samchain/econo-pairs-v1 huggingface dataset:
Capital and liquidity requirements are the most basic tools for controlling the banking system in aggregate. Superficially, and taking directions and recommendations together, the FPC could therefore be interpreted as undertaking coordinated supervision. If that were the case, the question must arise whether the PRA has any independent instruments and whether the FPC and PRA Board arrangements mean that both can achieve their objectives. Specifically, does the FPC dominate the PRA? The answer of “no” comes in two parts. 9  These arrangements with MPC and FPC have been published. BIS central bankers’ speeches  5  First, beyond the formal powers of direction, the FPC can make recommendations on a wide ranging basis. Only the PRA and FCA may be obliged to respond 10, but in principle, the FPC could seek to involve itself in much wider matters than those over which the PRA has legal powers. Second, the FPC cannot involve itself in matters relating to specific firms. For example, ultimately only the PRA Board can sign off on what levels of capital an individual deposit taker must hold, adding their independent judgements to the minima which are set by a combination of international standards and any FPC decisions. Those judgements reflect the specific risks being faced by individual firms and there are a range of factors, any of which may cause a capital requirement to be made. The PRA’s judgemental approach to supervision is set out in its Approach Documents for Insurance and Deposit Takers which are published on our website.

A bank-run stress test allows supervisors to evaluate how good each individual bank – and the banking system in general – is at assessing the risks it faces in a stress scenario and translating this into an appropriate amount of capital to set aside against these risks. Crucially, supervisors do not simply accept the results the banks produce in these tests – they evaluate both the adequacy of the numbers the banks produce and the processes they use to get there. If all we ever did was run supervisory stress tests in which we instruct banks in detail how to perform the test, we would be in the position of a parent who shows his child how to solve each problem in her homework – and never discovers whether the child can do the work on her own or not. The CCAR process differs from the SCAP in several key respects. First, in the CCAR there was no disclosure by the Fed of the stress test results. In CCAR, the focus was on assessing the sensitivity of the firms’ own projections of capital under the baseline and stress scenarios to alternate assumptions and estimates. The results do not lend themselves to direct,  2  BIS central bankers’ speeches  apples-to-apples comparisons like the results in the SCAP. Second, the emphasis was on the capital planning process, not forcing the banks to raise capital to withstand a stress environment. Third, the CCAR was conducted at a different stage of the economic cycle.
Moreover, in order to slow down credit expansion, we increased required reserve ratios (Chart 2). Meanwhile, in order to enhance financial stability by extending maturity of the banking sector liabilities, we differentiated reserve requirements across maturities, with higher reserve requirements for short-term liabilities. These measures led to a fall in net short-term capital inflows, stopped the acceleration of credit growth and extended maturities for deposits. Chart 2. CBRT Policy Mix CBRT Policy Rates  TL Required Reserve Ratios  (Percent)  (Percent)  Source: CBRT. Source: CBRT. In the first quarter of 2011, both the faster-than-expected increases in oil prices and the robust domestic demand required a more cautious stance regarding the inflation outlook. Specifically, oil prices hovering significantly above our January Inflation Report’s assumptions led to an increase in cost pressures. Moreover, the ongoing rapid growth in private consumption and private investment spending added to the need to contain domestic demand in order to avoid secondary effects of the increases in oil and other commodity prices. Notwithstanding historically low inflation at 4 percent in the first quarter, I would like to emphasize that we have acted with a medium-term perspective and started to highlight the upside risks to inflation since February. Accordingly, in order to eliminate the risk of deterioration in general pricing behavior, we have adopted a stronger monetary tightening than was envisaged in the January Inflation Report’s baseline scenario.

Mexico’s transformation from a nation racked by repeated financial crises to one enjoying healthy economic growth, low inflation, and remarkable financial stability owes in no small part to tireless efforts of Dr Carstens and his colleagues in central bank and Mexican government. 7. I have had the privilege of interacting with Agustin at many international meetings over the last two years, at the BIS, IMF, FSB, and others. When Agustin speaks, people listen. His interventions at meetings are always insightful – balanced, thoughtful, and reasonable. He is an articulate spokesperson for the challenges and concerns of emerging market economies. And occasionally a well-meaning and constructive critic of policies in the advanced economies. And Agustin does all this with an abundance of grace, courtesy, and respect for everyone around him – a gentleman even by the high standards of central bankers. 8. Ladies and gentlemen, please join me in warmly welcoming Dr Agustin Carstens. BIS central bankers’ speeches  1
Turning to prices, inflation, which has been in negative territory virtually since the recovery began, has undergone a progressive correction since the start of this year, standing at –0.2% in May further to a rise in the energy component and a gradual pick-up in core inflation. The decline in prices in Spain is proving more marked than in the Monetary Union as a whole, meaning that the inflation differential will continue to help in bringing about an ongoing improvement in our economy’s competitiveness. Inflation might be running at a moderately positive rate at the end of 2015 owing to a combination of several factors. Firstly, the progressive petering out of the effect induced by the heavy fall in oil prices in the closing stretch of 2014 is expected to bring about an automatic rise in the energy component of the CPI in the closing months of this year. BIS central bankers’ speeches  1  And further, the depreciation of the euro will impact non-energy goods and services prices. In any event, the persistence of considerable slack in the economy, i.e. of substantial unused capacity, means a mild recovery in the inflation rate over the next two years is to be expected. The factors underpinning growth The favourable growth outlook is underpinned, above all, by the restoring of macroeconomic equilibria. The progress made and the measures underpinning it have allowed the confidence of both external investors and of Spanish households and firms to be restored.

BIS central bankers’ speeches  5  Spanish banks’ attributed profits in 2014 increased by close to 34%, continuing the recovery initiated in 2013. Despite the backdrop of declining credit and low interest rates, net interest income rose by almost 5% owing to financing costs falling at a swifter pace than the return on financial products. Also, the containment of operating expenses and the decline in asset impairment losses have contributed to the improvement in results. However, the persistence of the environment of very low interest rates and the presence of a significant volume of non-productive assets will continue to bear down on the income statement. That will lead banks to reflect on a sustainable business model, involving the application of new technologies, new activities and an office and staffing structure better tailored to attaining this model. In December 2014, the top-quality common equity tier 1 (CET1) capital ratio of our banks stood at 11.8%. This ratio rises to 13.6% for total capital. Both figures amply exceed the regulatory minimum levels. Even if the standards scheduled to be in force from 2018 – when Basel III becomes fully applicable – were to be applied, these percentages would remain above the minimum levels (9.9% and 12.1%, respectively). Moreover, the recourse by banks to Eurosystem funds continues to fall. Notwithstanding this positive assessment, Spanish banks must continue strengthening their capital and their loss-absorption capacity in order to withstand the new macroeconomic environment, heightened competition and the new, more demanding and complex regulatory framework.
6  All speeches are available online at www.bankofengland.co.uk/speeches  6  The PRA is a founding member of the Sustainable Insurance Forum, a network of around twenty insurance regulators from around the world who are sharing knowledge and best practice on how to consider climate risk in insurance supervision. The Bank, as many of you know, has also co-chaired since 2016 the G20 Green Finance Study Group on behalf of the United Kingdom, with our colleagues at People’s Bank of China. We continue to do so under Argentina’s Presidency, the group now being the G20’s Sustainable Finance Study Group. And most recently, the Bank has become a founding member of the Central Bank 7  and Supervisors Network for Greening the Financial System . Conclusion  We are part way through a transition in thinking where climate change is moving from being a social responsibility issue to being a core financial risk at the heart of how companies manage their business. It is these financial risks that create the link from climate change to the Bank of England’s mandate - given our core responsibilities to ensure the safety and soundness of banks and insurers and our responsibility to support a stable financial system. It’s clear to me that many different actors - companies, investors, financiers, climate scientists, governments, financial policy makers - have a part to play, given their mandates and specialisms, to support this transition in thinking.

I commend the work of the Taskforce in tackling some of the most pressing and critical issues in this area - for example:   consideration of the challenges involved in moving towards green definitions that are recognised internationally - since a market-wide taxonomy is clearly an important foundational step necessary for other initiatives to take hold;    the work to develop green loan definitions and standardising key documentation which will be helpful in reducing barriers to issuance; and    the push to improve the risk analysis tools that are available to investors, banks and regulators. More broadly, in infrastructure financing, where the risks are often highest in the early stages of projects, there may also be lessons to be learnt from existing public-private partnerships and the use of risk sharing agreements. And there may be opportunities to encourage the ‘crowding in’ of private investment for green projects through the use of public sector money. These ideas and structures are not new but could help support the allocation of green finance to economies where the need is greatest. The City and the UK China Green Taskforce are well-placed to support such work. Coordination  Climate change is a global problem that is most effectively met with global solutions. Given this need for a co-ordinated response, a significant element of the Bank’s work has involved engaging with other financial regulators and central banks - both with our fellow regulators here in UK, and also internationally, to help raise awareness of climate-related issues.
Information technology has developed rapidly and even if the stock markets reacted too optimistically, the technological development should be favourable for rather more long-term growth. Productivity has also improved in recent years, which may also be a sign that we are on our way into a higher long-term growth track. The approach of economic policy has then been successful. Support and understanding also seems to have been attained for the price stability target taking precedence over other ambitions and demands. By giving central banks independent responsibility for the price stability target, an attempt has been made to avoid suspicions being created that the price stability target would be set aside for short-term employment considerations. In the long-term, a demand-stimulating economic policy would only be expressed in inflation when full utilisation of resources is reached. For central banks that, after a long period with a poor inflation record, are to establish credibility for price stability, independence can facilitate this transition. When credibility and support for price stability has been achieved, there is less risk of monetary policy coming into conflict with short-term employment objectives. I would first like to briefly describe the basis of the monetary policy decisions made by the Riksbank. Simple decision-making rule as a guide The new Riksbank Act has now been in force for almost two years. This act stipulates that the objective of the Riksbank is to maintain price stability and to safeguard a reliable and efficient payment system.

In the light of this, it is not surprising that criticism of the Riksbank’s approach was strong at times. The discussion on making the Riksbank more independent aroused strong feelings not least among many social-democrats and in parts of the trade union movement. There are obviously different views of the extent to which it is necessary with such a stringent monetary policy during the years of adaptation. We can never obtain an answer to this but we can at any rate note that we now seem to have achieved the stable prices we aimed at. To date, it is too early to say whether price stability can be combined with as high employment as previously, but what we are now seeing gives rise to optimism. Price stability requires some independence for the Riksbank The strong pessimism on the future prospects for the Swedish economy that affected the general mood after the crisis in 1992 has then in recent years been transformed into an equally strong optimism! We can now draw the conclusion that the pessimism was exaggerated but we know nothing yet about the situation with respect to today’s optimism. It would seem to be a fact that there has been over-optimism about developments in certain IT-related industries, although the question is how we should regard the more long-term growth of the Swedish economy. Many structural reforms have been carried out. The financial markets have been deregulated, competition on the goods markets has also increased and many state monopolies have been abolished.
Also, in the first five months of 2021, the growth amounted around ALL 10 billion. Meeting the demand of market for cash is achieved through ensuring and planning the sufficient stock of cash at the Bank of Albania, which guarantees the security for both the present and future. Allow me to detail briefly some of the features of these two denominations: The 1000 lek banknote, part of the new series, has a refreshed design, but it retains the same motives presented in the existing one, embedding changes related to the whole configuration of all added and improved elements. The theme of the 10000 lek banknote are the symbol of flag and national anthem - the main symbols of our national identity - accompanied with the portrait of the distinguished poet of the Albanian National Renaissance, at the same time, author the “National Anthem”, Aleksandër Stavre Drenova - commonly known by the pen name “Asdreni”. The presentation of a new series of banknotes means more than a simple change of its image. The Bank of Albania continuously improves the quality of the banknote in circulation, aiming to preserve its integrity. Both new banknotes, like all the other denominations of the new series, contain advanced security features. They are produced with cutting-edge technologies for banknote printing and personalised by denomination. The 1000 lek banknote integrates the raised print in the portrait of Pjetër Bogdani, numerals, lettering, and in the short lines, which help the visually-impaired people to easily identify and recognise the banknote.

Mugur Isărescu: The macroeconomic perspective in Romania Welcome speech by Mr Mugur Isărescu, Governor of the National Bank of Romania, at the Romanian-Czech Business Forum, Bucharest, 20 May 2014. *  *  *  Your Excellency, President Zeman, you are most welcome here, at the National Bank of Romania, a place that holds within its walls countless pieces of history, tails of how Romania has grown into a modern state. We are privileged to greet here, today. Distinguished guests, Ladies and gentlemen, Allow me to extend a very warm welcome and thank you all for gracing us with your presence at the Romanian-Czech Business Forum. It is a great pleasure for the National Bank of Romania, and an honor for me and for the members of the board, to host what will be a substantial discussion about the challenges currently facing Europe, in particular the development of economic relations between the Czech Republic and Romania. Here, at the National Bank of Romania, we take pride in having always been a forum for debating, in an open and profound manner, the themes and trends defining our age. A few weeks ago we celebrated the 134-th anniversary of the Romanian National Bank, a central bank ranking 16-th in the world. During the break, after the working sessions, you are kindly invited to visit/walk the outstanding halls of the Old Palace of our national bank.
This is no easy task in the present situation. The labour market is quite different today than it was 5-10 years ago. Unemployment is relatively low and there is a labour shortage in some parts of the economy, despite the slowdown in economic activity. Moreover, there are tendencies towards demands for compensation, which, if they were to spread, could provide further complications for wage formation. The trends with regard to labour supply are also worrying. Demographical developments, such as an increasing number of elderly people over the coming decade, will create a demand for more employees to work in geriatric care, for instance. At the same time, the number of persons available on the labour market is declining. An addition problem is the high frequency of absence due to sickness. It is evident that a central target for economic policy should be to get more people in work. This would facilitate wage formation and create greater scope for economic growth in future. This is perhaps just as important a theme for a hearing in the Committee on Finance as wage formation in itself. It concerns measures that are largely in the hands of the Riksdag. Thank you!

The pick-up in economic activity in the United Kingdom has been sharper than in the United States and, according to most analysts, it appears to be underpinned by sounder foundations. Inflation is holding on a path consistent with the target of 2% and it should also be borne in mind that the prices of certain assets, housing in particular, have been moving on a rising trend and have reignited debate on the role the central bank and its monetary policy should play in preventing potential bubbles. Here, although the Bank of England has not yet modified its accommodative monetary policy stance either, the prevailing expectations are already discounting a more or less immediate change. The latest messages from the Bank of England suggest, in any event, that when rates begin to rise they will do so very gradually, remaining below historical values for a lengthy period. The monetary policy of the Bank of Japan The differences are even more marked in the case of the Bank of Japan. Nor can we forget that, prior to the international crisis, the Japanese economy had not overcome the effects of its own domestic crisis which began in the 1990s following a substantial credit boom and a burgeoning real estate bubble. The various economic programmes implemented since have not managed to put the Japanese economy back on a stable growth path, illustrating the difficulty involved in restoring normality when an economy enters a perverse cycle of deflation and contraction of activity.
The existing market demand within Hong Kong for a US dollar clearing system is a persuasive enough argument for its introduction: the potential demand for such a system, and the strategic impetus that it would give to our development as a leading financial centre, is considerable. In the near term, Hong Kong’s US Dollar Clearing System will provide the necessary infrastructure to support the Stock Exchange’s launch of the Growth Enterprise Market (GEM), which will allow listed shares to be denominated and settled in US dollars. In the longer term, the system will provide a range of opportunities for further developing our stock and debt markets into major world markets. A local US dollar clearing system will bring with it the advantages of speed, convenience and efficiency: it will, for example, allow US dollar cheques to be settled within two days, instead of the current two weeks. In addition to these obvious advantages, it will also carry the benefit of safety, in the form of reduced settlement risk. By enabling, within Hong Kong, delivery versus payment (DvP) for US dollar-denominated securities, and payment versus payment (PvP) for foreign exchange  1  BIS Review 22/2000  transactions between US dollars and Hong Kong dollars, the system will eliminate the settlement risk that arises when a transaction is spread across different time zones. Greater safety at the level of individual transactions will be complemented by the contribution the system will make to monetary stability.

UK inflation performance That brings me to the final area where the UK economy has performed very differently to expectations last summer – headline inflation. The UK has just experienced the second significant upward spike in inflation in the last couple of years. Since the beginning of 2008, when the financial crisis and the ensuing recession might have been expected to push down inflation, consumer price inflation in the UK has averaged 3% – above the 2% target and more than one percentage point higher than average CPI inflation in the pre-recession period of growth. Our inflation rate is clearly influenced by external factors in the world economy, such as a volatile oil price, and these have clearly made the control of inflation more difficult over the last two or three years. But if these global forces were solely to blame for higher inflation, they would be having a similar effect in other major economies. As Chart 6 shows, the US and the euro area have seen lower and more stable inflation over the last couple of years, with inflation averaging around 1¾% since the beginning of 2008. US inflation has recently been pushed up to over 2% by higher petrol prices, but to a much lesser extent than in the UK. 5  According to the Labour Force Survey measure, unemployment peaked at 11.9% in mid-1984 and 10.6% in early 1993. Approximately two years after the start of the recession in both cases, unemployment was 10.2% at end-1981 and 10.4% at end-1992.