samchain/econo-pairs-v1 huggingface dataset:
Cyber risks thus present an enormous potential for insurance players – not just to capitalise on this insufficiently tapped space, but more importantly, to play a vital risk management role for the wider society: •  Increasing awareness of cyber exposures, as well as the forces of regulatory change, will underpin the rapid growth of cyber insurance. It is estimated that the cyber insurance market will grow 30% per annum to $ billion in annual premiums by 2025. 2  BIS central bankers’ speeches  •  Companies are increasingly focusing on cyber security issues. 63% of boards today actively address computer and information security, up from 33% in 2012. The sharp increase is likely driven by the recent high-profile and well-publicized cyber incidents. •  Governments are also gearing up to address the problem. There is a trend towards stringent data protection regimes that are backed by increasing levels of liabilities such as more notifications and significant fines for data breaches. US, Hong Kong, Singapore and Australia are among those already enforcing, or looking at, new laws, while the European Union is looking to harmonise pan-European data protection laws across the EU member states. As technology and the users – or abusers – of technology get smarter, the extent of and impact from cyber breaches will correspondingly rise. Businesses must prepare for this new era of cyber risks with cyber insurance as a critical component in a comprehensive risk management strategy.

(2) Considers implicit volatility on option from US S&P 500 index. Sources: Bloomberg and JP Morgan Chase. 4  BIS Review 97/2007  However, even if this is a normalization process, the dynamics, deepness and extension of market adjustment are difficult to foresee. As with earlier episodes of sharp increases in risk premiums and market volatility, some market segments and specific agents have found themselves unexpectedly in weaker financial positions, which generate tensions and doubts about particular entities’ risk vis-à-vis their counterparties. In this sense, beyond the slow recovery of the past week, the risk remains being a worsening of the international financial scenario if this correction deepens, with more severe implications on the functioning of the principal markets and global financial intermediaries and, ultimately, on world economic activity. Although this correction was triggered by the deterioration of sub-prime mortgage debtors’ payment capacity in the US, what is surprising is that the exposure to such deterioration has spread to financial entities elsewhere, causing tension in the trade securities market and even in the global interbank market. These mortgages were originated by companies specializing in mortgage loans; then they were sold to institutions that packed them as bonds collateralized by payment flows associated to these mortgages, to higher quality mortgages and to other credits. These bonds are known as ABS. With the increase in sub-prime mortgage delinquency rates, widespread uncertainty arose regarding the value of the ABSs because of lack of clear information on their content of sub-prime mortgage credits and the increase in payment delays.
In the meantime, while the high global growth tendency pushes metal prices upwards, the increase in the interest of investment funds to the sector investment tools becomes the determinant in the upsurge in metal prices above expectations. In the light of these developments, crude oil prices continue to be a risk factor with respect to inflation. BIS Review 67/2006  11  Graph 17. Chosen Indicators Relating to Crude Oil Prices 220  70 65  190  60  160  55 50  130  45 40  100 05-01  05-03  05-05  05-07  05-09  05-11  06-01  06-03  IMF-IFS Metal Price Index (2000=100), left axis Import Unit value Index (2003=100), left axis Crude Oil Prices (Brent, Barrel/USD), right axis  Source: IFS, TURKSTAT, Bloomberg. Financial markets and financial intermediation Distinguished Guests, The course of international liquidity conditions and the risk premium in the first two months of the year has been in favor of developing countries. In March, the favorable course in risk premium came to a halt because of the deterioration in the global risk appetite and the increase in the perceptions of uncertainty about the interest rates of the Bank of Japan. Nevertheless, the ongoing successful conduct of budget performance became the most significant development that limited the tendency of deterioration in expectations (Graph 18). Graph 18.

Exchange Rate Developments Real Effective Exchange Rate (CPI Based)  YTL/Basket (0.5 Euro-0.5 USD)  1.85  180  1.75  170  1.65  160 150  1.55  140  1.45  130 1.35  Jan-06  Jul-05  Jan-05  Jul-04  Jan-04  Jul-03  Jan-03  Jul-02  2-Jan-06  2-Sep-05  2-May-05  2-Jan-05  2-Sep-04  2-May-04  2-Jan-04  2-Sep-03  2-Jan-03  2-May-03  2-Sep-02  100 2-May-02  1.15 2-Jan-02  110 Jan-02  120  1.25  Source: CBRT. It is observed that the stability in YTL-denominated bond issues by foreign banks, an indicator of demand for YTL, has a tendency to continue. In the first quarter of 2006, there was no remarkable change in the maturity structure of current securities compared to the last quarter of the previous year (Graph 23). 14  BIS Review 67/2006  Graph 23. YTL-Denominated Bonds Issued by Foreign Banks 5,000  3500 3000  4,000  Amount (Million YTL)  Amount of Issue (Million YTL)  4,500 3,500 3,000 2,500 2,000 1,500 1,000 500  2500 2000 1500 1000 500  Quarter of Issue  2020  2018  2016  2014  2012  2010  2008  0 2006  1.Quarter 2006  4.Quarter 2005  3.Quarter 2005  2.Quarter 2005  1.Quarter 2005  0  Year of Maturity  Source: CBRT.
In fact, after the consolidation phase we have witnessed a period in which the number of banks and bank-like institutions in Sweden is increasing. The new ones have mostly been small banks specialising in certain activities and services, for instance linked to major retail store chains and benefiting from the cash flow from the stores’ customers. We call them “niche banks”. Sweden never had a large share of state-owned banks in its financial system. In the crisis one bank had to be nationalised during the resolution phase but that bank was rapidly merged with another bank. Another of the banks which suffered during the crisis was state owned already at the outset but the shares of this bank were gradually sold to private investors as soon as the bank had recovered its financial health. The Swedish government remains a shareholder in the bank but holds only 19 percent of its total equity capital. Today, this bank which is named Nordea, is highly profitable and has formed a large group which has significant market shares in the countries in the Nordic region. As a government official deeply involved in the banking crisis, I took the decision that although some banks had to be rescued by public funds, the management of the banks should be left to professionals, without undue operational interference from the government. The banks should be run in accordance with market conditions just like any other bank.

But if inflation moves away from the target by more than 1 percentage point in either direction I shall expect you to send an open letter to me setting out the reasons why inflation has moved away from target …and the period in which you expect inflation to return to target’ In 1998 Charlie Bean, now (but not then) the Bank’s chief economist, calculated that open letters might be triggered at least 40% of the time, on the basis of past experience 3 . This did not seem unreasonable at the time. But after 114 monthly decisions, inflation has always been within 1 percentage point of the target. And I take the fact that no Governor has yet sent an open letter as further evidence that there has indeed been an unexpected increase in stability. 2  Mais lecture, June 1997. 3  “The new UK monetary arrangements: a view from the literature”, Charles Bean, Economic Journal 1998. 4  BIS Review 116/2006  Where are we now? Are we now entering choppier waters? The world economy continues to grow at an impressive rate, with few signs of sustained inflationary pressure. Globalisation continues apace. But it is not difficult to think of things that could go wrong, ranging from an outbreak of protectionism, to another sharp surge in oil prices in response to geopolitical events, to a sharp correction in housing markets, which in a number of countries are very richly valued.
When I was finalising my speech, I was told by my staff that the average turnaround time to process damage motor claims has increased by 10, from an already miserable record of 83 days. In the 19th century, Jules Verne wrote that anyone can travel around the world in 80 days. We can’t settle an insurance claim any earlier in the 21st century. Go figure. My own experience suggests that the turnaround time is the most important aspect of takaful operations that shapes the industry’s image in the eyes of the customer. The industry has to seriously look at this. It should relentlessly pursue changes in processes, rules and parameters that are necessary to improve the experience for customers. This requires creativity and persistence. The situation is not much better in the family takaful business, although we are putting in place the infrastructure to tackle this problem. The Bank, the insurance and takaful industry, and the National Registration Department will roll out a new, automated mechanism this year to expedite the process for claiming death benefits. With this, the industry will be better able to help those in their hour of need. The Bank, through the LIFE Framework and other initiatives, is determined to ensure that customers receive a fair deal. The recent implementation of the balanced scorecard will increase the professionalism of takaful intermediaries. It is now incumbent upon the industry to establish and maintain trust and goodwill with its customers.

However, at the rate it is growing, we will only reach 16% in 2020, from the 14.8% today. This would be even lower if we were to correct for double counting of policies. Clearly, the data proves that takaful is still far below its full potential, and is nowhere near where it should be. Second, individual takaful operators have not reached optimal size. Takaful operators are dwarfed by their conventional counterparts. Without sufficient scale, takaful operators are hampered in making meaningful inroads against their larger competitors. This is not just about competition within the takaful and insurance industry, but also of technology. Technology is reshaping the landscape of finance and lowering the barriers to entry from adjacent industries. Takaful operators must shape up, or risk being marginalised, or worse, made irrelevant. Third, the value proposition of takaful needs to be more apparent. As it currently stands, many view it as being no different from insurance. Some even view it as being unnecessary. It is disheartening to learn that 51% of respondents to a MTA survey cited these very reasons on why they have little knowledge or interest in takaful products. The issue of misperception also remains, with many non-Muslims deeming takaful as being only for Muslims. Opportunity to reposition takaful for the future This is the grim reality of the state of the industry, but it need not be so. In fact, I am positive about the prospects and potential of takaful. However, to get out of this “predicament”, we need an immediate and radical change.
•  Concern that instrument complexity and transaction volume could overwhelm settlement systems. Post 2008, these issues sound all too familiar, of course. Of particular note, the report stated that: A major source of concern derives from the difficulties in pricing new instruments and the possibility that many new instruments appear to be, at least to some degree, underpriced, that is, that gross income from the transactions is insufficient, on average, to compensate fully for their inherent risks. Since it may be necessary to accumulate experience over a variety of circumstances and cyclical conditions in order for market participants fully to understand and assess all elements of risk, this problem may appear especially before the market for a new product has reached maturity. The recent financial crisis in many ways represented the realization of many of these concerns. Some observations: •  1  2  The crisis demonstrated how the combination of poor underwriting, financial engineering, and leverage could transform what had been viewed as relatively safe markets for US residential mortgages, magnify risks in those instruments through securitization and leverage, and transmit the risks around large parts of the globe. Recent innovations in international banking (Cross Report). BIS central bankers’ speeches  •  The speed at which liquidity deterioration, market dysfunction and financial institution distress set in was breathtaking – far faster than experienced in earlier crises.

This campaign succeeded thanks to the support of Jean Claude Trichet, Cristián Noyer, Tim Geithner and especially Jean-Pierre Roth. As a result of this campaign, aside from Chile, countries like Norway, Denmark, Greece, Finland, Israel and New Zealand were able to also integrate the discussion on the global economy. Those meetings gather central bank governors of the main economies of the world, and are a great opportunity to be updated on the evolution of the global economy and strengthen the networks for interaction across central bankers. Internationally, I must also mention the great recognition that has the work of our Central Bank in other central banks and in international forums. Dear Board members, executives and all the staff: I want to tell you all that I am deeply grateful for having had the opportunity to serve my country from this position. It has been a true privilege, especially for the opportunity that provided me to strengthen this institution and in this way to contribute to build the great reputation that this institution has today in the country and elsewhere. Traveling abroad as the Governor of the Central Bank is a great satisfaction because of the way our country is seen and respected. I have been the recipient of frequent praise for our country and for this Central Bank, which is the merit of each and every one of you.
Conferences like this that bring together the official sector with financial analysts, markets participants and academic economists play an important role in developing the theory and empirical analysis needed to inform those assessments. Thank you very much for your attention. Data Appendix The primary sample includes U.S. owned bank holding companies (BHCs) with assets greater than $ as of 3Q16. This represented approximately 80% of all U.S. owned BHC assets. Where available, estimates are adjusted for mergers since 2000 to include major banking and non-banking (broker-dealer) operations. The FDIC sample represents all FDIC-insured 6/7  BIS central bankers' speeches  depository institutions. 1 The Federal Reserve supervisory program described here applies to bank holding companies, and I use the  term “bank” for ease of exposition. 2 "Consolidated Supervision Framework for Large Financial Institutions,” SR 12–17, December 17, 2012. This  framework applies to institutions that are part of the Federal Reserve’s Large Institution Supervision Coordinating Committee (LISCC) portfolio, including domestic banking organizations with consolidated assets greater than $ billion, large foreign banking organizations with combined assets of U.S. operations greater than $ billion. 3 "Supervision and Regulation,” Federal Reserve Chair Janet Yellen, September 28, 2016. 4 "Amendments to the Capital Plan and Stress Test Rules,” Federal Reserve Board of Governors, January 30,  2017. 5 The cost of capital for banks may depend on the mix of equity and liabilities due to tax effects, conjectural  guarantees, inefficiencies in raising equity, or the opacity of bank risk.

Consequently, last month the Financial Policy Committee (FPC) was able to send two signals that the system had turned the corner. First, it has clarified the overall capital framework for banks, providing much needed certainty to the sector. While there are details still to be finalised and complexities to be reduced, there  BIS central bankers’ speeches  1  is no new wave of capital regulation coming. There is no Basel IV. Indeed, last week, central bank Governors and Heads of Supervision agreed that work to address the problem of excessive variability in risk-weighted assets – one of the final parts of the post crisis capital framework – would be completed by the end of 2016 without significantly increasing overall capital requirements. Second, the FPC now judges that the system is already within sight of the amount of capital it needs to have by the end of the decade and has the capacity to continue lending to the real economy even under severe stress. The Bank’s most recent stress test underscores these improvements. It focused on an emerging market stress, centred on a sharp slowing of Chinese growth, which prompts reassessments of global economic prospects, falls in asset and commodity prices and increased global deflationary pressures.1 Sound familiar? Despite challenging conditions abroad, the UK financial system can continue to take the types of prudent risks needed to grow jobs and incomes here at home.
The Guidelines will be released to the industry this month for implementation early next year. This is an important strategic development, both from the public policy and consumer perspectives. Today, medical insurance business accounts for the largest share1 of non-tariff general insurance premiums in the market, with premiums exceeding RM1.3 billion in 2004. The revised Guidelines have retained a significant degree of product flexibility, and enhanced disclosure requirements to promote increased competition while more clearly defined rules governing  1  10,5% of total general gross direct premiums, third (in terms of market share) only to motor and fire business. minimum policy terms and conditions will be put in place to deliver a reasonable level of protection to policyholders. These requirements will also promote more consistent treatment of consumers in the provision of core benefits under medical insurance policies. Where regulatory intervention remains necessary, the Bank will continue to balance the business interests of industry participants with that of consumers, to ensure that the costs of regulation are commensurate with its perceived benefits to consumers. In the long term, however, reliance on regulation and supervisory oversight alone is not a sustainable solution to the market conduct and broader confidence issues that confront the industry. The desired outcome should be one where freedom of action is accompanied by an appropriate degree of moral restraint on the part of the market.

Credit growth in the UK economy continues to be weak. The latest Bank of England credit conditions survey indicates early signs of an increase in the amount of mortgage lending  BIS central bankers’ speeches  3  available to households, though much less evidence of a change in credit conditions for businesses. But it is very early days for the recently announced policy measures – in particular the Funding for Lending Scheme – which are intended to have a positive impact on domestic credit conditions. So, we can see a picture of gradually improving resilience in the banking system but with further to go, but also credit growth which remains weak. In that context, and recognising the balance of objectives within macro-prudential policy, the FSA has taken a number of steps. We have allowed banks to reduce the capital buffers they hold over the minimum requirements in line with new lending to the UK economy. Our view here is that a reduction in the risk arising from this new lending caused by an improvement in credit conditions should offset the risk from lowering capital buffers. If such extra lending boosts economic growth, it will enhance resilience in the financial system. Likewise, we have altered our guidance to banks on the liquid asset buffers that they need to maintain. This reflects the Bank of England’s stance on the potential access of banks to liquidity from the Bank, and a wider desire to reduce the incentives for banks to hold excessive liquid asset buffers for precautionary reasons.
Other approved decisions are as follows: a decision to allow GCC citizens to exercise the activities of insurance services, transport services, in its different forms, and real estate services, the application of the Same National Treatment on GCC citizens in the field of jointstock companies’ shares ownership and trading and GCC Citizens Real Estate Ownership Regulation in the Member States for residential and investment purposes. Women Right to Obtain a Housing Loan from the Real Estate Development Fund, when she is responsible for her family, has also been approved. The Ministry of Housing has been established and it has received allocations of SAR 250 billion. The Real Estate Development Fund’s maximum real estate loan has been increased to SAR 500 thousand from SAR 300 thousand. The draft Arab Agreement on Combating Cyber Crimes and the draft Arab Agreement on Combating Money Laundering and Terrorist Financing have been approved. Financial Leasing Law, which aims to provide a funding formula for joint-stock companies specialized in financial leasing, has been approved. SAMA has been entrusted with the supervision and control function over financial leasing. Real Estate Mortgage Law has been approved to provide the necessary guarantees, when practicing real estate finance activities, and define the mortgage contract parties’ rights and obligations and provide more flexibility in utilizing real estate assets.

The Real Estate Finance Law, which aims at creating a market for real estate financing, under which specialized joint-stock companies will be established, in cooperation with real estate developers, has been approved to enable beneficiaries from owning real estate in easy ways that protect the concerned parties’ rights under SAMA’s supervision and control. The Finance Companies Control Law has been approved. A committee named: (Finance Violations and Disputes Settlement Committee) has been formed. Its powers include, inter alia, settlement of violations, disputes and private and public rights lawsuits, arising from the application of the provisions of the Finance Companies Control Law and the Financial Leasing Law. The amendment of the official working days from Sunday to Thursday, so that the weekend would be on Friday and Saturday, has been approved. Terrorist Crimes and their Financing Law, stipulated under the Anti-Money Laundering Law, has been approved. The Custodian of the Two Holy Mosques – may Allah protect him – is very well known for his devoted concern with citizens and their needs and his keenness for enhancing the level of their well-being and providing a decent livelihood for them. He issued his kind directives to take necessary measures for addressing and alleviating the poverty level, supporting social security, approving salary and cost of living allowance increases, turning employees on wages item into state employees, addressing housing problems and supporting specialized development funds.