samchain/econo-pairs-v1 huggingface dataset:
Half of the respondents surveyed were not aware of the PDS while the majority of those that are aware claimed that they were given the PDS only after they had already decided to enter into a financial contract. Many of them were not informed of its purpose. The study also revealed a bias towards highlighting the benefits of a product in explanations given by sales agents or  BIS central bankers’ speeches  3  advisers on the product, while risks and costs were not adequately explained. It should therefore not be surprising that 75% of respondents make financial decisions without adequately considering risk factors associated with a financial product, while almost half did not understand the costs involved. These findings are obviously a concern to the Bank as they undermine informed judgments by financial consumers. I raise these observations today because financial advisers clearly have a key role in addressing these concerns. Indeed, you have a professional obligation to your clients to present clear, unbiased and objective information to help your clients make informed decisions. The Bank intends to address these issues aggressively, through regulatory improvements, education, more intensive reviews of sales practices and continued enforcement actions. With effect from the second half of 2015, financial advisers and insurance and takaful brokers will also be brought within the scope of the Financial Ombudsman Scheme that will be approved under the Financial Services Act, providing an avenue for consumers to address complaints against advisers for non-disclosures or misrepresentations.

In addition, an individual that possesses a qualification from a higher learning institution which covers the core areas of knowledge and which is recognised by the Malaysian Financial Planning Council (MFPC) and Financial Planning Association of Malaysia (FPAM) can be a financial adviser’s representative without the need to take additional examinations. These new requirements have been implemented since 1 September 2014. The changes present new opportunities for AFA and its members to reach out to a broader talent pool of potential financial advisers, including young graduates, who can contribute to the growth and development of the industry. It is important to emphasise that these minimum qualifications are only a means, and not an end, to the provision of sound financial advice. At best, it is a starting point. The Bank expects both at the industry and firm levels that financial advisers are committed to maintaining an adequate level of general and specific knowledge and skills required to deliver sound financial advice. This means having in place arrangements and processes to ensure that new financial adviser representatives are properly supervised, and all representatives are committed to a programme of continuous learning and professional development. It also means subscribing to a strong code of professional ethics and conduct. This is the focus of the Financial Services Professional Board (FSPB) which was established recently with the support of the Bank and the Securities Commission.
William C Dudley: The 2015 economic outlook and the implications for monetary policy Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, at Bernard M. Baruch College, New York City, 1 December 2014. *  *  *  It is a pleasure to have the opportunity to speak here today. In my remarks, I will focus on the 2015 economic outlook and the implications for monetary policy. In general, I will paint a reasonably positive picture – an economy that is likely to make further progress towards the Federal Open Market Committee’s (FOMC) objectives of maximum sustainable employment in the context of price stability. In fact, if my own forecast is realized, I would expect to favor raising the FOMC’s federal funds rate target sometime in 2015. This would be a welcome development, because it would signify that the economy has healed sufficiently to warrant a somewhat less accommodative monetary policy. As always, what I have to say today reflects my own views and not necessarily those of the FOMC or the Federal Reserve System. The growth outlook is improving Since the official end of the Great Recession more than five years ago, the U.S. economy has grown at a disappointing 2.3 percent annualized rate. Several times over that period, it appeared that growth was breaking out on the upside, but each time such hopes were disappointed. We are again at a similar junction.

As many of you will be aware, the FCA’s agreement with panel banks to provide LIBOR quotes will end in December 2021, now just over 30 months away. Across financial markets, SONIA is the Working Group on Sterling Risk Free Reference Rates’ preferred benchmark for the transition to sterling risk-free rates from LIBOR. Liquidity is now building in SONIA markets – both derivatives and cash. Our Dear CEO letter in September 2018 has had the desired impact of raising the profile of LIBOR discontinuance, with a requirement on the largest firms to provide transition plans, and giving greater visibility of the issue to other firms. We, and the FCA, have been clear that this is a significant change and achieving an orderly transition is a high priority for us. We will shortly publish the main points arising from responses to that Dear CEO letter. For insurers, the Solvency II discount curves for major currencies are currently LIBOR-based. We are aware that insurers need clarity about when and how these discount curves will transition to replacement risk-free 8  Governance and the role of boards, Andrew Bailey, 2015, https://www.bankofengland.co.uk/speech/2015/governance-and-the-role-ofboards. 8  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  8  rates. We understand the challenges this poses to insurers, and we are working constructively with EIOPA and others to address these issues. We encourage insurers to continue to focus on the actions within your control such as identifying where LIBOR exposure is on your balance sheets, engaging with counterparties, and preparing for operational changes.
Attracting, training and maintaining skilled staff, as the present and future expansion in the national economy in its various sectors, particularly, the financial sector, will generate a strong demand for financial skills of all specializations. There will also be a sharp competition for the existing skills, and staff rotation may occur at the financial institutions. Hence, all banks and financial institutions should make great efforts to attract and train employees and should invest generously in this area. It is an exaggeration to expect that the number of employees in the financial sector may double over the next five years. 2. Saudi banks will face a more competitive environment both domestically and in the region. This is because with open policies in the Kingdom, the number of banks operating in Saudi Arabia would almost double to 20 by the end of 2006. These will include the best group of regional and international banks, apart from the possibilities which modern technology provides for offering cross-border services. The banks will also compete, in the area of financial and advisory services, with non-banking financial institutions licensed by the Capital Market Authority. These institutions will compete in providing a number of financial and advisory services. 3.

Hamad Al-Sayari: World class banking sector Speech by His Excellency Hamad Al-Sayari, Governor of the Saudi Arabian Monetary Agency, during “The Future Building" Seminar, in cooperation with Euromoney, Riyadh, 9-10 May 2006. *  *  *  Ladies and gentlemen, It is a great pleasure for me to participate in this Symposium and share with my insights on “The Development of Banking Sector” in Saudi Arabia and have a glance over its development and role in supporting the growth of the Saudi economy to be more dynamic and attractive to domestic and foreign investments. At first, let me briefly cover the achievements of the Saudi banking sector since the establishment of SAMA in 1952. According to SAMA’s Charter, two of its most important objectives are to issue and strengthen the Saudi currency and stabilize its internal and external value, and to regulate commercial banks. On the basis of a historic review, we may judge how far these objectives have been achieved. The exchange rate has fluctuated in a very narrow band over the past six decades. This has contributed to attaining the ultimate goal of our monetary policy of achieving price stability. The inflation rate has remained very low and has generally remained, on average, below 1% per annum over the past 20 years. These stable conditions have contributed strongly to sustained growth in the overall economy with average real GDP growth of 3.2% per annum for the last decade.
The strain caused by developments in recent years appears to be comparatively limited. When inventions with a broad potential for application are introduced, it generally takes a long time before we learn the best way to use them. We tend to be fixed on the current system solutions and find it difficult to see new opportunities. The sobering process that has occurred since the exorbitant expectations at the end of the 1990s with regard to telecommunications and IT therefore does not rule out the possibility that this technology will stimulate future productivity growth. Following the electricity euphoria at the beginning of the 20th century, various applications gradually changed everyday life for industry and households. Sweden was not fully electric until a few decades later. Essentially, therefore, I am optimistic with regard to what future applications in telecommunications and IT can achieve for economic growth. The financial sector - the lubricant of the economy The financial sector has played a very central role in the development of the economy over the past 150 years. It still does, although the general public is sometimes critical of the financial sector - often without considering the services the sector has to offer and how daily life would look without this sector. The fundamental functions of the financial sector - financing, risk management and intermediation of payments - are indispensable to society. Financing entails bringing together the different wishes of savers and investors. Savers want their money to be available directly, while investors often require long-term loans.

At the same time, it should be remembered that many markets in Sweden still show clear signs of a lack of competition. This entails a considerable cost and in this field we appear to have more to learn from history. The significance of this is underlined by the fact that the various parts of the economy are interlinked, which often means that a strengthening of the weaker parts is more important for the whole than for the particular industry or sector. 3  The complementarity of the economy makes it particularly important to remedy our weak links and to listen with humility to the proposals of, for instance, the OECD and IMF. It is often easier to identify the problems if one can look at things with a little perspective. I believe that the Swedish economy has considerable unused potential for stronger growth if we concentrate on this, that is to say, on how to make our joint share of the cake grow. 3  The significance of complementarity in economic policy has been demonstrated by, for instance, Aziz and Wescott 1997 in “Policy Complementarities and the Washington Consensus”. 6  BIS Review 37/2003
For instance, the interest rate influences the general public’s decisions regarding investment and consumption. A higher interest rate normally means that growth in demand is slightly subdued, which is assumed to entail that the amount of free resources in the economy increases slightly in the long term. The effects on demand often come after a few quarters and thus also subdue price increases at an even later stage. A change in the interest rate also affects the exchange rate. An increase means that the return on assets in the home country’s currency is slightly higher. This also means that expectations of growth and inflation are subdued somewhat relative to developments in the rest of the world, which according to the textbook can contribute to a slightly stronger exchange rate. If the krona appreciates, it becomes slightly cheaper to import to Sweden, which can be assumed to lead to import prices on input and consumer goods increasing at a slower rate. A stronger krona also subdues global demand for Swedish export goods, which helps subdue growth in demand. On the other hand, if there is little confidence in the country’s economic policy, an increase in the interest rate risks resulting in a weaker exchange rate rather than the reverse, because confidence in growth is low. Monetary policy can also affect price developments via households’ and companies’ expectations of future inflation. In this context it is important to point out that there are a number of different measures  BIS Review 13/2002  1  of inflation expectations.

On the other hand, the uncertainty over developments in the labour market, lasting imbalances in savings and volatile stock market developments comprise a continued risk factor in the forecast. There are also signs that the industrial sectors in many other OECD countries are entering a phase of recovery. One particular risk factor in the developments is, in my opinion, that equity prices have been pushed up in the USA, given the economic situation. At the same time, the degree of indebtedness in the private sector remains relatively low. The low real interest rate entails risks for future developments in asset prices, particularly for the stock market. These risks need not be impending in the current situation, but the problems could become tangible in a couple of years’ time. This means that there is a risk that economic policy, which is very expansive in order to avoid a strong downward spiral, would postpone the adjustment of imbalances in the economy. Some parallels can be drawn with the events that took place after the crisis in 1987, when a financial bubble recurred. A further example of an asset bubble way back in time is what happened in the USA in 1927. At that time, the US central bank pursued an expansive monetary policy in order to stabilise the gold standard. This contributed to an over-valuation of assets and later to the crash in 1929.
The question as always is whether the risk of not waiting until the picture is clearer is outweighed by the risk of not acting in time. To sum up, some of what the MPC, at the point I joined it, thought would happen has happened. We have gone from recovery to expansion. Growth is slowing to something close to its pre-crisis average. Investment has made and is making an increasing contribution to growth. But the behaviour of unemployment, productivity and, most recently, pay continue to surprise and puzzle. More “normal” relationships between these variables may reassert themselves quickly and the pay rounds next year in particular should illuminate some of the picture. But there is also reason to believe that some changes, as in labour supply, may be longer lasting. When I started at the Bank this time last year, the MPC was half way through the process of putting together its latest set of forecasts for inflation and growth. That process is now again in train. The softening in the pay and inflation data, together with the weaker external environment, for me implies that we can afford to maintain the current degree of monetary stimulus for a longer period than previously thought. That of course will be a subject for the MPC to debate in the coming weeks. BIS central bankers’ speeches  5

Nonetheless, imbalances built up further in 2013, thereby justifying the increase in the level of the CCB, decided by the Federal Council in January 2014. Since then, imbalances have remained almost unchanged. On the one hand, momentum on the mortgage market slowed somewhat during the first quarter of 2014. On the other, during the same period, the rate of real estate price growth remained similar to that observed over the last few quarters, only slightly exceeding the growth of fundamental factors. From a financial stability perspective, these are welcome developments. Experience shows, however, that short-term changes in momentum do not necessarily imply a change in trend. Given the persistence of the low interest rate environment, banks and authorities should remain alert and take the necessary steps to keep risks for financial stability in check. First, measures giving banks stronger incentives to pursue a more cautious mortgage lending policy should be considered. Such measures should target both the owner-occupied residential property and the residential investment property segments. Efforts should now be directed towards preparing regulatory measures that could be implemented swiftly should momentum pick up again on the mortgage and residential real estate markets. Second, interest rate risk exposure in the banking book should be appropriately backed with capital. Under the aegis of the Basel Committee on Banking Supervision, international standards on capital requirements for interest rate risk are currently being developed. Given the significance of this risk factor, domestically focused banks should ensure they adopt a prudent stance towards measuring and managing this risk.
Dimitar Bogov: Impact of international regulatory cooperation on the Republic of Macedonia Opening speech by Mr Dimitar Bogov, Governor of the National Bank of the Republic of Macedonia, at the 36th meeting of the European Banking Federation, Skopje, 7 June 2013. *  *  *  Distinguished participants to the 36th European Banking Federation Associates’ Meeting, Dear Guests, Ladies and Gentlemen, Let me wish you a very warm welcome at today’s meeting. The topic I want to dedicate my welcoming speech on is international regulatory cooperation. The banking system in the Republic of Macedonia is predominantly foreign-owned and consists mostly of either subsidiaries of foreign banks or of banks owned by foreign portfolio investors. Foreign ownership has assisted banks in their efforts to follow sound market practice, develop and maintain high credit standards and receive encouragement and advice from their larger and longer established parent institutions. The global financial crisis and Eurozone debt crisis have not fundamentally changed this relationship. Nevertheless, these exceptional crises do constitute a real challenge for international and global banking. The Vienna Initiative, the framework to safeguard the financial stability of emerging Europe, has been valuable in raising awareness that the deleveraging process in developed Europe should not unduly restrict operations of bank subsidiaries in emerging Europe. In this context, it is important to note that even before the crises stroke, deposits raised in the Macedonian banking system by the predominantly foreign-owned domestic banks were lent by those same banks to borrowers in the Republic of Macedonia.

This element of surprise illustrates the need to carry out stress tests, that is, to test positions against extreme and unforeseen events – such events that may perhaps have a one in a million chance of happening according to the statistical correlations. Stress tests are being carried out to a greater extent, but there is a need to work on and refine the methods. Another weakness lies in the difficulties in identifying the risks that are associated with structured products and the valuation of these. Too many investors have relied on the rating institutes’ ability to assess risk and have thereby failed to make their own assessments. In some cases they appear to have relied on the credit rating institute to such an extent that they have failed to take liquidity and market risk into account, that is, risk that is not captured by the credit rating institutes. In this context one may also note with some surprise that the innovative development has gone so far that certain more or less tailor-made products are not traded and thus cannot be priced on the market but must be valued with the aid of complicated mathematical and statistical models. This creates problems when regulations and auditors demand a valuation of the products to market price. Perhaps it is so that not all ideas from the first years of this millennium deserve to survive.
Ten years of experience with inflation targeting has shown that the fight against inflation requires collaboration from all relevant parties. We believe that government income and wage policies as well as structural issues related to food prices are important components in this endeavor. Moreover, macroprudential policies towards prudential borrowing also facilitate the fight against inflation by supporting a balanced growth. Thus, bringing inflation permanently down to the 5-percent target requires all institutions to continue resolutely with the efforts made in recent years. According to the GDP data of the third quarter of 2015, economic activity proved more robust compared to the outlook presented in the October Inflation Report, and the GDP grew steadily by 1.3 and 4 percent on quarterly and annual bases, respectively (Chart 15). On the spending front, final domestic demand increased modestly in the third quarter, while external demand contributed positively to the GDP after three quarters (Chart 16). 6  BIS central bankers’ speeches  Chart 15. GDP and Final Domestic Demand  Chart 16. (Real, Seasonally Adjusted, Billion TL)  Contribution of Demand Components to Year-on-Year GDP Growth (Percentage Points)  Source: TURKSTAT. Source: TURKSTAT. The demand outlook for 2016 leads to expectations of stronger economic activity compared to 2015. Amid waning domestic uncertainties, rising consumer and investor confidence may boost domestic demand.

Page 2 sur 8 But what about the Great Financial Crisis, the Pandemic and the Russian war? If, as Olivier Blanchard said in 2006, “monetary policy must be closer to art when it is frequently confronted to new, poorly anticipated and poorly understood, contingencies”, the economic shocks of the past 15 years must surely have shifted the pendulum back to art. i I would actually argue that, even then, science served us well. Let me here cite Olivier Garnier, chief economist of Banque de France. ii I believe we central bankers can be proud of the joint achievements of policy and research in dealing with the Global Financial Crisis and its aftermath: acknowledging common mistakes in forecasts on the current level of inflation doesn’t imply becoming self-critical on policies. In the euro area, thanks to our “new conventional” tools, inflation is estimated in 2019 to have been around 75 basis points higher, and GDP growth 110 basis points higher than it would have been in the counterfactual. iii Furthermore, nobody can seriously pretend that past accommodative policy is the primary factor to blame for the current return of inflation. This would be forgetting how deep the deflation risk was in 2020 and the pandemic, and being mistaken about the present inflation surge: it finds its origins not in excessive liquidity but in supply bottlenecks arising from the fasterthan-expected rebound from the pandemic, and the sharp increase in energy and food prices, much aggravated by the war in Ukraine.