samchain/econo-pairs-v1 huggingface dataset:
For example, in 2013, the ratio between fixed and variable for material risk takers at major UK banks was around 1:3 – meaning three quarters of remuneration was at risk from individual misconduct. The next year, when firms first had to apply the bonus cap, that ratio had fallen to around 1:1, with the overall level of remuneration unaffected. Prompted by the ESRB, the FSB is now examining the impact of various compensation tools on misconduct, and if appropriate, it will recommend improvements to next year’s G20 summit. Reforms to compensation are necessary but not sufficient. ESRB reports have rightly stressed that more should be done to hold senior individuals to account. Prompted in part by the ESRB, the FSB members will share experiences on the role of bank regulatory powers to address misconduct and on approaches to enhancing individual accountability. In the UK, we are implementing a new regime to ensure senior managers right across the financial system are held directly accountable for failures in their areas of responsibility. That will be buttressed by clear code of conduct, designed by practitioners, to ensure high standards are understood by all. 4. Conclusion  All member states, and more fundamentally all EU citizens, have a stake in EU financial stability. The ESRB helps deliver this foundation of prosperity. The financial crisis starkly illustrated how quickly risks could spill across borders, the need for wide-ranging reforms, and a new approach to addressing risks.

While risks in property markets reflect national differences, other risks such as misconduct have more common determinants. BIS central bankers’ speeches  3  In the past five years, misconduct penalties imposed on EU banks have totalled € Those costs have direct implications for the real economy. At 5% leverage, that capital could have supported € trillion of lending capacity. More fundamentally, repeated episodes of misconduct undercut public trust in the system.2 The ESRB’s work has helped catalyse sensible actions to begin the process to rebuild that trust. First, it has proposed capturing misconduct costs in stress tests to ensure banks remain resilient even under severe outcomes. The Bank of England has followed this approach in its most recent stress test which included and additional £ of misconduct costs. These costs were calibrated to have a low likelihood of being exceeded and are therefore, by design, much larger than the amounts already provided for by banks. Second, the ESRB has also proposed tackling misconduct at source by increasing individual accountability. This can be done by reforming remuneration – using variable pay, combined with Malus and Clawback, to hard-wire stronger incentives for good behaviour within firms. The UK is committed to this approach with the toughest remuneration regime in the EU, including the longest deferrals and claw backs. However, the effectiveness of such measures across the EU is being tempered by the bonus cap.
Finally, before I leave the banking system, I want to highlight one piece of good news in recent market developments. We have had a number of incidents of extreme market volatility over  2  BIS central bankers’ speeches  the past year or so – the removal of the Swiss Franc peg; a 30 basis point fall within 90 minutes in UST yields on 15 October 2014; the so called ‘Bund tantrum’ earlier in the year; and the seizure of US equity markets this summer, against the backdrop of news about China. These have raised a number of issues about changes to market structure and market liquidity. But the one dog that has not barked, however, is the transmission of the shock from these market events to the core banking system that support markets. For example, the reaction in UK banks’ CDS premia to these disruptions has been small and not out of line with broader market movements. I would put this down in no small part to the reforms of bank capital and liquidity that have made banks more resilient. So while money was lost in these market episodes and some people had a very bad day at the office, they did not cause wider shocks in the banking system. And that leads me in to the other subject I want to talk about today – the changes we are seeing in the liquidity of financial markets, which some indeed ascribe to reforms of the capital and liquidity standards in the banking system.

Jon Cunliffe: Market liquidity and market-based financing Speech by Sir Jon Cunliffe, Deputy Governor for Financial Stability of the Bank of England, at the British Bankers Association International Banking Conference, London, 22 October 2015. *  *  *  According to Oscar Wilde, there is only one thing in life worse than being talked about and that is not being talked about. Wilde of course was not a banker. And although he retained his notoriety until well after his tragic and unjust end, even he probably never experienced the sustained and hostile public attention which bankers and the banking system worldwide have experienced over the past eight years. So it will probably come as a relief to those of you here at the BBA International Banking Conference that I do not today intend to talk – in the main – about banks and bankers. Rather, I want to talk about market not bank-based finance and about market liquidity. I hope you will not find that worse than being talked about. I will, however, make some important points at the outset about the reform of the regulation of the banking system. That is not just for any of you that would otherwise have withdrawal symptoms.
For now, let me highlight two particular areas of the study’s recommendations that we have started working on. Professional development and training of directors One area of improvement is in the training of directors. Having committed and skilled directors is a key component in the effective functioning of the board. Director training is particularly relevant for new or first-time directors, to assist them in understanding their roles and responsibilities, and to equip them with the necessary skills. Even experienced directors need to continually upgrade their skills, to oversee and steer companies in today’s rapidly changing and globalised landscape. MAS has been in discussion with the Singapore Institute of Directors on how we can build on its very useful work to date, and develop a comprehensive and sustained approach to training and development of directors in Singapore. MAS will help to fund a study that will help to operationalise this comprehensive approach to training. The study will cover a few areas. First, it will look into benchmarking directors’ training and development against best practices in other leading jurisdictions. A number of jurisdictions have in the last few years developed extensive structured training programs for directors. Secondly, it will examine possible collaborative arrangements between a range of organisations and training providers. Thirdly, it will also focus on how best such training initiatives should be financed.

This is the right time to be discussing this topic, as we are experiencing the aftermath of one of the largest macroeconomic disruptions of the century. In the last three years, we lived through one of the most challenging times for policymakers, where governments and central banks were pushed to deploy everything at their hands to content the health and economic consequences of the pandemic, and lately to contain inflationary pressures. During these years we have learned that the effects of the Pandemic differed significantly between economies but also within households and firms of heterogeneous characteristics. The different exposure that households and firms have to credit conditions, supply chains, and final demand, affected their reaction to the original shock and also to the different policies. Firm size and household income distribution were important sources of heterogeneity to consider as well. Having widespread access to information regarding these dimensions was critical to develop sound policies. In response to these very challenging times, academia also reacted. Since early 2020, we witnessed an explosion of applied research that incorporated the lessons learned in the last 35 years in terms of the importance of considering firm and household heterogeneity to better understand the transmission mechanisms of fiscal and monetary policies. 1/5  BIS - Central bankers' speeches  This process of knowledge spillover from academia to policymaking is not something new.
In the Minutes of that meeting, the MPC emphasised that it will take the actions necessary to return inflation to the 2% target sustainably in the medium term, in line with its remit. The scale, pace and timing of any further increases in Bank Rate will reflect the Committee’s assessment of the economic outlook and inflationary pressures. The Committee will be particularly alert to indications of more persistent inflationary pressures, and will if necessary act forcefully in response. Bringing inflation back down to the 2% target sustainably is our job, no ifs or buts. Tonight I will step back from the current situation and consider some of the longer-term forces affecting our economy, and shaping the economic landscape in which monetary policy is conducted. Assessing the policy landscape Monetary policymakers are typically focused on cyclical movements in the economy, since monetary policy is often thought to have its most powerful effect on inflation 18-24 months ahead. As cyclical shocks hit the economy, monetary policymakers must analyse incoming data to identify the underlying causes and form a view on their implications for the outlook for GDP and inflation. Page 3  Adjusting policy in response to the cyclical shocks in the foreground of the macroeconomic picture is therefore a core part of our role.

This is precisely one of the objectives of the Institute of Bankers, and with its newly launched Representative Office in Beijing, the Institute will extend its existing good work to the Mainland. It will help promote the training of bank employees on the Mainland, thereby contributing to the effective financial intermediation and smooth functioning of this crucial part of modern economy. The economies of the Mainland and Hong Kong are now highly interdependent. The Institute’s Beijing Representative Office will not only serve to enhance professionalism of the Mainland’s banking sector as a whole, but also contribute to the financial stability and development of both the Mainland and Hong Kong. Let me end this address by wishing the Institute’s Beijing Representative Office every success in its future endeavours. BIS Review 45/2005  1
Let me reiterate facets of the media namely, education and information to which the Bank of Zambia attaches a lot of importance, and forms the guiding principles for the formats of all media seminars Organized by the Bank. We in the Bank believe that an effective or indeed a well informed media is key in the country’s development efforts. It is in this regard that the Bank will continue to work towards the provision of quality information and/or education to the media as evidenced by the continued holding of such seminars coupled with quarterly media briefs. Such efforts as you may be aware are not for our own interests but the Zambian stakeholders. This is as it should be. Distinguished journalists; may I humbly urge you, to actively participate in the deliberations of this seminar. Let me hasten to mention, particularly to those of you that are participating for the first time that you may not be able to completely grasp the materials that will be presented during the seminar. This must not discourage you, as you are free to make followups with the respective departments (and indeed officers) at our offices in Lusaka and our Regional Office here in Ndola. Nevertheless, I am confident that the respective presenters will ensure clarity in their presentations and fully respond to any issues arising there-from. Ladies and gentlemen, allow me, at this point in time to brief you on the performance of the economy in 2006 and the period January – August 2007.

However, it must be noted that the economy desires much lower lending rates than so far recorded to make credit affordable and effectively contribute to expansion of economic activity. The external sector has continued to score remarkable improvement as lately reflected in a the resilience of the Kwacha against major foreign currencies, and the country posting in 2006, an estimated overall balance of payments surplus of US $ million compared with a deficit of US $ million in 2005. For instance, the Kwacha appreciated by 12.0% against the US dollar while the local currency gained by 10.4% against the South African Rand during the period end-December 2006 to 21st September 2007. This improvement largely occurred due to increased export, which mainly arose from continued high copper prices and complimentary higher export volumes coupled with the buoyant growth in non-traditional export earnings. The maintenance of an appropriate monetary policy, in the wake of a higher than expected inflation outcome in the first quarter of the year, also contributed to the resilience of the Kwacha. The developments in the Kwacha should not only enhance competitiveness of the country’s exports, particularly the non-traditional exports but should overall have a positive bearing on inflation developments in the coming months. Esteemed colleagues, the financial sector has continued to enjoy stability and growth this year, characterised by improved banking services and emergence of new products. The overall financial condition and performance of the banking sector has been assessed as satisfactory.
Both elements will mitigate the risk of financial fragmentation due to non-coordinated measures taken by the different authorities, namely, “ring fencing” initiatives. Spanish G-SIBs fully comply with the pre-conditions to be considered “Multiple Point” groups: they are organised through local retail banking subsidiaries; critical economic functions, e.g. payment systems, are organized at the local level; subsidiaries are selfsufficient in capital and funding; and they rely on separate firms detached from the bank for operational support, for instance, on information systems. So, although there are still many issues to be clarified, we think that the most realistic resolution approach for the Spanish international banking groups is the “Multiple Point” strategy, provided that, in the event of resolution, their organisational and financial structures are suitable for healthy parts to be sold or maintained as a surviving group, split from their distressed sister companies, using other resolution tools such as asset transfers or bridge banks. Now, I will go to the second main element of the new framework, the bail-in instrument. BIS central bankers’ speeches  3  Next year, most of the FSB work on resolution will focus on preparing proposals on the adequacy of G-SIFI loss absorbing capacity in resolution, namely, what we call “gone concern loss absorbing capacity” or GLAC. This concept is similar to the Minimum Requirement of Eligible Liabilities (MREL) set up in the EU Bank Recovery and Resolution Directive.

It seeks to reduce excess leverage in the banking system, and to afford an additional measure of protection against the so-called “model risk”, i.e. against the risks associated with the use of sophisticated models allowed under Basel III. There are still doubts about this ratio as a Pillar 1 measure. I understand that the doubts do not concern the concept, but, rather, its final calibration and how it will impact on specific business models, in particular, those most focused on retail activity. Moreover, it is not fully clear whether the best option will be a single percentage for all banks, irrespective of their size or business model; or whether it would be better to opt for different percentages, depending on the type of business or activity of the bank; or to establish a range within which the supervisor would have discretion to decide which figure applies best to specific institutions. We believe that this new ratio can be a good prudential tool, once it is correctly calibrated. European regulations envisage that countries may apply the leverage ratio as they consider best until its harmonization in 2018, but the Banco de España does not consider necessary to bring forward its entry into force. With regard to liquidity regulation, Basel III has included, for the first time, a short-term liquidity ratio (LCR) which seeks to ensure that banks have a buffer of high-liquidity assets equal to 100% of foreseeable liquidity requirements for, at least, 30 days.
But beyond the threats, and at the risk of sounding paradoxical and even a little provocative, I would like to present you with an opportunity: in the current crisis of globalisation, Europe doesn’t need to keep its head down; it should assert and propose a model – its own social, environmental and mutilateral model. I propose that we do this in the spirit of Stefan Zweig, who as early as 1934, admirably described the state of mind of the great European Erasmus of Rotterdam: “Instead of listening to the vainglorious claims of petty princelings, of fantastical sectarians and of national egoists, the mission of the European is on the contrary to emphasise that which unites the peoples ii”. ** I. Lucidity in the face of two economic threats There are currently two main types of challenges to Europe’s economic sovereignty: the first are linked to political decisions (“man-made”); the second to the emergence of technological powers whose reach extends beyond the confines of individual states (“tech-made”). At the top of the list of political threats are the protectionist tensions stemming from the United States, but also the uncertainties surrounding Brexit. They are weighing on our multilateral order and already contributing to the global economic slowdown: iii in the space of a year, the 2019 forecast for world growth has gone from 3.9% to 3.2%, and for the euro area from 1.8% to 1.1%.

By the way, we are talking here about a “European model” and not a “European way of life” which has been discussed a lot in recent days. In short, Europe can proudly define itself as a social, environmental and multilateral model. 2.1 The social model: the fight against inequalities The rise in inequalities has – fortunately, in my eyes – become once again a major economic and social issue, as evidenced by the success of the work of Joseph Stiglitz xii and Thomas Piketty. xiii This too long-ignored problem has been at the heart of election results – from Donald Trump to Brexit – and is one of the main reasons for the democratic crisis and the rise of "populism". On the economic front, international institutions, the OECD xiv and the IMF, xv have studied the impact of inequalities on growth. Their findings are clear: persistent inequalities reduce the long-term growth potential of economies. According to some OECD estimates, in the United States and United  Page 6 of 10  Kingdom, growth in GDP per capita between 1990 and 2010 would have been 20% higher if income inequalities had not increased. Much can be learned from the European model. Firstly, because it is less inegalitarian, especially thanks to redistribution. According to the World Inequality Lab, after redistribution, the income of the wealthiest 10% of US households is, on average, twelve times higher than that of the poorest 50%, compared to a ratio of eight in Europe.
They are even less so at the level of the financial system as a whole. This is nevertheless the challenge we have to face today. Let me come back to the G20 action plan. This plan first recognises the need to strengthen prudential regulation in three areas. Capital requirements need to be strengthened and made more counter-cyclical by introducing a system of capital buffers. The quality of capital should be enhanced and its definition harmonised. We also may need to add to the range of instruments currently available a simple mechanism to measure leverage in order to complement the information provided by the solvency ratio. Another lesson that the G20 has learned from the crisis is that the current scope of regulation and supervision is inappropriate as it is too narrow. The current framework is based on the implicit idea that banks alone – because they collect deposits – are the source of risks for the system as a whole. This used to be the case. Yet, it is no longer true at all. It is now evident that all systemically important institutions and markets need to be regulated. In concrete terms, the G20 is widening the scope of regulation to include rating agencies, hedge funds and derivatives markets. The general principle is to abandon a silo approach to regulation, which was structured around institutions' legal character (e.g. banks, insurance companies, etc.

Another area important for Islamic finance is the investment in research and development (R&D). The promotion of international strategic alliances through smart partnerships can create greater synergy that will bring about new approaches, new technologies and new areas of specialization. Such collaborative efforts amongst Islamic financial institutions would strengthen the ability to leverage on the industry's expertise. The introduction of innovative Islamic financial products in a specific jurisdictions can be expanded to other jurisdictions, which in turn, will contribute to broaden and deepen Islamic financial markets and thus strengthen the overall development of the Islamic financial industry. In addition, collaboration between academic researchers and the practitioners will enable the practical application of such research findings. In the area of education and training in Islamic finance, there is now a critical shortage of talent in the Islamic financial industry. Collaboration between training institutions is vital to developing the pool of expertise in Islamic finance that subscribes to common standards. Establishing a network of mutual co-operation and collaboration would strengthen the efforts among the institutions of higher learning across regions in the areas of curriculum development, research, training, exchange of ideas and information, and resources in Islamic finance. Such partnerships in connecting the knowledge communities between regions would facilitate this process. In the area of Shariah, the progressive convergence of Shariah views and rulings, the mutual recognition of financial standards and products across jurisdictions would be major driver towards greater international financial integration.