samchain/econo-pairs-v1 huggingface dataset:
Mr Bergo focuses on Norges Bank’s responsibility for promoting an efficient payment system  Address by Mr Jarle Bergo, Deputy Governor of Norges Bank, to the Banks’ Payment Systems Conference, held in Oslo on 11 November 1999. *  1. *  *  Background  Risk in the payment system is closely linked to the use of deposits. Payment transactions - via banks take time, and this time-lag (between payment and settlement) is an important source of settlement risk. Cash payment allows immediate settlement without any such risk. Therefore, the transition from cash settlement to the use of deposits involves greater risk, but also greater efficiency. Thus, the public’s choice of means of payment and payment instruments directly affects the degree of risk and efficiency in the payment system. The public’s choice of different means of payment and payment instruments varies over time. This is, of course, nothing new. Already in 1924, the Banking Commission - which drafted a new law on commercial banks at the time - stated the following: The concept of means of payment is not beyond change; it has taken different forms throughout time. The law states what should be considered legal tender..., but common practice also allows certain secure assets to be used as payment... These bank-issued means of payment have - in the more developed countries - reduced the use of legal tender to minor daily disbursements (cash payments in its narrowest sense). Today, the payment system continues to undergo rapid change.

The best we can probably aspire to is directing monetary policies to achieving domestic price stability in a sensible manner and seeking to communicate our policy intentions as clearly as possible. Let me finish with a few words on the exit from unconventional monetary policies. While it may still be a way off, we know it will come eventually. And the recent market volatility prompted by heightened expectations of imminent tapering in the rate of asset purchases by the Federal Reserve has provided a salient reminder that it may not be smooth. Moreover, although the adoption of accommodative policies was synchronised across the advanced economies, the heterogeneous nature of the recovery, with the United States leading the way and Europe bringing up the rear, means that exit is unlikely to be synchronised, which will complicate matters. The international spillovers mentioned earlier can obviously be expected to operate in reverse on exit. And indeed, we have just seen such synchronised increases in long-term sovereign bond yields internationally, together with capital outflows from emerging economies and associated downward pressure on their currencies. But for these countries, the greatest danger during exit will probably lie in the risk of future financial sector disruption if outflows expose currency mismatches on bank and corporate balance sheets. For advanced economies, particularly those lagging behind on the road to exit, there is a risk that market participants see tightening moves in, say, the United States as indicating that tightening is imminent elsewhere.
Actions will be taken to amend/repeal Financial  23  Transactions Reporting Act No 6 of 2006 (FTRA) and Prevention of Money Laundering Act, No. 05 of 2006 (PMLA) in line with international recommendations. We will also facilitate and coordinate with stakeholders to amend the Mutual Assistance in Criminal Matters Act (MACMA), NGO Act and Trust Ordinance. In 2014, an AML/CFT National Risk Assessment (NRA) was conducted by the Central Bank with the support of more than 70 professionals representing key stakeholders. In 2018, we will take actions to update this NRA report. We will also coordinate with the Information and Communication Technology Agency of Sri Lanka (ICTA) to assist stakeholders to develop individual databases to maintain statistics in relation to AML/CFT. Moreover, we will coordinate with the Ministry of Foreign Affairs (MOFA) and other stakeholders to implement UN Resolutions on proliferation financing (UNSCR 1718 and UNSCR 2231). Further, we will continue to coordinate with the international community, including the Egmont Group, to fulfil our international obligations and to strengthen cooperation. During the year 2017, the Central Bank continued to strengthen the regulatory framework for the microfinance sector by issuing directions to licensed microfinance companies and principles, standards and guidelines to the Registrar of Voluntary Social Service Organisations, for the regulation and supervision of Microfinance NGOs.

In addition, several measures were taken to enhance the accountability and transparency of the investment process with greater emphasis on improving the governance structure of fund management, including the establishment of an independent, internal department for risk management. Further, the assistance of the Asian Development Bank (ADB) and the World Bank was obtained to improve internal processes in line international best practices. As in the previous years, we have continued to provide members with the highest possible returns on their fund balances through profitable, yet prudent investments. In 2018, we will take steps to further enhance accountability, transparency and the overall performance of Fund-related activities. Strengthening the overall risk management framework for EPF-related activities will also be among the top priorities in 2018. In this context, we will make every effort to further enhance institutional capacity through continuous training and development, which would be instrumental in conducting investment and fund management activities efficaciously. Technical assistance from ADB, under the capital market development project for Sri Lanka, will also contribute significantly to our capacity development efforts. Most importantly, we will strive to take prudent measures to provide our members with the best possible returns on their provident fund balances with us. In addition, EPF is in the process of implementing the government policy decision to use the new biometric National Identity Card number as a unique identification number for EPF-related transactions.
The actions needed to enhance market discipline and strengthen the resilience of the financial systems are currently being examined both by market participants and policy-  BIS Review 9/2008  9  makers. The recent experience has provided financial institutions and other markets participants with strong incentives to address the weaknesses revealed in various ways, including via improved transparency about exposures and greater disclosure of risks in products and processes. Financial regulators and supervisors are also examining ways to strengthen the resilience of the financial system through a robust framework that ensures adequate capital and liquidity buffers, and encourages market discipline and promotes effective risk management. At global level, the Financial Stability Forum will present a report to the G7 Ministers and Governors in April 2008 which will include recommended actions to achieve these objectives. What has been the impact of financial globalisation in the unfolding of the ongoing financial turmoil? It is a key factor that had contributed to boosting market liquidity, reducing market volatility and fostering financial development in the preceding years. Moreover, it facilitated the propagation of shocks and the spreading of sub-prime related risks to Europe, as a result of the acquisition of large exposures by European banks to structured finance products based on bank assets originating from across the Atlantic and European banks major involvement in the dollar asset-backed commercial paper (ABCP) market, where, at a certain point in time, they accounted for about 50% of the funding.

A reduced correlation – or even a lack of it – could simply be a consequence of the effective monetary policies of central banks which have succeeded in anchoring inflation expectations to price stability. 11 Direct effect of globalisation on domestic inflation The two more direct effects of globalisation on world and domestic inflation dynamics have been more visible but have partly offset each other, and the relative impact may be changing over time. On the one hand, raw materials and basic commodities, notably oil and other sources of energy, have become scarcer relative to world demand, leading to substantial upward pressure on prices. [see Chart 1] For example, Brent crude oil prices have increased almost tenfold over the last nine years, reflecting to a very large extent the impact of rising demand, especially in emerging market economies [see Chart 2], although supply-side factors have also played a role during some periods. On the other hand, the integration of a large reserve of low-cost, skilled labour in the international economy and the increasing production of manufactured goods in emerging market economies have put downward pressure on import prices of manufactured goods as well as on wage demands in industrial economies. As a consequence, the prices of a wide range of manufactured goods have been declining since 2000. This is reflected in the unit value of imports of manufactured products in the euro area, which in mid-2007 was virtually at the same level as in 2000.
The exception is the bust of 2007–08, where the fall in value has been both greater and faster. It is plausible that fire-sales, aggravated in part by marking to market, may have contributed to this dynamic. The fair value agenda So how do these considerations relate to the debate on international accounting standards? At present, these stand at a crossroads. In the US (through the Financial Accounting Standards Board (FASB)) and internationally (through the International Accounting Standards Board (IASB)), standard-setters are reviewing their treatment of financial instruments. Substantive decisions are planned during 2010. Within the IASB, a review of IAS39 is underway, with consultation on a new standard, IFRS9. The fair value debate is at the heart of the new proposals. One key dimension is valuation, where IFRS9 proposes a combination of amortised cost and fair values, with clear criteria to determine the suitability of assets for each category. In the US, FASB is expected to issue consultation proposals that would tend to reinforce the use of fair value among US banks. A second dimension is provisioning. The concern here is that the use of provisions based on incurred losses means that impairments are recognised too late, thereby contributing to pro-cyclicality of loan supply. 23 In response, the IASB has issued a consultation paper proposing that provisions be set on an expected loss basis. These proposals are currently being explored by regulators internationally. 19  For example, see Plantin, Sapra and Shin (2008) and Allen and Carletti (2007) for a theoretical exposition of these dynamics.

What is important is that at the moment of the decision, after having had the possibility of analysing all pertinent information and data, market participants can correctly predict our decision thanks to their intimate knowledge of our policy. 2  BIS Review 5/2005  ECB’s communication in practice Some features of the ECB are bringing about major additional challenges for external communications. In particular, the ECB operates in a multicultural environment with 12 different cultures and 10 different languages in the euro area and 25 cultures and 20 languages within the scope of the European System of Central Banks. And, the ECB was given the very ambitious challenge to be fully credible from day one, without track record and to issue a currency which would be immediately as credible as the most credible legacy currencies. In the practical implementation of the communication policy we make use of a wide range of communication tools. I will mention only a few of them here: First, the monthly press conferences after the first Governing Council meeting in each month. The introductory statement at the press conference is a key element in our communication as it conveys the collective view of the ECB’s Governing Council on the monetary policy stance in real time. In fact, the decision to hold a press conference after each policy meeting was unheard of among major central banks prior to the euro.
Here, too, money and goods can be exchanged simultaneously on a DvP basis, but the challenge lies in coordinating processes across different infrastructures, each with a different underlying technology. Traditional financial market infrastructures use the synchronised settlement model for settling securities transactions, for example by coordinating the RTGS system with the securities settlement system. 7  The SNB is examining three models for token settlement Let me now turn to the question of how token transactions could be settled in central bank money. Given the potential of DLT and tokenisation, the SNB sees the need to take a close look at secure and efficient payment settlement in a token ecosystem. We are therefore launching a project in which we are testing three models in productive payment and settlement infrastructures (cf. slide 10). To this end, we are working with regulated financial market infrastructures and other market participants. The first model involves synchronised settlement (cf. slide 11). A link to the SIC system synchronises the settlement of tokenised securities with the settlement of payments. This ‘RTGS link’ was tested, together with SIX and the BIS Innovation Hub, in Phase I of Project Helvetia. Such synchronisation was shown to be technically feasible. Nevertheless, this model has significant disadvantages compared to integrated settlement, as DLT functionalities were limited. As part of the project, we are currently examining whether these disadvantages can be minimised by adjusting the SIC system or the link itself.

DLT  14  30.3.2023  Swiss Payments Vision – an ecosystem for future-proof payments | Money Market Event | Andréa M. Maechler / Thomas Moser | © Swiss National Bank  Thank you for your attention. © Swiss National Bank
It’s the combination of the capacity for leverage, the complexity in assessing the risks they present, together with their apparent importance in many markets, that makes hedge funds an important focus of attention from a systemic perspective. For policy makers, the concerns associated with hedge funds range from investor protection, to market practices and potential manipulation, to the potential conflicts and reputational risks they present to the financial institutions they transact with, and to potential risks to the stability of the financial system. I want to focus on the latter set of concerns - those associated with systemic risk. These systemic concerns have two dimensions: First is the possibility that the behavior of hedge funds in periods of market stress could amplify rather than mitigate the shock, induce larger moves in asset prices, or cause broader damage to the functioning of markets when it is most important they function well. Second is the possibility that the failure of a major hedge fund or group of funds could significantly damage the viability of a major financial institution, both through direct exposure to the fund and losses resulting from the impact on other market risks to which the institution is exposed. BIS Review 70/2004  1  These concerns existed before the events associated with Long-Term Capital Management (LTCM) in 1998, but that episode provided a powerful example of both sets of risks, and how the erosion of counterparty discipline can magnify those risks. How significant are these risks today?

Denny H Kalyalya: Expansion of Zambia’s banking sector Remarks by Dr Denny H Kalyalya, Deputy Governor-Operations of the Bank of Zambia; at the official opening of Bank of China’s new premises, Lusaka, 9 December 2008. *  *  *  • Honourable Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, MP; • His Excellency – the Chinese Ambassador to the Republic of Zambia; Mr. Li Qiangmin; • Managing Director of the Bank of China (Zambia) Limited; Mr Du Qiang; • Distinguished Invited Guests; • Ladies and Gentlemen. I am greatly honoured for having been invited to speak on the occasion of the official opening ceremony of Bank of China’s new premises. Ladies and Gentlemen As part of the on-going Zambia-Chinese relationship, the Bank of China was established in 1997. Since then the Bank has recorded tremendous progress. Distinguished Invited Guests During the past 8 years, the overall financial performance and condition of the banking sector has been satisfactory. The sector has continued to expand and we anticipate increased economic and investment activity in the period ahead. Banks are expected to continue to provide the required level of finance to consolidate the economic gains registered so far. The Bank has achieved tremendous growth since its inception in 1997. During the last eleven years, total assets have increased by 325% to K507.9 billion in October 2008 from K13.8 billion in December 1997. Regulatory capital increased by about 1,000% to K41.9 billion in October 2008 from K3.8 billion December 1997.
In general, foreign borrowing is a source of diversification and thus risk reduction, but it can also spread unrest. By international standards, Norwegian savings banks are small. It can be costly to change a source of funding if one source should dry up. In the event of considerable financial unrest in international financial and capital markets, savings banks may be affected. Today, the shocks are often global. If the current high credit growth continues, financial stability in Norway will be threatened. We will become more vulnerable to all kinds of shocks. I have already touched upon the weak outlook for the global economy. There is also reason to expect considerable structural changes in the business 8  8  Income here is defined as household disposable income before deduction of gross interest expenses. BIS Review 86/2001  sector, for example, when economic resources have to be transferred to the public sector and other sheltered sectors. Restructuring may take place within established companies, but may also take place in a far less controlled manner and result in losses for banks and other lenders. Policy challenges Like banks and other market participants, the authorities also learn from crises. I will discuss three areas in which we have learned important lessons. First, economic policy must be oriented towards stable economic development. An inappropriate economic policy has been a contributing cause of crises both in Norway and abroad.

Dimitar Bogov: “The savings deposits soar also during crisis” – interview in Radio Free Europe Interview with Mr Dimitar Bogov, Governor of the National Bank of the Republic of Macedonia, in Radio Free Europe, conducted by Mr Aleksandar Pesev on 29 September 2013. *  *  *  Mr. Bogov, is the ending of the crisis in the Euro area going to have a direct impact on the boost of the economic growth in the Republic of Macedonia? Of course, the Euro area and the European Union are the largest trading partners of the Republic of Macedonia, the largest portion of our export is placed there, and as a result, the demand in the Euro area has large influence on the production in Macedonia. We were encouraged by the data for the second quarter of the year on the Gross Domestic Product, where after six quarters of negative results, positive growth rate has finally been registered. We expect that this will endure also in the following period, we are aware that this growth in the Euro area and the European Union is still very fragile, meaning, there are still risks, but we are optimistic, the indicators that emerge in the Euro area economy every day are mainly positive, so it is expected that it will reflect adequately on the Macedonian economy growth, as well. Can the recent trade war we had with the neighboring Kosovo somehow spoil the perceptions for this positive growth?
The RTGS was implemented in September 2003 and the system facilitates large value and time critical fund transfers and settlements electronically and on real time. In February 2004, the SSSS module was integrated to the RTGS System. To facilitate the operations of these systems, government securities are issued in scripless form and the system facilitates simultaneous transfer of government securities and settlement of funds through the RTGS on a Delivery versus Payment basis. The Central Bank continues to upgrade and enhance facilities to these two systems and in December 2005, the internet based facility called LankaSecureNet which enables the account holders of the Scripless Securities Depository System to obtain up to date details of their investments through the internet was introduced. While eliminating the systemic risks that was involved in the high value and time critical transactions, the Central Bank became the owner and operator of both the RTGS and SSS systems. The service provider of the retail payment system is LankaClear (Pvt) Ltd which is owned jointly by the Central Bank and the commercial banks. Two weeks ago, LankaClear (Pvt) Ltd introduced the Cheque Imaging and Truncation System to ensure that cheques deposited in any part of the country is cleared and settled within two days except in uncleared areas. The cheque imaging system eliminates regional disparities in cheque clearing and establishes a common clearing schedule. In addition to these two systemically important payment systems, there are other small scale payments and settlements arrangements.

Second, banks' increasing uncertainty about their own risks in the structured credit market and the creditworthiness of their counterparties turned out to be a handicap. Even the affected banks themselves did not know which contingent liabilities should be recorded on their balance sheets. Moreover, they had a lot of difficulty gauging the creditworthiness of their counterparties quickly and with sufficient accuracy. This confidence problem was particularly apparent in the interbank market. The risk premium for unsecured interbank loans has more than tripled since the onset of the US mortgage crisis. And, third, it has become clear that risk management has its limitations. In the area of market risk, events have occurred that – according to the models used – should not even have been possible, or at least would have been considered extremely unlikely. In the case of liquidity risks, it has become clear that assumptions and precautions based on normal times are not appropriate in extraordinary market situations. Possible risks: contagion effects in related markets and deterioration of environment What comes next? Is the worst already past? Unfortunately, there is no clear answer to this question. A risk analysis reveals that, ultimately, the future course of the crisis is likely to be determined by two major risks. First, it is not impossible that problems which have so far been limited to a few partial markets could spill over to additional markets. Such a danger of contagion mainly exists for related credit markets that have so far been largely unaffected by the turmoil.