samchain/econo-pairs-v1 huggingface dataset:
In response, I believe that concerns in this respect may reflect the perception that I have already challenged – that regulatory capital charges directly drive credit pricing decisions. As I noted, research suggests that it is economic capital that drives credit pricing, not regulatory capital. Consequently, Basel II will simply align regulatory capital rules more closely to banks’ actual practices; it will not change how they price credit facilities. Nonetheless, the Committee recognises that any risk-sensitive capital framework will cause the capital requirement to fluctuate for the same exposure if a borrower’s creditworthiness strengthens or weakens. To mitigate excessively wide swings in capital requirements, the Committee has flattened the risk weight curves that apply under the “internal ratings-based approach” to credit risk so that a small change in credit risk does not lead to a large change in capital requirements. At the same time, the Committee will require banks adopting the more advanced approaches to credit risk to adopt a more forward-looking approach to credit risk management by requiring meaningful stress testing of their credit portfolios. Stress testing is intended to help banks understand how their exposures to credit risk may change in the future should sudden shocks affect the market in some way. BIS Review 33/2004  5  2. Is Basel II appropriate for banks in emerging market countries? The first key question addressed Basel II’s potential impact on investment and capital flows between countries.

For those banks that do experience reductions in capital as a result of Basel II, some observers have questioned whether the lower requirements might provide certain advantages and make it easier for those banks to acquire other banks that do not share in the same benefits. History suggests that this particular concern may be unfounded. In a paper published this past February by the Federal Reserve, researchers reported that they did not find convincing evidence that past changes in capital requirements have had a substantial impact on mergers between banks. The issue of competition between banks has also come up in the context of competition between countries. Here, we should remember that Basel II is intended to help ensure that international competition in banking markets is driven by the strengths of each bank, rather than by differences in each country’s rules. One way that the Committee has sought to promote a consistent application of the new framework is by providing banks and supervisors with detailed requirements where necessary. As I have already mentioned, these details may add to the appearance of length and complexity in Basel II, but that is a small price to pay for greater consistency and a more level playing field. However, given the need to have a framework which can be adapted to a wide range of circumstances, cooperation among supervisors is clearly the most important tool in achieving an appropriate level of consistency.
[12] At the same time, the large stock of assets acquired under QE continues to provide significant monetary policy accommodation that may run counter to our efforts to bring inflation back to our 2% target in a timely manner. QT will gradually unwind this accommodative impact. Broader market impact of quantitative tightening How QT operates in practice, however, is highly uncertain. There are few historical episodes in which central banks have reduced the size of their bond portfolios. QT may operate differently from QE The experience of the United States points to two polar cases. In the wake of the 2013 “taper tantrum”, the term premium of a ten-year US Treasury yield surged well before the Federal Reserve started reducing the pace of its purchases (Slide 8). If QT was QE in reverse, balance sheet run-off would be expected to increase the term premium, which compensates investors for the risk of holding a longer-term bond. After all, compressing the term premium by removing duration risk is one of the key transmission channels of QE. [13] Yet, the Federal Reserve’s balance sheet reduction that started in 2017 had no discernible impact on the term premium. [14] Instead, during that episode, QT was found to have tightened financing conditions mainly through the impact of scarcer central bank reserves on short-term money market rates. [15] As for the current phase of QT in the United States, the jury is still out.

Speaking domestically, as the mega-regulator of the financial sector, how do you view the strength of the banking segment in terms of contributing to domestic growth? Following the crisis the Macedonian banking sector proved to be quite resilient. No banks failed and all were well capitalized. Our prudential regulation has always kept banks from entering into risky investments as we have a conservative banking system. As a result, we were not exposed to some exotic instruments from abroad before 2008 which is why they did not suffer directly. Indirectly, yes, through reduced economic activity which created some problems with companies in the real sector where they could not repay their loans which in turn raised the Non-Performing Loan (NPL) ratio to around 12%. But again, comparing regionally from Slovenia to Greece it is probably the lowest and more importantly, fully covered with provisions. Liquidity is very high at 30%. So after stabilization the goal is to promote lending activities once more. A second channel of exposure was through the fact that 90% of Macedonian banks are foreign owned and parent banks were primarily oriented to handling problems in their home country. Sometimes they make decisions at a group level without paying specific attention to their Macedonian operations, which affects our banks negatively, depicted by years with no growth. I do have to point out, however, that Macedonian banks do not rely on funds from their parent banks; our Loan-to-Deposit (LTD) ratio is 90%.
Enlargement is a political decision which concerns the Member States of the European Union. However, it seems natural that the Eurosystem will become more and more involved in this process in the near future, in particular given the implications of enlargement for our main tasks and objectives. Moreover, it is clear that the Eurosystem will play an important advisory role in areas related to its competencies. How should the Eurosystem address and view the enlargement process? Let me make a few general remarks. First, it is my view that the Eurosystem should adopt a constructive attitude towards the prospect of EU enlargement. This applies also to the participation of new EU Member States in ERM II and their eventual adoption of the euro. The Eurosystem should be prepared to advise the accession countries both in undertaking necessary structural reforms and in pursuing the stability-oriented policies which are required in order to fulfil the accession and convergence criteria. Moreover, the Eurosystem should also stand ready to cope with additional requests to provide technical assistance to these countries and, in particular, to their central banks. A second observation is that the Eurosystem should support equal treatment as a key feature of the accession process. This implies that objective and uniform criteria should apply, in turn, to accession, participation in ERM II and adoption of the euro.

John C Williams: Discussion of "Prospects for Inflation in a High Pressure Economy: Is the Phillips Curve Dead or Is It Just Hibernating?" by Peter Hooper, Frederic S. Mishkin, and Amir Sufi Remarks by Mr John C Williams, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the US Monetary Policy Forum, New York City, 22 February 2019. * * * Accompanyting Tables and Figures of the speech. As prepared for delivery. The Phillips curve is the connective tissue between the Federal Reserve’s dual mandate goals of maximum employment and price stability. Despite regular declarations of its demise, the Phillips curve has endured. It is useful, both as an empirical basis for forecasting and for monetary policy analysis. The paper by Peter Hooper, Rick Mishkin, and Amir Sufi—HMS for short—provides an in-depth analysis of key aspects of inflation dynamics in the United States and how they may have changed. This study is particularly timely against the backdrop of an emerging consensus that the Phillips curve has become nearly flat. If this is true it would fundamentally alter the employment-inflation trade-offs the Fed confronts. There is a lot to like about this paper: It synthesizes existing research, new analysis, and bridges the study of wages and prices. Too often these are studied in isolation. But most significant, as someone who has discussed papers at the USMPF that reached the century mark in page count, this year’s paper came in at a relatively svelte 65 pages.
(The UK is also unusual in that foreign exchange reserves, and any profits earned on them, belong to the government rather than to the central bank, although the Bank of England does of course have responsibility for managing the reserves). European integration 3 Maxwell Fry, Charles Goodhart and Alvero Almeida, Central Banking in developing countries,  Routledge, 1996, pages 97-99. BIS Review 33/1997  - 10 -  Looking at the European continent as a whole, it is interesting that, whereas the common history of central and eastern European countries over the last half century has produced broadly similar central banks in the different countries - at least in those which are contemplating accession to the European Union - the central banks of the existing member states are a disparate bunch. What remains to be seen is how far the advent of Economic and Monetary Union may induce more homogeneity and, indeed, reduce costs. It ought to be the case, after all, that one monetary policy is cheaper to administer than 15, or 25. The European Central Bank will appear a much more concentrated creature than the central banks we have been looking at. It will be responsible for the issuance of euro banknotes (known to the cognoscenti as bridging finance) but beyond this, in terms of the diagram I have been using, the ECB will be almost uni-dimensional (figure 7). According to the Maastricht Treaty its independence in setting interest rates will be unparalleled.

But undoubtedly, finance without rules could be the ruin of the economy. To be sure, financial regulation is necessary particularly because financial crises often have considerable economic and social costs, with serious and lasting repercussions. A study by Laeven and Valencia 8 in 2013, which considers 147 banking crises between 1970 and 2011, estimates the median output loss between the peak of activity before the crisis and the three years after at around 23% of GDP, and the median increase in public debt over the same period at 12% of GDP, while total government bailout spending amounts to almost 7 percentage points of GDP. Moreover, beyond the immediate effects, financial crises reduce the economy’s longterm potential: companies cut back on their R&D, capital and infrastructure investment, which results in a decline in productivity and a slowdown in technological progress. The 2007–2009 crisis is unfortunately an illustration of this; it was the worst crisis since that of the 1930s. The financial imbalances generated by the bursting of the subprime bubble in the United States spread rapidly to the global economy. The crisis affected both the level and trend of GDP, leading to a permanent loss in wealth. Cumulative GDP losses compared to the pre-crisis trend are estimated at a quarter of global GDP. 9 In a number of countries, in particular in southern Europe, GDP has still not returned to its pre-crisis level. II.
Page 14 of 27  Figure 1 Population by phase of Step-by-Step Plan and IMACEC (1)  Quarantined population, mobility and activity  (seasonally-adjusted series; index Feb-20=100; phase)  (monthly averages, percent)  Imacec  Non-mining Imacec  Mar-20  Apr-20  May-20  Mar-21  Apr-21  May-21  Quarantined population (2)(3)  2.0  15.4  32.9  36.1  87.0  50.3  Google Mobility (3)(4)  -12.6  -50.6  -48.6  -25.4  -38.7  -25.1  -5.7  -14.1  -15.7  -1.0  -3.0  -  Average confinement (right axis)  100  5  95  4  Non-mining IMACEC (4)(5)  90  3  Surprises in activity data (annual variation) :  85  2  80 Jan.19 May.19 Sep.19  GDP 2021.I: 0.3% (EES March: -0.7%) IMACEC April 14.1% (EES May: 9.5%)  1 Jan.20 May.20 Sep.20  Jan.21  (1) The average confinement is calculated by weighting each phase of the Step-by-Step Plan by the amount of population subject to it. A lower number indicates greater restrictions on movement and assembly. (2) The quarantines began on March 26, 2020. From the beginning of the Step-by-Step Plan, the population is considered in Phase 1. (3) Data until May 23. Simple average of Workplaces, Commerce, and Supermarkets. (4) Difference compared to January 2020. (5) Seasonally adjusted series. Sources: Central Bank, Ministry of Health of Chile, National Institute of Statistics and Google Inc.

This contributed to better provision of insurance services at competitive prices and coverage, thereby, achieving higher growth rates in the market. The number of insurance and reinsurance companies at the end of the third quarter of 2013 stood at 34 in addition to 180 insurance-related service companies to support insurance services. Gross written premiums stood at SAR 19.2 billion at the end of the third quarter of 2013, compared to SAR 15.7 billion in 2012, growing by 22.3 percent. The ratio of insurance written premiums to GDP stood at 0.69 percent up to the third quarter of 2013, indicating significant opportunities of growth for this sector in the coming years. SAMA attached great attention to insured persons’ rights. The Implementation Regulation of The Cooperative Insurance Companies Control Law obligates insurance companies to settle customers’ claims in a period not exceeding 15 days. SAMA supervises companies’ compliance with the provisions of this article on a continuous basis. Ladies and gentlemen, In the area of finance, SAMA has published the Implementing Regulations for the Finance Laws, and issued Implementing Regulations of the Financial Leasing Law in coordination with the Ministry of Justice. It has also issued the Implementing Regulations of the Finance Companies Control Law. In this context, SAMA applies the best internationally recognized practices, ensuring the soundness of the sector and its stability, fairness of its transactions, in addition to encouraging legitimate and fair competition between finance companies, taking appropriate means to develop the sector, working on Saudization of jobs, and raising efficiency of its employees.
The External Consultative Committee includes representatives from international payment and settlement mechanisms (such as S.W.I.F.T., Euroclear, Cedel, and VISA), from international financial market associations (such as the International Swaps and Derivatives Association, the International Institute of Finance, and the Global 2000 Coordinating Group), from multilateral organizations (such as the IMF, OECD, and World Bank), from the financial rating agencies (such as Moody’s and Standard & Poor’s), and from a number of other international organizations (such as the International Telecommunications Union, Reuters, the International Federation of Accountants, and the International Chamber of Commerce). This diversity of perspectives led to an extremely valuable discussion with the Joint Year 2000 Council and stimulated work on several projects to be taken forward with input from both the public and private sectors, for example, the initiatives on Y2K testing and self-assessment that I will describe shortly. Further sessions with the External Consultative Committee are planned on a quarterly basis. It is important at the outset for me to be clear that the Joint Year 2000 Council is not intended to become a global Y2K regulatory authority, with sweeping powers to coordinate international action or to take responsibility for ensuring Y2K readiness in every financial market worldwide. Through our ability to serve as a clearinghouse for Y2K information, however, I believe that the Joint Year 2000 Council will play a positive role in three areas: (1) raising awareness, (2) improving preparedness, and (3) contingency planning.

At the same time, however, the international financial supervisory community recognized that it would be useful to establish a public-sector group, called the Joint Year 2000 Council, that would work with the private sector and also maintain a high level of attention on the Y2K problem among financial market supervisors and regulators worldwide. 2  A videotape containing highlights of the Global Year 2000 Round Table is available free of charge from the Bank for International Settlements. Please contact the Joint Year 2000 Council Secretariat at the Bank for International Settlements, Centralbahnplatz 2, CH-4002 Basle, Switzerland. (telephone: 41 61 2808432, fax: 41 61 280 9100, email: jy2kcouncil.bis.org) The Federal Financial Institutions Examinations Council ("FFIEC") has also placed the entirety of this videotape on its web site, where it is available for downloading in whole or in part. Please see http://www.bog.frb.fed.us/y2k/video_index.htm#19980408 BIS Review 56/1998  -4-  Joint Year 2000 Council The formation of the Joint Year 2000 Council was announced at the end of the Global Year 2000 Round Table on April 8, 1998. The Joint Year 2000 Council consists of senior members of the four Sponsoring Organizations. Every continent is represented by at least one member on the Council. The Secretariat of the Council is provided by the Bank for International Settlements. I am honored to serve as the Chairman of the Joint Year 2000 Council.
The knock-on effects of distress at one of the current large global players would presumably be much bigger. Conclusions Let me briefly conclude, ladies and gentlemen. Central banking and payment systems are inextricably linked. Central banks all around the world are involved in payment systems and market infrastructures in many different ways owing to their roles and responsibilities in  BIS Review 130/2007  5  relation to monetary policy and financial stability. Indeed, payment systems disruptions would not only affect financial stability, but may potentially also have an impact on monetary policy implementation. Central banks have found ways of safeguarding price stability, while at the same time ensuring the smooth functioning of the payment system, by drawing a clear line between providing intraday liquidity for payment system purposes and providing credit for monetary policy implementation. Moreover, the sufficient availability of collateral is important today as a contribution of central banks to financial stability. The roles of central banks in the field of payment systems are changing in a number of ways as a result of progressing globalisation, increasing complexity, and the emergence of new players and services: •  The approach of central banks to analysing financial stability is changing. A comprehensive view of the key sources of risk and vulnerabilities facing the payment systems and market infrastructures cannot be formed without taking due account of developments at the global level, such as the emergence of cross-border payment systems and offshore centres.

Conclusion As I mentioned initially, I have in this speech referred to some of the new information received and compared it with the forecasts made in connection with the February Monetary Policy Report. It is important to point out that a lot of important new statistics will be received prior to the next monetary policy meeting in April, and it is not until then that an overall assessment can be made of the monetary policy consequences. When I look at what has happened since out monetary policy meeting on 12 February I think that events so far support the general outline given in the Monetary Policy Report. Neither does the difference between my own assessment and the main scenario apply to developments in so short a term as a month or two. My slightly more pessimistic view applies to what the consequences might be of the turmoil in the financial markets. It is a question of the risk of a weaker development abroad and the consequences this may have on developments in the real economy and inflation in the Swedish economy. My assessment in February was that, given the considerable prevailing uncertainty, we should wait before raising the repo rate. At the same time, it is important to emphasise that all we Executive Board members, regardless of our stance at the most recent meeting, look seriously upon both the risk of aggravated financial turmoil and weaker development abroad as well as the risk of inflation in Sweden becoming entrenched at a high level.
Most importantly, we introduced the Single Note Inspection (SNI) system to improve the quality of the newly printed currency notes with a view to ensuring zero defects in currency notes. Several other internal processes were also improved and upgraded to facilitate a more secure and uninterrupted flow of currency to the market. Going forward, maintaining the quality standards of the currency will continue to be the key focus in the Central Bank’s currency management policy. In this context, with a view to further strengthening the implementation of the Clean Note Policy and enhancing Sri Lanka’s image among non-nationals through the circulation of clean notes, licensed commercial banks (LCBs) have been instructed to refrain from accepting willfully mutilated, altered or defaced currency notes from 1 April 2018. We are also planning to issue a new coin series in 2018 by changing the metal of the coin, which would reduce the cost of minting, while also increasing durability. In the medium-term, we intend to establish a state-of-the-art cash center to improve currency operations. Also, plans have been made to set up coin dispensing/ recycling machines island-wide to smoothen the distribution and recirculation of coins in the country to meet the demand. 26  Public Debt Management We consider prudent debt management as one of the highest priorities given the challenge of managing a very large debt stock, while maintaining a proper mix between domestic and foreign financing.

This led to the creation of IBF in 1974, as a dedicated institute for financial sector training. More initiatives were introduced to deepen skills, such as the launch of the Chartered Financial Analyst (CFA) examinations locally in 1982 and the establishment of the Wealth Management Institute (WMI) in 2003. As the training landscape  BIS central bankers’ speeches  1  developed over the years, we subsequently evolved IBF into a standards-setter for financial sector competency. Today, Singapore’s financial sector comprises almost 12% of Singapore’s GDP, with more than 1,000 financial institutions performing roles in Singapore, the region and globally. It employs almost 190,000 people, of which about 70% are Singaporeans. The jobs are now diverse and increasingly complex. Beyond traditional corporate lenders and retail bank tellers, many more jobs have been created in portfolio management and investment analysis, product structuring, risk management and technology. Our financial sector has significant opportunities ahead of it. However, growth will demand deeper skills and expertise, rather than a large expansion of jobs. The deceleration in job growth in Singapore’s financial sector in the last few years1 is not a temporary happening. It reflects the slowdown in our local labour force growth, as well as major forces that are reshaping global finance. I will say a little more about these global forces, before going on to talk about what we have to focus on to remain a competitive and dynamic financial centre in the years to come. The evolving global financial landscape Globally, we are seeing countervailing forces.