samchain/econo-pairs-v1 huggingface dataset:
This brings me back to the reforms in the UK. At their heart lies the objective of putting the stability of the financial system at the centre of the regulatory mission. You may say, “surely that’s not new”. I would disagree – our overriding objective must be to create a consensus of public opinion which will enable financial stability to be embedded as a public policy objective in the same way that in the wake of the 1970s, low inflation came to be adopted as a necessary condition for stable economic growth. Too often, I hear people say that achieving financial stability needs somehow to reflect a balance with other objectives, such as competition, consumer protection, and the like. I’m sorry, but while these objectives are of course very important, the best way to achieve them is by establishing a stable financial system. Of course, there are judgements to be made on what constitutes financial stability, but those are not judgements that should be a product of murky compromises with other objectives. The assessment of the failures of monetary policy in the 1970s should stand as a clear guide as to why we must establish a strong understanding of financial stability as the driving public policy objective for the financial system.

Adnan Zaylani Mohamad Zahid: Re-inventing payments - the future of financial services Keynote address by Mr Adnan Zaylani Mohamad Zahid, Assistant Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Malaysian E-Payments Excellence Awards (MEEA) 2019, Kuala Lumpur, 31 July 2019. * * * It is my pleasure to be speaking here today, at such an exciting time for our payments landscape. Malaysia’s progress in migrating to e-payments has been promising. In less than a decade since 2011, we have reduced cheque usage by half to 101 million in 2018. E-payment acceptance points such as point-of-sale (POS) terminals have more than doubled to 16 terminals per thousand inhabitants in 2018. More merchants are also accepting QR payments with over 400,000 registrations recorded to-date. Meanwhile, e-payment transactions have almost tripled to 125 transactions per capita in 2018. At the same time, new business models are emerging. We estimate that 40% of fintechs in Malaysia are in payments or payment-related services – making it the largest segment. The ewallet space has been particularly vibrant, contributing to rapid growth in mobile payments. From 2017 to 2018, mobile payment transaction volume had increased twenty-fold from just below two million transactions to over 34 million transactions within a year. Keeping these developments in mind, allow me to share three broad priorities in taking Malaysia’s payments journey to greater heights.
Join the revolution! Why it makes business sense to move on from LIBOR  Speech given by Andrew Hauser, Executive Director, Markets  At Risk Live, London 27 June 2019  I am grateful to Wayne Leslie for his help in preparing this speech, and to Peter Balint, Rohan Churm, Tom Horn, Al Hughes, Antoine Lallour, Adeshini Naidoo, Will Parry, Edwin Schooling Latter, Jugvinder Singh, Tim Taylor and Francesca Zwolinksy for their advice and comments. 1  All speeches are available online at www.bankofengland.co.uk/news/speeches  Introduction  There seem to be two rather distinct themes to your conference today:  The first is all about opportunity, the future, things you might want to do: fintech, AI, new tools and ways of working. All symbolised by a rather inspiring yellow lightbulb icon on your agenda:  The second is all about the grim stuff: black swans, operational risks, or whatever else might lurk in your ‘hall of horrors’ sessions later – and the things you have to do in response. I’m not 100% sure which camp this speech has been put in. But I think there’s a clue in the icon you’ve put next to my name in the programme – which is a revolutionary clenched fist… In one sense I understand why I’ve been given a pugnacious icon. The programme to move the market from LIBOR to risk-free rates is a huge undertaking. Its goal is vital, and simply stated: to eliminate the profound system-wide vulnerabilities posed by LIBOR. And the deadline is clear: end-2021.

Using a near risk-free benchmark, such as SONIA in sterling markets, rather than LIBOR should, amongst other things:  4  https://www.theice.com/publicdocs/ICE-LIBOR-Weekly-Report-10Jun_2019-14Jun2019.pdf 6  All speeches are available online at www.bankofengland.co.uk/news/speeches  6    Reduce the funding mismatch for Bank Rate tracker mortgages bundled into securitisations;    Increase certainty for corporate borrowers wanting to lock in a fixed credit component at the time bonds are originated;    Allow market participants to take or hedge risk related to the evolution of monetary policy rates through swaps and other instruments without unintentionally introducing a variable credit component; and    Incentivise the development of new products, such as swaptions based on risk free rates, allowing more efficient hedging of interest rate volatility, either on their own or as part of structured products . It has been argued that moving away from LIBOR will increase risks to banks, by making it harder for them to hedge variability in their cost of funding related to their own credit risk. It is clearly very important for banks to be able to manage this risk. But, as we have seen, LIBOR is not the right tool, because it no longer accurately measures banks’ true cost of funding. And, even if it did, it is stretching credibility to suggest that the optimal place to house funding risk is with real economy borrowers. This feels a particularly fruitful area for innovation, drawing on the much more sophisticated range of tools now available for managing such risks.
1  See, for example: S. C. Myers (1977), “Determinants of Corporate Borrowing”, Journal of Financial Economics, 5 (2), pp. 147–175; S. Kalemli-Ozcan, L. Laeven and D. Moreno (2019), “Debt Overhang, Rollover Risk, and Corporate Investment: Evidence from the European Crisis”, ECB Working Paper No 2241; and T. Philippon (2010), “Debt Overhang and Recapitalization in Closed and Open Economies”, IMF Economic Review, Palgrave Macmillan, IMF, Vol. 58(1), pp. 157-178, August. 2 The Banco de España’s scenario 1 published in September envisaged quarter-on-quarter growth of 3.9% in 2020 Q4 and of 1% in 2021 Q1. 1  In this setting, and considering the potential news flow on a possible vaccine, economic policy should focus on continuing to provide support for households and firms affected by the crisis. The liquidity risks facing firms and the economic policies applied to address them  Let me now analyse the main financial risks that firms face in such a challenging environment. The two key risks are liquidity and solvency. The shock has given rise to a sharp fall in firms’ revenues, as a result not only of the pandemic itself but also of the mobility-restricting measures introduced by the authorities to stop the spread of the virus. This contraction in firms’ turnover, together with their fixed costs, has driven up firms’ liquidity needs. Firms were able to use their liquid assets or undrawn credit lines to meet part of these needs. But given the scale of the shock, in many cases these buffers proved insufficient.

A few days prior to the monetary policy meeting we have another formal Executive Board meeting where we go through the text of the report in detail and where the report is tabled. However, the forecast can be changed as late as during the monetary policy meeting. It is not until the monetary policy meeting that the text and forecasts of the Monetary Policy Report are finally determined. The Executive Board makes interest rate decisions through a majority vote The Executive Board holds six monetary policy meetings a year. If necessary we can meet more often. The number of meetings is not stipulated by law, but is determined by us Executive Board members. We make decisions on the current level of the repo rate at the monetary policy meetings. We also agree on which interest rate path is most appropriate at the present time. The decisions are made through a majority vote, where the Chairman of the Executive board has a casting vote, and they are announced in a press release. In addition to the Executive Board members, a number of employees from the Monetary Policy Department and the Communications Secretariat take part in the meeting, as well as some advisers and legal advisers. In addition, the Chairman and Vice Chairman of the General Council regularly take part in the meetings and thus obtain a good insight into the work of the Executive Board. They both have the right to express opinions, but not to put forward proposals or take part in any decisions.
Figure 3  Mining exports  (percentage) 50  0,7  Billions of USD FOB  0,5  30  0,4  20  0,3 0,2  10 0  % Goods exports  0,6  40  0,1 0  1984  1987  1990  Mining exports  1993  1996  1999  2002  2005  2008  Mining Exports/ Goods exports  Source: Central Bank of Chile. 6  BIS Review 106/2009  Figure 4  Earnings from nitrates-iodine and from copper  (percentage of total fiscal income) 70% 60% 50% 40% 30% 20% 10% 0% t  t+6  1880  t+11  t+16  t+21  t+26  t+31  Nitrates and iodine earnings  1959  t+36  t+41  Copper earnings  t+46  T 1930 2008  Sources: Jeftánovic, Jofré, and Lüders (2000); Central Bank of Chile. Figure 5  Government spending, exports and GDP  (index, 1880=100) 500  1,200  400  1,000 800  300  600  200  400  100  200  0  0  1880  1890 1900 Government spending Exports  1910  1920  1930 GDP  1940  Source: Braun, Braun, Briones, and Díaz (2000).

I will end with some final remarks. Economic growth and natural resources One paramount issue in our country’s development is its concentration of natural resources and, very specially, of copper ore. The world evidence shows that there are major differences in growth rates among natural resource abundant economies. One example is Botswana, rich in diamonds, which early this decade could account for nearly 40% of GDP (Acemoglu et al., 2003). This country’s per capita GDP grew by an average 6.6% per year between 1960 and 2007, which meant that in 2007, its per capital GDP was 19 times the one in 1970. An example to the contrary is the case of Nigeria, rich in oil, yet virtually stagnant. Its per capita  BIS Review 106/2009  1  GDP increased by an average 1.2% per year over the same period, which meant that in 2007 Nigeria had barely 1.5 times its per capita GDP of 1960. It has been found that, on average, countries rich in natural resources grow less than those that are not (figure 1). Based on this evidence, much research effort has been devoted to unraveling the link between economic growth and natural resource abundance, and that is what I intend to briefly cover now. International evidence and discussions on the relationship between natural resources and economic development are varied. Some economists, mainly Sachs and Warner (1995, 1997, 2001), have argued that rather than a blessing, abundance of natural resources is a curse.
Christian Noyer: The macroeconomy and financial systems in normal times and in times of stress Speech by Mr Christian Noyer, Governor of the Bank of France, at a conference, jointly organised by the Bank of France and the Deutsche Bundesbank, Chantilly, 9 June 2009. *  *  *  Introduction Ladies and Gentlemen, Dear Colleagues It is my great pleasure to address such a distinguish audience to day. As you may know, this is the second time the Banque de France and the Deutsche Bundesbank have jointly organised such a conference. It is held every two years, alternating between Germany and France. The fact that an event of this nature is co-sponsored by the two institutions sends a strong signal to the research community. It also clearly illustrates the importance of research in today’s monetary policy making, given the interplay, which is not always fully understood, between financial markets and the real economy. The top quality work that has been done in this conference will be of great help for policy making. Normal times and times of stress Over the recent months, thanks to the joint actions of governments and central banks, markets have shown gradual signs of improvement. Yet, the functioning of the markets has not been fully restored. At the current juncture, one key challenge is to restore confidence in a context where players are still confronted with numerous sources of uncertainty: uncertain exposure vis-à-vis counterparties, uncertain valuation regarding financial assets or financial risks.

The aim of the new  4  BIS central bankers’ speeches  financial regulatory framework is to reduce risk in the global financial system, not to turn it upside down. Furthermore, the measures adopted in this area are, in my view, not sufficient to capture the macro-prudential dimension of the problem. To this end it will be necessary to achieve, in addition to controlling the role of global dealers within each central counterparty, also a better understanding of the interdependencies between central counterparties. Indeed, even though OTC derivatives central counterparties are typically not interoperable, they are still closely linked owing to the fact that the major clearing banks typically participate in several of them at the same time. In order to be able to better identify and monitor the related contagion risks, we will need to significantly enhance information-sharing across central counterparties, including through access to relevant participant-level data, and conduct analytical work in this field. However, it is not clear at this stage to what extent this analysis can and will be carried out. For instance, the European Market Infrastructure Regulation (EMIR) colleges focus on individual central counterparties. While major central banks of issue, such as the Eurosystem, could in principle support a horizontal risk assessment across central counterparties, given our participation across several EMIR colleges, it is still unclear what type of information we will receive and, in particular, to what extent this will include participant-level data.
But, it may be a slight overstatement to declare that Asia as a whole has become resilient to shocks and disturbances today. In a sense, the impressive heights of Asian international reserves may be construed less as an indication of fundamental strength than as an indication for needed progress toward modern monetary policy framework. In addition to that, the size of accumulated global financial vulnerabilities that may unwind in the near future is by most measures unprecedented; the extent and the whereabouts of the risk concentration are unclear. And as a result, circumstances of greater macroeconomic adversity may yet again put to test emerging markets’ ability to adjust. The pressing and practical challenges emerging Asia faces in the near term are three-fold. Indeed, the three challenges are inter-related. They are “hot money” inflows and large inflows in general, pressure for rapid domestic currency appreciation, and finally, the potential loss of monetary autonomy in the sense of independent interest rate policy. Having done the right thing over the past 10 years, Asian emerging markets have become darlings of international investors and have had ample access to funds at favorable cost – although the more powerful underlying reason may ironically be a medium-term flight from US dollar assets since 2002. With large capital inflow comes pressure for these currencies to appreciate. In this experience, some currencies appreciate faster than others. In fact, those that surrender most of their monetary autonomy or maintain restrictions on cross-border capital flows need not feel immediate pressure to appreciate.

Over time, they wish to move from incomplete financial market to a better world of risk-sharing, risk absorption, and diversification. But there is tension to be managed in the short run. Under Bretton Woods II, in which much of Asia is still tightly linked to the fortune of the US dollar, and in the context of ongoing “global imbalances,” emerging markets need to strike a balance between financial stability and financial development. In particular, when our markets and institutions are still developing, the struggle between financial integration and financial stability, enterprise and prudence, requires from us a deft balancing act. Ladies and Gentlemen, From a historical perspective, today’s emerging markets are unique in their common experience. This uniqueness is twofold. On the one hand, it is quite apparent that our openness has gained us immense benefit from global economic integration, the phenomenon denied to advanced economies when they started off. At the same time, and as a result of our openness, small developing economies face risks and volatilities that accompany financial globalization, the scale of which advanced economies never had to face in their early stages. In fact, sustained increase in living standards is a relatively new economic phenomenon to emerging markets. Having experienced modern economic growth after 1950, we are late comers. And having much to benefit from being late, it took us a much shorter time to treble our per-capita income than today’s advanced economies did between 1800 and 1950.
Today, our mission is still to promote the good of the people of the United Kingdom, but now we do that by maintaining monetary and financial stability. Let me explain what that means. Maintaining monetary stability means two things. First, providing banknotes that you can use and trust. We have over 3 billion notes currently in use, and they are used in 44% of all transactions. Second, it means maintaining low and stable inflation. Maintaining financial stability means three things. First, making sure that when you put your money in a bank it is safe. Second, it means that if a bank fails, the costs fall on the bank’s investors and senior management, not ordinary people with deposits in banks. And finally it means making sure that if you take out an insurance contract, it will pay out if whatever you are insuring against happens. The work that the Bank does in all of these areas can ultimately be summed up very simply: we maintain confidence in money. This confidence is not, though an end in itself; it is a means to an end. Confidence in money provides the foundations for prosperity. Without it, companies would struggle to provide the goods and services we all use every day; you would face difficulties in knowing how to invest for your futures, be it financing studies or buying a house. Maintaining this confidence is the best contribution the Bank of England can make to the good of the people of the United Kingdom.

He has held various positions of responsibility at the BIS over the last 35 years and during this period he has authored numerous publications in the fields of monetary policy, banking, finance and issues related to financial stability. Alfred Kammer is the Director of the European Department at the International Monetary Fund. In that capacity, he leads and oversees the IMF's work with Europe on financial sector surveillance, monetary and macroprudential policies and financial regulation, among other key areas. Lucrezia Reichlin is Professor of Economics at the London Business School with a background in central banking. She was previously Director General of Research at the European Central Bank. Last but not least, Ricardo Reis is the A.W. Phillips Professor of Economics at the London School of Economics. Widely regarded as one of the top research macroeconomists of his generation, Ricardo has published extensively on monetary and fiscal policy, inflation and business cycles. Thank you Claudio, Alfred, Lucrezia and Ricardo for kindly accepting the invitation to be with us today. As discussed with you, I would first give the floor to Alfred. 3/3  BIS - Central bankers' speeches
It is important to define the term “consolidated supervision”. The underlying philosophy is that for, say, a bank operating in a large financial group, it is necessary to look not only at the soundness of the bank itself but also of the group as a whole. This will require both a quantitative and a qualitative assessment. The quantitative element involves examining the financial strength of the whole group. The basic measures here are capital adequacy and large BIS Review 21/1997  - 14 -  exposures. In the Bank of England, we look at these against the minimum standards set out in the EU Directives and against the more stringent criteria which we have developed ourselves and apply to individual banking groups in ways that take account of their particular circumstances. It is worth noting that both the EU Directives and the Basle Capital Accord set these minimum standards on a consolidated basis only. The qualitative element involves assessing factors such as the group’s risk management process, internal systems and controls, capability of key personnel, culture and business strategy. Any supervisor will hardly need reminding that, in the Barings case, weaknesses in a subsidiary in just these areas brought about the collapse of the parent. As the need for consolidated supervision is written into the Basle Concordat we can be confident that all regulators of internationally active commercial banks, including of course those in the US, subscribe to its principles. Consolidated supervision is a relatively widely understood concept involving the range of activities set out above.

2 Given the importance of the in depth of Shariah research in Islamic finance, the International Shariah Research Academy (ISRA) was recently established as part of INCEIF to conduct applied Shariah research on the contemporary Islamic finance issues. The third strategy is to provide a platform that promotes active engagement and dialogue among the relevant stakeholders. The annual Shariah dialogue at international and regional levels have contributed to increased understanding of different views on Islamic finance matters and enhanced mutual respect of Shariah opinions. Closing In conclusion, against a backdrop of an increasingly uncertain global environment, Islamic financial system is indeed well positioned, as a form of financial intermediation in this more challenging environment. In the coming years, it is important for adequate focus to be given on the implementation of international prudential standards and sound risk management practices in Islamic financial institutions to ensure the financial stability and integrity of the financial system. According greater mutual respect to global Shariah views for Islamic finance would also contribute to the orderly global development of Islamic finance, thus sustaining the overall viability and soundness of the Islamic financial system as it becomes an integral part of the international financial system. 2  4  IBFIM's "Shariah Scholars Induction Programme". BIS Review 59/2008