samchain/econo-pairs-v1 huggingface dataset:
Further, retail deposits cover a very significant portion (75%) of the total stable funding needs (60% for European banks as a whole). Assets - The Spanish banking industry’s consolidated assets grew by 2.1% in 2022. Financial instruments in Spain declined by 7.7% and those stemming from business abroad (expressed in euro) increased by 9.6% to 53.7% (up 4.3 pp on a year earlier). - Much of the decline in financial instruments in Spain owed to the reduction in balances held with central banks (-31.9%) and, to a lesser extent, to the drop in loans to the resident private sector (-2.5%). Meanwhile, the increase in financial instruments abroad was due to the growth in lending to the resident private sector in third countries (10.3%) and in debt securities (16%), against the background of a depreciating euro. - Debt securities grew by 11.7% and represented 13.6% of total assets at December 2022.3  3  At consolidated level, more than 80% of debt securities have a general government counterparty. 3  - As for the reduction in the stock of lending to the resident private sector in Spain (down by 0.7% in 2022), the results of the Bank Lending Survey (BLS) indicate that both supply and demand-side factors contributed to these developments. The decline came despite the larger volume of new loans (+8.9%) and the increased drawdown on existing credit lines (+12.9%). - The stock of loans to households was down by 0.2%, essentially due to lending for house purchase, while other lending to households held stable.

This initiative grew out of the recognition of the fact that financial institutions and certain NGOs that were engaged in promoting various financial education activities and programme were operating in isolation. What was clearly missing was a coherent and well-co-ordinated strategy among these organisations for delivering an effective education to enhance financial literacy and inclusion. Consequently the FSDP identified the need to develop a coordinated approach to financial education as a meaningful way of bringing progress to this process. It therefore, started its intervention by commissioning a stock taking study of financial education efforts taking place in Zambia in order to establish its true status. DFID provided financial support in the form of technical assistance which enabled the FSDP to recruit FinMark Trust to carry out the study. Subsequently, a report was produced and presented to various stakeholders in November last year. The recommendations from the stakeholders meeting were then sent to the FSDP Steering Committee in April this year. This Committee endorsed the report and it is this report which is being launched today as the National Strategy on Financial Education for Zambia. Once launched, it will be implemented in earnest. Honourable Ministers, the activities that have been carried out under this programme have been made possible by the very generous financial support extended throughout the different phases of the programme by the IMF, World Bank, DFID, SIDA and the Government of the Republic of Zambia.
By repeated substitution, this asset pricing equation can be written as a generalised form of (1): (6)  The current share price is a function of future discounted dividend streams and a discounted terminal share price, where we have used: (7) (8)  Equation (7) says that the expected company-specific risk premium is constant and pre-determined based on period t information. Equation (8) says that expectations of future risk-free rates are defined by the path of the risk-free forward rate curve observed at time t. Equation (6) can be modified with a myopia coefficient to give a generalised version of (2): (9)  The null hypothesis – no short-termism – implies x = 1. Drawing on evidence across time and industrial sectors, it is this restriction we now test. 4. Testing for short-termism  The data comprises a panel of 624 firms listed on the UK FTSE and US S&P indices over the period 1980–2009.20 These span a broad range of industrial sectors, as shown in Table 2. Table 2 Number of firm level observations in each industry segment Energy Financials & Utilities  Index  Consumer  S&P  117  65  FTSE  52  14  20  6  Health  IT  Industrials Materials  Total  78  47  73  47  23  450  42  5  34  18  9  174  Data are from Thomson Reuters Datastream.

Haldane, A G (2011), “Capital Discipline”, remarks based on a speech given at the American Economic Association, Denver, available at http://www.bankofengland.co.uk/publications/speeches/2011/speech484.pdf. Haldane, A G (2010), “Patience and Finance”, speech given at the Oxford China Business Forum, Beijing, available at http://www.bankofengland.co.uk/publications/speeches/2010/speech445.pdf. Hicks, J R (1937), “Mr. Keynes and the “Classics”; A Suggested Interpretation”, Econometrica, Vol. 5 (2), pp. 147–159. Jevons, W S (1871), “The Theory of Political Economy”, Macmillan and Company. Keynes, J M (1938), JMK letter to Francis Curzon, 18th March 1938. In Skidelsky, R (2000), “John Maynard Keynes: Vol 3 Fighting for Britain 1937–1946”, Macmillan. King, M A (1972), “Taxation and Investment Incentives in a Vintage Investment Model”, Journal of Public Economics, Vol. 1 (1), pp. 121–148. 14  BIS central bankers’ speeches  LeRoy, S F and Porter, R D (1981), “The Present Value Relation: Tests Based on Variance Bounds”, Econometrica, Vol. 49, pp. 555–574. Lintner, J (1965), “The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets”, Review of Economics and Statistics, Vol. 47 (1), pp. 13–37. Marshall, A (1890), “Principles of Economics”, Macmillan and Company Ltd. Miles, D (1993), “Testing for Short Termism in the UK Stock Market”, Economic Journal, Vol. 103 (421), pp. 1379–1396. MORI (2004), “NAPF/IMA Short-termism Study Report”. National Economic Development Office (1965), “Investment in Machines Tools”, HMSO. Neild, P R (1964), “Replacement Policy”, National Institute Economic Review.
Notes: Data show job-to-job transition rate as a share of employment. Chart 21: Job churn by firm-productivity Percentage of employment in previous period 0.14 0.12 0.1 0.08 0.06 0.04 0.02  2003  2005  2007  2009  Low productivity  2011  2013  2015  0 2017  High productivity  Sources: ONS and Bank calculations. Notes: ‘Low productivity’ defined as the average churn rate per decile for those firms in the bottom half of the productivity distribution; ‘high productivity’ defined as the average churn rate per decile those firms in the top half of the productivity distribution. 40  All speeches are available online at www.bankofengland.co.uk/speeches  40  Table 4: Job moves and productivity  Decile at t-1  2- 3 4- 5 6 -7 8- 9  2- 3 0.41 0.21 0.20 0.20  Decile at time t 4- 5 6 -7 0.26 0.14 0.29 0.21 0.25 0.25 0.19 0.21  8- 9 0.18 0.30 0.31 0.40  Increasing productivity  Increasing productivity Sources: ONS and Bank calculations Notes: Each cell shows the probability of a worker being employed in a given quantile of the firm productivity distribution conditional on where in the distribution that worker was in the previous year, and having moved jobs.

Financial inclusion is supported through a number of strategies amongst which includes increased access to financial services, access to financial information and advisory services and consumer education. Currently, 98% of the adult population in Malaysia have a savings account. Given this greater financial inclusion, banks need to recognise their role and their special relationship with their customers. Customers expect banks to provide relevant financial information to them to ensure that they will be able make informed judgments. Avenues for the public to seek redress is also an important part of the financial safety net. The Financial Mediation Bureau provides an alternative redress mechanism between the service providers and consumers on financial disputes. In addition, with the objective of promoting prudent financial management, the Credit Counselling and Debt Management Agency offers free advisory services. This is to ensure the sustainability and resilience of the household sector. In addition, there is also the BNMLINK and BNMTELELINK at the Central Bank to provide a further interface with the public. The objectives of financial inclusion can also be met with the support of banking institutions as the benefits would justify the effort. Banks and other financial institutions that approach their business strategies responsibly and with the consumer interest in mind will stand to reap long-term gains from enhanced franchise value, a strong reputation and positive association with socially responsible values that will engender public trust and confidence. Public confidence is an important pre-condition for financial stability.
While cost will inevitably be an important consideration, this should be weighed against the significant benefits and operational savings from the more accurate allocation of capital to risk. MAS will work closely with the local banks to implement the new Accord. Business and strategic considerations Next, banks have to decide how to grow and position their businesses over the longer term, especially the local banks. Maintaining margins and cutting costs is necessary in the short term, but beyond that, banks need longer term strategies for staying viable and competitive. After a period of domestic consolidation, the local banks have made several regional acquisitions, but they still remain small by international standards. Competition will intensify, within the domestic market because of liberalisation, and internationally because globalisation is continuing. The local banks may well find that in order to hold their own and be viable, they need to grow bigger. Possibilities for domestic growth are limited other than through further consolidation. But the region offers considerable opportunities. Asia is poised for sustained growth, having emerged from the Crisis as one of the most promising regions in the world. Countries have gone through a period of structural reforms and transformed their financial sectors. Now they are progressively opening up their  4  BIS Review 39/2004  economies to greater foreign participation. This is attracting interest from major regional and global players. Our local banks cannot ignore this game. They need to consider their options carefully.

That matters – because our responsibilities for the stability of the financial system mean that we must be satisfied that the new framework can deliver levels of resilience at least as high as those we have become accustomed to, whilst also enabling improved innovation and competition, before it can go live. Working together, I am confident that we can achieve that. 4  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  4
For example, one might want to set the conversion terms so that the debt holders could expect to get out at or close to whole – at par value. This is important because it would reduce the cost of the contingent instrument, making it a considerably cheaper form of capital than common equity. Consider the advantages that such an instrument would have had during this crisis. Rather than banks clumsily evaluating whether to cut dividends, raise common equity and/or conduct exchanges of common equity for preferred shares and market participants uncertain about the willingness and ability of firms to complete such transactions and successfully raise new capital, contingent capital would have been converted automatically into common equity when market triggers were hit. If these contingent capital buffers were large, which they could be because the cost of these instruments should not differ much from straight debt, then the worst aspects of the banking crisis might have been averted. If shareholders had faced the potential of automatic and substantial dilution, they may have demanded better risk management and disclosure during the boom. If common equity had been automatically bolstered during the early part of crisis, investors would have been much less concerned about the risk of insolvency. Counterparty risk concerns would have been much less significant – potentially short-circuiting one of the important amplifying mechanisms of the crisis.

In the LTCM situation, the  1  The Fed Facility was (and remains) secured by a pledge of a substantial portion of AIG’s assets, including ownership interests in the company’s domestic and foreign insurance subsidiaries. As additional compensation for the Fed Facility, AIG agreed to issue to a trust for the benefit of the Treasury, preferred stock convertible into 79 percent of AIG’s outstanding common stock. 2  BIS Review 73/2010  Federal Reserve called together a private sector consortium made up of LTCM’s major counterparties, who agreed to rescue LTCM by investing about $ billion in new equity, in return for a 90 percent equity stake in LTCM’s portfolio along with operational control. The counterparties made this decision after the Federal Reserve encouraged them to recognize their self-interest in saving LTCM. The consortium invested in LTCM because its members came to believe that the Federal Reserve staff was right. Several years later, when the investors received back all of their capital with interest, they came to see that the Federal Reserve was right. The market conditions in September 2008 presented a very different situation to AIG’s counterparties who, in the aftermath of Lehman’s failure, found themselves facing liquidity concerns that compelled them to maintain cash on their balance sheets rather than lend to AIG. Moreover, the unprecedented size of AIG’s liquidity need – ultimately more than $ billion – could not have been met by the private sector. There is, however, one very important similarity.
And this is why it is so important that the “quick fix” has brought European prudential regulations on this kind of investment much closer to the regulations already in place in the United States and Switzerland. Investments of this kind will enable institutions to face up to any major potential competitors – not necessarily financial institutions – that might venture into the credit market with more guarantees of success. These firms – the big techs – possess an enormous amount of customer data, and they make highly effective use of those data for their own needs. Recent experience shows that these firms have caused disruption in the sectors they have entered, taking over the most profitable business segments and driving out existing firms. Naturally, the solution is not to curb technological progress that may benefit society in many ways, but to ensure that existing banks use these technologies to process the information they hold. In any event, the big techs will always have an information advantage, because their relations with their customers go beyond the financial sphere. This allows them, as large-scale purveyors of financial and non-financial products and services, to take advantage of economies of scope and network economies. Accordingly, and to prevent selection bias that can lead, for example, to the exclusion of certain social profiles, in the medium term comprehensive personal data regulations are needed, similar to those already in place in many countries’ central credit registers.

Specifically, it seeks to ensure that more funds are accumulated at banks to absorb losses, against a background of heightened uncertainty. In general, all Spanish banks that could legally suspend or postpone the dividends payable out of 2019 profits followed these recommendations. This will allow them to add around 50 basis points in 2020 to the capital buffers that they had before the outbreak of the pandemic. The positive effect of this measure supplements and is boosted by other decisions adopted by various economic authorities, which have reduced the capital requirements for banks (specifically, by releasing a large part of the macroprudential buffers, as mentioned above) and mitigated the impact of the pandemic on their income statements. 4  Moreover, the fact that the authorities’ recommendation has been extended to all banks in most jurisdictions, for the duration of the crisis (a measure that is, in any case, reversible through future extraordinary dividends should more benign scenarios materialise than those envisaged in the current circumstances), has limited the collateral effects of this measure on banks’ capacity to issue capital instruments at an appropriate cost. In fact, although banks’ cost of capital rose significantly after the emergence of the pandemic, following the implementation of the broad raft of measures to mitigate its impact, this increase has been fully corrected, without this recommendation having had an apparently significant impact, at least on most European banking systems. The ECB and the European Systemic Risk Board will review this recommendation before the end of the year.
The fact that the target has been formulated in this way is because price developments are the only thing that monetary policy can steer in the longer term. Long-term developments in growth and employment are essentially unaffected by changes in the interest rate. They are determined by factors such as productivity and the supply of labour and capital, as well as the way the labour market – and the economy as a whole – functions. It is possible to say that monetary policy can indirectly create good conditions for an efficientlyfunctioning economy by maintaining inflation at a low and stable rate. The pricing and wage-setting systems function more efficiently if changes in general price levels are small and predictable. This makes it easier for companies and consumers to make wise decisions regarding investment, consumption and employment. The development of the Swedish economy during the 1970s and 1980s provides a particular indication of how failed investment and arbitrary distribution of income can result from high and fluctuating inflation. In the short term, monetary policy also affects the economy’s cyclical pattern. When we formulate our monetary policy we therefore try to do so in a way that contributes to the most favourable and stable macroeconomic development possible, without jeopardising the price stability target. In other words, we are not ”inflation nutters”, to use a phrase coined by my British colleague Mervyn King.

For this reason, it is important that deviations from the target should not be allowed to become too prolonged. This is why the Riksbank has chosen to aim under normal circumstances to bring inflation back on target within two years. One can say that this is a restriction we have placed on ourselves to create flexibility in an orderly manner. At the same time, it is not appropriate to set restrictions for monetary policy that would be binding regardless of developments in the economy. There may – exceptionally – be situations where the consequences of bringing inflation back on target within two years may lead to unacceptable fluctuations in economic activity. It has sometimes been claimed that there is currently a risk that inflation could remain subdued over a long period of time, partly as a result of globalisation, and that this may mean that inflation is below target for longer than two years. We have made another assessment, as I mentioned earlier, but this type of situation is an example of when it might be  4  BIS Review 44/2006  appropriate to deviate from our normal target horizon. If we were to make the assessment that this type of situation had arisen, we would make it quite clear in advance. We also make clear how long we expect inflation to deviate from the target, and why we think this will happen, in connection with our monetary policy decisions. Conclusion Let me conclude with a brief summary of what I have just said.
Indeed, SARON never fell below the rates we set for the fine-tuning operations of first 0.35% and, 3 days later, 0.38%. Starting on the day of the monetary policy assessment, we also commenced auctions of term repos and SNB Bills. As you can see from Slide 12, we absorbed a sizeable volume of reserves via overnight repos in the first few days after the rate hike. During this initial period, the volume of overnight repo transactions peaked at around 36 billion Swiss francs. The market’s take-up of our term repos and SNB Bills auctions was very strong from the outset, and it continues to be strong. As shown on the slide, by the end of October, the combined stock of repo transactions and SNB Bills used to absorb excess reserves was close to 140 billion Swiss francs. The absorption of reserves was achieved in roughly equal parts by term repos and SNB Bills. We saw substantial demand for SNB Bills right from the very first auction, on 22 September, and demand has increased even further since then. At present, demand is concentrated in SNB Bills with the shortest term of 28 days. As one can see on Slide 13, as of the end of October, the total stock of outstanding SNB Bills stood at almost 70 billion Swiss francs. Of this, SNB Bills with 28-day terms accounted for around 50 billion Swiss francs, or roughly 70% of the total outstanding stock. SNB Bills, as money market debt register claims, are tradeable securities.

Maja Kadievska-Vojnovik: Current trends and future of the financial system in the region Address by Ms Maja Kadievska-Vojnovik, Vice-Governor of the National Bank of the Republic of Macedonia, at the regional summit of governors, bankers and businessmen “Financial systems in the region”, Belgrade, 8 November 2013. *  *  *  Dear Mrs. Jorgovanka Tabakovic Dear Governors Dear guests, First of all, I on behalf of the governor of the NBRM, Mr. Bogov, I would like to apologize for his non attendance today, on this very important event. He was unable to joint this event due to objective reasons, but, let me express my truthfully pleasure that I have opportunity to express my views and the views of the governor regarding to the latest development and future challenges for our country and our banking system. After the double-dip recession, in the first half of 2013 SEE are on the way of recovery. The GDP growth in the RM in the first half of the year is 3.4% and is highly influenced by the positive contribution of reforms’ agenda. The improved business environment (RM is at the list of 10 best reformers according to the Doing Business for 2013), the entrance of FDI's that have lead to export diversification alongside with the positive developments at the labor market, are key growth drivers.