samchain/econo-pairs-v1 huggingface dataset:
Ideally all of these issues would be addressed in a cooperative and symmetrical way, as part of the overall agreement the UK will strike with the EU-27. Whatever is agreed, there are risks to financial stability both in the transition to the new relationship and in the new steady state. These risks include disruption of services, a further weakening of investment banking profitability and the potential for greater complexity in firms’ legal structures. Increased complexity would place greater demands on firms’ risk management and on supervisory oversight, and pose challenges for effective resolution. We expect firms to plan accordingly. So today, Sam Woods, the CEO of the PRA, is writing to all firms with cross-border activities between the UK and the rest of the EU asking them to inform us of their own planning in response to the UK’s decision to leave the EU. These include, for example, subsidiaries of US investment banks based in London doing business throughout the EU under passporting arrangements, as well as UK banks doing likewise, and branches of institutions from other EU states operating here in London. The main purpose of this letter is to ensure that all firms are making, and stand ready to execute in good time should the need arise, contingency plans for the full range of possible scenarios. The FPC will oversee this process of contingency planning to mitigate risks to financial stability. 13  Asking firms to plan thoroughly is the hallmark of the prepared and professional approach we take to promote financial stability.

13  The statement is available at http://www.bankofengland.co.uk/publications/Documents/news/2017/008.pdf. 10  All speeches are available online at www.bankofengland.co.uk/speeches  10  VII. Conclusion  The UK has been at the forefront of efforts to make the global financial system safer, simpler and fairer. Recognising our role as guardians of the leading international financial centre, we have gone further than these minimum global standards. These efforts ensure that the world’s largest international financial centre both protects and serves the UK economy. And they mean that others can rely on us as a pillar of strength for the international monetary and financial system. As the FPC has made clear, we won’t turn our backs on these hard won gains. There should be no bonfire of financial regulation. But we will be dynamic – learning by doing and making adjustments, as necessary, to optimise our efforts without compromising on the level of resilience the world’s leading international financial centre demands. We will ring fence our banks to protect the core retail financial services they provide to households and companies. We won’t allow undercapitalised, opaque financial institutions to operate freely within our borders. But, while we won’t hesitate to do what’s necessary to protect the UK real economy, we will also work tirelessly for a responsible and open financial system that benefits all. A decade of hard fought financial reform creates enormous opportunities. It is all too easy to give into protectionism, but the road less taken is often the most rewarding.
They will become genuine stations of information gathering about the economic and financial activity of the region, being preceded by further analyses and studies. This research work will serve not only to a more explicit monetary programming but also to the modernization of transmission elements of this policy from the higher authority to the lower authority and vice versa. I estimate that this initiative of the Bank of Albania to monitor the economic activity not only in the metropolis but also in other regions of the country would be of particular interest for all the interested groups. Further, I would like to add some other comments on the latest developments of the banking system, which I deem have created good premises for a real expansion of this business, an expansion that will positively impact on the performance of business activities. After completion of the Real Time Gross Settlement (RTGS) system, the Bank of Albania inaugurated some times ago the initiation of a very important project on the Automated Electronic Clearing House (AECH). The operation of this new system will considerably increase the payment speed for the customers, knowing that the lack of this element has maintained businesses far from banks. I take this opportunity to make businesses aware of the advantages of the operation of this system, as both systems together will help reach the international standards of ATM and AIPS (automatic and electronic payment equipments), per population number.

Ardian Fullani: Monitoring of the economy to be conducted not only in the metropolis but in the regions as well Article from Mr Ardian Fullani, Governor of the Bank of Albania, published in the Ekonomia newspaper, 21 January 2005. *  *  *  Our economy has long ago been integrated in a continuous process of quality and quantity development, including an increasingly wider geographical expansion. Both Communities, bank and business, need to cooperate more closely with each other. In order that this cooperation becomes more efficient, we deem, as Bank of Albania, to play our active role not only through establishing a safe macroeconomic environment, but also by providing a range of other operations that will encourage lending activity of the banking system from one side and impact a more correct tendency of business toward more reliable projects and investments, on the other side. To this end, we estimate in our short-term and medium-term programs to give our regional branches spread throughout the country a different role from the one they played till now. We deem appropriate it’s time now for our branches not to be simply cash storerooms and distributors. Also, we shall try to renounce some operations of non-central banking nature, which gradually shall be absorbed by commercial banks. Our goal is these branches be changed into an advanced model of the Bank of Albania presence throughout various regions of the country.
Tier 1 capital also included so-called “hybrid” capital instruments – debt that was supposed to convert to equity to absorb losses. However, the ability of these instruments to absorb losses proved to be illusory. Moreover equity itself was distorted by factors such as the inclusion of deferred tax assets – tax credits that could only be realised when a profit was made and so of no use in a crisis. And banks were slow to recognise losses – leading capital ratios to be overstated. And, as to banks’ assets, the major banks were, by 2008, using their own models to assess the riskiness of much of their portfolios for regulatory capital purposes. From their origin in the late 1980s, the international capital adequacy standards – the Basel standards – had  BIS central bankers’ speeches  1  focussed on risk adjusted capital. This was based on the sensible principle that the level of a bank’s capital should reflect the riskiness of its assets. As the Basel standards developed, banks were increasingly, first for the trading book in 1996 and later, through the move to Basel 2 in 2008, for the banking book as well, able to use their own modelling to assess the riskiness of their assets. Again, there was logic in this. It replicated for regulatory purposes the way the banks themselves managed risks.

I do think the reforms already made to the capital adequacy and liquidity frameworks have improved markedly the robustness of the system. A leverage ratio, if and when it is introduced in the UK alongside the risk-weighted approach, would in my view make the capital adequacy regime for the banking sector appreciably stronger by guarding against model risk. And, as regards the non-bank financial sector, what some would classify as “shadow banking” – I also think we are starting to see some positive momentum towards the development of diversified credit channels in the UK and the EU – though there is a great way still to go. At the same time, the financial regulatory community is keeping a pretty close watch as to whether risks are migrating from the bank to non-bank sector and building up elsewhere. The FPC recently made its first analysis and assessment of risks in the UK outside the regulated banking system. That assessment was made difficult by generally incomplete data in this area, which we are starting to correct. But it concluded that, based on its current risk assessment and policy initiatives underway internationally – including through the FSB work on shadow banking that is coming to completion this year – it did not currently see a case for recommending changes to the UK regulatory framework. I am afraid, for financial stability, that is as good as it gets. The financial sector evolves at a phenomenal speed. Risks can change and build very quickly.
However, it would be odd indeed if a regulator (or a firm for that matter) were to change their view of conditions in the real world because of a change in regulatory regime. Clearly, despite the lofty ambitions of European legislators, the move from Solvency I to Solvency II doesn’t change how long people will live for, or the probability of a North American windstorm. So our beliefs about the nature of the risks to which insurance companies are exposed will persist as we move into the new regime. But the regime requirements are different, and we will embrace that change. People should not confuse these two things. Adapting to the new regime Solvency II introduces some important reforms to modernise the regulatory regime for insurers in the UK. But a sudden implementation of these changes by firms, and particularly on the life side given the introduction of the risk margin, is unlikely to promote either of the PRA’s objectives of safety and soundness and policyholder protection. We believe the opposite – that an orderly transition should support those objectives, because much life insurance business (and particularly those lines of business most impacted by the risk  1  2  Fuller explanation of the new Solvency II regime  BIS central bankers’ speeches  margin) is long-term in nature. This business will continue to exist – and will therefore be regulated – under the new regime, despite having been priced on a set of assumptions derived under the existing regulatory regime.

It is based on sound principles, such as market-consistent valuation of the balance sheet and a risksensitive approach to determining capital – many of which are embedded within Solvency II. The success of these principles was demonstrated by the resilience of the sector during 2008 But Solvency II moves beyond our current regime. So although there has been no change in our view of the type of risks that firms are exposed to, and we do not intend to use Solvency II to increase the aggregate level of required capital across the industry, this is not the same as saying that the surplus capital positions of individual firms will not change with the arrival of Solvency II. It is a different regime, with a different shape to ICAS. Firms will therefore see movements in their regulatory capital positions. For some firms these positions will be tighter, for others looser. This brings me to the second myth: that we intend to re-create the ICAS regime under the guise of Solvency II. Let me be clear: Solvency II will be the foundation of our supervisory approach and we will fully embrace the change that accompanies it. Although Solvency II BIS central bankers’ speeches  1  incorporates many of the features of ICAS, the shape of the new regime is different. The EU is moving to a harmonised, risk-based, transparent, and “going concern” regime. This means some significant changes to the shape of the balance sheet and our assessment of financial resources.
The National Bank of Romania invites you to an anniversary concert performed by exceptional artists of the “George Enescu” Philharmonic Orchestra, conducted by the renowned conductor Horia Andreescu. We will also be delighted by the talent and virtuosity of a young pianist, Andrei Licareţ. All these artists will give us a great joy in this splendid hall of the Romanian Athenaeum with a programme comprising well-known musical compositions from the national and international repertoire, selected from the “Eastern flank” of the European Union: Enescu, Smetana, Chopin, Bela Bartok, Grigoraş Dinicu. I thank you once again and I invite to take the floor Mr Jean Claude Trichet, the President of the European Central Bank, a close friend of the National Bank of Romania. 2  BIS Review 114/2010

Thanks to productive collective action by the private sector in dialogue with U.S. and international authorities, an initial set of 18 GSIBs and other large dealer banks have adhered to the 2014 International Swaps and Derivatives Association (ISDA) resolution stay protocol covering OTC bilateral derivatives in connection with last year’s G-20 summit. Under the protocol, counterparties agreed to the cross-border enforceability of existing statutory stays on resolution-related early termination and other default rights in OTC bilateral derivatives contracts. With support from the U.S. and other key jurisdictions, the FSB subsequently called on all GSIBs and other firms with significant derivatives exposures to adhere to the protocol by the end of 2015. In addition, the FSB requested that such contractual terms be incorporated into other financial contracts with resolution-related termination features−such as contracts relating to repo and securities lending arrangements. This goal has been accomplished this past week, and represents another positive milestone in improving cross-border resolvability. Importantly, both the proposed U.S. long-term debt requirement and provisions in the resolution stay protocol support resolution under both Title I and Title II of the Dodd-Frank Act. While we should recognize the extent of progress that has been made to set the basic foundations for the cross-border resolution of a GSIB, it is equally important in my view to recognize the significant challenges that still remain, and the important work that still needs to be carried out by both firms and authorities.
Jean-Claude Trichet: A few remarks on communication by central banks Keynote address by Mr Jean-Claude Trichet, President of the European Central Bank, at the 25th HORIZONT Award Ceremony, Frankfurt am Main, 16 January 2008. *  *  *  Ladies and gentlemen, It is with great pleasure that I have accepted the invitation from HORIZONT on the occasion of the 25th anniversary award ceremony. I am honoured to see so many distinguished guests from the German media and communications industry in the audience. The longstanding tradition that this event enjoys demonstrates that media and communications play an important role in all aspects of modern societies, including, though perhaps more recently, that of monetary policy. In today’s address, I should like to talk about the challenges facing central bank communication, from a central banker’s perspective. International, and, in particular, European media and many other intermediaries play a decisive role in the process of disseminating information about the ECB’s monetary policy. Media coverage of monetary policy actions is an important channel of the ECB’s communication strategy, and thus an important factor for our policy’s success. In the euro area, currently comprising 15 member countries (with the accession of Cyprus and Malta on 1 January 2008) and beyond, national media have retained their important role in making the central bank’s actions and its objectives understood by national audiences. In my address, I will first elaborate on how central banks in general communicate, and then explain how the ECB addresses its audience.

8/9  In the framework of the Eurosystem, an in-depth review of risk assessment processes is under way, aiming to ensure that all relevant factors – such as environmental ones – are taken into account for prudent central bank portfolio management. Consideration and application of these criteria is without doubt a new development, and also for central banks. In September, for instance, the Banco de España made its first green investment, participating in a fund launched by the Bank for International Settlements (BIS) that invests entirely in green bonds. With this type of initiative the Banco de España aims to include environmental sustainability goals in its reserve management. This is consistent with its membership of the NGFS, which less than two weeks ago published a Sustainable and Responsible Investment Guide for Central Banks’ Portfolio Management. Conclusions I wish to conclude by emphasising, once more, how important it is that the financial sector contribute to the collective effort that meeting the goals set in the Paris Agreement represents. The decarbonisation goals set by the Commission for 2050 pose a major challenge. 2050 may seem a long way off, but if we wish to meet these goals it is clear that the public at large, firms, banks, governments and public authorities will all have to start addressing the challenge today, with a sufficiently ambitious but also realistic approach. The path ahead, to incorporate environmental risk into internal control and management, is a considerable one and we, as supervisors, also have much work before us.
Christian Noyer: “Noyer heralds new era for eurozone and for France” – Interview in Euroweek Interview with Mr Christian Noyer, Governor of the Bank of France and Chairman of the Board of Directors of the Bank for International Settlements, in Euroweek “France in the Capital Markets”, 25 February 2013. *  *  *  EUROWEEK: You were frequently quoted in 2012 as saying that the eurozone was moving in the right direction. Do you feel vindicated by the recent strength of the euro and the performance of the eurozone’s financial markets? Noyer: Things have clearly improved, but this should not come as a surprise. It’s clear that markets lagged a bit before taking stock of what has happened, but looking back, enormous progress has already been made on all levels. This is true in terms of policies aimed at the restoration of sound public finances in many, if not all, eurozone countries as well as in the field of structural reforms. For example, we have seen very extensive progress in areas like pension reforms in France and Italy, banking reform in Spain and labour market reforms across much of southern Europe and France. We have also seen great progress in terms of surveillance – not just surveillance of fiscal policies, which is a must in the context of the European monetary union, but also surveillance of competitiveness which is the basis for structural reforms.

So the concept of bail-in after all the equity holders and the subordinated debt holders have been wiped out, could involve the transformation of senior debt into equity or semi-equity in a going concern bank. In such a case, it is a very good and important concept. To my mind, bail-in should be part of the extra powers given to the supervisor. That is the only way we can reassure investors that it will be used only when it is absolutely needed to avoid a bankruptcy. That means that ultimately it is in the interests of senior bondholders to know that they won’t be penalised just because it’s beneficial for other stakeholders, but because it can’t be avoided. This is why it is essential that this power should be in the hands of the supervisor. But bail-in needs to apply to the whole of the senior debt. I’m not completely convinced that there is merit in having specific bail-inable instruments like CoCos. This is because either it makes the basis of the bail-in very restricted and may not be sufficient in many instances so that in the end you may need recourse to a second layer. Or, if it is a big amount, it can be extremely costly because of the specific risk, and therefore it may be better in that event to move directly to equity.
This occurred, in part, because of the rise in gasoline and food prices that pushed up consumer price inflation last quarter and reduced the amount of income available for other household purchases, a pattern that continued to be evident in retail sales for April. High energy prices have contributed to weaker consumer confidence, which also may have negatively affected consumer spending. However, the weakness of real output growth in the first quarter probably will prove temporary. Although manufacturing production fell in April, largely because of supply disruptions associated with the earthquake in Japan, business survey indicators, including the New York Fed’s own Empire State Manufacturing Survey, generally continue to signal growth, suggesting that production should soon return to more robust growth. And financial conditions have continued to improve, albeit gradually. The temporary reduction in payroll taxes and other fiscal measures also are providing support to demand. In addition, demand abroad – particularly in Asia – remains robust, supporting our exports. Most importantly, the labor market has shown further improvement, as demonstrated by the latest employment report. Although payroll job growth has been subdued during most of this recovery, the latest figures show the economy added 244,000 jobs in April – and an average of 233,000 over the past three months. While the unemployment rate – which is based on a different survey – ticked higher last month to 9 percent it is nonetheless 0.8 percentage points lower than it was in November, a relatively rapid decline by historic standards.

During the boom period from 2000 to 2006, home prices more than doubled in the Poughkeepsie area and increased by 150 percent around Kingston – exceeding the U.S. rise of roughly 90 percent and the average rise of roughly 50 percent that prevailed in our region. The price declines in the bust period, from 2007 to 2009, were somewhat less severe than the nation, falling by roughly 20 percent in both areas, compared with 30 percent nationally. Recently – and this is a hopeful sign – home prices in both areas have steadied. Next, how are families in the Hudson Valley doing in restoring their finances? During the recession, all across the nation, debt delinquencies soared and many families found that they needed to reduce their debt to a sustainable level. We keep track of the credit conditions in the Second District – including the average debt that people in area carry and whether they are current with their payments – using the Federal Reserve Bank of New York’s Consumer Credit Panel. In the Hudson Valley, debt per person with a credit report is now down by 5 percent from its peak level in 2008. As of the first quarter of this year, debt was continuing to fall modestly. At the same time, delinquency rates continue to rise. The proportion of debt that is at least 90 days delinquent has risen from 2 percent in 2005 – which was low for New York – to 9 percent currently, matching the delinquency rate statewide.