samchain/econo-pairs-v1 huggingface dataset:
I and my colleagues on the Executive Board, like many others, have also highlighted the poor functioning of the housing market and the fact that a low supply has pushed up prices and thus household debt. So measures that increase the supply of housing are also needed, but I have talked about this before and do not intend to go into it any further today. Fourthly: It is important to act as soon as possible. If indebtedness and housing prices keep on increasing they will gradually reach levels that involve even greater risks and where the economy will be even more sensitive to shocks. The costs could then be even greater. We have previously published estimates of what might happen in the economy when a shock occurs and indebtedness is high.21 Such estimates are always very uncertain, but it could be a question of rises in unemployment of around 5 percentage points when the economy suffers a financial crisis. If we look out at today’s Europe, where there has been negative growth and high unemployment for many years, I think that the alternative, hiding our heads in the sand, is not a good idea. One can also argue that the shock the actual policy measures entails, what one might call the direct adjustment cost, will be less with lower interest rates. If, in the prevailing low interest rate situation, one takes measures that seriously affect households’ incentives to borrow, such as abolishing tax relief, interest expenditure would increase considerably.

Speech at the Federal Reserve Bank of San Francisco, 29 November. BIS central bankers’ speeches  17  Figure 1 Business cycle and financial cycle  Business cycle Financial cycle  Table 1 Increases in expenditure for standard households due to policy measures SEK and per cent Luleå 39 000 Disposable income (SEK/month) Total debt (SEK) 1 100 000 Debt ratio (%) 235 Increase in expenditure in SEK Countercyclical capital buffer 128 1 100 Tax relief Mortgage cap 1 229 Amortisation expenditure 1 078 Interest expenditure 151 Amortisation 1 833 Increase in interest rate 1 283 Increase in expenditure as a percentage of disp. income Countercyclical capital buffer 0.3 2.8 Tax relief Mortgage cap 3.2 Amortisation expenditure 2.8 Interest expenditure 0.4 Amortisation 4.7 Increase in interest rate 3.3  Upplands Väsby  Central Stockholm (high debt ratio)  44 000 1 750 000 331  55 000 3 950 000 598  204 1 750 1 956 1 716 240 2 917 2 042  461 3 950 4 415 3 873 542 6 583 4 608  0.5 4.0 4.4 3.9 0.5 6.6 4.6  0.8 7.2 8.0 7.0 1.0 12.0 8.4  Source: The Riksbank. 18  BIS central bankers’ speeches
However, narrowing of Shariah opinions is preferable but not critical. The fact is, differences in views and opinions among scholars are a historical fact, and an accepted facet in the area of Shariah, particularly in matters relating to fiqh muamalat (jurisprudence). In fact, my own view is that great Islamic civilisation of yesteryears was possible and the envy of many because of our diversity, tolerance and mutual respect of each other's view. In the context of the Shariah Standards, the dynamic process of its development involves the act of harmonising the differences and embracing diversity. We respect views of others which are different from ours by looking into the wisdom of earlier scholars from all recognised schools of thought (Mazhabs). We are also willing to arrive at new rulings where it is appropriate. This broadens the reference scope for Shariah scholars to have an enriching debate on the best application of Shariah in contemporary finance, based on the customs, legal and operational framework of each market. This is an important principle, as it increases the depth of fiqh research that leads to greater understanding of practices in Muamalat through the times while recognising the influence of local tradition, as well as domestic business practices. The act of balancing the authenticity and practicality of the different Shariah interpretations is an important component in seeking a solution for the benefits and welfare of the ummah.

The launch that we are witnessing today is a major initiative, the development of a Shariah standard that is integrated with details on operational requirements. This approach ensures a transparent basis of Shariah rulings by the SAC, and provides a convergent in understanding between Shariah scholars and industry practitioners. In judiciary matters, where the SAC serves as a reference point in analysing muamalat cases, the court can also draw on these comprehensive and transparent Shariah standards as basis in arriving at a court ruling. The adoption of the standards by learning institutions will pave the way for greater understanding and acceptance of these standards as a global starting point of reference for the Islamic finance community. As we launch the Educator’s Manual, which is the first of 14 series of manuals, I would like to share my thoughts on our approach in developing the Shariah standards, and would also like to emphasise the importance of embracing diversity and mutual respect in Shariah interpretations. I shall deliberate on two additional areas that stakeholders need to consider to maximise the benefits of having the Manual; reconfiguration of academic programmes and strategising talent deployment. The future growth of Islamic finance, especially cross border, is very much dependent on the harmonisation and mutual recognition of Shariah views and rulings across the globe. It is critical if cross border trades are to be strengthened. Numerous efforts are being pursued to narrow the opinion gaps between scholars through symposiums, roundtables as well as bilateral dialogues.
These two trends, non financial actors leveraging up and greater risk taking by financial institutions, are indeed global trends. Within the euro area, credit distribution (bonds and loans) to the private sector has remained the most dynamic in France, resulting in a gradual but persistent increase in debt ratios. 2/4  BIS central bankers' speeches  More recently, credit has been getting some traction in other economies so that French developments may be informative of forthcoming developments elsewhere. In all cases, the concern is less about an immediate risk that one regarding the sustainability of the current developments. These are indeed medium-term trends deserving serious attention alongside other medium-term developments such as digitalization or climate change. The former (digitalization) hold very promising prospects in terms of efficiency, inclusiveness and quality of consumer services, etc. It is also a formidable challenge for the incumbents, threatening established positions and questioning business models. Depending on the reactivity of the various stakeholders, (traditional financial institutions, new players, established players in other sectors making a foray into financial services, regulators, etc. ), this challenge can be satisfactorily overcome or leave the whole financial system in a rather precarious situation. The latter (climate change) is a tremendous challenge that will contribute to reshaping the global economy and, more broadly society. This challenge is so significant that it is bound to have consequences for the financial system both as a risk concern and as a business issue.

Denis Beau: Navigating a changing weather Speech by Mr Denis Beau, First Deputy Governor of the Bank of France, at a Meeting with Observatory Group, New York City, 10 June 2019. * * * Accompanying slides of the speech. I would like to discuss with you today a few issues that come to mind when watching over global financial developments. I do not know whether a storm is coming but the weather has certainly changed over the past quarters and we need to make sure that we are ready to withstand harder times. Indeed, the two points I would like to make in my initial remarks are 1/ risk to financial stability are on the rise 2/ against that backdrop, it would be prudent to strengthen further the resilience of the global financial system. Macroprudential policy has a critical role to play in this respect, alongside a strong focus on filling knowledge and policy gaps while maintaining a steady (regulatory and supervisory) hand at the helm. (1) Risk to financial stability are on the rise [Slide 1] The macroeconomic outlook remains uncertain: the global slowdown, which was initially exacerbated last year by idiosyncratic factors, is deeper and more persistent than initially foreseen. Since last summer, the IMF has revised its assessment of the global economic outlook downwards. The cyclical upswing it expected back in the spring of 2018 became a less even expansion with increased downside risks over the summer. Last autumn and late last year, the IMF insisted on the weakening of the expansion.
Michael Held: SOFR and the transition from LIBOR Remarks by Mr Michael Held, Executive Vice President of the Legal Group of the Federal Reserve Bank of New York, at the SIFMA C&L Society February Luncheon, New York City, 26 February 2019. * * * As prepared for delivery Thank you for that kind introduction, and for the opportunity to speak to you all today. As always, my remarks reflect my own views and not necessarily those of the Federal Reserve Bank of New York or the Federal Reserve System.1 When I was thinking about what to talk about today, I recalled how everybody’s favorite question at these kinds of events is, “What keeps you up at night?” Of course, at the top of my own list is whether my daughter is going to get into a good kindergarten in Brooklyn. But not far below that is reference rate reform. Today I’ll keep the former to myself, and speak instead about reference rates. It’s not just me who’s concerned. The Securities Industry and Financial Markets Association (SIFMA) named reference rate transition from the London Interbank Offered Rate (LIBOR) to its alternatives as one of two leading fixed-income market developments for 2019.2 And the Financial Stability Oversight Council (FSOC) has repeatedly identified reference rate transition as a financial stability risk.3 Today I’d like to give you an update on the state of that transition. Here’s the preview: The task is immense. But it is not insurmountable. Much work has been accomplished, and much work remains.

The solution is not a simple substitution. There are inherent differences between SOFR and LIBOR that will need to be adjusted for in the transition. For one thing, most contracts that reference LIBOR key off of three-month or six-month LIBOR. Mortgages often use one-year LIBOR. But SOFR is an overnight rate—there’s no such thing as three-month or six-month SOFR. One solution to this difference is to use the daily SOFR for each day during the term, either averaged or compounded each day until the end of the period. ISDA has indicated that derivatives will fall back to this kind of average, and the SOFR floating rate notes issued recently use a similar approach. To facilitate this method, the New York Fed is preparing to produce a backward-looking compounded average alongside the daily SOFR. Some market participants may need to use a forward-looking “term SOFR” created by constructing a yield curve off of trading in forward-looking SOFR derivatives, particularly for legacy contracts that already reference a term LIBOR rate. Creating a new rate like that is part of the ARRC’s transition plan, although it’s more concept than reality at this point. But under all of the cash product consultations put out to date, the first preferred fallback is to that kind of term rate, if such a rate were to be created that was up to IOSCO standards and endorsed by the ARRC.
The complex task facing advanced economies of enhancing productivity and promoting employment growth as populations age is clearly beyond the power of monetary policy. Other policy action is needed to address this task. Boosting potential output growth is a key priority in itself, and higher potential growth would also help to raise the neutral interest rate and reduce the risk of overburdening monetary policy. An inflation targeting regime is a constant reminder that controlling inflation is the central bank’s main monetary policy objective. At the same time, monetary policy cannot be strictly rule-based – it must be flexible and robust. Economic models are useful and necessary tools for constructing an appropriate interest path. But no model is capable of fully capturing the complexity of the trade offs. Moreover, given the uncertainty associated with the functioning of the economy, it is neither possible nor desirable to fine-tune economic developments. Because even the most advanced models cannot reproduce the complexity of economic mechanisms or of the trade-offs facing central banks, interest rate decisions must also be based on sound judgment. Thank you for your attention.

Zamani Abdul Ghani: Developments in electronic money management Welcome address by Mr Zamani Abdul Ghani, Deputy Governor of the Central Bank of Malaysia, at the Official Monetary and Financial Institutions Forum (OMFIF) and Lafferty Group – World Roundtable on Electronic Money Management “From Practice to Policy”, Kuala Lumpur, 15 May 2010. *  *  *  On behalf of Bank Negara Malaysia, I am most pleased to welcome all of you to this gathering on “World Roundtable on Electronic Money Management” – “From Practice to Policy”. This event is jointly organised by Bank Negara Malaysia, the OMFIF and the Lafferty Group. As you may be aware, Bank Negara will also be hosting the first ever Asia OMFIF Meeting, which will take place at Bank Negara’s Lanai Kijang over the next two days. This World Roundtable on Electronic Money Management, thus precedes the Asia OMFIF Meeting. It provides an excellent opportunity for the industry to have an interactive dialogue with regulators and practitioners from around the world to exchange ideas, experience and perspectives on developments in the area of electronic money and electronic payments. Economic efficiency and cost savings Rapid technological advancements and innovation in the last two decades had revolutionised the payment landscape. In the retail payments area, electronic money in the form of stored value cards and other access devices has grown rapidly. Businesses around the world are also intensifying their efforts to cut operating costs and increase efficiency to improve their long-term competitiveness and sustainability.
Over the last three years, the Government of Singapore Investment Corporation, or GIC, committed to place out $ billion, and MAS to place out $ billion, to be managed by fund managers based in Singapore. We progressively liberalised rules governing the Central Provident Fund, to allow Singaporeans to invest their retirement savings under professional management, instead of leaving them with the Government. These policies and initiatives have yielded good results, and attracted new players who have contributed to the depth of our asset management industry. Despite difficult market conditions in the year 2000, Singapore's wealth management industry has remained resilient. The MAS' latest Survey of the Asset Management Industry shows that total assets under management in Singapore did not decline last year, but continued to grow, albeit slowly. As at end-2000, total assets under management in Singapore amounted to $ billion. Discretionary assets under management showed a decrease,  4  BIS Review 45/2001  reflecting the decline in market valuations in the region, but this was more than offset by an increase in advisory assets. Incumbent managers in Singapore have adopted a long-term perspective. They have increased the scale of their operations, priming for a market upturn. The pool of talent in the industry has grown, with the number of investment professionals located here growing by about 10% in 2000, to a headcount of 1,000. 24 new fund management outfits were established over the last year, bringing the total to 215 companies. Electronic financial services Another promising area is electronic financial services.

This is something on which individual banks will have to take a view, but I would like to offer some general advice. First, banks should accept that profits for 2003 may not reach budgetted targets as a result of the outbreak; and they should not strain too much to make up the difference. When profitability comes under pressure, it is important to avoid the mistakes that might arise from over-aggressive business tactics. Keep the bank healthy from a capital and liquidity point of view in order to benefit from the business recovery when it comes, as it surely will. Banks should also monitor closely the financial position of their customers and adopt a supportive attitude to those experiencing financial difficulties as a result of the SARS outbreak. This means being prepared to offer temporary relief arrangements to borrowers who find that they cannot service their debts in the current environment. This should not be seen as soft option for customers since the banks will certainly not benefit if those customers go bankrupt. Nor do I suggest that relief should be offered indiscriminately. The long-term viability of the customer or his business, his track record and his willingness to cooperate with the bank are all factors to be taken into account in deciding whether to restructure debts. Each case thus needs to be looked at on its merits.
Seeking to explain the sources of the Greek crisis, my former Greek colleague at the European Court of Auditors, Ioannis Sarmas, has pointed to the lack of a culture of effectiveness that holds the Greek government accountable for its policies.3 He also refers to the absence of an effective internal control system in the Greek public sector, and to the lack of adequate powers in the hands of the auditing authorities that would permit them to focus more on the efficient use of public funds. While the auditing process scrutinises compatibility with the laws and  1  Lorenzo Bini Smaghi, “Eurozone, European crisis and policy responses”, Goldman Sachs Global Macro Conference – Asia 2011, 22 February 2011. 2  Ludger Schuknecht, Philippe Moutot, PhilippRother and Jürgen Stark “The Stability and Growth Pact, Crisis and Reform” ECB Occasional Paper Series, No. 129, September 2011. 3  Ioannis Sarmas “The Greek financial crisis from an auditor’s point of view” Cour des comptes européenne, Journal July-August 2011; “The game between sovereign states and financial markets” Cour des comptes européenne Journal, December 2011. BIS central bankers’ speeches  3  legislation, it pays insufficient attention to other important criteria like value-for-money and effectiveness. Fiscal consolidation across most of the euro area carries the risk of downward macroeconomic adjustment. In today’s circumstances, there is the danger of a negative macroeconomic spiral. Weak economic growth leads to reduced government revenue that in turn raises the deficit and debt ratios, and therefore may require further budgetary tightening and austerity measures.

Still, further steps could be taken to improve productivity levels and increase the employment rate. Also, as I argued recently, COLA increases should not be superimposed on wage increases agreed in collective agreements, but should form part of the negotiation process, so as to ensure that firms are able to match all wage increases with productivity increases. Faster productivity growth depends on many factors, including investment, the infrastructure, the quality of the human resources and  BIS central bankers’ speeches  7  hence the quality of the educational system and its ability to meet the skills requirements of a growing economy. Measures that increase the employment rate could include further policies that incentivise a higher female participation rate, as well as measures that facilitate more flexible work conditions, including part-time employment. A further requirement for economic growth is the smooth functioning of the financial system. Particularly during these turbulent times, continued economic growth depends also on the uninterrupted supply of credit by the financial sector to firms and households, and to that end the stability of the financial system is essential. It is important to note that although its rate of growth has declined, bank credit has continued to increase in Malta, unlike the situation across the euro area, where widespread deleveraging by financial institutions has led to a contraction in the volume of credit, as shown in Chart 7.
Certainly, the measure which became effective in January where we reduce the reserve requirement for lending to net exporters and producers of electricity is already productive, we have already extended such loans worth approximately Euro 70 million this year, while the measure that should underpin the Denar savings for the account of the Euro savings became effective at the beginning of the year and we expect that the banks will adjust their interest rate policies to this measure in the following months. Did your forecast from the beginning of the year materialize, that the Government is not going to borrow much on the domestic market, at least in the first quarter? Within this period, since the beginning of the year, the Government is not borrowing much on the domestic market, because it has accumulated enough funds on their accounts with the  2  BIS central bankers’ speeches  National Bank. Also, the funds it borrowed from abroad in the beginning of the year are still disposable on their account, because of which there was no need for additional debiting on the domestic market. However, some of the economists fear that exactly the foreign debiting is unfavorable, saying that it was made for unprofitable, unproductive purposes. How do you see this situation, is there a risk? Well, Macedonia has a lack of domestic savings, and as a country, we will need foreign savings for a long time, and that is the situation with most of the developing countries, if I may say.

So the relative weight of past inflation, the exchange rate, wage inflation, market expectations and output gaps in inflation dynamics may differ significantly from advanced economies. Chile has pioneered monetary policy innovation in the emerging world. After four decades of double-digit inflation, our Central Bank was given independent status and a mandate of price stability nearly 30 years ago and exercised it swiftly, with the support of a first version of inflation targets in the early 1990s. The monetary policy framework further evolved after the Asian Crisis to a fully-fledged forward inflation targeting regime with a floating exchange rate in 1999. This was soon complemented by a major upgrading of monetary policy communications and a structural fiscal policy rule. 2  Central Bank of Chile October 2018  This framework has basically remained in place for the last 18 years and its effectiveness has improved as markets, agents and institutions have adapted to it. Over time, markets have developed adequate FX hedging mechanisms, inflation expectations have become more anchored at the monetary policy target level, the Central Bank has overcome fear of floating, financial markets have deepened and the labor market has gained some flexibility. As an open economy, we are not immune to external shocks but the ability to cushion them through the exchange rate and countercyclical policy response has improved significantly. At the time of the 2007 Global Financial Crisis, this framework helped us to avoid large costs and contain financial problems despite our strong ties with the global economy.