samchain/econo-pairs-v1 huggingface dataset:
Finally, we provide central banking services that also foster financial integration. For example, most recently we successfully launched TARGET2, the second generation of our large-value payment system. By moving from a system composed of mutually interconnected national real-time gross settlement systems to a common system with a single shared platform for payments, we achieve further harmonisation for users in different countries and realise considerable scale economies. We achieved a single price structure for both domestic and cross-border transactions, the possibility of consolidated liquidity management for cross-border financial institutions and a harmonised set of cash settlement services for a variety of connected systems. The new system started in November last year with the first wave of countries. More countries will join in a few days and the last wave will follow in May this year. With a view to maximising the benefits from TARGET2, the Eurosystem is currently also exploring the possibility of providing settlement services in central bank money for eurodenominated securities transactions. The objective of this project, called TARGET2Securities, is to concentrate securities and cash settlements within Europe on an efficient, single platform. The user requirements of the system are currently the subject of a public consultation. The Governing Council will take into consideration the views of the stakeholders as well as the relevant public authorities prior to making a decision, by mid2008, on whether to launch the project.

The disturbances caused by the COVID-19 pandemic will inevitably delay many streamlining and integration measures, however. Nevertheless, merging the tasks of the Central Bank and the Financial Supervisory Authority into a single institution better enables us to face shocks like the current one and rise quickly and decisively from the downturn that lies ahead. I am convinced that, under these circumstances, the incontrovertible mathematical formula – that 1+1=2 – does not apply. The strength of the two institutions unified will be much greater than the sum of its parts. The new Central Bank is an institution that dares to act, can act, and will act. Although a number of policy actions have been taken in recent weeks, we have not emptied our toolbox – far from it. We have a number of other economic policy measures available and will use them if and when the need arises. We will do what is needed to face down the deep but brief economic shock currently threatening our country. Honoured guests: We thank you for listening. 4/4  BIS central bankers' speeches
2/5  BIS central bankers' speeches  Some have called on us to go further and incentivise change through imposing lower capital requirements for ‘green’ exposures and higher capital requirements for ‘non-green’ or carbonintensive exposures. As the prudential regulator, any incorporation of climate change into regulatory capital requirements would need to be grounded in robust data and be designed to support safety and soundness while avoiding unintended consequences or compromising our other objectives. In my view, the case for this has yet to be clearly established and possibly may never be. But our work to improve climate disclosures, scenario analysis, and risk management, could help unlock such assessments. Macroeconomy Beyond the financial system, achieving economy-wide net-zero emissions will require greening the way we heat our buildings, manufacture industrial goods like steel and cement, generate electricity and produce food. This could prove to be an opportunity for the economy to regenerate ageing capital and raise productivity. Analysis done by the Network for Greening the Financial System (NGFS) and National Institute for Economic and Social Research by 2050 suggests that such an orderly transition could lead to some increase in global GDP, and lower unemployment relative to prior trends. These positive effects should be larger in countries like the UK that are net importers of energy. However, as I mentioned earlier, much of that rests on how the transition proceeds. The lesson from previous episodes of structural change is that they never involve a frictionless re-allocation of capital.

Niklaus Blattner: Three nations, two currencies, one economic area Speech by Mr Niklaus Blattner, Vice-Chairman of the Governing Board of the Swiss National Bank, at the Freiburger Montags-Gesellschaft, Freiburg im Breisgau, 6 June 2005. The complete speech can be found in German on the Swiss National Bank’s website (www.snb.ch). *  *  *  The Upper Rhine EuroRegion comprises Baden, the Südpfalz region, Alsace and Northwestern Switzerland. In what shape is the economy in this region? Is it as dynamic as we would like? Are the national borders that transect the region a handicap or have we come to accept them? What are the implications of the fact that the region has two currencies? Firstly, the Upper Rhine EuroRegion is economically sound. This is due not least to the capital goods sector and the pharmaceutical/chemical industry, with the latter ensuring high added value in Northwestern Switzerland in particular. However, the Upper Rhine EuroRegion does not rank among the very best in Europe. While its level of economic added value is perfectly acceptable, its growth in recent years has been significantly lower than that in other regions. The region’s situation is, therefore, no different to that of many other economic areas in Continental Europe. Secondly, cross-border integration in the Upper Rhine EuroRegion is high. The diversity of the economic interrelationships between the national regions is reflected in the brisk trade in goods, capital flow and free movement of persons.
But there is no denying an adverse feedback loop between tightening credit conditions, the macro slowdown, and the perception that that will in time impair banks’ asset portfolios. So it seems timely to revisit some of the issues of “money and credit”. The Taylor-rule framework for thinking about policy It is well over a decade since John Taylor set out what has become part of the current orthodoxy of monetary economics. His rule looks something like this: *  *  *  i = Π +r + a(Π – Π ) +b(y -y ) t t t t t t t This is, at its roots, a Wicksellian view of the world. 4 By fixing the short-run nominal rate, the central bank can, given stickiness in prices over the short run, shift the short real interest rate – both in absolute terms and, more particularly, relative to the short-run real rate that would equilibriate demand and supply. 5 So that gap between the short real rate and its “equilibrium” can be thought of as representing the stance of monetary policy, which should be chosen by the central bank in the light of the extent to which inflation deviates from target, and to which aggregate demand deviates from the supply capacity of the economy. Implicit in this rule is  3  See Tucker, PMWT (2008) “ Money and credit: banking and the macroeconomy”, Bank of England Quarterly Bulletin, 2008 Q1 pp 96-106. 4  See Wicksell, K, 1898, “Interest rates and Prices”.

Innovation is as much about creating new institutions and smart collaborations to advance common goals, as it is about inventing a new product. We see this in the notion of “co-opetition”, where competing firms have found benefits in coming together to build shared infrastructure, or to facilitate the exchange of information for the purpose of preventing criminal activity and guarding against cyber threats, all the while remaining fierce competitors in their product and service offerings. Innovation is also about constantly finding better ways to do things within an organisation in order to deliver a better customer experience and to keep organisations interesting and fresh. It is about changing mindsets and culture to ensure that institutions never become tired or irrelevant. It is about re-thinking our approach to developing the workforce so that we are at our most agile to deal with new challenges and risks. These are all important aspects of innovation and I am reminded that in Malaysia’s own journey to transform the MSB industry, we benefitted from charting new and sometimes, untested paths to solve the problems that we faced. For example, we learnt from and then re-defined the principal-agent model to meet the dual objectives of maintaining broad access to money services while raising compliance and operational standards. We departed from conventional regulatory and supervisory approaches, on the conviction that we could not achieve our objectives through enforcement alone.
That is supplemented by three operational objectives, including “protecting and enhancing the integrity of the UK financial system” which is in turn defined in the legislation to include “its soundness, stability and resilience”. This is in line with Principle 6 of IOSCO’s objectives and principles for securities regulation: “the Regulator should have or contribute to a process to monitor, mitigate and manage systemic risk, appropriate to its mandate”. 10 See Tucker (2011), “Building resilient financial systems: macroprudential regimes and securities market regulation”, International Council of Securities Associations. 11 This was highlighted by the Bank of England in 2006 Financial Stability Review p. 8: “Many may have believed that the price of certain assets had become too high and the premium for taking risk too low. But there are business risks associated with acting on that view when others are not; it may not only reduce profitability in the short run, but may also risk losing market share or failing to establish a foothold in a rapidly expanding market. These concerns often seem to have outweighed the risks to balance sheets associated with potentially overpriced assets. As a result, in the early part of this year, there appears to have been an extension of risk-taking activities by financial institutions, including some UK banks. “  BIS central bankers’ speeches  7  the system safe and sound has made real progress in recent years, but it is not complete and absolutely must continue with energy.

But before being discouraged by that, let’s reflect for a moment on what we already have achieved to date and some of the reasons why success is fully within our grasp. U.S. households have already undertaken considerable deleveraging. The U.S. financial system has made material progress toward better health. House prices are back at levels consistent with long-term affordability ratios. Banks have much more capital than they had on the eve of the financial crisis, the quality of that capital is much better and liquidity buffers are now much deeper. Credit availability is slowly improving. Though our challenges are large, we have come a good way already. And the policy challenges we face are not insurmountable. Even the long-term fiscal issues are not as intractable as some maintain; Social Security can be put on a sustainable trajectory with relatively moderate changes, and while Medicare and Medicaid are more complex, successful reform must be possible given that other industrialized economies spend a lot less on healthcare, often with better results across the population. Even with determined effort the road ahead will not be easy, and it will be several years before our economy once again operates at something close to its true potential and all who seek work have a good chance of finding employment. 8  BIS central bankers’ speeches  However, provided we secure the recovery, there is every reason to expect our nation will return in time to prosperity and solid growth.
9 [15]  cause a bad scenario with more permanently high inflation. It is enough that some of it does. Interaction important even when inflation is too high Let me round off. I often point out that the inflation target is not just the Riksbank’s target but is a target for society as a whole. Of course, it is the Riksbank that is appointed to attain it, but how well this succeeds is of great importance from a much broader economic perspective. There is strong political support for the inflation target, which, in turn, is based on the conviction that the economy simply works better with a specific, low and stable inflation rate. The development we have had since the introduction of the target also indicates that this is indeed the case (Figure 7). Over the past decade it has become clear that a system where responsibility for the inflation target is seen as entirely resting with the Riksbank, and not as something which agents in general should support, can be problematic. This was evident during the long period when the Riksbank’s policy rate was close to the lower bound, and the Riksbank also supplemented its policy with other measures such as asset purchases, but it was nevertheless difficult to bring inflation up to the target. This was not a specifically Swedish phenomenon, but a problem that many advanced countries wrestled with. Monetary policy in isolation was simply not enough.

We are pleased to see more banks in Singapore opening up their APIs, with tangible benefits to consumers. 2/9  BIS central bankers' speeches  OCBC Bank has 43 open APIs on its platform that are actively been tapped on by FinTech players, and even government authorities such as the Inland Revenue Authority of Singapore. DBS Bank has launched the world’s largest banking API developer platform with more than 170 APIs and over 50 successful collaborations. Customers looking for properties on the PropertyGuru platform can instantly find out if they are eligible for a property loan and even apply for the loan online. UOB has also recently put in place its regional open banking API platform. Customers can submit and read restaurant reviews, place reservations, and pay for their food, all within UOB’s mobile app. To-date, over 270 open APIs have been made available by the Singapore financial industry. Network of International Links By the end of this week, MAS will have signed 16 FinTech cooperation agreements with governments and authorities around the world1 These agreements facilitate information sharing on FinTech trends and regulatory issues. They also have a referral mechanism that support Singapore FinTech start-ups in overseas markets, and facilitate overseas start-ups to set up in Singapore as a gateway to Asia. Some of our co-operation agreements also include joint innovation projects. Let me give a tangible example. Singapore and Thailand have each developed their own systems for making payments from one bank account to another – in real-time, 24/7.
For this to happen in the best possible way, customers themselves need to pay due attention and obtain accurate information on bank products and services. When necessary in this process, more specialised external expertise may be requested. Secondly, Bank of Albania aims to offer a concrete incentive in this process for commercial banks, by further reducing their costs for the use of AIPS and AECH, payment systems during their transactions in Lek, on their own or their clients’ behalf. We believe that through a more competitive policy in products pricing by the banking sector clients get more benefits and we may see an increase in their number and, subsequently, generate an increase in the revenues of the banking sector. Third area, in which we are focused relates to the requirements to increase accountability in banking institutions management, asking repeatedly that professionalism, dedication and accountability be transformed into a work culture for all banking institutions staff. For that matter, we are continuously reviewing the processes through which the banks realise their decision-making, ensure control of certain activities and reporting chain within their institutions, as well as their interaction with the public. Internal control systems define, mostly, the capacity of an institution to operate securely. These are necessary to avoid any gap that may be abused to the disadvantage of the institution. Hence, in its regular communication with banks, the Bank of Albania has requested that they undertake all necessary measures; in terms of money, human resources and technology; to guarantee the security of any banking [trans] action.

This process is indispensable to clean bank balances from investments that are burdensome and release funds that would be used for new credits. In this context, monitoring of loan quality and behaviour or difficulties that banks face in this process lays at the very centre of the supervisory activity. Second area concerns the cost of banking services for clients. On this issue, the Bank of Albania has conducted necessary analysis, which led to the conclusion that costs for a number of bank products and services, including payments and transfers, debit and credit cards, as well as some other forms of crediting, could be lower. In relation to this issue, we are focused on two aspects: First, promoting transparency in the banking sector on its relations with the clients regarding these services. For this issue, we have implemented requirements for the establishment of methodologies to determine effective crediting costs and clearly define contractual obligations vis-à-vis the clients. Banks are asked to provide all the information and explanations to the interested clients. In addition, following the same logic, we would ask from banks to establish methodologies to define their costs for bank services, mainly related to payments and transfers. 2  BIS central bankers’ speeches  Therefore, it will be easier for clients to compare between a variety of offers by banking institutions and, hence, be able to make their choice according to the most favourable alternative.
Currently, 18 currencies are allowed to settle through CLS. The CBC along with CLS and the banking sector are working to make the CLP the 19th currency of this system. In addition to acting in accordance with its financial stability mandate and contributing to the development of the Chilean financial sector, the promotion of this initiative further support the internationalization of the CLP. Page 16 of 20  Central Bank of Chile September 2019  The reduction of settlement risk of the FX transactions through a PvP settlement in CLS is just one of the benefits of the system. Moreover, CLS reduce the liquidity needs of its participants through the use of multilateral netting, and enhance confidence, particularly in times of financial stress. From a more general perspective, a satisfactory CLS due diligence process along with a broad international participation trading in the CLP, will be a strong signal of the development and competitiveness of the Chilean financial markets. The process for the Chilean peso to become the first South American currency on CLS has started. Last July, we received the visit of CLS executives who had conversations with market participants and fruitful discussions at the CBC. After that visit, CLS and the CBC started the due diligence process. During this phase, the actions from the public and private sectors are essential. Nevertheless, a successful process should not be over before the end of 2021.

The internationalization of the Chilean peso can enhance financial stability, by alleviating liquidity concerns during stress episodes and reducing counterparty risks, among other effects. All of these changes must be accompanied with more robust and developed financial infrastructures. Also, the wider cross-border usage of the Chilean peso improves our position as a financial center. Regarding concrete measures towards accomplishing these goals, the CBC is reviewing its FX regulation, in order to modernize and simplify it. In addition, a larger and more developed FX market should benefit from having access to more robust financial market infrastructures. Page 12 of 20  Central Bank of Chile September 2019  In order to do so, the CBC issued regulation and is implementing a Trade Repository for OTC derivatives, relying on its current faculties and in coordination with the Financial Market Commission. Additionally, the CBC is working on an initiative that will allow its Real Time Gross Settlement (RTGS) payment system to settle US dollars large-value interbank transactions. These measures add to the future inclusion of the Chilean Peso as the first CLS-eligible currency in South America. This is a priority for the CBC, therefore we are working closely with the CLS Bank to materialize this in the next three years.
This has allowed us to confront the negative effects of the global turmoil on our country’s demand and output decisively. Let me begin by reviewing the monetary policy measures we have adopted since the beginnings of the global turmoil. The monetary policy measures to address the global crisis Since the early stages of the global crisis, monetary policy has acted aggressively to cushion the effects of the crisis on our economy. Our main policy instrument – the monetary policy rate (MPR) – influences the cost of interbank lending at one day term. Because the credits that banks provide to households and firms are at longer terms, what is central to determine the magnitude of the monetary impulse is the future path of the MPR expected by the market, rather than its current level. Thus, although the MPR was kept constant at 8.25% in the latter months of last year, the communication of the external scenario meltdown and its disinflationary consequences, together with the incorporation of an explicit bias, pulled down MPR expectations significantly between October and December, also affecting the market interest rates. This process was substantially heightened between January and March of this year, when the Board cut the MPR by 600 basis points, above what the market and analysts were expecting. Between April and June, the MPR was cut further, by a combined 150 basis points.

As regulators, we have to be cognisant of these risks. It remains an ongoing challenge to balance policy trade-offs and to preserve the best interest of the general public at large. Second, foreign insurers also tend to mainly target the more profitable market segments. Using their international brand recognition, they are able to capture these markets easily. Such segments include the higher net worth individuals, and large and multinational corporates. The insurance needs of the lower income segment and small and medium enterprises are then left underserved. Third, many of the global players operating in ASEAN today continues to operate as foreign players and act as conduits to their head offices. Invested capital could be hedged back to their home countries. Annual profits and fees received are repatriated. This in turn has resulted in, among others, persistent outflow of funds to the home countries. This practice has continued to put pressure on the host country’s balance of payments. Foreign players should do more to invest in the host country and truly make the host country their home country as well. On another front, efforts should concurrently be directed towards strengthening the underwriting and retention capacity of the regional insurance and reinsurance markets. What about the domestic players? Having benefitted from the partnership with their foreign counterparts, domestic and home-grown insurers in ASEAN also need to do more to serve the protection and financial needs in their countries and the region.