samchain/econo-pairs-v1 huggingface dataset:
Consequently, Saudi banking companies were established and became integrated with the global banking system, benefiting from its expertise and training capabilities, and coped with its  BIS Review 59/2006  1  developments. Eventually, the Saudi banks compare well with their counterparts in advanced countries. During the 1990s, no new bank licenses were issued. However the year 2000 ushered in a new era of openness when a license was granted to the Gulf International Bank, a Bahraini bank, owned by the GCC countries. This was to implement a decision made by the GCC Heads of States to permit qualifying GCC-owned banks in their home markets. This has been followed by new licenses to 4 more GCC-owned banks, (namely the Emirates Bank International, the National Bank of Kuwait, the National Bank of Bahrain and the Bank Muscat). Licenses were also granted to five other major international and emerging market banks (that include BNP Paribas, Deutsche Bank, JP Morgan, State Bank of India and National Bank of Pakistan). Just during this past week Deutsche Bank has opened its branch in Riyadh and National Bank of Kuwait in Jeddah. The remaining banks are in the process of opening their branches in 2006. On 27/2/1427H, a Royal Decree was issued approving the incorporation of a joint-stock company under the name "the Development Bank", with a capital of Rls 15.0 billion. This would enhance competition and open new horizons for diversified banking services.

Looking ahead, the financial system and the banking sector will benefit from the state’s efforts to diversify the economy and improve the investment environment through regulatory and structural measures taken in the various sectors. A number of new laws and regulatory guidelines have been enacted to enhance economic growth and achieve further opening of domestic markets. The laws included the Foreign Investment Law, the Capital Market and Cooperative Insurance Laws and a new Labour Law. Another important development is the Kingdom's accession to WTO. Turning to the Capital Market, its contribution to the growth of the Saudi economy has been clearly evident. Over the preceding few years, the market has witnessed remarkable development, and its role as a financial intermediary between savors and investors has been boosted. It would be appropriate to indicate that the recent market correction witnessed by the market has had no adverse consequences on the banks and banking system. This is because SAMA, through its supervisory functions, has undertaken measures necessary for safeguarding banks and customers against any unfavorable developments in the market. The measures included tightening prudential limits related to lending for trading in the market, issuing controls for consumer loans and other measures which would protect customers and banks against expansion in consumer loans which may end with trading in the equity market. Consequently, Saudi Banks have managed to do well in the first quarter of 2006.
Bank collapses in the USA and Switzerland The bank collapses in the United States and Switzerland in March created uncertainty in the global financial markets. To understand these developments, it is important to analyse the underlying problems. They are largely well known. However, there are also a number of new elements that may exacerbate the wellknown problems and that need to be analysed further. We want to avoid problems in the banking sector in one area spreading to other parts of the financial system or to other countries. At the same time, it must be possible to wind down banks with serious problems in an orderly manner. It is important to learn from crises. What we have now seen means that I think we will have to change some regulations. The financial regulatory framework is governed to a very large extent by global standards, so that is where the analysis must begin. Any future agreements reached at global level will also clearly affect the rules in the EU and thus in Sweden. Let me first focus on the more familiar problems and then return to what I see as new ones. In a sense, you can probably talk about the financial sector before and  2 See, for example, the discussion in Federal Reserve Bank of St. Louis (2022). 4 [30]  after the Silicon Valley Bank crash. I think it can be a watershed in the way we think about the design of some financial regulation.

This could risk contributing to an increase in the turmoil on the financial markets, especially in a situation where economic activity is slowing down. However, I consider the risk of this happening in the market for government bonds to be small, but should it be necessary, we will adapt our sales of government bonds to the situation. Conclusion and summary Inflation is currently far too high and our focus is to bring it down to the 2 per cent target as soon as possible. According to our latest assessment, this should be achieved in 2024. The bank collapses in the United States and Switzerland have shown that despite the tighter regulations for banks following the global financial crisis, there are still problems with high risks in the financial system. The global standards for financial regulation therefore need to be amended on several points. Monetary policy, financial stability and fiscal policy are interdependent. I have discussed some policy implications of this:  24 [30]         There may be a conflict between price stability and financial stability, which may look different and vary over time, and this can affect the monetary policy stance. Monetary policy can in certain situations prevent the build-up of financial imbalances; that monetary policy takes into account the build-up of risk resulting from low interest rates under a longer period of time may therefore be wise.
The main credit needs among people in low growth areas and with low incomes, in particular, women are: •  access to small, unsecured, fixed term loans in cash;  •  quick access to credit without lengthy or intrusive application procedures;  •  affordable weekly payments with no hidden or extra charges;  •  automatic repayment arrangements, such as deduction from benefit or home visits by a collector; and  •  opportunities for making late payments or rescheduling loans without incurring charges when temporary financial problems occur. If anyone of these or a combination of these factors tend to deny access to financial institutions or to products, that is known as financial exclusion, which is often reflected as a symptom of poverty as well as a cause. As much as we are interested in financial inclusion, it is also necessary to reduce financial exclusion to a minimum, which is also a policy challenge. These are two sides of the same coin.

In this context, I am proud that the Bank of Albania has always been and remains frontrunner of change. 3. Bank of Albania, an evolving institution Throughout the transition history, The Bank of Albania has shown able to change and embrace better contemporary and most effective practices. The nature and functions of the institution were fundamentally transformed in 1992, when the Albanian economy started the transition process towards a free market economy. Within a short period of time and in the presence of a shortage of an institutional heritage, the Bank of Albania succeeded to establish the contours of an independent monetary policy, being empowered in the presence of a free-floating exchange rate, regulate and supervise a private banking sector that functions based on the market principles. The qualitative transformation of the Bank of Albania towards a modern central bank evolved further with the approval of the new Law on the Bank of Albania in 1997, which lays down the primary objective “to achieve and maintain price stability”. This Law sets out the decision-making, financial and operational independence of the central bank in the pursuit of its objectives, in line with the best international practices. In addition, it is encouraging that this institutional independence enjoys a broad social consensus. During these years of transition, our monetary policy has marked a notable progress towards: developing a theoretical framework; building up the completion of our knowledge with empirical studies; perfecting the instruments for its implementation; and the transparent communication with the public.
BIS Review 158/2009  3  As economic revival gathers pace, the immediate policy priority is to ensure that the domestic foundations for recovery are more firmly entrenched and the medium and longer term growth potential is established. The private sector will need to resume its primary role in driving economic activity. Of particular importance is the growth of private investment. Towards this end, the Central Bank will continue to ensure that access to financing across all segments remains in place. While it is critical for the public sector to play a counter-cyclical role, sustained fiscal stimulus that leads to excessive fiscal burden would be detrimental to longer-term economic prospects. Thus, the Government’s current commitment to fiscal consolidation and enhancing efficiency in public spending reflects a measured and sound approach in budgetary management. As for monetary policy, it is recognised that a prolonged period of low interest rate globally could lead to potential market distortions, particularly in an environment of ample liquidity. While consumer inflation is expected to remain low in the international environment, there is a need to be watchful of developments in asset markets and asset prices. Promoting monetary and financial stability is complicated by the frequency of very large short-term capital flows. Better prospects for recovery and expectation of a head start in the unwinding of policies in the Asian region compared to the rest of the world could lead to strong capital inflows.

In the end, disorderly liquidation looks to have left unsecured creditors in the holding company with a recovery of around 20 cents on the dollar. The last resort, if no white knight can be persuaded to come forward and if the contagion caused by administration was simply too dangerous, was to use public funds to attempt to recapitalise and resurrect a failing bank. Although it was the last resort, it was also probably the most common. For the UK, this proved to be the only option available for what had, before the crisis, been three of largest five UK lenders. Given these banks accounted for some 40% of lending to the UK economy – and scarred by the chaos in the aftermath of Lehman – the government  2  BIS central bankers’ speeches  was left with little option but to make a huge £ injection of funds to shore their capital position. The intervention was successful in stabilising the situation but UK taxpayers are still counting the cost. Today, the government’s stake in RBS, equivalent to economic ownership of a little over 80% of the group, is worth around £ a loss of over 25% on the funds injected. The UK was not alone. The US injected over $ of preferred stock into financial institutions, including a number of the largest firms. On the continent, the three Benelux countries injected € in a part-Nationalisation of Fortis; France, Belgium and Luxembourg injected € of capital into Dexia.
Our aim in this is to make sure that cash can circulate smoothly and without interruption and we also manage the state’s cash reserves and test the quality of the cash in Estonia every day. Tomorrow Eesti Pank will release ten-euro notes of the second series into circulation, and these are more secure and longer-lasting than the notes of the first series, with better security features. As Governor of Eesti Pank I can confirm that cash is not going anywhere. I personally like to use cash and I am proud of the quality of the euro cash used in Estonia. Access to cash is important, and it is a complicated issue that doesn’t have a quick and easy solution. This is why it needs to be discussed, and Eesti Pank is very pleased that we could be part of the working group set up by Minister of Economic Affairs and Infrastructure Urve Palo to look for solutions. Eesti Pank believes that the issue of access to banking services across Estonia should not be handled under the Emergency Act, but this does not mean that it should be ignored. I will now answer questions about the Emergency Act first, and then questions about access to banking services. Coming to the first question of the interpellation, as Governor of Eesti Pank I have set minimum requirements for the provision of cash and payment services in case of emergency.

Ardo Hansson: Availability of banking services in Estonia Answer by Mr Ardo Hansson, Governor of the Bank of Estonia (Eesti Pank), before the Riigikogu (the unicameral Parliament of Estonia), Tallinn, 22 September 2014. *  *  *  Interpellations raised by members of the Riigikogu concerning the accessibility of banking services 1. Why has Eesti Pank not set minimum requirements for the provision of cash and payment services in a decree alongside the technical requirements, in the context of the Emergency Act? 2. What solutions has Eesti Pank discussed for ensuring the equal accessibility of cash and payment services across Estonia? The principal position of Eesti Pank Banking services are important and they need to be accessible to people and companies across Estonia. It is reasonable for services to be provided efficiently and flexibly. I understand that people are worried about the accessibility of banking services across Estonia. Eesti Pank does not prefer any one means of payment over any other. Cash is an official means of payment and so Eesti Pank believes that it should be available through flexible solutions everywhere in Estonia. Eesti Pank works every day to supply Estonian companies and people with cash. We provide a flexible cash service to the commercial banks, giving cash out and taking it in every working day, and in exceptional circumstances we can be even more flexible.
Financial stability Lessons have to be fully drawn from the past experiences about the obvious costs of financial crises. History has shown that price stability is not a sufficient condition to ensure financial stability. Furthermore, low-for-long interest rates, in a context of a decreasing natural rate of interest, can contribute to the build-up of systemic risk and financial vulnerabilities, by encouraging excessive risk-taking and financial misalignments.2This matters for monetary policy. Of course, macroprudential policy is the first and main line of defence, and the toolkit has been considerably enhanced in recent years.3 However, it appears that macroprudential tools, although necessary, are not completely sufficient to address the whole range of financial stability concerns. It is my view that central banks should take financial stability into account while setting the course of monetary policy. There is a need to overcome the strict separation principle between monetary and macroprudential policies, and adopt a coordination principle. What does this mean in practice? Let me first dispel two misunderstandings and say what it is not about. It does not mean that financial stability may become a monetary policy objective in itself. The aim here would be to identify vulnerabilities that represent a threat to the price stability objective, either directly or indirectly by impairing the effective transmission of monetary policy in the medium-long term. Also, it does not imply a systematic (mechanical) reaction to financial stability indicators, and it is very different from the “leaning against the wind” strategy.

I will then turn to financial stability, which is essential for the effectiveness of monetary policy (by preserving its transmission channels). Finally, I will talk about economic stability and the way monetary policy, in combination with fiscal policy, can smooth the business cycle and foster a robust and sustainable recovery from the covid crisis. Clearly, these different aspects are closely intertwined: monetary policy, while pursuing its primary objective of price stability, can affect financial stability; fiscal and monetary policy closely interact with each other, as do monetary and macroprudential policy. But for the sake of clarity I will tackle each concept in turn. I. Price stability To achieve the ECB inflation objective, we are determined to maintain, as long as necessary, a very accommodative monetary stance. We continue to stand ready to adjust all of our instruments, as appropriate, including possibly a lowering of the DFR if needed. And to guarantee the full transmission of this accomodative stance, we pay particular attention to ensuring that both bank and market financing conditions remain favourable for all agents (governments, firms and households). This leads us to monitor a large set of indicators, with a multifaceted and holistic approach. Let me add some comments about the recent increase we have seen in long-term rates, following although to a lesser extent the move in the US. This increase has different causes, and hence calls for different reactions and instruments.
Islamic finance has grown by leaps and bounds, from only one Islamic financial institution three decades ago to over 300 today in more than 75 countries, including non-Islamic countries in Europe and the United States. The total assets of Islamic finance worldwide is estimated to exceed $ billion, and is growing at an estimated annual rate of 15 percent. Islamic finance has been transformed from a "nice to have" into a "must-have" system, evident by the growing number of jurisdictions allowing their financial institutions to offer Islamic financial services and increasing number of global financial players now offering Islamic financial services as part of their spectrum of services. Islamic finance continues to provide tremendous potential for growth and development due to a number of  BIS Review 13/2006  1  factors. These factors include the strong demand for Shariah-compliant financial services and transactions , the availability of a wider choice of products that meet consumers' discerning expectations, as well as growing acceptance of Islamic finance as a form of financial intermediation. In Malaysia, the advancement and progress that have been achieved in Islamic finance has demonstrated its potential as an effective form of financial intermediation that supports the needs of the economy. The industry has become a major contributor to the overall economic growth, with assets encompassing nearly 25% of the country's gross national product. This is a significant achievement considering the stiff competition offered by the conventional banking and insurance sectors. 5. The takaful industry in particular has shown remarkable growth.

6  BIS Review 13/2006
On the prevention side, our primary goal as supervisors should be to reduce the risk of severe problems to the lowest possible level consistent with adequate provision of credit to the economy and a sense of two-way risk for banking institutions. Quite correctly, most of the Core Principles are aimed at the task of reducing the potential for systemic problems. However, it also is vitally important that when problems arise for an individual institution or a group of institutions, supervisors can provide guidance and supervisory action, as necessary, to resolve the situation. Thus, some Core Principles, especially those on supervisory enforcement and the safety net, address the operational role of supervisors and the institutional context in which they carry out that role. All of us have learned a lot about marketplace turmoil and systemic risk in the last year to 18 months. First, I will highlight some issues reflecting the close linkages between credit, liquidity and capital adequacy, both at the financial firm and the market level. Next, I will turn to lessons from earlier experiences with banking problems and show how prompt, but deliberate, BIS Review 86/1998  -2-  responses to credit problems can improve the health and liquidity of the banking system. I will conclude by talking about the work of the Basle Committee, both with respect to the immediate problems and the future agenda. II.

Philipp Hildebrand: Financial stability Summary of a speech by Mr Philipp Hildebrand, Vice-Chairman of the Governing Board of the Swiss National Bank, at the Institut des Hautes Etudes Commerciales de Lausanne, Lausanne, 16 September 2008. The complete speech can be found in French on the Swiss National Bank’s website (www.snb.ch). *  *  *  During the period of financial market turbulence, central banks have gone far with their interventions to stabilize the financial system, taking into account the high costs that can be imposed by a banking crisis onto the real economy. Central banks by themselves, however, cannot guarantee financial stability in the long term. In particular, we cannot exclude that their interventions create incentives for banks to be less cautious in the future. The first line of defence therefore consists of banks having sound risk management practices and holding appropriate levels of capital and liquidity. The Financial Stability Forum has made a series of recommendations in this respect. Given the size of the big Swiss banks in relation to our national economy, we should be especially prudent. For this reason, the Swiss National Bank supports the project undertaken by the Swiss Federal Banking Commission (SFBC) to strengthen capital adequacy requirements and to revise the liquidity requirements for the big banks. As the SFBC has pointed out on several occasions, these measures have to be implemented gradually – to ensure that banks have sufficient time to adapt. These measures will contribute to the solidity and credibility of the Swiss financial centre.