samchain/econo-pairs-v1 huggingface dataset:
This is true not only here in Singapore but even larger economies like Hong Kong, Malaysia and Australia are debating the merits and demerits of the issue. In this environment, huge universal banks like Citigroup, which offer a wide range of financial products on a global scale, may not be the only viable model. Specialist players still have opportunities to thrive, for example in investment banking, but only if they distinguish themselves through depth of expertise and distributional reach. They need to be specialists, and not just marginal players picking up the crumbs. Even the enlarged new Deutsche Bank has decided to consolidate and specialise, hiving off the management of its retail business segment. Smaller players may also survive as niche players, either with superior knowledge of particular markets or by leveraging on the distribution networks of larger players. Secondly, in pursuit of shareholder value, institutions are cutting costs to the bone. Financial institutions are increasingly farming out routine back office processing, in order to derive economies of scale and to focus on their core competencies. They are outsourcing things like mortgage processing and credit card billings to specialists who handle these activities in bulk, using highly automated and streamlined processes. The region This trend towards consolidation means that in a geographical region institutions will increasingly prefer to centralise their activities in one single centre, especially for treasury, debt issuance, and capital market operations.

It is far better to get individuals to invest their funds directly, instead of relying on the Government to do it for them. This will not only be better for developing the fund management industry. It will also promote the spirit of self-reliance and personal responsibility that is essential to Singapore’s success. Dr Richard Hu announced in the Budget Speech that MOF will introduce a Supplementary Retirement Scheme. This is a tax-advantaged vehicle for individuals to save for retirement, over and above CPF  BIS Review 30/2000  8  contributions, like US 401(k) accounts. If this scheme takes off, it will give a boost to the fund management and annuities industry. But the main issue is the CPF funds themselves. The CPF already allows members to invest their savings in unit trusts or other privately managed long term investment schemes. But most members still just leave their money with the CPF. We should find more effective ways to encourage and enable CPF members to look after their retirement 6. Conclusion  There is no turning back from our quest to liberalise and to go global. We will continue developing a more open and competitive environment, in order to create a dynamic and vibrant world-class financial centre. In this new regime, local financial institutions must upgrade and match international standards of management and technology, or risk becoming marginalised. MAS will work together with the industry in their efforts to meet this challenge.
From an international perspective, these fluctuations have not been greater than those experienced by other countries with a floating exchange rate, but they have played a prominent role in the Swedish debate and have probably been discussed here in Finland too, bearing in mind our close trading connections. Let me say here that while the variations in the exchange rate have been larger than we anticipated, the effects of this volatility have been much less than might have been expected. Our central bank and many others with experience of managing a small, open economy with a floating exchange rate have come to the conclusion that exchange rate fluctuations have had less effect on both prices and production; while exchange rates and import prices have varied significantly, the impact in the consumer channel has been limited. What does the Riksbank have to say about a possible Swedish EMU membership? Over the past six months the political temperature has risen with regard to the EMU issue in Sweden. This is possibly a reflection of the fact that the Swedish people now see membership in a slightly more positive way. It is clear that the physical introduction of banknotes and coins has made the EMU project more tangible. The last time the Riksbank as an institution had reason to comment on the issue of whether Sweden should join the EMU or not was at the beginning of 1997 in connection with the presentation of the 1 report by the Swedish EMU commission.

Bearing in mind the longer preparation period prior to actual EMU membership required in this alternative, it would actually take longer until Sweden could fully participate in all co-operation and decision-making forums in Euroland than would a gradual transition process. The advantage with this scenario is that there does not need to arise any uncertainty among the general public with regard to the position of the euro during the transition period, in that the euro could be used everywhere right from the start. We must therefore consider carefully what form a Swedish transition scenario should take, even if the discussions have generally favoured a gradual process. Here, Finland's experiences could certainly be of great value to us in the Swedish preparation work. Conclusions Regardless of whether or not Sweden chooses to take the same path as Finland and join the EMU, it is important to maintain a high level of ambition with regard to keeping our public finances in good condition, maintaining price stability and creating the right conditions for a good growth in productivity. This creates freedom of action, regardless of whether or not we join the union. There are both advantages and disadvantages in remaining outside. However, the question will not be determined merely by economic arguments, it is more a case of political arguments. It is important to remember this. BIS Review 9/2002  5
All of the Federal Reserve Banks have their areas of specialization. In my opinion, the New York Fed has at least four that are worthy of mention today because these affect the work of the New York Fed’s economists. First, we are the operational arm of the Federal Reserve, responsible for the implementation of monetary policy. This means we have a unique set of relationships with the securities dealer community and with respect to monitoring financial markets. It also means that we work very closely with the Board of Governors and the Federal Open Market Committee (FOMC) in implementing monetary policy. Second, we have a unique endowment and responsibility by virtue of our location. New York City is a global financial center, and finance is a very important aspect of the Second District’s economy. Most of the largest global financial institutions have a major presence here. With delegated authority from the Board of Governors, we are responsible for the supervision of most of the major financial institutions headquartered in our district, as well as numerous foreign banking organizations that do business here. Third, we are the fiscal agent for the Treasury and conduct the Treasury debt auctions on their behalf. Additionally, we are responsible for Fedwire, which along with Clearing House Interbank Payments System (CHIPS), is one of the two large-dollar, real-time payment systems in the U.S. Fourth, we have a unique set of international duties. We provide banking services to foreign central banks, including investment of reserves and administration of foreign exchange swap lines.

Because your industry has taken a lead in learning from the past, in leading the changes needed and in having a sense of your responsibility to the wider economy. Yours is a model of engagement for others to emulate. And I look forward to continuing to work together. Thank you. BIS central bankers’ speeches  5
Many observers of the SNB’s activities have expressed a desire that this proportion be larger. Yet such an increase is not without risk. While the inclusion of equities in a portfolio can reduce the risk profile as a result of the diversification effect, this is only true up to a certain level. We estimate this level of equities to be between zero and 5% of the portfolio. While a higher share would naturally translate into a higher return on the portfolio, it would also mean incurring greater risk. Any increase in the proportion of equities must therefore be analysed from two vantage points: return and risk. Additional risk can run contrary to the criterion of security that the SNB applies to its investments. Let me now turn to the fifth and last challenge: Managing exchange rate risk. The return on foreign exchange reserves essentially fluctuates in line with changes in local currency returns versus Swiss franc returns. This exposure to exchange rate risk is the result of the SNB’s monetary policy. It thus forms, so to speak, part the DNA of a central bank’s activities in a small open economy such as ours. Eliminating this risk would go against monetary policy, which remains the SNB’s priority. We therefore have to live with this risk and try to reduce it without getting rid of it completely. To this end, the Governing Board pursues a strategy of maximum diversification across the currencies at its disposal.

But we have also experienced that the income settlements may be a source of economic disturbances. The income settlements in the mid-1970s and 1986 had the strongest negative impact. The settlements in 1998 and 2000 also fuelled high cost inflation. Retrospective evaluation of monetary policy Today's inflation rate is partly the result of the interest rate that was set one to two years ago. Therefore, today’s consumer price index figures provide a basis for assessing the results of the monetary policy conducted some years ago. Monthly figures for the consumer price index are influenced by random or temporary factors that have little impact on developments in inflation over time. Electricity prices are affected by precipitation levels. Changes in indirect taxes have an immediate impact on the consumer price index. The direct effects of these factors on inflation will be non-existent after a year. Hence, they will not have any significance for the interest rate, which is normally set with a view to maintaining inflation at 2½ per cent two years ahead. However, it is still interesting to adjust monthly inflation figures for temporary effects to determine whether developments are broadly in line with our projections. Norges Bank analyses and presents figures for consumer price inflation where the effects of some temporary factors are excluded. In April, the year-on-year rise in the consumer price index was 3.8 per cent. Figures were affected by sharp increases in both electricity and petrol prices and by higher indirect taxes.
BIS central bankers’ speeches  7  With supervision by WAMI and funding from the African Development Bank (AfDB), the following payments system reforms are at various stages of implementation:   The infrastructure of the Bank is being upgraded to state-of-the art IP-based data communication networks, supported by a reliable uninterrupted power supply;    The state of preparedness of the commercial banks for connectivity to BSL in a bid to ensure the efficiency of the payments system is in the process of being reviewed;    The payments system components of core banking application, automated cheque processing (ACP), automated clearing house (ACH), real time gross settlement and scriptless security settlement are currently being deployed;    The proposed deployment, by a private company, of fibre optic for connectivity between the commercial banks and the Bank of Sierra Leone is in progress. Financial Inclusion for poverty reduction and growth promotion Your Excellency, distinguished ladies and gentlemen, the Bank seeks in its operations to go beyond monetary policy to promote poverty reduction, create employment and growth through enhancing access to finance in the rural areas which constitute a significant proportion of the economy. The Bank welcomes the growth in the number of microfinance institutions (MFIs), Financial Services Associations (FSAs), the opening of new branches of banks and the introduction of mobile banking in a move to improve rural financial intermediation. As the number of these institutions increases, the challenge would be to effectively supervise and regulate them.

I am most grateful to   His Excellency, The President Dr. Ernest Bia-Koroma    The Honourable, Vice President Chief Alhaji Sam Sumana    The Minister of Finance and Economic Development    The Honourable Speaker and Members of Parliament    The President of the Bankers’ Association  The many Heads of States and Governments, many former Governors, heads of financial institutions, as well as heads of international and regional organisations that have contributed to enhancing the role of the Bank in promoting economic and social progress, in particular, financial stability in Sierra Leone. Their varied contributions are a testimony to the achievements of the Bank and the high esteem it is held today. They also underscore the major reforms that the Bank, supported fully by all the stakeholders, has implemented since 1964, covering operational, financial, and governance matters. I would like to thank members of the Board of Directors, the Deputy Governor, Management and Staff of the Bank for the guidance, support and cooperation throughout 2010. Let me also extend my gratitude to my family and friends for their prayers, continued support and guidance, not forgetting the Fourth Estate for the work they have done in sensitizing the public on the role and policies of the Bank. I thank you for your attention. My very best wishes to you all for a peaceful 2011 and hope that it brings good health and contentment together with prosperity. God bless. 10  BIS central bankers’ speeches
We do not intervene in internal political discussions, whether in Greece or elsewhere. It is important that the independence of the Bank of Greece and its governor is preserved. Personally, I have the highest appreciation for Mr Papademos and Mr Stournaras as economists and policymakers. I must stress that an independent statistical system is also crucial. I won’t comment on Greek judicial decisions, but one should not underestimate the damage inflicted on Greece’s credibility by never-ending legal action against the former president of Elstat. Mr Georgiou discharged his duty in compliance with the European framework and his findings remain unchallenged today, including by the government. Do you think that the planned pension cuts for 2019 should be suspended or postponed, as the government wants? Has the government made any concrete proposals ahead of the mission and in view of the 2019 draft budget? The government also plans tax cuts in 2019 using the expected excess primary surplus, affecting ENFIA and social security contributions, among others. Do you agree with these measures? In line with what I said on the refocusing of our contribution to the programme, we do not want to discuss specific fiscal policy measures. What is essential for us is that fiscal targets for 2019 are met and that the budget composition is growth-friendly. As is the case in a number of countries in the euro area, it is important that the level of direct income taxation supports economic growth while ensuring that fiscal targets are met.

With a floating exchange rate and unchanged interest rates, an increase in wage growth of one percentage point will eventually translate into a comparable increase in price inflation, unless this increase is based on higher productivity. The interest rate increase must be adjusted accordingly. First, the nominal interest rate must be increased to maintain the real interest rate. Second, the real interest rate must also be increased in order to prevent inflation from accelerating. When wage growth reaches a level that is inconsistent with the inflation target, the result will be higher interest rates, lower employment and higher unemployment. Similarly, when wage growth is lower than the level consistent with the inflation target, the result will normally be lower interest rates, higher employment and lower unemployment. The sharp growth in labour costs in recent years is a source of higher unemployment. When real wage growth is higher than productivity growth, corporate profitability declines. As a result, businesses will recruit less and shed more labour. In the public sector, we will see a growing conflict between budget limits and service production requirements. A monetary policy that is oriented towards low and stable inflation will contribute to stabilising aggregate demand and output. As a result, the central government budget will not normally have to be used actively to stabilise the economy.
The not so buoyant economy and the gradual decline in inflation-in line with expectationssuggest that, under the assumptions of the baseline scenario, the discussion about the gradual withdrawal of the monetary stimulus could be delayed with respect to March expectations. Overall, any future changes in the MPR will depend on the evolution of domestic and external macroeconomic conditions and their implications for the inflation outlook. Indeed, if inflation is higher and more unrelenting than we have foreseen, the normalization should be anticipated; but if the convergence of inflation to the target is faster than foreseen, the opposite should happen. Let me now present a brief review to the main issues in our Financial Stability Report. The Financial Stability Report Our Financial Stability Report discloses, on a half-yearly basis (in June and December), the recent macroeconomic and financial developments that might have an incidence on the Chilean economy’s financial stability. The Report we present today examines the same external risk scenarios I have just described. As I said, monetary policy in developed economies remains expansionary. The measures of the ECB and other central banks that cut down their benchmark rates have continued to push down sovereign long-term rates, although lately they have shown some reversal. This, 4  BIS central bankers’ speeches  plus still bounded risk premiums, have led to increased issue of debt, mainly corporate. Thus, an environment of low-cost funding and incentives to risk taking persists, where vulnerabilities may be incubating that could emerge as the global financial situation approaches normality.

Although this phenomenon is not as intense as it was in past decades, it is still significant. There is still the risk, however, that if wages remain high, the convergence of inflation may take longer. Another risk is that the evolution of wages may be reflecting a narrowing of output gaps with respect to the baseline scenario and, therefore, increased inflationary pressures. World economic data have shown lower growth in the US and a strengthening of the more positive outlook in the Eurozone. Although the worsened US data for the first quarter are believed to be mostly temporary, as I said, the moment when the market expects the Fed to begin adjusting the policy rate has been postponed. Nevertheless, long-term interest rates have risen, although with some reversal in recent days, and the yield curve has steepened in the US and several other economies (figure 5). This phenomenon is partly related to the change in the macroeconomic outlook-the recovery process in the developed world and higher inflation-, but also to the decompression of the low term premiums associated with portfolio reallocations. Still, external financing conditions remain favorable by historic standards. In Chile, with ups and downs, the peso has appreciated in nominal and real terms. The peso/dollar parity is around 615 as of the closing of the Monetary Policy Report, and has risen further to a little over 620 pesos to the dollar since. This, after surpassing CLP 640 in March and standing near CLP 600 in May.
My colleague Gareth Truran provided an update on the review of Solvency II last month titled ‘Solvency II Review: Unlocking the Potential’6. As he noted, the intention is to retain the structure and approach of Solvency II, which owes much to the preceding UK regime, but to tailor it better to the form of the UK insurance sector and the products that it offers. The review is nonetheless wide ranging, so I will just pick out a few areas of particular relevance to some or all of this audience. First, we agree with the industry that the risk margin is currently too volatile and too high in the current interest rate environment. Second, we are keen that the matching adjustment is put on a sounder footing to support the investment objective and protect policyholders. Third, we’re looking at a range of changes to simplify and streamline aspects of the regime, including reporting, and thereby reduce the burden on firms, whilst ensuring that the PRA continues to receive the level and type of information necessary to supervise firms effectively. An increase in the thresholds at which firms become subject to Solvency II is being considered alongside mobilisation of new insurers, and a review of the standard formula will take place at a subsequent stage. We are keen to engage with the AFM and its members on all of these topics. We are committed to continuing this where necessary and working with industry throughout policy development.

First, the increase of inflation and rise of interest rates to balance its impact, as well as the respective effects passed through in the economic and financial sector from this interaction, have been the remit in all recent meetings and forums with national and international partners and homologue. The structure of re-pricing credit portfolios, which are dominant in our banking system, has enabled banks to begin to transfer this effect to borrowers, while the relatively high share of non-interest bearing accounts on the liability side has provided for the increase of interest margins, at least temporary. But the increase of credit cost bears the risk of non-performing loans growing in the future, so far as borrowers' solvency has not proportionally increased with the price upsurge. The development of abilities to foresee and assess in an objective manner the solvency of the existing clients – without being inclined to fast and short-term profits, which may harm an already established long-term relationship - will be one of the main challenges in the next year. Second, requirements on capital (macro-prudential buffers and requirements on regulatory capital instruments and eligible liabilities) will continue to increase in  3/4  BIS - Central bankers' speeches  compliance with the regulatory provisions and the respective gradual application programme in 2023.