samchain/econo-pairs-v1 huggingface dataset:
Sweden was also affected and the Riksbank decided to provide liquidity to Swedish institutions. The Riksbank’s balance sheet exploded, from SEK 212 billion at the end of 2007 to, at its peak, SEK 763 billion in the summer of 2009. In my opinion, the measures have overall been necessary due to the extraordinary circumstances. They have, however, created major challenges which central banks must now come to grips with. Central bank support can increase risk-taking Society’s safety net, in the form of measures such as giving banks ELA, means that we can counteract the risk of problems in one bank developing into a widespread systemic crisis. The Lender of last resort function could therefore be seen as a form of insurance. But just like all other types of insurance, this one can also have a negative impact on the beneficiaries’ risk behaviour if there isn’t a sufficient level of excess in the system. There has been an obvious risk of the expansion of the safety net that occurred during the crisis leading to greater risk-taking and thereby increasing the probability of the safety net needing to be used in the future. To counteract this, it has been necessary to increase both the excess and resilience in the financial system.

Many senior managers and specialists view their student days as a pivotal time in their lives, so the quality of teaching has a major impact on both economy and administration. Universities make a direct contribution to a country's prosperity by maintaining the necessary capabilities and developing and imparting knowledge that is useful for the economy and society. But their indirect contribution is just as important: Universities must enable their graduates to understand and appreciate the significance of the Swiss model for success. This model is based on the pillars of direct democracy, the rule of law, federalism and an awareness of the value of stable institutions. The terms 'markets' and 'competition' are key to understanding basic economic relationships, and are fundamental to ensuring prosperity, as well as to acquiring and applying new scientific knowledge. One of the tasks of a university is to provide its graduates and the general public with a realistic picture of the functioning and importance of markets and competition. Only in this way can the Swiss model for success endure in a world of constant change. 1/1  BIS central bankers' speeches
Robert Ophèle: Cyber security in the financial sector Opening speech by Mr Robert Ophèle, Deputy Governor of the Bank of France, at the Conference “Cyber security in the financial sector”, Paris, 17 June 2014. *  *  *  Emmanuelle Assouan, Frédéric Hervo, Claudine Hurman, Caroline Keribin, Clément Martin and Axel Petitprez have also contributed to the preparation of this speech. Ladies and gentlemen, I am very happy to introduce this conference about cyber-security in the financial sector. This issue could be considered in the first place as very technical, the type of issue that has to be addressed only within a limited forum of experts. This would be an error and on the contrary, it is key that public authorities, including central banks, dedicate sufficient attention to cyber-security, given its system-wide implications notably for the functioning of the financial system. Over the past decade, the financial sector has changed considerably with the emergence of the Internet and the use of new information technologies. The market has been able to innovate and improve the quality, the performance and the efficiency of services such as online banking, mobile payments, and settlement platforms. Public authorities have indeed encouraged dematerialization in the financial sector to foster economic growth and also to reduce the operational risks inherent in previously non-automated processes. For example, the new European regulation on Central Securities Depositories requires using dematerialized securities and promotes automated and straight-through processes in securities settlement systems.

The SNB will announce the precise issue dates well in advance. Page 3/3
Completing the topic of mitigating the aftermath of the pandemic, I would like to say that during the pandemic period we have been implementing measures to help reduce the impact of inevitable restrictions and support households and companies, without disrupting fundamental interconnections in the market and compromising stability. The latter is critical for the financial sector and essential for people and businesses using services provided by the financial sector. Currently, the financial system is functioning normally, is resilient and able to cover the needs of the growing economy. The slump of early 2020 was followed by a rather rapid recovery. This surge was coupled with a global rise in commodity prices and faster inflation both in Russia and worldwide. Demand has already restored, which is evident from all indicators. Contrastingly, production will need more time. This is due to disruptions in production chains that have not been fully restored yet. There are shortages of some components and materials and workers in certain professions. As the borders are closed, it is impossible to engage non-residents as much as before the pandemic. For instance, this problem is severe in construction, services to a certain extent, and agriculture. All these factors are pushing up prices. Taking into account the nature of inflation, namely the steady growth of prices across a broad range of products observed in recent months, it is clear that we may not just wait until this period ends. The Central Bank needs to use available instruments to bring inflation back to the target.

However, as the economy bounces back, such a large-scale programme is now mostly pushing up housing prices, and this rise is not covered by the subsidised interest rate. Nor does it improve the affordability of housing for people, while the main goal is to increase the affordability of housing for people. We needed a shift to more targeted programmes addressing social issues, rather than focused on boosting construction in general. This is exactly why the parameters of the subsidised programme were changed, as was announced by President Putin. The next measure is reducing people’s and companies’ costs for covering their daily financial needs. In other words, this is not only loan restructuring and new loans which largely offset plummeting incomes, but also lower costs in the financial sector. We introduced a free limit of 100,000 rubles for P2P money transfers in the Faster Payments 2/5  BIS central bankers' speeches  System and obliged all banks to provide convenient access to the FPS in their applications. In addition, we limited acquiring fees to reduce companies’ costs related to cashless payments. This was a temporary measure, but it helped companies save 1.5% of their non-cash flows. Accommodative monetary policy and, accordingly, lower deposit rates made people opt for more profitable instruments in the stock market. Russia recorded a surge in the number of retail investors. As of the current moment, almost 13 million people have entered the stock market. They are mostly newcomers in the stock market, and we need to protect their rights.
Nevertheless, we concur with the message of the Fund that risks are clearly tilted to the downside, and agree that it will be prudent for policymakers to prepare for more adverse outcomes, though we hope such outcomes will not come to pass. It is telling that emerging markets, which have already been responsible for the greatest part of the world’s economic growth, will play even more significant role in cushioning this downturn. We note that even at the slower growth rates projected, emerging markets are still expected to expand at a healthy 6.7 percent this year, and will sustain that pace in 2009. Developing Asia can be expected to see even more robust growth, in excess of 8 percent, led by China’s near double-digit rate of expansion. It is heartening to note that self-sustaining domestic demand is expected to be a greater feature of the expansion of individual Asian economies, along with greater intra-regional trade. 3. We welcome the ongoing correction of global imbalances we have experienced thus far. While recognizing that there is still a risk of disorderly unwinding of these balances, we are cautiously optimistic that responsible actions by all parties will prevent such an event. In our region, we have significant adjustments in domestic demand, underpinned by improved economic fundamentals. As a result, the surplus countries in our region continue to experience a gradual but significant decline in their current account balances, partly due to the acceleration in the rate of exchange rate appreciation in the region.

We see the Managing Director’s statement as a good basis for the Fund to move forward and appreciate the urgency with which he has sought to implement the strategy. In particular, we welcome the budgetary savings projected under the medium-term budget and the envisaged implementation of reforms in the other organizational aspects. We would only urge more careful consideration to be given before agreeing to the proposal to charge for technical assistance. Technical assistance is a key public good of the Fund and is critical to improving surveillance and the capacity to design and implement macroeconomic policy in many developing and low-income countries. As such, we should ensure that countries who need technical assistance will continue to receive it, regardless of their ability to pay. 16. We also welcome the Fund’s proposed program of work on sovereign wealth funds (SWFs). These funds play a positive role in the global financial market by adding both depth and breadth to them, allowing for the efficient distribution of funds, and lowering the cost of capital in recipient countries. The established SWFs are professionally-run, long-term investors, with little leverage. Their ability to accommodate short-term volatility has contributed to liquidity and stability during periods of market stress, as illustrated in the recent crisis. For countries that operate SWFs, they are a useful tool in managing intergenerational savings in a manner that preserves macroeconomic and external stability. They help build a buffer against future liabilities arising from population aging or other concerns.
5) Fortune favours the bold  The fifth and final principle is one without which the others are superfluous. It is that fortune favours the bold. The Financial Policy Committee needs to match its judgements that what could happen has got worse with action to make the system more resilient. Why will that take boldness? Our actions will stop the financial system doing something it might otherwise have chosen to do in its own private interest – there will be opposition. The need to build resilience will often arise when private agents believe the risks are at their lowest. And if we are successful in ensuring the system is resilient, there will be no way of showing the benefits of our actions. We will appear to have been tilting at windmills. 10  All speeches are available online at www.bankofengland.co.uk/speeches  10  As the memory of the financial crisis fades in the public conscience, making the case for our actions will get harder. 41  Fortunately, we are bolstered by a statutory duty to act and powers to act with. And whether on building bank capital or establishing guards against looser lending standards, we have been willing to act. Just as building resilience takes guts, so too does allowing the strength we’ve put into the system to be drawn on when ‘what could happen’ threatens to become reality. Macroprudential policy must be fully countercyclical; not only tightening as risks build, but also loosening as downturn threatens.

The results of our decisions can be measured. Hence the government authorities can evaluate our performance. The interest rate differential against other countries has widened  Central banks in several countries have reduced interest rates earlier this year with a view to countering an economic turnaround. The Federal Reserve has cut the federal funds target rate by a total of 2½ percentage points since the beginning of the year. The Bank of England and the European Central Bank have recently cut rates. There is a also a tendency towards a more expansionary fiscal stance in many countries. In the US, fiscal policy has become somewhat more expansionary after many years of relatively tight budgets. Many European countries have also taken a pause in the consolidation of state finances. Norges Bank increased the sight deposit rate – which is our key rate – by a total of 1½ percentage points last year. So far this year, the key rate has remained unchanged. As a result, the difference between short-term rates in Norway and other countries has increased. Money market rates are about 3 percentage points higher than among our trading partners. Money market rates are 3½ percentage points lower in Sweden than in Norway. The wider interest rate differential implies, in isolation, a somewhat tighter monetary policy. The krone becomes a more attractive investment currency, and this may have contributed to strengthening the krone. Investments in the NOK market are now generating a return of 7 per cent.
Jean-Claude Trichet: I would say, again, that I rely very much upon the Fed’s analysis, which I have to say over the crisis has been wise and pertinent. There was a level of hype at certain moments, when we were getting out of the crisis, which perhaps did not fully reflect the situation of the real economy. And now there is a mood which seems to me too negative. That’s my own personal feeling. Financial Times: Let’s talk about the pace of financial reform, regulation. Why were the reforms as proposed under Basel III watered down? Jean-Claude Trichet: I do not want to prejudge in any respect the upcoming meeting we have on this issue. I will only say that we need the same rules at the global level, a level playing field globally. And now at the global level we have the full participation of the emerging world, which, by the way, is one of the major structural transformations of global governance over the last three years. The G20 has substituted for the G7 as the premier forum for international economic cooperation. We have also profoundly transformed the global governance of central bank cooperation with full ownership by the central banks from emerging economies. That is something which I would call a “silent revolution” in global governance.

Thirachai Phuvanat naranubala: The role of non-bank financial institutions in relation to monetary policy Speech by Mr Thirachai Phuvanat naranubala, Deputy Governor of the Bank of Thailand, at the Regional Seminar on Non-Bank Financial Institutions in East Asia Region, Bangkok, 4 September 2002. *  *  *  I wish to congratulate the Securities and Exchange Commission of Thailand and The World Bank for organizing such an interesting seminar in Bangkok, and to thank them for inviting me to share my thoughts with you today. I can see that the topics in the seminar will cover many important aspects of non-bank financial institutions’ operations -- ranging from the regulatory and supervisory framework to capital market development as well as the issue of governance. But I am the only person touching on monetary policy aspect. Monetary policy does affect an important part of your business, which is the bond market. Because the one factor reflected in the bond market yield curve is inflation expectation. Therefore, if the framework and the conduct of monetary policy result in low and predictable inflation, it will help curb volatility of the yield curve and support development of the bond markets. Change in monetary policy stance also directly affect interest rate and hence the bond market. Thus, it pays for you to understand monetary policy. Monetary Policy in Thailand In order for you to do that, I have to start by telling you about how the monetary policy framework has evolved here in Thailand.
There have been signs of a gradual improvement, for instance, in the euro area and the United States, but on the other hand the GDP outcome in Sweden, for instance, signalled that the recovery is fragile. At our monetary policy meeting on 4 September we will have to balance these factors against one another, and also take in the information received in the meantime. Until macroprudential policy has been established, we will continue to conduct a flexible monetary policy that enables us to take into account a number of different factors, such as household debt. At the Riksbank we are busy working on new analyses and forecasts on which to base the next repo-rate decision. We will return with a new overall assessment in connection with the monetary policy meeting in September. 8  BIS central bankers’ speeches

You may wish to know that the Bank of  2  BIS Review 26/2008  Zambia and the Lusaka Stock Exchange are already engaged to develop an efficient settlement stream within the RTGS payments system. It is my belief that once this initiative has been fully developed, settlement risk will be reduced and more credibility will be added to securities trading. Chairperson, I know there are still formidable challenges in building a vibrant secondary market. Hence, in my concluding remarks, let me reiterate what I said earlier; that setting the primary market off the ground has been a challenging task. To set up secondary markets is even a more challenging task. Yet it is not an impossible one. With the participation of every stakeholder, the challenges that seemingly look insurmountable can easily be overcome. We all know that the development of a vibrant secondary market for securities is necessary. When I look at all of you gathered here this morning, I see a determined optimism that we can get there. Each and every one of us has a role to play, be it Government, corporate institutions, or indeed a small investor. On our part as Bank of Zambia, you can rest assured that we will continue doing our part in facilitating the development of this market. Thank you very much and I wish you a very successful workshop. BIS Review 26/2008  3
What does one gain by conducting a policy that  9  As the CPI is to a great extent affected by repo-rate cuts in connection with the financial crisis, it has been natural to focus more on underlying inflation measured in terms of the CPIF. 10  Households’ total assets are much higher than their debts. A large part of this concerns housing. But there is also a considerable part that consists of more liquid assets, the value of which need not fall if housing prices were to fall. BIS central bankers’ speeches  5  deliberately allows it to take longer for inflation to return to the target and for resource utilisation to return to a normal level? Is it worth the cost in terms of poorer target attainment? This is not easily illustrated. It is a question of a “new” type of trade-off being included in the material on which the analysis and decisions are based and it takes time to find good forms for this. It also involves illustrating risks and uncertainty and making them more concrete, and this is always a challenge. The Riksbank has been carrying out work on developing this for some time, and an outline as to how financial imbalances can be included in the monetary policy assessments has begun to take form.

I see a risk in allowing monetary policy to continue to lean against the wind until one sees tendencies for  15  I n a long-run perspective, inflation below the target could lead to unnecessarily high unemployment if inflation expectations are firmly anchored around the target (see Svensson, 2013). In the same way that unexpectedly high inflation benefits those who borrow and is a disadvantage to those who lend as the real value of the debt becomes lower than anticipated, unexpectedly low inflation can benefit those who lend at the cost of the borrowers. BIS central bankers’ speeches  7  inflation expectations in the long run to begin to adjust downwards. That is a situation that might be hard to turn around. Target attainment is important for credibility One argument that is sometimes put forward is that the differences between what the majority of Executive Board members and the minority advocate are so small and that in practice it is not very important whether or not one cuts the repo rate a little more. And in a strictly “mechanical” sense, it is perhaps true that a policy rate that was 0.25 percentage points lower for a period of time would have a limited effect on the economy. But for the sake of credibility and target attainment in the long run, it is also important how households and companies perceive monetary policy. How seriously does the central bank view the inflation target?
As an example, for an instrument issued based on Ijarah principle using the property as its underlying asset, the actual rate of rental can be used to determine the rate of return on this instrument. The indicator of the rate of rental will fluctuate based on the demand and supply of the said property. By having its own indicator, it will give a true reflection of the price of the underlying property asset as opposed to being linked to the KLIBOR which has no direct correlation with the changes in the rental rate. Actively promote the role of the market players The Islamic financial services industry is expected to benefit from the recent increase in the number of players following the launching of Islamic subsidiaries, the issuance of foreign Islamic banking licences and the measures to issue additional takaful licences. The entrance of these players will contribute to an active participation in both the primary and secondary markets for Islamic financial instruments. Ladies and Gentlemen,  2  BIS Review 49/2005  I hope this seminar will crystallize positive ideas to pave the way and contribute towards the development of a more vibrant and dynamic Islamic financial system. I wish to take this opportunity to thank the speakers for accepting our invitation to share their invaluable knowledge and experiences in this Seminar. The participation by researchers and practitioners in the Islamic financial system is also important. On this note, I wish you all a successful seminar. BIS Review 49/2005  3

Rebalancing: impediments We recognise that the stimulus we have provided risks slowing further progress with the necessary medium term rebalancing of the economy. Rebalancing will not, in any case, be easy. The composition of demand in the UK was imbalanced for so long that the productive capacity of economy is unbalanced. Crudely, the balance of aggregate demand needs, over the medium term, to shift away from household and public consumption towards net trade and investment. Up to a point, some of that has already happened. But domestic monetary expansion will work partly through deferring some of the restructuring of household balance sheets, underpinning consumption. And, looking ahead, the greater question is whether rebalancing can be sustained as and when the economy returns to “full employment”, ie when the economy’s spare capacity is utilised again. Rebalancing is already impeded by tight credit conditions. Although our banking sector has done much to strengthen capital and liquidity over the past few years, it would still have ground to cover in rebuilding balance sheets even if the external environment were more propitious. With instability from the euro area crisis threatening the UK, our banks cannot avoid being exposed to outsized risks. That is reflected in elevated funding costs, which they pass on to their customers to a greater or less extent. The gradual improvements in credit conditions seen until the summer, and documented in the Bank’s quarterly Credit Conditions Survey, have been arrested for now.