samchain/econo-pairs-v1 huggingface dataset:
In Spain, the restructuring process of the banking sector has required close coordination between the Government, the Banco de España and the Resolution Fund (FROB). The Managing Board of this latter agency is composed of representatives of the Banco de España and of the respective Economy and Finance Ministries. The institutional arrangements aim at combining the knowledge and technical expertise of the supervisor with the necessary involvement of government representatives, given the substantial amount of public resources employed in the resolution and restructuring processes. At the technical level, it was essential to ensure good communication between the staff of the Banco de España and of the FROB, because both agencies were directly and intensely involved in the resolution policies. Indeed, under national legislation the Banco de España is entrusted with the tasks of initiating resolution and approving resolution plans. The FROB’s role is to prepare resolution plans, monitor compliance with those plans once approved by the Supervisor and implement all resolution actions, including the bail-in tools. Furthermore, the FROB has the power to run institutions under resolution on a temporary basis if so 4  BIS central bankers’ speeches  decided by the Banco de España and to manage the government’s stakes in financial institutions that have received public support, including the definition and implementation of divestment strategies. I think that all the parties involved and most external observers agree that these arrangements have worked very effectively so far.

i  Global Official Institutions Conference, 22 June 2023 Building together a future-proof banking and payment sector in Europe  Speech by François Villeroy de Galhau, Governor of the Banque de France  Page 1 of 6 Ladies and Gentlemen, I am pleased to be with you for this Global Official Institutions Conference organised by BNPP, and I extend my warmest thanks to Jean Lemierre, Chairman of BNPP’s board of directors, for his invitation to give this speech. Facing the obvious turbulence and challenges of the last 18 months, we come here from different perspectives. Let me focus nevertheless on some common features: I will take the European view, and not only the French one. And I will focus on two delicate interactions between public authorities and private sector financial institutions: -  the first one is about the recent past: why did the euro area escape the banking turmoil born in the US and in Switzerland, and can we be safe enough? (I)  -  the second one is about the next future: why should Central banks stand ready to issue a digital currency? (II)  I. Banking turmoil: three blessings and a funeral I spoke after SVB’s failure of ‘Three blessings and a funeral’. Let me start with the funeral, at least the one that we can welcome, but which, unfortunately, is not final. It should be the condemnation and the funeral of mismanagement.
15  Inferred from Bradley (2016), using the mean pay of the self-employed compared to employees. Hamilton (2000). 17 Gardiner (2016). 18 Because self-employed workers are not included in statistical measures of average weekly earnings, the self-employed effect would not have shown up arithmetically in this wages measure. But there will still likely be general equilibrium effects on wage-setting in the economy for those who earn a salary. 16  8  All speeches are available online at www.bankofengland.co.uk/speeches  8  A final piece of evidence, albeit indirect, comes from historical data. The move towards greater self-employment and less unionisation is, in some respects, a shift back to the future in the nature of work. Prior to the Industrial Revolution, and indeed for some years after it, most workers were self-employed or worked in small businesses. There were no unions. Hours were flexible, depending on what work was needed to collect the crops, milk the cows or put bread on the table. Work was artisanal, task-based, divisible. st  While the read-across to work patterns in the 21 century is far from exact, there are some parallels. That being the case, one question is how wage- and price-setting behaviour operated during this earlier period of more “divisible” labour markets. Were any of today’s wage patterns evident then? The data we have on wages and output in earlier centuries are partial and imperfect, but nonetheless tell an interesting story.

The job is to promote a financial system that can serve households and businesses not just in the good times, but also in the bad.3  The financial system of 2007 was totally unable to do that. It was too weak. Banks, in particular, had too little of their own capital on the line. As the UK and world economies turned down, major UK banks faced losses of £ But they had only £ of their own money – their shareholder capital – on the line.4 So as losses mounted, banks buckled. Credit was crunched, bringing the economy to its knees. And because there was no way to deal with failing banks without harming their depositors and the economy, the taxpayer was forced to step in with a bailout of more than £ So it’s not surprising that our efforts focussed initially on fixing these fault lines in the system. A resolution regime for dealing with failing banks is in place and banks are much stronger. They now have three times as much of their own capital on the line for the risk they take when they make a loan or a trade. 1  Based on OBR forecasts and ONS data. Financial crises often lead to a long run reduction in GDP, with a persistent decline in output relative to pre-crisis trends.
As Fehrenbach puts it, the key to overcoming the odds in the Lone Star State has been that “the Texas ethic and Texas society rewarded enterprise,” ... “work was the real virtue.” … “We chose this land; we took it; we made it bear fruit.” We are a people, in Fehrenbach’s words, for whom “the cult of courage was obvious.”1 And he distills the Texas spirit that prevails to this day in one sentence: Here, “men who exist get overrun by men who act.”2 It is time for our great Latino population to have the courage to face the facts: They must do a better job as families and within their communities to dedicate themselves to educational achievement. And it is time for all Texans, Hispanics and non-Hispanics, to act to create the conditions that will safeguard and nourish the prosperity of all our children and that of our children’s children. ¡Ándale pues! Delve into the Hispanic experience. Help us understand through this conference and your various studies how to advance Hispanic prosperity. For in doing so, you are helping us advance Texas and the nation. Thank you. 1  Lone Star: A History of Texas and the Texans, by T.R. Fehrenbach, New York: Macmillan Publishing Co., 1985, pp. 708–12. 2  See note 1, p. 717. 2  BIS central bankers’ speeches

And so during the summer of last year we received a severe buffeting from attacks against our currency and financial markets, threatening a financial meltdown. We fought off these attacks in August 1998 with a dramatic and controversial operation in the stock and futures markets. We accumulated Hong Kong stocks to the value – at that time – of around $ 15 billion. Since then, the value of that portfolio has increased to $ 26 bn, a reflection of the greatly improved financial environment and, even for many of our critics, a vindication of our operation. I should stress that making huge profits was not our primary purpose in this operation. But we are not complaining. The 70% return so far represents a bonus to our reserves: too bad there are no bonuses for those responsible for acquiring the portfolio. It has been a very productive investment for the people of Hong Kong. And we now have even more resources to safeguard the stability of our currency. But this large holding of Hong Kong stocks is arguably excessive, having regard to the traditional lack of involvement of Government in business, and to the potential conflict of interest in its dual role as regulator and shareholder. Towards the end of this presentation I shall briefly return to the question of how we intend to set about disposing of this portfolio.
However, when these principles are transposed into specific provisions in some market convention, consensus becomes less easy to reach. In fact, aligning all the stakeholders’ incentives often proves to be difficult and there is the risk of only reaching a very low minimum common denominator. Certainly, this would not be sufficient to win back the confidence of public and private players in securitization. I therefore invite the industry to continue and to strengthen its efforts in this vital area of work. VI. Concluding remarks  Let me conclude by saying that, if managed in good order, securitisation should be a welfareimproving tool, because value is created by secured funding that is correctly structured and allows to adequately distribute financing and funding, and the related risks among households, enterprises, banks and investors. When it works properly, securitisation may represent a significant step towards more complete credit markets, thereby contributing to enhancing the efficiency of the economic system. The revival of securitisation markets is  BIS Review 84/2010  5  needed in many countries to support the provision of credit to the real economy, particularly to households and small business. While it is essential to define new market standards in terms of simplicity and transparency, more actions may be needed to re-start the securitisation market. There does not seem to be one single and simple solution that can unlock the securitisation market.

Bond yields reversed their movements from the early part of the pandemic, with 10 year US treasury yields rising by 65 bps in this period and 10 year gilt yields moving 64 bps higher. Bid-offer spreads on US treasuries widened by a factor of 10. The gold price fell by 12%. Investors suddenly looked to redeem from money market funds (MMFs). Sterling MMFs saw outflows of 11% in just over a week. Similar outflows were seen in the US prime MMFs. This self-reinforcing dynamic was broken by massive central bank intervention. On 19 March, the Monetary Policy Committee (MPC) announced the stock of asset purchases would increase by £ of gilts. We also launched special repo operations (the Contingent Term Repo Facility), a 1/6  BIS central bankers' speeches  credit scheme (the Covid Corporate Financing Facility), extended term credit to banks (the Term Funding Scheme with additional incentives for SMEs) and joined other major central banks in activating the swaplines. In the US, amongst other actions, the Federal Reserve announced a $ asset purchase program, quintupled its repo operations (from $ to $ and established a temporary repo facility for international authorities with a view to support treasury market functioning. In Europe, the Pandemic Emergency Purchase Programme was put in place to purchases eligible assets up to € As a result, order returned to financial markets and subsequently the growing realisation that governments would step in to limit economic damage further restored confidence. What lesson should we learn from that episode?
3  The Riksbank’s long-run target fulfilment is discussed by Andersson, Björn, Stefan Palmqvist and Pär Österholm (2012), “The Riksbank’s attainment of its inflation target over a longer period of time”, Economic Commentary no. 4, 2012, Sveriges Riksbank. 4  See, for instance, Heikensten, Lars, (1999), “The Riksbank’s inflation target – clarifications and evaluation”, Sveriges Riksbank Quarterly Review, 1999:1, pp. 5–17. 5  The reason why the inflation target did not begin to apply from January 1993 was that it was realised that the large depreciation in connection with letting the krona float would result in a one-off increase in the price of imported products and thus a relatively large, but temporary, increase in the inflation rate. BIS central bankers’ speeches  3  Favourable developments have held inflation back Of course, it is also important to analyse why inflation has undershot the target, even after these direct effects of interest rate changes have been excluded. My view is that growth in the economy has often been surprisingly high during the periods when inflation has been unexpectedly low. The combination of low inflation and high growth indicates that the economy was affected by positive changes on the supply side. The Riksbank and other forecasters have, for instance, often been surprised by the high productivity growth in the Swedish economy. As I see it, it is thus largely unforeseen, but beneficial developments that have kept inflation down.

We have now lived with inflation targeting for almost twenty years. I am convinced that most people today would say that it has worked well on the whole – that it has fulfilled its purpose, and perhaps even exceeded expectations. But when one has got used to a particular system over a long period of time, it is fairly natural to start looking for faults and begin to question whether it might not be possible to make some modifications and improvements. And I do have the impression that inflation targeting in Sweden has recently been criticised somewhat harder and somewhat more often than usual. 1  For an interesting account of the situation at the Riksbank at this time, see Andersson, Krister (2003), “Utformningen av inflationsmålet och den penningpolitiska analysramen” (the shaping of the inflation target and the framework for monetary policy analysis), in Lars Jonung (ed), På jakt efter ett nytt ankare (looking for a new anchor), SNS Förlag. BIS central bankers’ speeches  1  Today I intend to discuss and respond to three types of criticism that have been put forward. The first is the claim that the Riksbank has an inbuilt tendency to set the interest rate too high and has thus caused unemployment to be unnecessarily high. The second criticism suggests that the target for monetary policy should be revised, by raising the inflation target and giving the Riksbank a numerical target not just for inflation, but also for employment or unemployment.
The high priority that European policymakers have attached to climate policies can guide the ECB when carrying out its supportive role and help justify the incorporation of climate change considerations into our monetary policy framework under our secondary mandate. These considerations imply that the Treaties provide a solid legal basis to explore the ECB’s leeway for policy action under the primary and secondary mandates. But even a favourable legal assessment would still beg the question of how the ECB should operationalise its policy support to accelerate the green transition. What could the ECB do? A growing number of policy proposals suggest that the ECB should modify its monetary policy framework in order to more explicitly address climate considerations. The public debate has largely focused on our asset purchases. However, the implementation of our asset purchase programmes is only one potential lever the ECB could use to address climate change. There is a wide spectrum of other possible avenues that the ECB and other central banks could pursue to contribute to the global fight against climate change. It is widely acknowledged that the ECB should adapt its macroeconomic models to better integrate climate change-related risks into our monetary policy decisions. Such an adjustment of our models will, for example, improve our theoretical and empirical understanding of how climate risks affect the monetary policy transmission mechanism. Any climate change policy hinges on the availability of reliable data. The ECB can contribute to developing statistical indicators at granular and aggregated levels.

Prasarn Trairatvorakul: Financial crises and the future of global and Asian banking Statement by Dr Prasarn Trairatvorakul, Governor of the Bank of Thailand, at the Sasin Bangkok Forum 2012 Plenary Session “Financial crises and the future of global and Asian banking”, Bangkok, 9 July 2012. *  *  *  Theme: “Strategy for Known-Unknown”. The critical success factors are 3 Cs: Coordination of regulators, Commitment forged by Inclusiveness, and Communal responsibility to restore market mechanism as a pillar of governance and financial discipline. Good morning. It is an honor to join all of you today. I would like to thank Sasin for organizing this forum and for inviting me. Over the past three decades, Sasin has played an important role in grooming business and policy leaders who have been instrumental in building Thailand’s open and competitive economy. Today, we are facing another critical juncture for Thailand and the global economy. This forum has brought together the world’s leaders in public policy, businesses, as well as academia, and is therefore a rare opportunity for dialogue on our strategy going forward. Ladies and gentlemen, This brings me to the topic of my remark today. The future of banking industry at the global level and in Asia is being shaped by three major forces, namely, the fragile global economy, global financial regulatory reforms, and the rise of Asia which faces its own developmental challenges. These forces are interrelated and complex, no one can claim to fully understand the final outcome.
Inflation targeting has served us well. Monetary policy is the first line of defence in demand management. When the impact of the crisis was felt in the Norwegian economy in autumn 2008, the key policy rate was sharply reduced. This contributed to counteracting the negative effects on output and employment in Norway. A credible and firmly anchored monetary policy can curb the impact of external shocks. This increases the resilience of the Norwegian economy. Owing to substantial cross-border labour flows, changes in the competitive environment and new trade patterns, consumer price inflation has in periods deviated from the target. In such a situation, monetary policy must be oriented towards bringing inflation towards the target over time, while preventing excessive swings in output and employment. The appropriate amount of time that should be taken to reach the inflation target will depend on the shocks to which the economy is exposed and their duration. Chart 8: Rise in consumer prices and producer prices In today’s situation, it is appropriate to use a few years to bring up inflation. Prices for Norwegian goods have increased considerably more than consumer prices, reflecting the improvement in Norway’s terms of trade. Incomes, output and employment are rising at a solid pace. Household debt and house prices are still moving up. These are the key reasons why the key policy rate has not been lowered further. We will not lose sight of the inflation target.

Marzunisham Omar: Supporting the robust growth of Islamic finance in Malaysia Welcoming remarks by Mr Marzunisham Omar, Assistant Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at Malaysia Country Showcase - IFSB Summit 2017, Kuala Lumpur, 22 October 2017. * * * Welcome to Malaysia Country Showcase. I would like to express my sincere appreciation to all of you for being here today. I hope that today’s showcase will enhance your understanding of the critical role that professional ancillary services and talent development institutions play in supporting the robust growth of Islamic finance in Malaysia. Indeed, these professional services, which include Shariah consultancy, legal, accounting and talent development, are an integral part that make up Malaysia’s vibrant Islamic finance system. With Islamic finance fast gaining a strong foothold in many countries, Malaysia hopes to be able to contribute to this dynamic phase of Islamic finance development by providing an array of reliable, high quality professional services; one that is backed by decades of experience. Today, Malaysia has a competitive Islamic finance that forms part of the mainstream financial system. Islamic banking assets now account for 28% of Malaysia’s total banking assets, while more than half of our bond market comprises sukuk. We have a diverse range of Islamic financial institutions, both domestic and foreign, which provide competitive, innovative products to meet the varied and unique needs of individuals and businesses. What we have today was not built overnight. The Islamic finance journey in Malaysia has been long and its beginnings were humble.
Calculations carried out by the central bank of Sweden, published in its December 1999 Inflation Report, show effects comparable to those demonstrated in the English report. It is not uncommon for the effects of economic instruments to be uncertain. On the contrary. This means that we cannot fine-tune economic developments. The possibilities for conducting a successful economic policy increase by proceeding gradually when economic developments require changes in the interest rate. Despite the uncertainty as to the speed and magnitude of the effect of changes in interest rates on inflation, there can be no doubt that higher interest rates lead to a reduction in price inflation. Almost all the analyses referred to above are based on economic models which have been quantified using historical data, as have Norges Bank’s calculations. The models cover some of the channels for interest rate effects, but not all of them. There is evidence to suggest that changes in interest rates may now have a greater impact on the economy, and more swiftly, in Norway and in other countries than was formerly the case. 1  OECD (1999): EMU. Facts, challenges and policies, chapter 2, OECD, Guiso, Luigi, Anil K Kashyap, Fabio Panetta & Daniele Terlizzese (1999): “Will a common European monetary policy have asymmetric effects?”, Federal Reserve Bank of Chicago, Economic Perspectives, 4th quarter. 2  Bank of England (1999): “The transmission mechanism of monetary policy”, The Monetary Policy Committee, Bank of England.

At the Bank of England, we place a very strong emphasis on learning from best practice around the world. Given the transformative outcomes in the Chinese economy and fintech sector, for example the rapid growth of digital payments, we know there is a lot we can learn. It is for this reason that the Bank of England is engaging in dialogue on these topics through a programme led by our Centre for Central Banking Studies, supported by the UK government. The wider UK government is also engaging with China on fintech issues through the UK Government’s Prosperity Fund. The second priority is to leverage existing forums to promote global co-operation and co-ordination on technology issues. Regulators across the globe are not always going to agree on what technologies they want to use and how they fit into regulatory frameworks. However, global financial institutions for policy coordination such as the FSB, BIS and IMF provide important forums in which we can highlight concerns and work to find agreement where it exists. At the Bank of England we want to work with our partners to ensure we harness the benefits of technology in a way that maintains financial stability. And we want to work with our international partners to ensure fintech is supported by international cooperation, rather than creating new dislocation. We believe these goals are achievable and that if met, they herald the promise of a better finance for the people we serve, both in the UK and in China and globally.