samchain/econo-pairs-v1 huggingface dataset:
Now that financial conditions have improved and firms are hiring again, financial institutions must invest in recruiting and developing their own staff. Taking the easy option of poaching staff from competitors to meet business expansion will undermine the collective strength of the industry in the long term, with adverse consequences on growth prospects for the industry as a whole. 26. To complement industry efforts in capability building, MAS would be prepared to consider regulatory initiatives to bring about a better-trained and more competent financial sector workforce. In the area of consumer banking, for example, some industry players have suggested the idea of a national examination to test the competencies of relationship managers serving customers in this segment. This could include topics such as ethics and conduct, so as to further promote fair dealing outcomes between industry players and endconsumers. MAS is now studying the idea and will work with the industry to develop this further. Conclusion 27. Let me now conclude. Asia’s financial systems and institutions are facing considerably less pressure for financial restructuring and regulatory reform in the current crisis. While Asia has not emerged unscathed, significant structural changes made after the Asian Financial Crisis have enabled the region’s financial systems to weather this crisis relatively well. 28. But there is no room for complacency. Even as we recognise the need to continue development of our financial markets, considerable risks and policy challenges still remain for the region.

Investors are demanding more transparency and they want the information they receive to be consistent and comparable. Issuers must account for the impact their actions have on the environment. There must be reliable disclosures and access to data for verification. SGX is spearheading efforts to enhance transparency in sustainable investments. Listed issuers on SGX have been making disclosures on sustainability since 2016. SGX is now developing a common sustainability disclosure portal, that will facilitate sustainability reporting for private companies and SMEs in the future. This will help promote more efficient pricing of corporates’ ESG activities, through for example, incorporating a green premium or a brown discount. It will also help to prepare private companies and SMEs for increasing scrutiny from investors, as well as customers and consumers who demand greater accountability. In conclusion, Singapore has a comprehensive capital markets ecosystem supported by active public-private partnership and well laid out strategies. These are exciting times for Asian capital markets. The Asian middle class continues to grow. There is a wave of entrepreneurial energy and innovation. Technology is enabling more inclusive capital markets. The imperative of transitioning to a lower carbon future will be an increasingly important preoccupation for the region’s capital markets. The Singapore capital markets aim to finance the next chapter of Asia’s growth— underpinned by sustainability, enabled by technology, and fuelled by innovation. Thank you. 4/4  BIS central bankers' speeches
It is estimated that 49% of an unemployment shock is absorbed by the automatic stabilisers in the euro area, whereas the figure for the US is 32%.9 And studies have found a gradual convergence in labour mobility between Europe and the US, reflecting both a fall in interstate migration in the US and a rise in the role of migration in Europe.10 Where the euro area and the US differ more is in terms of ex ante risk-sharing – that is, insuring against shocks through financial markets. This was a concept that only appeared later in the literature on Optimal Currency Areas. 11 But it plays a key role in stabilising local economies in a monetary union, in two ways.12 The first is by de-linking consumption and income at the local level, which happens through integrated capital markets. If labour income falls during a recession, but the private sector holds a diversified financial 3/9  BIS central bankers' speeches  portfolio, people can smooth their consumption with the financial returns they receive on assets in better performing parts of the union. The second way is by de-linking the capital of local banks from the volume of local credit supply, which happens through retail banking integration. Because local banks are typically heavily exposed to the local economy, a downturn in their home region will lead to large losses and prompt them to cut lending to all sectors.

By shadow banks, I mean the largely unregulated financial entities that take credit risk and/or engage in maturity transformation without access to explicit governmental backstops such as the Federal Reserve’s discount window and or deposit insurance. As we saw in the crisis, without such support, these institutions are vulnerable to runs. When this occurred, the shadow banking sector imploded in a way that imposed significant costs on the regulated sector. The risk is that tighter capital and liquidity requirements for the large financial institutions could push much of the business of credit intermediation and maturity transformation from the regulated sector to the unregulated sector. However, this risk is mitigated by the fact that shadow banks heavily rely on credit support and liquidity lines from the regulated sector. The costs of such facilities will be affected by the new capital and liquidity standards for banks. Thus, the economics of the shadow-banking sector are likely to change in a way that makes such activities less attractive. In addition, by increasing transparency and requiring some risk retention by issuers, Dodd-Frank should make the securitization markets in which shadow banks operate less likely to support poorly underwritten credit. Taken together, these changes mean it is less likely that there will be widespread movement of credit and maturity transformation from the regulated sector to the unregulated sector.
These plans should identify actionable options that the firm can take in response to financial weakness that will restore the confidence of the firm’s counterparties in the firm without the need for extraordinary official sector support. Firms must also have disciplined processes that analyze the root causes of their problems and identify longer-term strategies that will need to be employed as other recovery options to restore capital and liquidity are being executed. And firms must support the viability of their contingency and recovery plans by implementing the internal governance necessary to develop, test, update and implement them credibly. There is also more work that we, as supervisors, can do to reduce the probability of failure and to incent firm managers to act well before resolution becomes necessary. We need to do more to create incentives to force banks to act sooner to steer away from impending icebergs – cut capital distributions earlier, raise new capital faster, restructure businesses sooner, and restructure senior management and boards of directors more radically when the firm is not performing well. For example, one approach might be to implement a long-term debt requirement in a way that enhances market discipline. Another reform would be to reduce the incentives of large, complex firms to rely on shortterm wholesale funding to finance longer-term, illiquid assets. Among other benefits, reducing a firm’s susceptibility to sudden runs associated with short-term wholesale funding will lengthen the “runway” for management to implement the strategic actions that would restore the firm to health.

Because market participants will not know for certain which path U.S. authorities will ultimately take – allowing resolution under ordinary insolvency law, as contemplated under Title I, or instead initiating a Title II resolution – this uncertainty in and of itself could cause investors in short-term obligations that are likely to be protected under Title II to run. Several other issues are also worthy of note. First, for the Title II single point of entry strategy to work properly, there needs to be a sufficient amount of debt outstanding at the parent  2  BIS central bankers’ speeches  company that can be converted by the FDIC into equity to ensure that the bridge company will be demonstrably well-capitalized. We don’t yet have a long term debt requirement – this is an area where we are still working out the details. My own view is that a holding company needs a substantial amount of long term-debt to ensure that the newly created bridge company is viewed as fully viable by its counterparties. We also need to ensure that the holding company is structured so that the bridge bank formed upon resolution can easily downstream capital to its operating subsidiaries. The ability to do this will help reduce the risks of preemptive ring-fencing by foreign regulators and runs by counterparties of the foreign operations of U.S. firms.
'19 MP Report  -2  -2  -4  -4 I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV 2013  2014  2015  2016  2017  2018  2019  2020  2021  (1) Gray area shows lower and upper bounds of of gap estimation range, using various methods for inferring potential GDP (i.e. trivatiate, FMV-X, HP, SVAR, MEP, SSA and XMAS migration gap). See Aldunate et al. (2019). (2) Dotted lines show forecast. Source: Central Bank of Chie. Figure 7 Estimates for trend neutral real rate (percent)  3.0  3.0 10-yr DN BCP (3)  2.5 2.0  2.5  5-yr DN BCP (3)  2.0  open-economy DN (3)  1.5  1.5  HLW (2)  1.0  1.0 5 in 5 rate (1)  0.5  0.5  0.0  0.0 02  04  06  08  10  12  14  16  18  (1) The 5 in 5 rate is derived from financial asset prices adjusted for term premiums. (2) Based on Holston, Laubach and Williams (2017). (3) Based on Del Negro et al. (2017), using 5-yr BCP data and assumptions for an open economy. See box V.2 in June 2019 M P Report. Source: Central Bank of Chile.

In our experience, inflation targeting is capable of producing a sufficiently strong nominal anchor for the economy, and consequently also of stabilising the exchange rate, obviously in the absence of large external shocks. Hence, in favourable circumstances, inflation targeting will allow us to achieve price and exchange-rate stability simultaneously. Should circumstances become less favourable, the simultaneous achievement of both will be difficult no matter which monetary strategy is adopted. That is why we do not consider ERM2 to be a policy regime superior to the current regime. In line with this stance, we have agreed with the government to stay out of the ERM2 mechanism for the time being. We plan to introduce ERM2 after conditions for meeting all Maastricht criteria within a two-year timeframe have been established. There is still a number of issues to be discussed, let me address two of them. First, is inflation targeting compatible with ERM2? Second, what is the impact of policy debate about the modifications to the SGP on our forthcoming effort to meet the Maastricht criteria? As far as the compatibility of the two regimes is concerned, namely inflation targeting and ERM2, the specific arrangements have not yet emerged from our ongoing debate. We believe that relying on the economic analysis and intuition rather than on background legal documents as a guide, there is no need to modify the current strategy significantly. It will be able to deliver both price and exchange-rate stability. However, monetary policy alone cannot guarantee the smooth progress of adopting the euro.
Miguel Fernández Ordóñez: Financial integration and stability in Europe Opening remarks by Mr Miguel Fernández Ordóñez, Governor of the Bank of Spain, at the Conference on "Financial Integration and Stability in Europe", organised by the Bank of Spain, the European Central Bank and the Center for Financial Studies, Madrid, 30 November 2006. *  *  *  Good morning ladies and gentleman. First of all, allow me to welcome you. We are really delighted to host this conference at the Banco de España in Madrid. Some of you are perhaps too young to remember, but it was here in Madrid, in 1989, that the European Council decided to embark on the first stage of Economic and Monetary Union, as envisaged in the Delors Report which was the catalyst for the EMU process. I would like to start my intervention today with a quote from the Delors Report; a quote that refers to financial integration. Simplifying, it said the following: The objective of a single financial area, in which all monetary and financial instruments circulate freely, and banking, securities and insurance services are offered uniformly throughout the area, would be fully implemented through the approval and enforcement of the necessary Community directives. You can appreciate the appealing simplicity of its definition of an integrated financial market: one where all monetary and financial instruments circulate freely, and where banking, securities and insurance services are offered uniformly.

Over the years, delegates from central banks of 30 different countries have attended the Conference. This growing international attendance makes particular strength of the Conference showcasing diverse experiences from very different areas of the world driven by the common interest in payments and market infrastructures. Equally appreciated is our domestic audience that continues to valuably contribute to the Conference each year. Focusing on current issues in the payment systems, the Conference agenda is each year carefully designed to cover the latest trends and feature the main challenges in the area. Variety of interesting topics has been on the menu so far including the European payment landscape and legislation with a special focus on PSD and PSD2; topics related to payment systems and payments oversight; the EU payment integration initiative known as Single European Payment Area (SEPA); then, innovations; security and efficiency of retail payments. We have elaborated 1/3  BIS central bankers' speeches  on instant payments, financial inclusion and accessibility of payment services, financial structures resilience and many more. This year’s agenda covers themes related to digital banking, cryptocurrencies and their regulation, the new technologies such as DLT and blockchain – all of them being topics of considerable relevance at the moment, and will only become more important over time. Bracketing this jubilee edition we had the pleasure of hosting many distinguished speakers from various affiliations starting from central banks, through relevant international institutions, commercial banks, clearing houses and custodians etc.
Janet L Yellen: Views on the economy and implications for monetary policy Speech by Ms Janet L Yellen, President and CEO of the Federal Reserve Bank of San Francisco, at the Portland Community Leaders’ Luncheon, Portland, Oregon, 29 July 2005. *  *  *  Thank you for that very kind introduction. It’s a pleasure to be here with you in this beautiful “City of Roses.” As a monetary policymaker, my main concern is the national economy, and that will be the chief focus of my remarks today. But as President of the San Francisco Fed, I also pay close attention to developments here in the Twelfth District, which, in many respects, mirror those of the nation. Looking at the big picture elements—growth, employment, and inflation—I’d say things are in reasonably good shape. Over the past two years, the nation’s output growth has been pretty steady, averaging just over four percent; this is solidly above trend, which, by most estimates, is around three and a quarter to three and a half percent. This growth has been amply in evidence here in the Pacific Northwest. While unemployment rates in Oregon and Washington remain above the nation’s rate, your region has largely recovered from the severe hit you took during the 2001 recession and its aftermath. As a result of sustained growth at the national level, slack in labor and product markets has trended down.

In the case of housing, rents reflect the flow of benefits obtained from housing assets—either the monetary return from rental property, or the value of living in owner-occupied housing. Historically, the ratio for the nation as a whole has had many ups and downs, but over time it has tended to return to its long-run average. Thus, when the price-to-rent ratio is high, housing prices tend to grow more slowly or fall for a time, and when the ratio is low, prices tend to rise more rapidly. I want to emphasize, though, that this is a loose relationship that can be counted on only for rough guidance rather than a precise reading. Currently, the ratio for the country is higher than at any time since data became available in 1970— about 25 percent above its long-run average. Of course, the results vary widely from place to place. For Los Angeles and San Francisco, the price-to-rent ratio is about 40 percent higher than the normal level, while for Cleveland the ratio is very near its historical average. Closer to home, the figure for Seattle is just over 35. For Portland, it turns out that the price-to-rent ratio is a bit anomalous. Unlike the ratio for the nation and many of the cities I’ve mentioned, Portland’s ratio has been trending up, and this pattern has been going on since the late 1980s.
As conservative central banks, our involvement in the forex markets is limited to strategic investments and stabilising the exchange rate. Following this role, the Central Bank of Sri Lanka does not get involved in speculative type of trading. However, it plays a major role in the development of the country’s forex as well as other financial markets. We know that in a market-oriented economy, all financial market segments, namely, the foreign exchange market, money market, government debt securities market and the stock market are inter-linked. The Central Bank, while watching the operations of each market segment individually, needs to take a macro view of all the market segments to ensure financial market stability. The focus today, however, should be on the foreign exchange market. In the exchange rate area, it is appropriate to mention at this juncture, Sri Lankan authorities made a fundamental change to its policy on 23rd January, 2001 by moving to a freely floating exchange rate arrangement. This was necessitated by the inability of the then prevailing exchange rate system and the crawling band regime to sustain themselves. Immediately after the float, the market experienced some volatility as is usually expected. However, this volatility has been contained overall since then. This, not only brought confidence to the market, as evidenced by increased foreign exchange inflows, but also allowed greater flexibility and market opportunities to foreign exchange dealers of commercial banks.

Subsequent to the float, the Central Bank became a net buyer of foreign exchange from the market, in sharp contrast to its experience in the period prior to that. Our objective with regard to the foreign exchange market is to ensure an orderly adjustment of the exchange rate, without excessive volatility. Such adjustment should reflect the emerging economic fundamentals of the country. We should ensure that demand and supply mismatches are addressed on time so that there is no excessive volatility in the exchange rate. Turning to the theme of this year’s conference, i.e. “Is it time for a common currency in the SAARC region?”, I believe that it would give rise to much interesting and thought provoking discussion and debate. We know that the SAARC was established in 1985, with the objective to provide a platform for the peoples of South Asia to work together in a spirit of solidarity, trust and understanding. It aims at accelerating the process of economic and social development of member countries. I believe the considerations of the timeliness to introduce a common currency for the region will be supportive towards the objectives and aims of SAARC as well. While taking note that deliberations such as these would definitely lay the foundation for future developments in the SAARC region, I take great pleasure in inaugurating this conference today and wish you all success with the conference.
Mr Duisenberg explains the thinking of the European Central Bank on the issue of whether markets need guidance  Introductory statement delivered by Dr Willem F Duisenberg, President of the European Central Bank, at the Frankfurt European Banking Congress Session I: “Do markets need guidance?” held in Frankfurt on 19 November 1999. *  *  *  Thank you very much for giving me the opportunity to explain the thinking of the European Central Bank (ECB) on this important issue. Let me start by summarising my answer to your question: yes, the markets need guidance from the ECB. This guidance should mainly focus on reducing uncertainty in the markets. This requires above all a clear and credible commitment on the part of the ECB and sound economic analysis. Thus, guidance should be given through a credible monetary policy strategy and a transparent ongoing assessment of euro area developments in line with this strategy. Reducing uncertainty also implies that in our communication we do not pretend that we know more than we really do. Obviously, our knowledge of the future course of the euro area economy will always be subject to uncertainties and limitations. It thus goes without saying that guidance certainly cannot be given in such a way that the ECB indicates a path for future ECB interest rates far in advance. This leads me directly to the second part of your question. (“Is any particular mode of guidance preferable?”) How should the ECB give guidance to the markets?

Indeed that is why we took it upon ourselves to reform SONIA. We started collecting daily data on money market transactions in February 2016 from over 50 banks, building societies and investment firms. These data give us a much clearer picture than we have previously had of what is going on in sterling money markets. A subset of the data will be used for reformed SONIA. The reformed rate will be much more robust, with daily transaction volumes three to four times greater than current SONIA. Any change in SONIA’s properties will be minimal – so far the reformed rate has been around one basis point lower than on the current methodology. Another key reform is that the Bank has consulted on and will implement a changed definition for SONIA. The new definition will allow the methodology and input data of SONIA to evolve if material changes to market structure or functioning threaten to undermine the integrity of the rate. This unique feature will ensure the robustness of SONIA over the long term, giving users confidence that their contracts will not be disrupted. Let me emphasise that, from the perspective of a user of SONIA, implementing these reforms should be seamless. However, one operational consequence that users should be aware of and prepare for is that the publication time for SONIA will move from the evening of the day in question to the morning of the following day. The Bank is working with ISDA, LCH and others to ensure this change is implemented smoothly.