samchain/econo-pairs-v1 huggingface dataset:
Moreover, these transfers have taken place, not only through OTC contracts, but also through securitised debt instruments, of various credit quality. In my view, this opacity is not conducive to long-term confidence in the strength of the industry. And, it certainly doesn’t contribute to overall systemic robustness. So this is the second area where gaining better understanding of the potential vulnerabilities before we face adverse outcomes could be of real value. Supervision and regulation Obviously, it’s pretty easy to make lists of risks and potential vulnerabilities. Central bankers are meant to be especially good at it! But I’ve already referred to the significant benefits of risk transfer. They include wider distribution of risk, and potentially at lower cost to buyers of protection from those risks. That’s got to be of real value. The question is: can these gains be achieved efficiently whilst at the same time mitigating the risks? My suggestion here relates to the environment in which the industries operate: the general infrastructure I talked about earlier. If we want to get the full benefits of risk transfer, but with the vulnerabilities contained at acceptable levels then it’s worth reflecting on the value of co-ordinating some major elements of that environment: supervision, regulation and accounting, as they relate to the worlds of banking and insurance. I can’t help feeling that a genuine effort and real engagement in this area will help develop a better understanding of where risk really resides. In turn, that would mean greater predictability, enhanced confidence and better business opportunities.

So it might not have taken us much further forward in terms of clear guidance or greater legal certainty. I’m sure you will be revisiting these issues tomorrow afternoon, in your session covering legal systems. So, I won’t labour my point much further. But there is a vulnerability here which I think we would do well to try to understand better. We’ve got to enhance confidence that contracts straddling the two sectors can be relied upon to produce expected outcomes in a timely way and even in adverse conditions. Risk transfer My second observation relates to risk transfer more specifically. Alan Greenspan made the observation that the successes of the banking system in diversifying risk have increased its ability to withstand significant shocks in recent years, including the Asia crisis, Russia, LTCM, 9/11 to say nothing of Enron, the IT boom and bust, and the telecom write offs. A lot of people agree with him. So the development of markets for the transfer of credit risk is of real value. It allows institutions that are best placed to originate a loan to do so, without necessarily requiring them to continue to bear the risk. Having a market to transfer risk allows institutions to diversify their exposures across different sectors and regions. And of course it generates price information that would not otherwise be available. That means credit exposures can be marked to market in a way that had not previously been possible. But it raises other questions.
The banking sector, which has its own unique history, and which, for obvious reasons, is subject to more supervision than perhaps any other sector of the economy, requires a particularly focused approach. The approach here is a simple but proactive one. The main policy objectives are to remove barriers to competition, such as the Interest Rate Rules, and to maintain a level playing field, particularly with regard to access to infrastructure. In addition to this proactive policy approach, there are two main subsidiary concerns. One of these is to watch out for signs of collusion or anti-competitive behaviour in the industry and to address these when they occur. I should note here that we do not see such signs at present, though we remain vigilant. The other is a general concern that the adjustments to fees and services, which form a necessary part of the competition and reallocation of resources resulting from deregulation, should not lead to the exclusion of certain groups in society from a basic level of banking services, and that they should be introduced in a transparent way. Again, I should make it clear that, despite the concerns expressed by a number of groups over the last few months, we believe that, in general, the banks are addressing this point. I should also add, for the avoidance of any doubt, that it is not the HKMA’s policy to regulate fees and charges. This is something that is left to the market.

In Asia, insurance protection against natural catastrophes has not kept pace with economic development. There is a significant protection gap. Over the last 20 years, Asia has accounted for almost half the world’s economic losses from natural disasters, amounting to more than $ billion. Yet, less than 5% of economic losses in developing Asia were insured, compared to 40% in developed countries. This means governments in Asia have had to finance the cost of recovery by raising revenues, issuing debt, or relying on donations from abroad, on an ex-post basis. This is not sustainable, and comes at the cost of economic development. Insurance can and should play a bigger role to reduce the financial impact of natural disasters and improve disaster resilience. Insurance not only provides emergency relief post-disaster. More importantly, it is an ex-ante risk financing solution, as part of a comprehensive disaster 1/4  BIS central bankers' speeches  risk reduction strategy. Asia needs to close this natural catastrophe protection gap. Let me outline four key enablers: technology and data; product innovation; research and development; and an integrated ASEAN market. Technology and data First, technology and data. Through the use of sensors, satellites, and IoT devices, more data is being captured about the causes and impact of natural catastrophes. Big data analytics enables better quantification and pricing of risks, and helps strengthen ex-ante risk resilience measures. Take for example remote sensing. Satellites are being used to monitor rice growth patterns and anticipated yields in Vietnam, Philippines, India, Thailand and Cambodia.
To summarise, if the ABS markets work satisfactorily, they may contribute to the completeness of the financial system by distributing the risks and returns associated with a large range of non-marketable financial assets to a more diversified set of holders, with at least an equal or better capacity to bear these risks. This can contribute to enhancing the efficiency of the economic system. This is why I believe that a rebound of the securitisation market on a sounder footing, including a stable issuance activity of marketable assets remains crucial from a macro-financial point of view. III. What is the current state of the securitisation markets? Of course, the state of the securitisation markets is connected with the general situation of financial markets, and we all know that the current financial environment remains challenging. Financial markets had experienced some sort of improvement in 2009 and the early part of 2010. However, in early May adverse market dynamics took hold again across a broad range of financial markets, including several debt securities markets in the euro area, in an environment of diminishing market liquidity. As a result, most funding markets deteriorated rapidly. As you know, to help restore a normal market functioning again, the Governing Council of the ECB decided to take additional non-standard measures on 9 May 2010, including the conduct of purchases of euro area public and private debt securities in secondary markets, the reactivation of fixed-rate full-allotment long-term refinancing operations (LTROs), and the resumption of US dollar liquidity-providing operations.

Nevertheless, even abstracting from the impact of the adverse developments in the financial markets, the securitisation markets themselves have not satisfactorily developed in the last years, both in terms of broadening the investors’ base and of achieving stable issuance volumes. In both 2008 and 2009, the share of new issuances distributed in the market accounted for 1 or 2 percent of all new issuance. This is of course in sharp contrast with the percentages observed in the years preceding the crisis. For instance, in late 2006 and the first half of 2007 1 or 2 percent was the share of retained (as opposed to distributed) issuance. Since securitisation techniques were nevertheless still used substantially in 2007 and 2008 despite the lack of market participants being able or willing to absorb the newly-issued securities, most of this paper ended up being used as collateral with central banks. In the case of the euro area, this process started off indeed already in 2007 and increased more significantly in 2008 when ABS constituted 28 percent of all assets being used as collateral with the Eurosystem. This share decreased moderately to 23 percent in 2009. These developments reflect an important switch in the business model of securitisation, from the “originate-to-distribute” model up to the summer of 2007 to some form of “originate-to-repo” model.
This applies to the 1997 convergence criteria themselves, of course. It also applies to performance against those criteria in later years. And, in our view, perhaps more controversially, it applies to other aspects of the real economies of applicant countries, particularly to the structures of their labour markets. In the case of the convergence criteria, our attitude is straightforward. They must be rigorously respected. And that applies to the substance, as well as the form. So it would be unwise for a country to seek to qualify in 1998 by massaging down its 1997 public sector deficit through artificial, unrepeatable devices, even if those devices are not technically disallowed. It would be unwise, because the deficit limit is not a one-off requirement. Continued discipline on individual member states’ budget positions is a crucial element of EMU in the future. Friday’s agreement at Dublin provides for such discipline, albeit with an element of political judgement over the way that discipline will be exercised in certain circumstances. But the general conclusion is clear. Member states will need to live with continued fiscal discipline. In our view, unless a country can show that its fiscal position is structurally sound - in other words that in mid-cycle, with the economy growing at trend on its potential growth path, the budget of the government would tend to be close to balance - then it may find the fiscal discipline of EMU difficult to sustain. That is both a long-term point, and one relevant to the transition period.

Enrique Marshall: Central banks’ contribution to financial stability – the experience of Chile Speech by Mr Enrique Marshall, Board Member of the Central Bank of Chile, at the Central Bank of Bolivia’s First Financial Workshop “Macroregulation and Financial Stability”, La Paz, 29 September 2010. *  *  *  I am indebted to Kevin Cowan and Jorge Cayazzo for their valuable comments on an earlier version of this presentation but the opinions expressed here are the exclusive responsibility of the author. 1. Introduction  Financial stability has been a concern for central banks since their very origins. The functions for which they were created – to regulate money and credit markets and to serve as lenders of last resort – have a direct bearing on the objective of financial stability and this relationship has been further reinforced by the fact that many central banks have also undertaken a role in regulating and supervising the banking system. Both the economic literature and historical experience provide sound grounds for this concern for stability, clearly demonstrating that the functioning of the real economy requires an efficient and stable financial system. The hardest lesson of history, however, is that financial crises have occurred time and again, with a very high cost in terms of both their fiscal impact and the associated losses of output. 1 Financial stability has, as a result, emerged as a paramount objective of public policy.
The proposed Act will also institutionalise many of the practices that have been introduced in this recent decade which are deemed as critical in ensuring that the Central Bank has the necessary authority and state of readiness to face future challenges. In concert with these, the new Act will further reinforce the existing governance framework with adequate mechanisms to ensure sufficient checks and balances are in place. The governance framework will further facilitate and enhance high quality decision-making in the Bank, institutionalising both existing and new procedures and processes to enhance accountability, professionalism and transparency. The strengthening of governance and accountability will form the prerequisite for the Bank to maintain our public legitimacy and autonomy, as well as to ensure the integrity of the Bank as a public institution in serving the nation's interests. BIS Review 12/2009  5  Conclusion Bank Negara Malaysia's experience during these fifty years in preserving monetary and financial stability and in supporting the sustainability of economic development has seen many challenges. Throughout this journey, we remained focused on what needs to be achieved and the vision of where we want to be. Key to our effectiveness is the internal capacity of the Bank. At the heart of this are the people in the Bank. While the operating environment has changed significantly and the policy focus has evolved, the values that the Bank represents, of integrity, respect for diversity, professionalism and expertise, have been enduring and reinforced over time.

François Villeroy de Galhau: From a couple under pressure to a Europe in transition Speech by Mr François Villeroy de Galhau, Governor of the Bank of France, at the French German Business Forum, Paris, 16 November 2022. *** I am delighted to be with you today, to bring to a close this forum on "Europe in Transition". While this transition had already got underway, it is now being dramatically accelerated by an unprecedented succession of shocks. These shocks are identical for both Germany and France, but they put our Franco-German unity, and more broadly European unity, to the test. It is not that surprising: our energy policies are separate, and our democratic lives are primarily domestic, and they are under pressure in both our countries. However, today I would like to express a conviction shared with my friend and colleague Joachim Nagel, President of the Bundesbank: to divide us would be to condemn us. Allow me to give you my personal view: I believe that I am one of the French officials who knows Germany best; because of my family roots in Lorraine and Saarland, I am a "frontier man". But it is also my professional conviction. In Washington last month, we have heard too many doubts voiced by international investors about Europe and its reaction to the Russian invasion of Ukraine.
There are added stresses on account of the dual burden of work and family responsibilities that, according to some studies, appears to have been largely shouldered by women.7 There are of course those wishing to return to the workplace as soon as possible due to remote working-induced anxiety associated with isolation. These are all side effects of working from home that we will have to tackle with appropriate policies. Now more than ever it is important to reaffirm diversity’s importance and value. It provides clear benefits such as efficiency, tolerance and a wealth of views in decision-making. We must continue to move forward resolutely and confidently, avoiding any blurring of the private and professional space, dividing tasks rationally and fairly, and harnessing technologies to our benefit to work towards real work-life balance. We cannot allow the pandemic to roll back the progress made in gender equality. Thank you. 7 Work, women and COVID-19, Ipsos Mori, United Kingdom, 23 October 2020. 10

There is a lot as well that is outside the Fed’s purview that could have been done to make the U.S. economy perform better. This includes tax reform, job retraining programs and infrastructure investment. So, what can we do to bolster global growth in the future? The first is to undertake the necessary structural reforms to make our economies more efficient. Productivity growth is not preordained. The steps we take as countries to eliminate and lessen bottlenecks and improve our human and physical capital are important. The second is to ensure that our financial systems are well-functioning. Tremendous progress has been made globally in 2  BIS central bankers’ speeches  implementing higher capital and liquidity standards post-crisis. But we still see some important banking systems impaired by bad loans, low profitability and inadequate capital. The population aging in the developed world does imply that, purely from the productive factor side, less of the global growth contribution is likely to come from Japan, Europe and the United States. And economies like China are likely to continue to slow as their per capita income increases and they make the transition from investment-to consumption-led growth. But this doesn’t imply a bad outcome. There are many other countries with tremendous potential for growth in areas such as Africa, Asia, and South America. Take, for example, the surge in growth that we are seeing out of India. I am an optimist. To a large degree we do control our destiny. It is up to us to seize those opportunities.
However, trade flows among the 13 countries, only amount to 10% of global trade, hence there’s much room for further growth especially as our countries are increasingly inter-connected. 13. We from the public sector have created financial highways to link up our vibrant economies and have found ways to finance physical roads and highways. To recapitulate my message: •  2  Financial integration within ASEAN is targeted to support the large markets of goods, services and financial products in the region. Financing economic activities of ASEAN needs not only strong but also interlinked banks and  BIS central bankers’ speeches  financial institutions. Financing opportunities grow significantly when expanding these linkages to the Plus Three countries. Firms can tap on to various modes of financing in equities and bond markets to expand their businesses to match the growing trade and investment flows. •  The other area is on infrastructure development: While the barriers of tariffs have fallen, trade among us cannot flourish if we are constantly facing infrastructural bottlenecks. The ADB has estimated that Asia has a demand for infrastructure to the tune of $ 8 trillion over ten years. This is where the Asian Infrastructure Fund and the Asian Infrastructure Investment Bank come into play to address these bottlenecks and open up vast potentials for development and trade beyond the AEC to Plus Three. Through this, a new regional logistics-based sector is about to take shape. 14.

But, in the end, our region’s economic dynamism is essentially driven by the private sector, and this is why the key to unleashing mutual prosperity is in your hands. 15. Whether you are a banker, an investor, or an entrepreneur, it is you who will be using these financial and infrastructure linkages. I would therefore urge you all to tap onto this tremendous opportunity that is arising by, for example, •  Venturing abroad to invest in new markets in ASEAN;  •  Expanding your businesses through our linked capital markets; and  •  Taking part in the new regional logistics based sector. Ladies and gentlemen, 16. I am very pleased to learn that tomorrow you as representatives of 36 banks from ASEAN+3 countries will be signing the “Bangkok Declaration” to bolster your mutual cooperation. This demonstrates that the private sector has already taken the cue from us in the public sector to tap on opportunities in the region. I congratulate you all in advance and hope that other industries would follow suit. Thank you very much for your attention. BIS central bankers’ speeches  3
Goh Chok Tong: Singapore as a philanthropy hub Keynote speech by Mr Goh Chok Tong, Senior Minister and Chairman of the Board of Directors of the Monetary Authority of Singapore, at the Credit Suisse Philanthropists Forum 2011, Singapore, 7 April 2011. *  *  *  Ladies and Gentlemen 1. I welcome the launch of the inaugural Credit Suisse Philanthropists Forum in Asia. Importance of philanthropy 2. In recent years, the problems facing the world have been getting more acute. The World Bank estimated that the recent Global Financial Crisis pushed an additional 64 million people into extreme poverty. Rising energy and food prices have put additional stress on the most vulnerable, who spend more than half their income on food. The New Zealand, Japan and Myanmar earthquakes are the latest in a line of disasters to plague the Asia-Pacific. Climate change and natural disasters are creating new and pressing needs on an unprecedented scale. 3. Fortunately, philanthropy has risen to play an important role in dealing with these problems. Generous donations have brought about immediate relief in the aftermath of disasters, and have also funded medium to long term programmes, such as education and health services, to improve the well-being of communities. 4. Perhaps more critically, giving back to society is an important way to help maintain cohesiveness in our society as the income gap widens. All around the world, the gap between the rich and the poor is growing, particularly in fast growing emerging economies.

The levels of transparency and governance controls in many countries are also not prescribed by law, and may vary across charities. As a result, giving in Asian countries suffers from a lack of trust. Such suspicion holds back donors who are concerned that their gifts should be used appropriately and effectively, rather than going to waste funding inefficient expenses. 16. Donors have found ways to work around the trust issue. Some have set up their own charities or are working together with reliable charities to see through the giving process from start to end. Such efforts demonstrate that donors can be an integral part of the solution, but this will take time, and it can be a very challenging process for donors. 2  BIS central bankers’ speeches  Singapore as a philanthropy hub 17. Singapore can make it easier for international donors to give in Asia. Our infrastructure, connectivity and regulatory framework form a strong foundation to support local and regional philanthropy. Infrastructure 18. As a leading international financial centre, Singapore can provide a full suite of wealth advisory services ranging from fund management to philanthropic advisory. We have recently seen a growing number of private banks in Singapore building up their philanthropy advisory capabilities, either in-house or leveraging on third party expertise. SymAsia, which was set up by Credit Suisse, is an example of an umbrella foundation that provides grant making, project review and investment management for donors who do not wish to set up their own foundations. 19.