samchain/econo-pairs-v1 huggingface dataset:
For instance, it has become cheaper to manufacture steel in the US, instead of importing them from China where steelmakers have to transport iron ore from Brazil and Australia to the mills, and then ship the manufactured steel to the US. China has also recently agreed to pay close to 100% more for its iron ore. The costs are likely to be passed on to steel buyers and this could fuel inflation. Rising commodity prices have also increased the prominence of commodities in the financial markets. Commodity markets have in fact, become more financial market like. Traditionally, financial activity in commodity markets focused on exploiting arbitrage opportunities, with investors hedging their production or consumption in the futures market. The entry of new market players such as banks and hedge funds, with their different risk appetite and investment horizon, has given rise to varied trading strategies. They have also given birth to a wider variety of financial instruments in the likes of index and exchange traded funds, as well as structured commodity products. These new players also demand the sophistication that they are used to in financial markets. As a result, commodity markets have moved towards electronic trading, high speed communication links and greater efficiency in trade processing. There is also an increasing need for infrastructure such as commodity exchanges and clearing facilities to facilitate trading. While market development is generally welcomed, the risks have to be managed.

These include: The Paycheck Protection Program Liquidity Facility will bolster the effectiveness of the Small Business Administration’s Paycheck Protection Program by supplying liquidity to participating financial institutions through two-year loans backed by PPP loans as collateral. The Main Street Lending Program will enhance support for small and mid-sized businesses that were in good financial standing before the crisis by purchasing up to $ billion in fouryear loans to small and mid-size businesses. The Term Asset-Backed Securities Loan Facility (TALF) will support issuance of securities backed by student loans, auto loans, credit card loans, small business loans, and other debt. Moving with Maximum Care Considering the speed and scale of damage caused by the virus outbreak, we are making all efforts to implement these facilities at maximum speed. At the same time, though, we are moving with maximum care, drawing upon all of the lessons learned since 2008. First and foremost, we know that transparency will be key to sustaining public confidence in our efforts. What does this mean in practice? It means that when we work with outside vendors, we explain why we’re doing so, who we’re working with, and how much we’re paying for their services. It requires if we accelerate the vendor selection process to minimize time to market, we operate under a short-term contract and then open up the process to a competitive range of bidders, looking beyond the largest and most established players and providing broad access to a diverse range of smaller players.
But even this would probably cost quite a lot in terms of money and prestige (for example, it is easy to imagine the management being replaced), so, in general, this is probably not an alternative that a bank would wish to consider. Naturally, one way of reducing the risk would be, quite simply, to decrease lending in dollars and thus also the need for borrowing in dollars. In such a case, customers would have to be referred to other banks. Of course, at least major customers generally also have contact with US banks, which never encounter acute liquidity shortages, as they can turn directly to the Federal Reserve in the event of a crisis. So they have access to a lender of last resort which can create dollars. This is exactly what the Swedish banks lack. Now, naturally it hurts for a bank to refer good customers to a competitor, but if you don’t have any dollars, then you don’t have any dollars. It’s all a question of what risks the bank is willing to take. Another way of minimising the risk is for the Riksbank to maintain a foreign currency reserve that the banks can have access to in a crisis, as it does at present. The Riksbank has several reasons for maintaining a reserve in foreign currency, but one important argument for its current size is precisely the need to be ready to lend to the banks6. The Riksbank’s foreign exchange reserve is currently equivalent to about SEK 300 billion.

We are going to put grants to work – grants for any financial innovation in Singapore – on a competitive basis. Very importantly, we are going to develop the skills and capabilities required to make this a new wave, not just a passing trend. It requires many new skills, as well as some of the old instincts that help ensure sustainability across the cycles. And which preserve trust in finance. We have a major national program in Singapore called SkillsFuture which we are putting a lot of effort into. Finance will be an important vertical in SkillsFuture: investing in the skills of the future. Finally, we will ensure that the overall environment is supportive of start-ups and innovation. Not many of the new players will succeed, not many will last. But they will always leave an idea behind, to be modified, taken over or improved. Thank you very much. BIS central bankers’ speeches  3
Luis M Linde: Recent economic developments in the euro area and in Spain, and important financial system projects Address by Mr Luis M Linde, Governor of the Bank of Spain, at the Annual Conference 2013 of the Asociación de Mercados Financieros, Madrid, 25 November 2013. *  *  *  Let me first thank the Asociación de Mercados Financieros, and its Chairman, my good friend Enrique Prados, for kindly inviting me to accompany you today in this Annual Conference. The Association – which draws together a large number of financial market professionals – performs important work in channeling initiatives aimed at contributing to the better working of those markets. Their active collaboration with regulators in devising rules, their participation in public consultations and their educational role are all to be welcomed. My address today will be brief, so as not to outstay my welcome and encroach on your first course. It shall focus on three projects of particular importance for our financial system in the area of market infrastructures. But allow me first to comment on recent economic developments in the euro area and in Spain, developments that point, as we know, to a turn for the better. To the euro area first. After six consecutive quarters of contraction, second-quarter GDP in the area this year posted positive growth of 0.3% in quarter-on-quarter terms; in the third quarter it has held at a positive rate, albeit one of only 0.1%.

Anita Angelovska Bezhoska: Speech at the Ministerial Dialogue on the Economic Reform Programmes of the Candidate Countries Speech by Ms Anita Angelovska Bezhoska, Governor of the National Bank of the Republic of North Macedonia, at the Ministerial Dialogue on the Economic Reform Programmes of the Candidate Countries, Brussels, 17 May 2019. * * * Dear Ministers, Dear representatives of the European Commission, European Central Bank and Eurostat, It is always a great pleasure to be part of the regular Ministerial Dialogue, having the opportunity to reflect on important issues that are in the spotlight of the economic agenda. At the same time it as an excellent occasion to express our appreciation on the provided assessments of the Economic Reform Programme. The main takeaways from these assessments have been important guidelines, mapping our policy actions, enhancing our capacity, and providing for faster closure of the existent gaps. Now, let me briefly reflect on the topic of Structural reforms for attracting foreign direct investment and increase resilience. There is no doubt that investments are one of the key ingredients for increasing the long-term potential of an economy. When it comes to emerging economies, commonly there is a need for additional cross – border capital, which can complement the insufficient domestic saving. The more these flows are comprised of FDIs, the higher the positive impact on productivity and competiveness. In the regional context, pre-crisis investments were an important growth driver, reaching close to 30% of GDP, while in the postcrisis period investment ratios has plunged.
It also means that, if an inflation forecast conditioned on the yield curve ends up away from target, that doesn’t necessarily mean we “disagree with the market”. It could just be that yields are being affected by something other than the market’s true expectation. Conclusion Let me wrap up, summarising the main points. The MPC’s headline forecasts are based on the assumption that interest rates follow the path priced into financial markets. That may or may not be the same thing as the true outside expectation of future rates. At times, the yield curve can move around for other reasons as well. Nevertheless, many commentators then use the forecasts – in particular the central prediction of inflation two years ahead – to infer things about the likely path of interest rates over the future. Recently, there has been a particular focus on backing out implications for the date of the first rise in official interest rates. 6  8  Unlike professional forecasters, markets gets to update their opinions every minute of every day, and for most of the time are therefore at an advantage over analysts. But Chart 6 plots data only on days on which the analysts publish their projections, so the comparison is that much fairer. Nor, for what it’s worth, is there any evidence that we can find that markets predict actual interest rates any better than analysts. BIS central bankers’ speeches  That’s fine as far as it goes.

The paper was designed in the form of fundamental principles of compliance with the regulations, covering a number of areas, the most important of which are the responsibilities of the board of directors and senior management, controls on the independence of compliance function at banks, support of compliance department and its work program, and the relationship of compliance department with internal audit department. In May 2005, SAMA directed banks operating in the Kingdom to adopt the principles stated in this paper and incorporate them with the procedures and programs regarding risks of noncompliance that have already been applied and developed by banks under the instructions of SAMA. Dear audience, You are also dealing in this symposium with an important topic, which is combating money laundering. As you know, money laundering is one of the most serious crimes at the security, economic and moral levels. This heinous crime is carried out by organized networks practicing crime as a profession and having a high potential for coordination, planning and deployment throughout the world. These networks take advantage of the globalization of capital markets and technological developments in the banking industry. Because of the negative impacts of money laundering and the large scale of this activity, which is estimated by the International Monetary Fund (IMF) at 2 to 5 percent of global GDP, there have been international and regional concerted efforts to combat it.
So, I would say Sarbanes-Oxley generally makes the system safer because it makes it much harder for people to – it really deters fraud and manipulation of financial accounts in a way that I think is very, very positive. The second part was? Audience Member: Glass-Steagall? President Dudley: Glass-Steagall. Well, I think that – the Glass-Steagall Act was an act that was passed in the 1930s that basically said that you could either be in commercial banking or you could be in 8 / 15  BIS central bankers' speeches  investment banking. You couldn’t be in both. And so this is an act that basically forced the Morgan Company to separate into Morgan Stanley and J.P. Morgan. Now what happened was many years later in the 1980s, I actually was involved with this because I was working at J.P. Morgan at the time, people started to say, “Look, if I’m a big commercial bank like J.P. Morgan, I’m losing all my customers who are going to the securities market. I need to follow my customers, but I can’t because of Glass-Steagall.” And they found that there was a loophole, Section 20 of the Glass-Steagall Act basically said that you can’t be principally-engaged in securities activities. So, it meant that you could be engaged but just as long as it wasn’t principally-engaged. And so this is a little loophole that a number of firms managed to exploit.

What laws can I – what do we need to put on the books to protect communities like this? Liberty and other organizations, research organizations, that you guys have can come up with some of these things. I look forward to speaking with you later today. President Dudley: Okay. On this issue of predatory lending, I mean this is – I think you raised a very good point, and this is something that we actually heard about small business lending when we were up I think in the Bronx awhile back, where, basically, people have these come-ons to lend money to small business, and it seems attractive on the surface, but it turns out that the actual rate of interest that people are paying is prohibitive to be able to run a successful business. So, I think the predatory lending thing is a completely important issue that we do need to address. Obviously, the Small Business Administration can play a role in this. I think we would certainly be interested in having a conversation about it, because I think it is a really serious issue. I mean one of the problems, just more broadly, is financial literacy in the United States. Part of the reason that predatory lending can work is because people don’t really have a good idea –they don’t know enough about the financial system, about the economy, about what’s a good value or not.
Furthermore, a specialised newspaper boasting the strength and the prestige of Ziarul Financiar has the obligation to judiciously calibrate any piece of information with an analysis of its significance. For instance, the media have adopted a bleak, sometimes apocalyptic, tone these past few days amid an abundance of news alerts on the likely number of unemployed over the upcoming months, i.e. around 30,000 individuals. Of course, taken individually, anyone being made redundant is faced with a tough issue. However, from an economy-wide perspective, the rise in unemployment by 30,000 people only accounts for about 0.5 percent of the workforce. Coupled with the very low level of unemployment (3-4 percent) prior to the outbreak of the ongoing global recession, the economic analyst will conclude that unemployment is hardly a pressing issue in Romania for the time being. On the other hand, it is equally true that the short-term outlook for the domestic economy is not and cannot be too favourable. To the bleak international environment added what we may also call the irrational exuberance of both markets and, on many occasions, state authorities. In my opinion, the mixture between a hostile external environment and what seems to be an inadequate domestic response to this environment stands out as the underlying reason for which rating agencies have downgraded, sometimes rather severely, our sovereign rating. Of course, we may voice our discontent with the rating agencies’ evaluation. At times, rating agencies themselves have facilitated our criticism.

News conference  Berne, 12 December 2019 Fritz Zurbrügg  Introductory remarks by Fritz Zurbrügg  In my remarks today, I will begin with the current assessment of the situation at the big banks and domestically focused banks. I will then go on to discuss the significance of climate change for financial stability. The final part of my speech will focus on the issuance of the new banknote series, which was completed in September. Big banks  I will start with the situation at the big banks. Both Credit Suisse and UBS have made significant progress since the ‘too big to fail’ regulations were introduced almost ten years ago. They have strengthened their capital bases, reduced their risk positions and implemented key organisational measures as regards crisis management.. With respect to resilience, Credit Suisse and UBS have already achieved their targets. Both banks have increased their regulatory capital to the target levels and thus meet all final requirements on a consolidated basis. Compliance with the requirements of the ‘too big to fail’ regulations is necessary to ensure adequate resilience of the two Swiss big banks. This is confirmed by our loss potential analyses of both banks as well as historical loss experience during the last financial crisis. With respect to resolution, the statutory deadline for finalising the Swiss emergency plans is the end of this year. In their plans, Credit Suisse and UBS have to demonstrate that they would be able to maintain their systemically important functions without interruption in a crisis.
See Galstyan, V., Lane, P.R., Mehigan, C. and Mercado, R. (2016), “The Holders and Issuers of International Portfolio Securities,” Journal of the Japanese and International Economies, Vol. 42, pp. 100108. 10. See Bertaut, C.C., Bressler, B. and Curcuru, S. (2019), “Globalization and the Geography of Capital Flows,” FEDS Notes, Washington: Board of Governors of the Federal Reserve System, September; and Coppola, A., Maggiori, M., Neiman, B. and Schreger, J. (2020), “Redrawing the Map of Global Capital Flows: The Role of Cross-Border Financing and Tax Havens”, NBER Working Paper, No 26855; and Carvalho, D. and Schmitz, M. (2021), “Shifts in the portfolio holdings of euro area investors in the midst of COVID-19: looking through investment funds”, ECB Working Paper Series, No 2526, February. 11. See Lane, P.R. and Shambaugh, J.C. (2010), “Financial Exchange Rates and International Currency Exposures,” American Economic Review, Vol. 100, No 1, pp. 518-540; and Bénétrix, A., Gautam, D., Juvenal, L. and Schmitz, M. (2020), “Cross-Border Currency Exposures: new evidence based on an enhanced and updated dataset”, ECB Working Paper Series, No 2417, May. 12. See Allen, C. (2019), “Revisiting External Imbalances: Insights from Sectoral Accounts”, Journal of International Money and Finance, Vol. 96, pp. 67-101. 13. See Lane, P.R. (2020), “The market stabilisation role of the pandemic emergency purchase programme”, The ECB Blog, 22 June. 14.

Next Steps  I started this talk by noting that we may be in the midst of a leap forwards in payments. This is good news. Innovation – including the innovation some of you in this room are pushing forward as part of the New Payments Architecture project, and the work that the Bank of England is pursuing on RTGS renewal promises to deliver easier, faster, cheaper, and more stable payments. But to ensure that this period of innovation does not end in a leap backwards we need to be sure that regulation keeps pace. Regulation needs to facilitate innovation by avoiding picking winners or losers. Instead we should focus on delivering same risk, same regulation. The protections regulation delivers for your payments should not depend on whether you are paying by cash, card, interbank, or stablecoin. Fortunately, here in the UK we have an opportunity to ensure that regulation remains fit for purpose through this period of change. HM Treasury is currently leading a welcome review of the payments landscape. And there is related work underway in the cross-authority Cryptoassets Task Force that was launched by 7  All speeches are available online at www.bankofengland.co.uk/news/speeches  7  HM Treasury in 2018, bringing together Bank, FCA and Treasury thinking. The Bank of England’s Financial Policy Committee is supporting this work by providing insight into the financial stability implications of innovation in payments – in December, for the first time ever, its semi-annual Financial Stability Report included a chapter on payments.
It is disappointing that lessons from the crisis on counterparty risk management were not properly learned. As we set out in our Dear CEO letter last year, Archegos is a prime example of this – a single client of many firms had built up risk concentrations that proved to be outsized. Some banks also got caught by this in the nickel market more recently. In other cases, we have seen groups of clients with similar risk exposures, whether that be large concentrated positions of their own or trades with banks that held such positions, which proved difficult to exit as market conditions and liquidity dynamics changed. Risk concentration should not only be assessed on a client by client basis, but across all clients combined. And most importantly, across the client’s market-wide portfolio, not just the portion held with a single firm itself. Whilst this information may not be readily available, the onus is on firms to demand of their clients the information they need to assess the risks they are exposed to. We also see some firms not adequately assessing the liquidity position of their counterparties. Look at the “Dash for Cash” in March 2020 or recent issues in the commodities markets. Whilst counterparties may be fully hedged against capital losses from sharp moves in asset prices, some have found difficulty in monetising their assets in order to meet margin calls.

26.06.2018  Taking up of office by the Governor of the Banco de España  Pablo Hernández de Cos Governor  Honourable Ministers and Authorities, ladies and gentlemen, dear colleagues and friends, I believe today calls, above all, for a round of gratitude. First, I wish to thank Ministers Calviño and Montero for their presence here today. May they rest assured I am firmly committed to maintaining the close and loyal collaboration traditionally offered by the Banco de España to the Ministries for the Economy and Finance. I also wish to thank the previous minister, Román Escolano, for his presence at this ceremony, and for his proposal and defence of my appointment before the Parliamentary Committee for the Economy and Competitiveness. And my gratitude extends to the representatives of the Committee accompanying us today. I undertake to make every effort to improve the capacity of the Banco de España to face the challenges addressed during the Parliamentary Committee hearing. Ministers, as I am surrounded above all by colleagues, I trust you will allow me to continue in a more informal tone. As you know, including a three-year tour at the European Central Bank, I now have two decades behind me at the Banco de España. Professionally speaking, this is, then, my home. It is a real honour for me to have been appointed governor.