samchain/econo-pairs-v1 huggingface dataset:
Financial institutions to constantly develop expertise in support of this sector. Green financing teams should have in-depth knowledge and capacity across the entire financing process flow including product development, promotions, sourcing of viable projects, effective credit assessment, holistic risk management and robust monitoring. The larger regional reach by Malaysian banks will also enhance the potential to access a wider talent pool from the region, catalyzing efforts to build a specialised human capital team needed to drive the green technology financing agenda. ii. Government policies that are further enhanced to spur the growth of the industry and create larger consumer awareness. On the supply side, more efforts should be taken to build a highly skilled workforce and increase collaboration between  BIS central bankers’ speeches  3  research institutions and businesses to commercialise and scale up innovative green technology research. On the demand side, to create incentives to encourage consumers to use green products and government procurement policies which prioritise green solutions could be explored. iii. A holistic governance structure and performance measurement system would be put in place to drive the implementation of policies and ensure that green and sustainability outcomes are achieved. This could potentially bring us to a more transparent reporting of green initiatives by various players including the Government, business and the financing community. iv. As Asia becomes increasingly more integrated, economically and financially, Malaysian financial institutions have the opportunity to leverage on regional networks to scale up their business and serve a sustainably growing green technology market in a cost-efficient manner.

The growth potential of green technology is boundless with prospects and expectations to contribute significantly to the country’s transformation into a high value-added economy. The financial system plays a pivotal role in this transformation and today’s conference offers an important platform to encourage new paradigms and to develop concrete, transformative solutions moving forward. On that note, I wish you a productive and engaging conference. 4  BIS central bankers’ speeches
Nevertheless, in the case of Thailand after the crisis, the banking system has not yet been fully functioned and this, to a certain extent, undermined the effectiveness of the monetary policy. The macro-model gives a range of core inflations with probability distribution being described into a fanchart. This fanchart takes into account the related uncertainties and gives some flexibility in a range of forecasts. Based on the most likely outcome, the MPC will announce the expected rate of inflation for this year and next year. According to the most recent assessment, the core inflation will be 0.5-1 percent in 2002 and 0.5-1.5 percent in 2003, providing growth of between 3-4 percent in 2002 and 2003. Finally to enhance transparency of the process, Inflation Report is published on the quarterly basis providing forecasts of inflation and economic growth for the next eight quarters along with the quarterly press release. For the final part of my talk, I would like to dwell on the issues of Central Bank Independence. The first issue is whether a Central Bank can have too much independence in the sense that it can be harmful. To this, I incline to say yes, but only in a rare circumstance. Bad decisions relating to monetary or financial institutions operations can be damaging with wide impact. To prevent this from happening, a mechanism should be installed such as a Monetary Policy Committee or a Financial Institutions Policy Committee comprising of qualified external directors so that important policy measures are made through group decisions.

The Banque de France was the first to start a programme of eight experiments on a wholesale CBDC, notably with a number of Fintechs, to improve the functioning of the financial markets and institutions. If necessary, the Eurosystem could decide to issue a retail CBDC to ensure the general public have access to central bank money, especially in countries where cash payments are in decline. The ECB has created a high-level task force whose report we published ten days ago. We will now launch a public consultation, starting today, examine all regulatory and technical issues, and begin experiments at the national central banks – the Banque de France will contribute actively to this. Between now and mid-2021, the Eurosystem will decide whether to launch a project for a digital euro, which would start with an investigatory phase. And while we’re on the topic, let me just comment on the terminology used: you sometimes hear people talk about cryptocurrencies, but the term is a contradiction. You either have a currency, with all its functions and a public guarantee, or private crypto-assets. But there is no such thing as a cryptocurrency. 3/ A European mobilisation on private payment infrastructures thanks notably to the involvement of the major European banks in the European payments infrastructure (EPI) project. It is crucial that we go beyond the current national systems, and offer cross-border solutions together with a pan-European brand. There is no contradiction between the CBDC and the EPI. We could very probably need both.
Under these circumstances, the traditional pro-cyclicality of credit emerged once again, fuelling asset price inflation (particularly real estate prices in certain regions of the US and Europe) rather than consumer price inflation. In the past twelve months the scenario changed radically: a severe financial crisis, stemming from the US real estate sector, hit mature economies in general, whereas demand pressures over the availability of limited production factors led to mounting inflation in a global scale. Thus, central banks currently face a much more complex and challenging environment than during the years of the great moderation. Monetary responses have been initially diverse due to the nature of the problems that surfaced, but the priority on the need to preserve price stability prevails. Due to both increases in raw material prices and demand pressures, inflation accelerated sharply around the globe. In mature economies in general, marked by broader levels of idle capacity, higher commodity prices probably explain the bulk of the inflation upsurge. In emerging countries, including Brazil, domestic demand pressures have had a relatively more important role in stoking mounting inflation pressures. As a matter of fact, strong domestic demand in these economies created conditions that enabled initially isolated price pressures to become more widespread. Not surprisingly, monetary policy is currently more and more focused in moderating the pace of demand expansion and containing inflation pressures in the majority of the emerging world.

On the domestic front, fast aggregate demand growth continues to be an important source of inflation risks, particularly amid increasing evidence of limits to the expansion of supply – and despite the robust behavior of fixed-capital investment. Moreover, it is clearer now that additional increases in aggregate supply depend on increases in the investment rate of the economy, a process that requires time. In this context, the Central Bank evaluates that the consistent reduction of the unbalances between the pace of expansion of supply and demand continues to be crucial in the design of monetary policy. The Brazilian Central Bank adopts a strategy aimed at avoiding inflation volatility. This approach takes into account the time lags in the transmission mechanism and has proved to be the most adequate to deal with uncertainties intrinsic in the process of monetary policy formulation and implementation. Thus the importance of developing an appropriate analytical framework for monetary policy, including forecasts and the balance of risks to inflation, as well as the preemptive stance in the decision-making process of the Monetary Policy Committee. In the current circumstances, there is a potential risk that economic agents start to attribute a higher probability that inflation increases will become persistent, a fact that would reduce the effectiveness of monetary policy. The Central Bank stresses that the performance of monetary policy tends to be more effective when the deterioration of inflation dynamics is in the early stages, rather than when it is more established.
Any international financial crisis will be important not just because of its knock on effects on the core banks and markets on which British industry and households depend but because of its direct impact on the real economy. The growth of the City also affects the interpretation of some of the core statistics we use to monitor and assess how the economy is developing, including those on output, earnings and, above all, money and credit. First our GDP numbers don’t pick up financial sector very fully. In most sectors the contribution to GDP is roughly the sum of pay and profits. Measuring the output of the financial sector is more difficult. In the financial sector some types of banking activity are excluded from the final GDP figures. In 2008 the ONS plan to expand the GDP figures to include what is called FISIM and reflects those activities of banks which they cover by their net interest income. 6 That will improve estimates of GDP, but they will continue to exclude income that banks earn through proprietary dealing. This is probably be right as a matter of national accounting principle but dealing in securities is a part of what some international banks do. As a result changes in the level of activity in the City may not be fully captured in the GDP figures which most economic models, including the Bank’s, use as their summary statistic for the real economy.

Therefore, we have a small increase in bad loans, which reached about 12 percent. I think this process will slowly wind down. Then, together with the reduction of the risks that banks see in the real sector, and which will come to the surface now after the positive signals from the European economy, lending to companies will become a little more intensive. In one of its reports NBRM has pointed out that one of the limiting factors for higher credit growth are some conservative strategies in the local banking groups. What specifically did you mean? Yes, we pointed out the conservative strategies. And it is no secret that here we primarily think of the problems that some of the banks present in Macedonia have in their home countries. Banks in Slovenia and Greece are in serious problems, even though their banks in Macedonia are among the best, by both the quality of corporate governance and the credit risk management, and also the level of capital and liquidity they have is the highest in our  BIS central bankers’ speeches  1  banking system. So, their banks in Macedonia have no impediment to normally work and grant loans. But don’t they grant loans normally? Well, some of them are quite restrained. We constantly talk to them and they promise to be more active in the market. Which of them are restrained? Stopanska Banka has been quite restrained in recent years, but it always had positive rates of credit growth. It has never cut lending.
It is clear that the aim of central banks to make monetary policy less exciting and more boring needs to be complemented by a collective effort to bring boredom to the international monetary stage. 1  Over the past year, senior policymakers from within the G-7 are reported to have claimed that “It’s awfully important that the euro zone adopt policies that will allow them to grow faster. Their slow growth is hurting our growth” (John Snow, AFX news 24/03/04), and that “Our American friends need to put in place a determined policy to control their deficits and so that their currency does not distort commercial trade” (Nicolas Sarkozy, AFX news 25/11/04), or indeed that China’s exchange rate policy “has become a destabilizing force in the world economy, has led to major international exchange rate and trade imbalances throughout the world” (Open letter from US senators Schumer, Bunning, Durbin, Graham, Dodd and Bayh to Vice President Richard Cheney, 22/01/04). 2  BIS Review 9/2005

At the risk of oversimplifying, Central Banks associated with – or responsible for – financial stability may find themselves with:   two separate missions: price and financial stability    two different accountability regimes: full independence for monetary policy; coordination or subordination mode for financial stability    two interacting sets of instruments: interest rates and macro prudential tools (a situation made even more complicated when unconventional monetary policies are implemented)  The potential for confusion is real. It is not difficult to imagine situations where actions that Central Banks take on pure monetary policy grounds are nevertheless contested in the name of financial stability. To some extent, this has always been a possibility. The difference, now, is that institutional frameworks exist through which – implicit or explicit – challenges to Central Banks operational independence can materialize. It might be tempting to conclude, then, that Central Banks should stay away from financial stability and concentrate exclusively on ensuring price stability. This, unfortunately, is impossible, if only for reasons that Charles Goodhart has well explained in a previous paper: ultimately, Central Banking is about providing liquidity and liquidity provision is an essential and central component of financial stability. What can we conclude?   First, central banking is not only about monetary policy but also involves an essential component of financial stability. This seems to me a broad consensus coming out of the crisis.
BIS Review 165/2009  1  My own hypothesis is that instead of integration of jurisdictions, competition between them might sometimes be more beneficial to economic growth. Countries should compete for investors, capital and labour force by making their tax systems, legal frameworks and other conditions as efficient and friendly as possible. Competition is sometimes useful not only on the markets, but also among jurisdictions and states. Political integration can, at some point, become an obstacle to competition, sometimes even intentionally. I think that the EU is, unfortunately, right now at this stage. What a shame. And why is that? Well, when we choose the path of political integration, we have to watch out carefully for certain pitfalls – and I am not sure we have been careful enough in this respect. A major pitfall is the effect that we can observe whenever a group of people or institutions hires someone else to do a job for them. In economics, we call it the principal-agent model, or we say that a group of principals hires an agent. The idea is that the agent will follow the directions of the principals. A simple example: the shareholders of a company choose a manager to run their company. But sometimes it happens in this model that the agent tries to turn the power structure around and to switch from one who simply follows directions to one who deliberately sets the agenda.

The celebrated Lisbon Strategy has turned into a farce; many of the structural reforms that it outlined would be beneficial economically, but few of them have been realised or at least enforced by the agent, the European Commission. On the other hand, the EU institutions have repeatedly shown an ability to produce bizarre pieces of legislation that would hardly ever be passed at the national level in any given member state. The famous Czech writer Milan Kundera would probably call it the “unbearable lightness of legislating”. So my suspicion is that the EU is now in a position where it is easier to integrate than to liberalise. And these are two different things in terms of long-term economic growth, as I have argued. What a shame for the EU and for us. Thank you for your attention. BIS Review 165/2009  3
There were also inadequacies with regard to credit granting. Large loans were made to new customers, new sectors and new geographical areas. This type of lending strategy is not wrong in itself, but it requires that the credit-granter has done his homework and is aware of the possible risks. In some parts of the banking world, they talk about credit-granting according to the church tower principle, i.e. that loans should be primarily made to customers living and active close by. How this principle was applied in connection with investments in Atlanta or Brussels is not easy to see. In addition, the banks contributed to their customers building up a comprehensive credit exposure in foreign currencies, regardless of whether or not they had matching income in their loan currency. As the krona exchange rate was high, some borrowers chose to take out loans in foreign currencies that had a lower nominal interest rate. The risks with this strategy became evident after the krona’s rapid fall of almost 25 per cent in six months, calculated from when the krona was allowed to float in November 1992. When the banks’ borrowers found that their debt amounts had increased by up to 25 per cent, calculated in kronor, many of them were unable to meet their obligations and the banks’ loan losses increased further. These actions by the banks are actually quite remarkable.

Anyway, the TechLab was started only three months ago and we are also exploring initiatives with other technologies such as APIs. Let us talk a little bit more about the technology that brings us together, blockchain. This technology has several use cases for a central bank: (i) Central bank digital currencies; (ii) Financial Market Infrastructures such as largevalue payment systems and trade repositories, or more generally RegTech or SupTech implementations; (iii) Issuance and lifecycle of financial instruments; and (iv) opportunities of optimization of back office processes, such as settlement of operations and reconciliation. Notwithstanding the potential this technology has, there are some yellow flags that need to be addressed: a. DLT technology is still on an early stage and there might be unidentified drawbacks. Smart contracts that can build on top of this technology make it significantly more powerful, but there is little experience on how this works in practice. b. Borderless technologies raise concerns in regulatory compliance across regions. Coordination and information sharing may be especially relevant. c. Proof of Work (PoW) consensus protocol is slow and needs intensive use of energy. Other consensus protocols have limited use at this point: Proof of Stake or Proof of Authority. Page 3 of 11  Central Bank of Chile September 2019  d. Regulatory gaps may arise: identifying theses gaps is a central point in the exploration of the technology. Therefore, we need to understand this technology in order to embrace its benefits and mitigate the risks that some use cases may involve.
Finally I discuss the impact of financial developments on the growth of money and credit and the significance of that for the broader economy. London’s impact on the wider economy In principle, when one sector of an economy enjoys rapid growth, we would expect to see three broad developments: •  rewards earned by factors which are specific to the booming industry rise;  •  unless there are sufficient unemployed resources available, productive resources shift into the booming industry; and  •  employment in other tradable goods industries falls. 1  Gieve, J “The City’s Growth: The Crest of a Wave or Swimming with the Stream”, to the London Society of Accountants, 26 March 2007. 2  I use “the City” here loosely to cover not just the Square Mile but the whole of London’s wholesale financial sector including in Canary wharf and the West End. A fuller exposition would also give more attention to successful regional centres including Edinburgh. BIS Review 73/2007  1  The results were illustrated by the Dutch experience with gas in the 1960s and by the UK experience with North Sea oil in the early 1980s. 3 In both cases, part of the mechanism was a rise in the real exchange rate and consequent pressure on other sectors. Is that happening now in the UK? It is much harder to identify the impact of the City than the impact of the discovery of gold or oil.

Accordingly, we have already revisited the existing regulatory framework of primary dealers and based on those findings, we will introduce an appropriate regulatory framework for primary dealers in line with the latest developments in the  data by customising the existing FInNet Data Reporting System of the Central Bank; (2) expanding the statistical analysis to identify system-wide vulnerabilities and threats to the financial stability from the build-up of risks and interconnectedness of financial institutions; and (3) improving the early warning framework with a focus on stress tests and financial system stability indicators, to identify and assess systemic risks and vulnerabilities in order to ensure formulation and implementation of proactive macroprudential policies to maintain financial stability. market by benchmarking the global  The Central Bank has continued to take  standards. We also expect to establish  measures to strengthen the payment  and implement a restructuring  and settlement infrastructure of the  mechanism for distressed primary  country and to develop an efficient and  dealers. stable payment and settlement system,  The Macroprudential Surveillance Department (MSD) of the Central Bank  capable of catering to the growing payment needs. is being strengthened to keep a close  Continuing to discharge this important  tab on the developments in the financial  function, we expect to improve the  system as a whole. In this regard, we  national payment system to promote  expect to strengthen the institutional  electronic payments to establish a less-  framework for macroprudential  cash dependent society.