bank of Sri Lanka is probably the single state authority with enormous influence in the economy and economic welfare of the general public. This influence comes from the powers and functions conferred upon the Central Bank from a number of statutes led by the Monetary Law Act (MLA) of 1949. In my view, when compared with statutes governing Central Banks in other countries, MLA is the single piece of legislation that provides for time invariant powers and functions of the Central Bank. The law has worked reasonably well during last 65 years without any major amendments. The drafting of the law in 1949 has been supervised by the renowned economist Mr. John Exter from the Federal Reserve Bank of New York who also in recognition of his stellar efforts was the first Governor of the Central Bank.
None of what I am telling you is new, but it’s worth reminding ourselves just how significant reference rates are to the functioning of financial markets, both in the United States and around the world. There’s broad recognition that exposure to LIBOR is a leading risk to financial stability.2 We need to treat it as such. 1/3  BIS central bankers' speeches  Progress Has Been Made And, to date, significant progress has been made, moving us toward a safe and sound reference rates regime. What’s more, there’s been notable momentum in recent weeks. But first, let’s take a look back at some of the more significant accomplishments. Back in 2014, the New York Fed and the Board of Governors convened the Alternative Reference Rates Committee (ARRC), which is made up of market participants. In an important milestone, the ARRC selected the Secured Overnight Financing Rate (SOFR) as its preferred alternative to U.S. dollar LIBOR in 2017. Since April 2018, the New York Fed has produced SOFR every day. It is based on much higher volumes than LIBOR, and compliant with the Principles for Financial Benchmarks set forth by the International Organization of Securities Commissions (IOSCO).3 SOFR is based on transactions—not judgment—making it much more robust. All of this points to the good work that can happen when the private and official sectors come together. Now, there has been some criticism leveled at SOFR, most notably the lack of a term rate, and not enough liquidity in the market.

But liquidity has begun to develop in derivatives and cash markets. And, earlier this year Federal Reserve Board economists published research demonstrating how forward-looking term rates can be derived from SOFR futures and swaps markets. However, we are still some time off from a point at which a robust, IOSCO-compliant term rate can be created, and use of such a term rate should be limited to certain segments of the loan market and to fallbacks for new contracts. I want to emphasize that the industry must not wait for a SOFR term rate to transition away from LIBOR. In my view, the biggest challenge isn’t liquidity or the creation of a term rate, it’s a willingness on the part of the market to stop using LIBOR. We need a mindset shift where firms realize that every new U.S. dollar LIBOR contract written digs a deeper hole that will be harder to climb out of. If companies are going to use LIBOR, they need to start including robust fallback language in the contract, so that if LIBOR ceases to exist, chaos does not ensue. This is an area of recent progress I mentioned earlier. The International Swaps and Derivatives Association (ISDA) has led great work on the development of contingencies for some derivatives products for the scenario where U.S. dollar LIBOR ceases to exist. The public consultation on fallback language for some non-U.S. dollar derivatives contracts took place last year.
Spencer Dale: Productivity and monetary policy Speech by Mr Spencer Dale, Executive Director, Monetary Policy, and Chief Economist of the Bank of England, at the South Tyneside Manufacturing Forum, London, 21 September 2011. *  *  *  Thank you for the invitation to speak to you this morning. It is a pleasure to be in the North East and to have the opportunity to speak to a forum of business leaders from the manufacturing sector. As our economy recovers and rebalances towards a more sustainable pattern of growth and demand, manufacturing and the export sector more generally will need to play an increasing role. So I’m really pleased to have the opportunity to speak to a group of companies at the forefront of this process. The topic of my talk today is one that is close to many of your hearts. Indeed, it concerns the life blood of the long-term success of each and every one of your companies. It is also central to the setting of monetary policy. Productivity As you know far better than I, strong, sustained productivity growth is vital for ensuring that your companies remain competitive in the global market place. Productivity is equally important for the long-term health and prosperity of our economy as a whole. To paraphrase one economist “productivity isn’t everything, but in the long-run it is almost everything”. (Krugman 1994). Productivity matters for monetary policy since it plays a crucial role in determining the supply capacity of our economy.

Pablo Hernández de Cos: Navigating through a storm - policy challenges in the current macro-economic environment Introductory address (via video) by Mr Pablo Hernández de Cos, Governor of the Bank of Spain, at the pannel "Navigating through a storm - policy challenges in the current macro-economic environment", during the Sixth European Systemic Risk Board annual conference "Addressing financial stability challenges", Frankfurt am Main, 8 December 2022. *** Good afternoon everybody and welcome to this first discussion panel of the Sixth Annual Conference of the European Systemic Risk Board. In this roundtable, we will be discussing and sharing views on identified challenges affecting the conduct of policies in the current turbulent times, which are having important repercussions for the economic and financial environment. As noted by President Lagarde, during her welcome address, in the course of this year we have witnessed an increase in financial stability risks. The appalling invasion of Ukraine by Russia, initiated as we were recovering the activity levels previous to the pandemic, has contributed to either fuel new or exacerbate existing systemic vulnerabilities in Europe and beyond. Spikes in energy and food prices, continued disruption of global supply chains and demand pressures have resulted in higher and more persistent inflation across the board. This has triggered a response of monetary policy, which is now normalising around the world, contributing to tighter global financial conditions and increased volatility and liquidity tensions.
And many people in Germany, as elsewhere, on seeing that they are hardly earning anything on their savings, are wondering if we are ever going to see an end to quantitative easing. Today, the risks for growth and inflation are tilted to the downside. The best service that the ECB can provide to the citizens of the euro area is to fulfil its mandate so that inflation returns towards 2%, which requires the economy to pick up again, jobs to be created and exports to the euro area to find solvent outlets. We are aware that the low interest rates also have negative effects, notably on savings, and could pose risks to financial stability if they were to stay low for too long. We don’t want this monetary policy to last too long, but we will apply it for as long as necessary in line with our mandate. 2  BIS central bankers’ speeches  In other words? Governments need to take action and implement the necessary reforms in order to consolidate confidence and growth, and to demonstrate a credible fiscal policy. If the euro area policy for growth rests exclusively on the ECB’s shoulders, things will end badly! Admittedly, we are nowhere near that point. But we sense that there is a temptation to rely entirely on the ECB. What key measures do governments need to implement specifically in order to restore growth?

The euro area’s recovery is on track and gaining momentum, but still weak, as inflation expectations are not rising and core  BIS central bankers’ speeches  1  inflation has levelled out. In December the Eurosystem staff macroeconomic projections will inform our decision. Given that the ECB has already sent strong signals to the financial markets, aren’t you obliged to act now? No. The decisions we take are based on the economy, not financial markets. We are currently asking ourselves the following question: are some factors, such as the fall in the price of raw materials, temporary? Or rather, will they prevent in a lasting way inflation from returning towards 2%? If the answer to the second question turned out to be yes, additional measures would be taken. In December we will take a decision based on the information we have available to us. In December the US Federal Reserve System (Fed) will take a decision on whether to maintain its key rates at zero or increase them. Will their decision influence yours? It will have no direct impact on our decision. Whatever the Fed decides, our monetary policy framework (zero rates, liquidity, “forward guidance” and asset purchases) allows us to keep interest rates low, no matter what happens in the rest of the world. Our policy protects the interest rate curve for the euro area from external shocks. What interests us above all is what the Fed’s decision tells us about the US economy.
Rodrigo Vergara: The Monetary Policy Report and the Financial Stability Report Presentation by Mr Rodrigo Vergara, Governor of the Central Bank of Chile, before the Finance Commission of the Honorable Senate of the Republic, Santiago de Chile, 20 December 2011. The Monetary Policy Report of December 2011 and the Financial Stability Report of the second half of 2011 can be found at http://www.bcentral.cl/eng/index.asp. *  *  *  Introduction Mr. President of the Finance Commission of the Senate, Senator Eduardo Frei, senator members of this Commission, ladies, gentlemen: This is my first time presenting as the Governor of the Central Bank of Chile before the Senate’s Finance Commission. I thank you this invitation to share with you the vision of the Central Bank Board on recent macroeconomic and financial developments, its prospects and implications for monetary and financial policy. This vision is contained with detail in the latest Monetary Policy Report (December 2011) and Financial Stability Report (second half 2011), which we today make available for this Commission and the country at large. The Chilean economy is evolving soundly. During the past few quarters it has been able to sustain vigorous growth in output and employment. Inflation is currently within the tolerance range and medium-term expectations are aligned with the midpoint of said range. Public finances are solvent. The private sector shows healthy conditions. The financial system shows strong indicators, the corporate sector is on a good standing and the households’ debt has – on average – evolved in line with income.

This, of course, seeking to preserve the conditions that will foster economic growth and the welfare of the population. Thank you. 6  BIS central bankers’ speeches  Figure 1 Banks' average CDS (1) (basis points)  Liquidity conditions (4) (basis points)  500  500 100  100  400  400  80  80  300  300  60  60  200  200  40  40  100  100  20  20  0  0  0  0  08  09  10  U.S. (2)  10 Jul. 11 Jul. ene.10jul.10ene.11jul.11  11 Europe (3)  U.S.  Japan  Eurozone  (1) Simple average of 5-year CDS premiums. Dotted line marks statistical cutoff date of previous Report. (2) U.S. includes Citigroup, Goldman Sachs, Merrill Lynch, JP Morgan Chase and Bank of America. (3) Europe includes Société Générale, Deutsche Bank, UBS AG, Santander, BBVA and UniCredit. (4) Difference between the Libo rate and the overnight indexed swap (OIS), both at three months. For the Eurozone, difference between Euribo rate and respective OIS. Source: Bloomberg.
These steps include the necessity to accelerate the potential GDP growth in the European Union and Japan through reforms of the labour market and the product market, increasing savings in the US by curbing the budget deficit, and reforms of the financial sector in China and subsequent gradual floating of the renminbi exchange rate. The central bank must consider possible scenarios of developments in the global economy and possible adjustments of global imbalances, as they significantly impact the perspectives of a national economy, and so the monetary policy pursued. Moreover, the central bank, as an institution that manages foreign exchange reserves, must monitor changes on the global financial market, as these changes and investment decisions made by the central bank influence the return on foreign exchange reserves. 5  This thesis was advanced, among others, in the frequently quoted work: M.Dooley, D.Folkerts-Landau, P.Garber “An Essay on the Revived Bretton Woods System“, NBER Working Paper 9971, September 2003. 2  BIS Review 57/2006  Re 2) Globalisation changes the wage and price setting mechanisms in a domestic economy. This ensues from the increased international competition and the growing role of outsourcing and offshoring. Offshoring consists in transferring of manufacturing, services or orders abroad, where such transfer may be made within a single company or to another company. Outsourcing consists in renouncing manufacturing or services in a given company and obtaining such goods or services from another company that may be located in the same or another country.

The data include the period between May 2004 and December 2004. †Workforce – people of 15 and more years of age in Q1, 2004. Analysts also point out that the dynamically growing Chinese economy, which uses more and more commodities, contributes to a significant increase in their prices, and may potentially drive up inflation. However, considering the increased competitive pressure, the possibility of shifting higher cost of commodities (e.g. oil) onto the final prices is limited 12 . In addition, in view of fierce competition on the labour market and the changes referred to above, the risk of growing wage demands is limited, and so are the so-called second-round effects. Re 3) Over the past three decades, the financial sector has become highly international. Financial services, provided under strictly regulated, separate, domestic financial systems in the past, are now provided under ever more open, competitive and global system. One of the measures of globalisation in the financial services sector is the growing volume of cross-border capital flows. Cross-border transactions in the bonds and shares segment are now exceeding 90 trillion (thousand billion) US dollars per annum, which translates into USD 250 billion daily 13 . Moreover, the size of financial markets and their meaning to the global economy becomes ever greater. According to McKinsey Global Institute 14 , the total value of global financial assets is now USD 118 trillion, whilst as far back as in 1980 they were only 12 trillion.
We don’t want three years of boom followed by three years of bust. Second, the country’s potential growth rate should be high enough to continuously raise the people’s general standard of living. And, third, growth should maximize inclusiveness. By this I refer to maximizing the exposure of everyone to economic development, both in terms of participation in the development process and in the sharing of its benefits. This would lessen the problem of inequality, and foster social harmony. That said, I wish to underscore that, even though growth is the most visible factor, growth alone is not sufficient but sustainability and inclusiveness are also crucial to ensure long-term economic success. Looking at economic strengths and weaknesses in the context of these three success factors should provide for a better understanding of the role of central bank and policymakers in advancing the economic development agenda for Thailand. Indeed, these success factors entail three corresponding fundamental responsibilities for policymakers. The first responsibility is to ensure continued macroeconomic stability, which is a prerequisite for economic sustainability, by gearing our economy towards operating at the potential level. Second is to raise the people’s standard of living by expanding the potential growth rate of the economy. Third, to maximize inclusiveness, we have to ensure the equal exposure to economic opportunities for all. Ladies and Gentlemen, Let me start with the first success factor, namely economic sustainability, which I consider to be Thailand’s most important strength. After the 1997 crisis, Thailand has no longer experienced the current account deficit problem.

Ladies and Gentlemen, Let me now turn to the last success factor: inclusiveness, which is probably the weakest achievement among the three success factors so far. However, inclusiveness is something that has increasingly gained attention from Thai policymakers in recent years, as it was part  4  IMD, 2010. BIS central bankers’ speeches  3  of the root cause of political unrest. I believe that inclusiveness will be one of the long-term solutions for Thailand political stability. Yet, I should stress that inclusiveness has a different concept from equality. It focuses on creating equal opportunity rather than equalizing income. Income equality ultimately means that the reward system is independent of performance which erodes efficiency. Inclusiveness, on the other hand, refers to having equal opportunity which still preserves efficiency through reward incentive system while allowing the rich and the poor to have the same economic opportunity. As such, inclusiveness refers to equal access to public infrastructure such as education, fair competition and equal treatments of law and regulation to all. In this way, inclusiveness will provide equal exposure to yield the benefits from economic prosperity. Improving inclusiveness in Thailand will be a long process but some initiatives have already been put in place. These include decentralization of public spending, better access to education, informal sector debt alleviation, and better credit access for low income group.