samchain/econo-pairs-v1 huggingface dataset:
As a personal trust-building device, it may be a good time to rebalance these scales, to start abiding by a “one mouth, two ears” policy - a time, if you like, for a little more conversation and a little less action. 70  Jung et al (2014). 21  All speeches are available online at www.bankofengland.co.uk/speeches  21  Some of this is likely to involve central banks engaging on an on-going basis with a different, and more eclectic, set of partners than in the past. For example, this year the Bank is looking to increase its engagement with state schools outside of London and the South East, who might otherwise not have had any contact with the Bank or anyone else in the public policy domain. I personally have been increasing my engagement with these schools for the past four years. Recently, the Bank’s regional Agents have begun increasing their engagement with charities, social enterprises, faith groups and trades unions, among others, listening to their often very different perspectives on how the economy is faring. This is something the Governor and I have prioritised over a number of years. These events are similar in spirit to the Community Advisory Council run by the Federal Reserve. Personally, I find they provide an incredibly useful window on the world, one which has shaped my view on policy.

35  27  For example, Gürkaynak et al (2005), Hendry and Madeley (2010), Ranaldo and Rossi (2010) and Hayo et al (2010). Ehrmann and Fratzscher (2007). 29 Carvalho and Nechio (2014). 30 Dräger et al (2016). 31 Sturm and de Haan (2009). 32 For example, Joyce et al (2010) and Gürkaynak et al (2010). 33 Berger et al (2011) find that press reports of ECB decisions are more critical when the decision is a surprise, or when made under a backdrop of high inflation. The reception is more positive when press conferences are informative or if the ECB president has recently been active in giving statements. 34 For example, van der Cruijsen et al (2015). 35 See Dräger et al (2016) for the US and Lamla and Lein (2014) for Germany. 28  8  All speeches are available online at www.bankofengland.co.uk/speeches  8  As the number of central bank publications has expanded, a new strand of research has begun analysing the words and phrases used by central banks, using semantic-modelling and other text-mining techniques. 36  For  example, these methods can be used to extract from written central bank material the key themes and issues that have been the focus of central bank deliberations and communications. Academics Stephen Hansen and Michael McMahon have used semantic techniques to identify particular monetary policy topics. These can be used to quantify how much emphasis an issue has had in committee deliberations.
Michael C Bonello: Fiscal reform - an imperative for sustainable growth and development Speech by Mr Michael C Bonello, Governor of the Central Bank of Malta, at the Institute of Financial Services Annual Dinner, St Julians, 11 November 2004. *  *  *  I should first of all like to thank you, Mr. President, for inviting me to your annual dinner and for the opportunity to share my thoughts once again with such a distinguished audience. I must also congratulate you on your recent election as President of IFS - Malta and wish you and your Committee every success in your endeavours to ensure that the Institute’s educational programmes remain relevant in today’s complex financial services environment. As you rightly pointed out in your first message to your members, in a situation which is rapidly evolving, “we must be prepared to embrace change.” I have a similar message to convey tonight. Inspired by the words of George Washington that “There is no practice more dangerous than that of borrowing money”, mine is essentially an appeal to the country to leave behind its spendthrift ways and to learn to live within its means. I shall therefore make a case for fiscal reform. Now some might wonder why a central bank governor should be so concerned about the state of the country’s public finances. Put simply, the reason is that a persistent excessive deficit situation represents a potential threat both to price and financial stability, which are key objectives of most central banks today.

In addition, the local banks’ all-currency liquidity coverage ratio (LCR) are already above 100%, well ahead of Basel’s implementation timeline of 1 January 2019. 11. However, we should not be complacent. Banks should continue to improve risk management processes, and watch out for risks arising from new and emerging trends such as persistently low interest rates, increasing interconnectedness between financial institutions and markets, and the growing use of sophisticated technology. 2  BIS central bankers’ speeches  12. Stress tests will become an increasingly important and integral part of risk management in the financial sector. •  For individual participating banks, the results facilitate discussions with MAS on their resilience to plausible adverse scenarios, planned responses, and actions to mitigate risk management gaps identified from the exercise. •  For the banking sector, the stress test results help to identify common vulnerabilities across FIs, such as exposures to a particular sector or country. This helps banks enhance their risk mitigating responses. 13. To make the exercise more useful, MAS encourages banks to compare the IWST results against their internal stress tests and sensitivity analyses and to assess whether the differences in scenarios and corresponding results reflect particular risk exposures faced by the bank. 14. In addition to prescribed scenarios, MAS has also been working with participating banks to conduct reverse stress tests. This involves banks describing scenarios under which their solvency could come under threat, thereby providing further insights on the risks that could impair the financial system.
The FPC and the PRC are announcing that they will stress test the UK financial system for resilience against different climate pathways. The design of this stress test will start in the autumn, and the tests will be completed in 2021. The stress test will reveal the UK financial system’s ability to withstand the financial risks from climate change that arise from the increased frequency of weather events and from the transition to a carbon-neutral emission economy. The test will motivate firms to address data gaps and to develop cutting-edge risk management consistent with a range of possible climate pathways: ranging from early and orderly to late and disruptive. This test will be the first of its kind to integrate climate scenarios with macroeconomic and financial models. The Bank will develop the approach in consultation with industry, including insurers, and other informed stakeholders including experts from the Network for Greening the Financial System and the PRA’s Climate Financial Risk Forum. With this new supervisory approach, the Bank will help ensure that the financial system is resilient to the risks and can take full advantage of the enormous opportunities in a carbon-neutral economy. The path to a carbon-neutral economy will affect every institution in this country—very much including the Bank of England. We need to do more than just cutting out cups and bringing up bees.35 We must lead by example. From next year, the Bank will become the first central bank to adopt the TCFD recommendations across our entire operations.

It would help avoid lock-in on existing platforms and enable providers of finance to compete for SME lending, helping to broaden the products available to companies and offer more competitive rates, making access to finance quick, easy and cost effective.20 It is not for the Bank of England to build this platform but we can help lay some of groundwork. The messaging standards we are adopting in the new RTGS will also include tagging payments with a unique ID called a Legal Entity Identifier (LEI).21 This will be mandated for financial institutions and as a next step we are considering how to extend this to corporate payments. That could mean that the payment data sent via CHAPS of non-financial firms could be made available for inclusion in a portable credit file. The LEI could  See: Furman, J ‘Unlocking digital competition’ Report of the digital competition expert panel (March 2019). See: https://www.bankofengland.co.uk/research/future-finance. The introduction of Legal Entity Identifiers (LEIs) will enable consistent and accurate identification of legal entities on a global basis. Their introduction was pioneered by the Financial Stability Board (FSB) following the financial crisis as a means of precisely identifying counterparty risks and exposures. The LEI is linked to a publically available database about each registered entity. LEIs are not yet widely used in payments or supply chains. Following a consultation, the Bank is making LEIs mandatory for all payments initiated between financial entities.
For example, Baker and McArthur ask whether there is a difference in funding costs for US banks either side of the $ billion asset threshold – another $ billion question. 8 They find a significant wedge in costs, which has widened during the crisis. They calculate an annual subsidy for the 18 largest US banks of over $ billion per year. Applying the same method in the UK would give an annual subsidy for the five largest banks of around £ billion. This evidence can provide only a rough guide to systemic scale and cost. But the qualitative picture it paints is clear and consistent. First, measures of the costs of crisis, or the implicit  5  Haldane (2009a). 6  Using the end-year yield on the financial corporates bond index across the ratings spectrum. 7  For example, banks’ retail deposits are excluded but unsecured wholesale borrowing is included. 8  Baker and McArthur (2009). BIS Review 40/2010  3  subsidy from the state, suggest banking pollution is a real and large social problem. Second, those entities perceived to be “too big to fail” appear to account for the lion’s share of this risk pollution. The public policy question, then, is how best to tackle these twin evils. Taxation and prohibition To date, the public policy response has largely focussed on the role of prudential regulation in tackling these problems. Higher buffers of capital and liquid assets are being discussed to address the first problem.

Caleb M Fundanga: Importance of entrepreneurship in Zambia’s economy Opening remarks by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the PrizeGiving Ceremony for Intermarket Banking Corporation VentureComp 2010 Business Plan Competition, Lusaka, 28 July 2010. *           *  *  Mr Ackim Sinkala, Acting Managing Director – Intermarket Banking Corporation Zambia Limited and Intermarket Securities Limited; Mrs Beatrice Nkanza, General Manager Lusaka Stock Exchange; Dr. Maurice Jangulo, Board Chairman Zambezi Airlines; Dr. Patrick Nkanza, Director General TEVETA; Officials from the Ministry of Science, Technology and Vocational Training; Chief Executive Officers of Financial Institutions and Companies Present; Distinguished Invited Guests; Members of the Press; Ladies and Gentlemen. It is my honour and privilege to officiate at this Prize Giving Ceremony of the VentureComp 2010, K100 Million Business Plan Competition. I was honoured at the beginning of this year to have been given the opportunity to launch this Competition. I did not hesitate to accept the invitation to officiate at this event as the subject of entrepreneurship and the deserved recognition of the entrepreneurial efforts of young men and women is very close to my heart. Distinguished Guests, let me from the onset take this opportunity to commend the sponsors of this competition, Intermarket Banking Corporation Zambia Limited, Intermarket Securities Limited, and their partners, Lusaka Stock exchange (LuSE), Zambezi Airlines and TEVETA for coming up with this excellent and important initiative.
Only last week, ECB Banking Supervision communicated to banks that climate-related risks have been identified as being among the key risk drivers affecting the euro area banking system. And, of course, the Central Banks and Supervisors Network for Greening the Financial System published its first progress report just a few weeks ago, reasserting that climate-related risks fall squarely within the supervisory and financial stability mandates of central banks and supervisors. An area that has received less attention though, both in policy and in academia, is the impact of climate change on the conduct of monetary policy. Today I would like to contribute to this debate and offer a way of thinking about how climate change fits into our current monetary policy framework – the way we react to shocks and the way we think policy propagates through the economy – and how it may affect our monetary policy implementation. I will argue that climate change can be expected to affect monetary policy one way or the other. That is, if left unchecked, it may further complicate the correct identification of shocks relevant for the medium-term inflation outlook, it may increase the likelihood of extreme events and hence erode central banks’ conventional policy space more often, and it may raise the number of occasions on which central banks face a trade-off forcing them to prioritise stable prices over output.

Zeti Akhtar Aziz: Key issues confronting the financial sector in Malaysia Keynote address by Mrs Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the Financial Industry Conference 2009, Kuala Lumpur, 17 November 2009. *  *  *  It is my great pleasure to welcome you to our financial industry conference for this year. This conference takes place at a time when the global financial landscape is experiencing fundamental change. Even as we meet, events continue to unfold in directions that are likely to fundamentally alter the way in which financial institutions conduct their business. Reforms to strengthen the foundations of financial stability are wide-ranging to improve the supervision and regulation of financial institutions, and the institutional arrangements for coordination and cooperation in the area of surveillance and crisis management within and across jurisdictions. This Conference is organised by Bank Negara Malaysia to engage in constructive dialogue with the industry on developments affecting the international and domestic financial industry, focusing in particular on implications for financial institutions in Malaysia. Economic developments and outlook After a challenging beginning to this year, Malaysia is now gradually moving on a path of recovery supported by strong macroeconomic fundamentals and a sound financial sector. Economic activity has continued to show a marked improvement in the third quarter, with positive growth expected in the fourth quarter.
Eva Srejber: Are we ready to deal with a cross-border banking crisis in Europe? Speech by Ms Eva Srejber, First Deputy Governor of the Sveriges Riksbank, at the seminar on Financial Institutions’ Value Management in the Integrated Market in Light of the Lisbon Strategy, Gdansk, 12 May 2006. *  *  *  Introduction Thank you very much for inviting me to Gdansk and this seminar on Financial Institutions’ Value Management in the Integrated Market in Light of the Lisbon Strategy. The financial system plays a crucial role in the economy. It provides households and companies with a number of important tools as well as the infrastructure for channelling savings into funding of productive projects, managing and allocating various kinds of risk, and facilitating efficient transfer of payments. The more efficiently the financial system works, the better the rest of the economy will work. One could say that the financial system is the oil that makes the machinery run more smoothly. The European financial markets have long been very fragmented. As Europe’s economies have become more integrated, however, the drawbacks of this financial market fragmentation have become increasingly evident. A more integrated market for financial services could, for instance, lead to enhanced cross-border competition and better opportunities to make use of economies of scale and synergies. Greater competition in turn should result in a wider range of investment and financing services and more efficient pricing of these services.

It will probably only create a host of new problems, while a number of ways of fencing in collateral still remain. For example, one would probably want to avoid that a bank in distress places all of its US treasuries in a country outside of the jurisdiction of the ECB, while only letting its bad loans and other lower-quality collateral be within reach of Frankfurt… Moreover, one must realize that, within a cross-border bank, liquidity shortages can occur in other currencies than the euro, and one will have to find ways to handle this, for example through prearranged swap agreements. I realise, of course, that achieving such a supranational system is a long-term process and it will inevitably going to be politically difficult, and I’m sometimes confronted with the view that it will take a major banking crisis before we’ll be able to muster the resolve to achieve it. However, as a European policymaker, I cannot accept this view. We have a definitive responsibility, and just because things are difficult we cannot let that stop us from trying. And, if a supranational solution is limited to the forty or so of the most important cross-border banks, it may not be so inconceivable, after all. Financial integration is inevitable and necessary if we are to achieve an efficient financial system and to foster growth in Europe. And when integration takes off it tends to follow the logic of business, and not the "logic" of country borders or national laws.
These are a review of the Bank’s approach to setting MREL4 and a review of the UK’s leverage ratio framework.5 Both are relevant to mid-tier banks and building societies which might not be eligible for the simpler regime. 3 Zahid Amadxarif, James Brookes, Nicola Garbarino, Rajan Patel and Eryk Walczak (2019), ‘The language of rules: textual complexity in banking reforms’, Bank of England Staff Working Paper No. 834. Quantification of rules and technical standards refers to number of words. 4 See Bank of England Discussion Paper ‘The Bank of England’s review of its approach to setting a minimum requirement for own funds and eligible liabilities (MREL)’, December 2020. 5 See Bank of England Financial Stability Report, December 2019 and HM Treasury/Bank of England/PRA/Financial Conduct Authority, ‘Regulatory Initiatives Grid’, September 2020. 5  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  5  Returning now to the simpler regime and moving on to my second term, ‘strong’. Here I want to repeat Sam’s very clear message that we have absolutely no appetite to weaken standards. What that means is that we do not think that we have made any part of the banking system too safe. Nor do we think that a simpler regime should lead to any change in the level of resilience of the firms we supervise. What we aim at is a simpler regime which delivers the same level of resilience for small firms in a more efficient way. Which brings me to ‘simple’.

We will need to consult on elements of change along the way and be responsive to the comments. All this takes time and thought, but the quicker these processes are completed, the quicker the vision will be realised. 3  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  3  We will best realise our vision to be a responsive and accessible policymaker by continuing to proactively engage with the wider world – both at home and abroad. This will ensure that our prudential framework keeps pace with innovation, and so we identify and best respond to risks at an early stage. We will continue to engage with our counterparts in other jurisdictions, and we will continue to lead policymaking through our membership of international standard-setting bodies such as the Basel Committee. Our key aims remain to ensure that global standards are robust and that regulatory fragmentation for firms is minimised. Strong engagement with Parliament and industry will be essential. We will take seriously our task to understand Parliament’s priorities within the framework of the objectives and ‘have regards’ that Parliament will give to us. And industry input will be particularly important on areas of the regime we are targeting for reform, which brings me to the main subject of this speech. A strong and simple prudential framework for non-systemic banks and building societies I would like to turn my attention now to speak specifically about one particular policy initiative which the PRA is pursuing.
Eighth, there has been greater recognition of the need for an orderly outflow of capital, both to relieve upward pressure on the exchange rate and to achieve a more stable, risk-adjusted rate of return for the very large savings of the community, so that consumption may be encouraged and the growth of fixed investment in the economy contained, thus achieving more balanced and sustainable economic growth. But this recognition has yet to be translated into concrete action, although there are concrete proposals being explored, notably the through train for investment in Hong Kong stocks. Ninth, however, there is considerable pent-up demand on the Mainland for capital market instruments generally and outward investment in particular. This will need to be satisfied and it is the right time for introducing relaxations on outward investment. It will be unfortunate if the much needed outward capital mobility is forced through black channels and investors subject to the malpractices of unregulated intermediaries. Tenth is the sensitivity of the capital markets to changes in policy, not just those in the area of macro adjustment and control, but also those relating to capital market development. Given the nascent state of these markets on the Mainland, the possibility and the advantages of making greater use of the corresponding, more sophisticated markets in Hong Kong, and the desire in the fullness of time to achieve a complementary, co-operative and inter-active relationship between the two financial systems, there has been (and will continue to be) frequent policy changes affecting capital market performance.

It would probably not relieve pressures for currency appreciation, rising inflation and buoyant asset prices. Seventh, on the so-called reverse double play: the scope is limited. The reverse double play aims at profiting from a long position in Hong Kong stocks by engineering a capital inflow large enough to trigger passive exchange market intervention on our part, which would push interest rates to very low levels and asset prices higher. But interest rate adjustments when the exchange rate hits the strong side of the band are bounded by the floor of 0%, while they might be a lot more dramatic at the weak side, and the sensitivity of stock prices to these different adjustments differs. Herd reaction, which is what most speculative plays aim at, is a lot easier to instigate through the fear factor, when interest rates rocket up, risking a stampede to exit from the market, but a lot more difficult through the greed factor, when interest rates fall, and the rush to buy does not necessarily materialise. Conclusion I hope these answers are clear and the high degree of confidence in and credibility of the linked exchange rate system built up over the past quarter of a century is sustained. This would obviate the need for the type of interest rate adjustments seen earlier in the month and dampen volatility in Hong Kong dollar interest rates around those of the US dollar. Indeed, monetary and financial stability is dependent to a large extent on confidence in and credibility of monetary and financial policies.