samchain/econo-pairs-v1 huggingface dataset:
1 I would like to thank Paola Donati, Clément Rouveyrol, Fabio Tamburrini, Eszter Tanai, Simonetta Rosati and  Fiona van Echelpoel for their support in preparing this speech. 2 European Commission (2020), “Financial stability: Commission adopts time-limited decision giving market  participants the time needed to reduce exposure to UK central counterparties (CCPs)”, press release, 21 September. 3 ESMA (2020), “ESMA to recognise three UK CCPS from 1 January 2021”, press release, 28 September. 4 3/4  BIS central bankers' speeches  4 De Guindos, L., Panetta, F. and Schnabel, I. (2020), “Europe needs a fully fledged capital markets union – now  more than ever”, The ECB Blog, 2 September. 5 Eichengreen, B., Mehl, A. and Chiţu, L. (2017), How Global Currencies Work: Past, Present and Future, Princeton  University Press. 4/4  BIS central bankers' speeches

Relative to large companies, SMEs were traditionally considered riskier, as SMEs tend to have fewer assets that can be offered as collateral, lack of sufficient credit history and regarded as unbankable for some. CGC was established to address these concerns, by providing guarantees that enable SMEs to have expanded access to loans offered by financial institutions. Thus far, CGC has done a commendable job, providing guarantees to more than 420,000 companies, representing about 65% of the total SMEs, with total loans approved of more than RM51 billion as at end of 2012. SMEs are an important agent of growth and a component to support the nation’s aspiration to transform into high income and a high value-added economy. As a group, SMEs is a formidable force in the economy, as it forms 97.3% of established businesses and provides employment to 57.3% of the nation’s workforce. This contribution was recognised in the SME Master Plan where the growth by SMEs to the GDP is targeted to increase from 32.5% currently, to 41% by 2020. As the economy grows and becomes more sophisticated, so does the needs and requirements by the SMEs. In this regards, CGC has shown its ability to constantly reinvent itself to meet the needs of both the SMEs and financial institutions over the last 40 years. Looking at the list of CGC schemes throughout the years, the development of CGC’s products had mirrored the development of the country and the increased sophistication of the economy.
Given its proven success at maintaining market rates in line with Bank Rate, as well as the benefits of operational continuity, the Bank is minded to keep using a variant of the current floor system for controlling market rates. And, as the quantity of reserves supplied falls towards the quantity demanded by market participants, we will stand ready to meet SMF participants’ demand for additional reserves through regular open market operations. In addition, there is a strong case for holding some longer maturity assets, such as gilts, to back the stable portion of demand for banknotes, and indeed we had already started to do this ahead of the financial crisis. 29  How large a quantity of reserves SMF participants will demand, and therefore how large our future balance sheet will be, is an open and difficult question. As well as changing our own monetary policy toolkit, the financial crisis has changed the behaviour of financial institutions, including in ways that are significant for the size of our balance sheet. In particular their demand for reserves and for liquid assets more generally, is much greater than it was before the crisis. That reflects a combination of tighter regulation which requires them to hold larger buffers of liquid assets, and more prudent management which means that banks have learnt the lessons of the crisis and the value of maintaining liquidity, as well as the fourfold increase in the number of SMF participants. This change was not caused by QE and the expansion of our balance sheet.

The medium and longterm inflationary threat of this large amount of liquidity is limited because we will be able to absorb it rapidly, by slowing our lending or by issuing SNB Bills, as soon as confidence returns to the markets. However, liquidity accumulated by the banks could give rise to excessive creation of money through a massive expansion of bank credit. In May, growth in the narrow monetary aggregates, which are very sensitive to changes in the rate of interest, exceeded 40% for M1 and 30% for M2. In essence, this strong rate of growth reflects a preference on the part of the general public for the most liquid monetary assets over time deposits, due to financial uncertainty and the fall in interest rates. The M3 aggregate, which is not affected by these substitution effects, continued growing at a more moderate rate of 4.2% in May, which shows that, at present, created central bank money is confined at the interbank level and has not been transmitted to the rest of the economy. Monetary policy needs to ensure that the level of the monetary aggregates does not become excessive over a longer period. The indicators we are monitoring show that this is not currently the case. Inflation and inflation risks Inflation developed in line with our expectations. In the first quarter it was zero, while we were anticipating 0.1%. Overall, our forecasts are unchanged for the current year, with inflation remaining negative for the rest of 2009.
Agreements signed in 2023 – affecting around 1.5 million workers – provide for an average wage rise of 4.3%. 2  See the results of the Banco de España Business Activity Survey. 3  Indeed, while Eurosystem financing amounted to 10% of Spanish banks’ consolidated liabilities in 2020-2021 (3% in 2007), that figure fell by nearly 5 pp in 2022. 3  an increase in deposits.4 However, these fell in 2023 Q1 by nearly 2.5%, especially among firms.5 In 2022, the average interest expense on bank liabilities increased by nearly 60 bp compared with the 2020-2021 average, to stand at 1.1%, still slightly below pre-pandemic levels. This change highlights the fact that the rise in the 12-month EURIBOR has only partially passed through to deposit costs, far less than in previous monetary tightening cycles.6 Banks’ comfortable liquidity position helps to explain this. Similarly, the fall in the cost of equity – by 2 pp between December 2021 and May 2023, when it reached 6.6% – has cushioned the rise in the cost of borrowing from banks.7 The cost of equity rose during February and March 2023, mainly owing to the higher equity market risk premium, although the increases have been moderate. The liquidity coverage ratio stood at 173% at March 2023, much higher than the required minimum threshold and likewise above pre-pandemic levels8. Meanwhile, the net stable funding ratio stood at 130% at December 2022, again above the minimum requirement of 100%.

Leaving the maintenance of standards to others – to the sell-side, to public authorities and regulators, or (worst of all) to no-one, as happened a decade ago – cannot serve either your interests, or those of your investors. In my remaining remarks, I want first to review the strong progress that has already been made on developing and embedding the Code, including in some buy-side firms. I will then turn to review four specific concerns sometimes heard from buy-side colleagues still unsure about signing up, and set out what I hope will be persuasive responses. Strengthening buy-side adoption is one of the Global FX Committee’s top priorities for the coming year – and we have asked senior figures from both sides of the market to lead that work, working either as individual liaison representatives, or as members of a new buy-side outreach working group. I am pleased to see several of them here today – including David Clark, Robbie Boukhoufane and Richard Purssell – and I know they would be happy to answer any questions you may have, either now or later. Take up of the Global Code: progress so far Before turning to review progress, I must first confess more than a little self interest in this subject.
This is now commensurate with the scale and nature of the risks that the UK’s high degree of financial openness can pose. And it provides the foundations for the UK to remain the world’s leading international financial centre, one which can safely be home to the largest global, systemically important banks and insurers. The effectiveness of our reformed domestic framework for financial stability depends in part on the quality of financial regulation set at the EU level as well as the flexibility we have to apply that regulation to meet the UK’s specific financial stability challenges. In the main this combination has been achieved thus far. However, there have been some limits on flexibility in certain areas, including:   a bonus cap restricting the proportion of pay that can be clawed back in the event of excessive risk taking or poor conduct, thereby weakening discipline from remuneration;    trigger thresholds for contingent convertible capital instruments that some may judge too low; and    a reduced role for national discretion in insurance supervision. While common international standards and effective EU rules should continue to support the operation of the single market, it is imperative that UK authorities, including the Bank of England, continue to retain the flexibility to impose the high standards necessary to manage the world’s leading global financial centre. This flexibility may be challenged by how EU financial regulation evolves.

4.2  Financial stability  The impact of EU membership on financial stability is more challenging. Given the close integration of the UK financial sector with the rest of the EU, it is imperative that the EU has a robust regulatory framework. This is in the process of being achieved. Through its membership of the EU, the UK is promoting a strong global regulatory framework, and UK authorities have worked in close concert with our European partners to find solutions to the fault-lines of the past. Examples include moves to end Too Big To Fail by enhancing bank recovery and resolution, a solution developed locally at the Bank of England, implemented regionally in the European Union, and now agreed globally through the Financial Stability Board. Given the scale of the UK’s financial sector relative to its economy, the Bank of England also has a special responsibility to the UK, to Europe and the world. The UK must ensure that the  11  See Broadbent, B (2011), “Rebalancing and the real exchange rate”, Speech at Thompson Reuters, London. BIS central bankers’ speeches  7  system is robust to shocks and that financial institutions can be resolved in an orderly manner. After all, financial stability is a national responsibility, with the UK taxpayer serving as the ultimate backstop of the UK financial system. The comprehensive reform of the UK’s institutional framework for financial stability since the crisis creates a coherent architecture of national macroprudential and microprudential regulators and supervisors.
In contrast, during the 9/11 attacks on the World Trade Centre, a sustained commitment by a large multinational financial service provider to strengthen its BCM and continuously improve its evacuation procedures over almost a decade, enabled it to reduce the time taken to evacuate its employees from four hours to 45 minutes, saving thousands of lives. Within the financial sector, a key focus of reforms since the global financial crisis has been on the development of recovery plans which aim to protect the continuity of critical functions and core business lines in a situation of financial stress. Work has also been initiated to implement this in Malaysia. Financial institutions are expected to develop a menu of options for recovering from events of severe stress in order to restore business to a stable condition. These plans must be regularly updated to reflect changes in a firm’s business model and operational arrangements. At its most basic level, recovery plans are helping financial institutions to better understand their operational and financial interdependencies and how this can affect recovery options that are available to the institution. Some institutions are finding through this process that their operations have become far too complex to support credible recovery strategies. These institutions are taking or considering steps to restructure parts of the business to achieve wider options for recovery.

This morning, I would like to talk about some of the changes we are seeing in the practice of risk management and reflect on important priorities for risk management as observed from our work at Bank Negara Malaysia with the financial industry. I will then offer some brief perspectives on business continuity management and close with some final thoughts on the prospects for the insurance industry in Malaysia to contribute towards the advancement of risk management capabilities across Malaysian businesses. Changing practices in risk management Since the financial crisis, risk management practices have come under intense scrutiny. The spectacular failures in risk management in the lead up to the crisis prompted deep reflections on what had gone wrong with risk management systems and practices – not least of all among companies that had invested heavily in sophisticated risk measurement and management systems only to have them ultimately fail to detect or control risk exposures. Closer to home, businesses in Malaysia are currently facing a set of challenging business conditions and some are likely to find themselves ill-prepared to respond to the challenges, with important implications for their future prospects. So what can we learn about the changing practice of risk management from these experiences? A first observation to my mind concerns the importance of building a strong risk culture supported by governance arrangements that are explicitly aligned to a firm’s risk appetite.
Nor does prudential supervision of individual institutions guarantee financial stability at the systemic level. 9 We also have a much better appreciation of how credit cycles have strong implications for financial stability. BIS central bankers’ speeches  1  •  Moritz Schularick and Alan Taylor describe financial crises as “credit booms gone wrong”.1 Risks to financial stability stem from both the pace of credit creation as well as the level of credit. •  Claudio Borio and Piti Disyatat argue that the amplitude of financial cycles, such as for credit, exceeds that of business cycles due to what he calls “excess elasticity” of the financial system. Cross-border financial flows amplify domestic credit booms and domestic monetary policy fails to constrain the credit creation process adequately. •  Frederic Mishkin warns how the bursting of credit-fuelled asset price bubbles can lead to episodes of financial instability that are particularly damaging for the economy. 10 These findings help us better understand the conditions that led to the Global Financial Crisis. And the concerns remain valid in the post-Crisis environment. Central banks have kept policy rates low for long, and purchased assets in large quantities further out along the yield curve. •  Even though the United States is already “tapering” its asset purchases, global financial conditions remain extremely loose. •  There are signs of growing risk-taking: in the form of leveraged loans, covenant-lite corporate bonds, and narrowing spreads on sub-investment grade paper.

Zeti Akhtar Aziz: Sustaining Malaysia as a platform for international Islamic finance Address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the Launching of HSBC Amanah Malaysia Berhad: "Sustaining Malaysia as a Platform for International Islamic Finance", Kuala Lumpur, 25 November 2008. *  *  *  It is my pleasure to be here today at this official launch of "HSBC Amanah Malaysia Berhad" (HSBC Amanah). This launch is significant in a number of respects. It reflects the continued expansion of Islamic finance in Malaysia , taking place at a time of great uncertainty in the glo bal financial system. The launch of HSBC Amanah, as an Islamic subsidiary of an international financial group, is also significant as it will contribute towards enhancing further the international dimension of Islamic finance in Malaysia, thus strengthening our international financial and economic linkages with other parts of the world. The Islamic subsidiary represents the transformation of the Islamic banking window operations into a dedicated entity that allows for greater strategic direction and drive of performance for the Islamic banking business. The advancement of the Islamic subsidiary institutions structure has the potential to further complement the goals of the group by providing an alternative model to spur the expansion of the banking business. It will pave the way for providing strong support in terms of capital, resources and operational infrastructure to elevate performance.
It has to spot at an early stage and to correct deviant behaviours. The overall scope of peers’ surveillance should be resolutely broadened to include the competitiveness as well as structural reforms of individual countries, so as to maintain healthy and sustainable growth as the ECB has constantly asked for during the past year. In doing so we will pave the way for a European economy which will have a higher level of growth potential, and which will be prosperous, stable and resilient. The introduction of the single currency represents the greatest achievement to date in the history of European integration – a process that has ensured six decades of peace and prosperity in Europe. Countries that share a common currency share a common destiny. Thank you for your attention. BIS Review 59/2010  5

Thus, by working to ensure price stability as well as maintenance of a safe, sound and efficient financial sector, the Bank is contributing to the achievement of sustainable economic growth and, ultimately, poverty reduction. In a nutshell, following the amendment of the Bank of Zambia Act in 1996, the Bank’s main responsibilities comprise price and financial system stability. The Bank ensures financial system stability by licensing, supervising and regulating the activities of banks and non-bank financial institutions so as to promote the safe, sound and efficient operations and development of the financial system. BIS Review 74/2004  1  Ladies and Gentlemen, I trust that, as members of UNZABECA, you have actively participated in these series of lectures and expanded your knowledge of the functions of the Bank of Zambia. On our part as Bank of Zambia, we strongly encourage investment in education, which has been demonstrated by the sponsorship of these Lectures. In this regard, I wish to take this opportunity to call upon other institutions to support our university by either sponsoring a series of lectures, like the Bank of Zambia has done, or rendering any financial assistance. As many of you may be aware, most of the companies in Zambia have benefited, in one way or the other, from the services offered by our universities. As for the Bank of Zambia, most of its management members of staff, including myself, are graduates of this university and were members of UNZABECA.
BIS central bankers’ speeches  1  We all agree that the Black Sea Region is increasingly becoming a priority on the international agenda. In fact, a regional approach is emerging as actors completely understand that common problems need to be addressed jointly. Over the past five years the region and the world have faced many troubled moments; fast changes have influenced the way peoples choose to look to the future. The idea of strengthening cooperation in the Black Sea Region is not new. It sprang from a paradox: although the countries in the area shared geographical proximity, they came from different historical and political backgrounds and, as a consequence, had poor or quasiinexistent economic relations. As a veteran in this field, I can give you a simple example: in the ‘90s, to reach either Baku or Tbilisi one had to fly through Vienna. In effect, in the autumn of 1997, the Governor of the Central Bank of Turkey contacted me and suggested the founding of a Governors' Club of Central Asia and Black Sea Region, with the Bank for International Settlements serving as a model. It was officially instituted on May 1st, 1998, in Istanbul, when nine countries signed the founding protocol. During the following years, thirteen more countries gradually joined our Club, now spreading from the Baltic Sea to the Pacific Ocean, from Central Asia to the centre of Europe.

Regional cooperation in different fields like food and energy security – focal points of today’s conference – might be initiated at a high political level, but its implementation requires an active, broader and more informed participation of private sector and civil society, as the main vehicles of cross-border cooperation. The expansion of each one’s participation has a double effect; it allows for more informed regional policies and faster project implementation, on one hand, and it cultivates an understanding that regional cooperation has a direct impact on everyday life and individual citizens’ welfare on the other hand. The Romans used to say “mens sana in corpore sano”. The way I see it, it greatly matters what you fuel your body with. Greater food production for an increasing population goes hand in hand with ensuring access to affordable, safe and nutritious food. The way food nourishes our bodies, energy fuels the economy. So, energy needs to be secure, affordable and sustainable. I could go further and stress once again that for a healthy economy there is a substantial need for a healthy financial and banking systems. However, today’s conference will not generate either solutions or concrete answers to the multiple of issues the food and energy security rises, but it will most certainly cast a new light on possible ways to handle the challenges ahead of us.