samchain/econo-pairs-v1 huggingface dataset:
In the case of those banks that use the advanced approaches offered by Pillar 1, Pillar 2 can be a useful tool for ensuring a constant enhanced dialogue between the supervisors and banks throughout the whole sequence of procedures and estimates, reflecting the ideas that wider freedom for banks to evaluate their own risks requires closer involvement by the supervisor. 2  BIS Review 34//2005  The third pillar, market discipline, imposes higher levels of transparency in banks’ financial reporting. It complements and reinforces the two previous pillars in the following sense. First, it stimulates a more efficient management of banks, since more transparency entails closer scrutiny by market participants. Second, it provides the supervisor with a most valuable ally, namely stronger external incentives for prudent risk-management. In sum, Basel II constitutes a forward-looking approach to capital regulation that blends some of the ideas and practices that have shown a more solid record of success in finances with the best regulatory principles we have learned over time. At the same time, I think that Basel II incorporates two of the key basic principles that are built into modern approaches to monetary policy and which have successfully resolved the debate between rules and discretion: a flexible and forward-looking approach, anticipatory rather than reactive behaviour to risk, and the need to take into account market views. Let me underline additionally two features that are important for our monetary policy discussion.

‘Commodity’ means any goods of a fungible nature that are capable of being delivered, including metals and their ores and alloys, agricultural products, and energy such as electricity; 10 ‘Electronic money token’ or ‘e-money token’ means a type of crypto-asset the main purpose of which is to be used as a means of exchange and that purports to maintain a stable value by referring to the value of a fiat currency that is legal tender; 11 https://eur-lex.europa.eu/legal-content/BG/TXT/HTML/?uri=CELEX:52020PC0594 12 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU 9  5  909/201413. Only an entity authorised under Directive 2014/65/EU or an entity authorised under Regulation (EU) No 909/2014 as a central securities depository may apply for permission to establish a DLT market infrastructure. The Regulation provides that the new regime may only be applied to shares, the issuer of which has a market capitalisation or a tentative market capitalisation of less than EUR 200 million; or convertible bonds, covered bonds, corporate bonds, other public bonds and other bonds, with an issuance size of less than EUR 500 million. Sovereign bonds are explicitly excluded from the scope of this Regulation. 13  Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012  6
•  The creation of the euro is leading to larger and more integrated financial markets, improving the allocation of financial savings. 1. By safeguarding price stability, the Eurosystem contributes to the safeguarding and consolidation of savings. The primary objective of the monetary policy of the Eurosystem, as laid down in the Treaty, is price stability. This objective is founded on the conviction that price stability makes it possible to ensure the full efficiency of the price mechanism and to avoid both arbitrary redistribution of wealth as a result of inflation as well as the costs and distortions caused by uncertainty and periodical adjustments of nominal values. These positive effects of price stability obviously benefit savings. I personally see three aspects to this: an effect on the protection of the value of savings, an effect on their structure and allocation, and finally an effect on the distribution of saving within society. First, by aiming at price stability, monetary policy directly preserves the real value of a large proportion of financial savings. This is immediately obvious in the case of fiduciary money or sight deposits which are remunerated only a little or not at all (which accounted for 39% of the monetary aggregate M3 in 1999). However, fixed-term deposits are not totally safeguarded from inflation where their remuneration is fixed over a specified period or where they only adjust to market rates after a time lag.

There are two reasons for this: First, exchange rate movements and foreign exchange market conditions can be of critical importance to domestic financial institutions; and second, the personnel and other service elements necessary to build up two effective institutions in this field are limited. The Central Bank of Iceland published its last Financial Stability report in May 2008. The present report has been written without confirmed information on the banks’ and savings banks’ balance sheets, operations, and ownership structure. Consequently, it is not possible to assess the status of the banking system as a whole, as has been done in previous reports. Nonetheless, the Bank considered it important to issue a Financial Stability report at this time, both to document certain information on the financial crisis and the subsequent  BIS Review 136/2009  3  recovery work, and to discuss anticipated projects related to the regulation and supervision of financial activities. It is important to note that this report does not attempt to present a comprehensive analysis of the causes of the banks’ collapse, nor does it pass judgment on the actions taken by the Government and the supervisory authorities prior to the crash. In recent years, the Central Bank has engaged in broad-based contingency work in preparation for a possible financial crisis, in collaboration with domestic authorities and supervisory institutions, and with foreign central banks. That work is not discussed in the present report.
Lending to small businesses and entrepreneurs requires deep knowledge of local business conditions and potential borrowers, both of which community banks have a comparative advantage in acquiring. Former Chairman Ben Bernanke in a 2012 interview summarized this point quite well. He stated that “community banks have the capacity to respond with greater agility to lending requests than their national competitors; they have more detailed knowledge of the needs of their customers and closer ties to the communities they serve.” 2 Given this critical role played by community banks for localities such as the Bronx, it is important to ensure that the local banking sector remains vibrant. The financial crisis offers important lessons for community banks in this regard. Lessons for community banks from the financial crisis America’s banking system began with community banks, and today they continue to play a critical role in the financial system. However, the number of commercial bank charters has declined by 50 percent since 1985, with the recent financial crisis contributing to this decline. A total of 417 banks and thrifts failed between 2006 through 2011. 3 Many community banks, though, not only survived but also thrived during the crisis. Why? What sets those banks apart from others that failed, or that survived but did not thrive? What were some common  2  The Importance of Community Banking: A Conversation with Chairman Ben Bernanke, Community Banking Connections, Third Quarter 2012.

William C Dudley: Fostering economic growth in the Bronx Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the 17th Annual Bronx Bankers Breakfast, Bronx, New York City, 8 May 2015. *  *  *  I am very pleased to have the opportunity to join you today at the 17th Annual Bronx Bankers Breakfast. I would like to thank Bronx Borough President Ruben Diaz, Jr., the Business Initiative Corporation of New York and the Bronx Overall Economic Development Corporation for the opportunity to speak about the economic outlook for the Bronx. This is my second visit to the Bronx in the past five months. When I was here last December, I had the opportunity to hear from various community and business leaders about what they were seeing and the issues they were facing. Such visits are an important part of the New York Fed’s outreach efforts to keep apprised of key developments in the Second District, and to identify areas where we should be directing our attention. In my remarks today, I will focus on the outlook for the Bronx, the important role that community banks play in the local economy, as well as specific challenges facing local small businesses. It is important to recognize that small businesses play a vital role in any economy, so fostering economic and financial conditions that allow these businesses to flourish is important to the health of the local economy.
It is hard to engage with a building. The view from 30,000 feet can feel a little distant. Excel spreadsheets do not emote. This can inhibit building trust and improving understanding. Localising the message can certainly help. Here, the work of the regional Feds in the US and the Bank’s regional agents in the UK is crucial. More generally, analysis of the regional and distributional split is important for understanding the economy and localising messages about how it is performing. 69  Even  though monetary policy acts nationally, and central bank tools may be ill-equipped to redress regional or distributional differences, that is no excuse for central banks not monitoring and understanding, continuously and in depth, the fortunes of different regions, sectors and cohorts of society. Localising also makes it easier to convey information as connected stories rather than as disconnected data. During 2016, I wrote a number of speeches on the economy, probably totalling over 50,000 words. From that mass of words, the best-remembered single sentence, by far, did not concern my views on GDP or Brexit or QE. It was not a number, a theory or even a chart. It was anecdote drawn from a visit I made to a set of charities in Nottingham at which they told me there had, for them, been no recovery. That stuck. Personal stories stick. No amount of data is ever as adhesive. Personalising events also helps stickiness. In 2015, the UK’s Meteorological Office began naming its storms.

As a consequence, world GDP and world trade are estimated to have fallen at an annualised rate of about 6% and 25% respectively in 2008Q4. Banking contributed to a Great Recession on a scale last seen at the time of the Great Depression. Yet the official statistics on the contribution of the financial sector paint a rather different picture. According to the National Accounts, the nominal gross value-added (GVA) of the financial sector in the UK grew at the fastest pace on record in 2008Q4. As a share of wholeeconomy output, the direct contribution of the UK financial sector rose to 9% in the last quarter of 2008. Financial corporations’ gross operating surplus (GVA less compensation for employees and other taxes on production) increased by £ to £ also the largest quarterly increase on record. At a time when people believed banks were contributing the  BIS Review 95/2010  1  least to the economy since the 1930s, the National Accounts indicated the financial sector was contributing the most since the mid-1980s. How do we begin to square this circle? That is the purpose of this chapter. It is planned as follows. In Section 2, we consider conventional measures of financial sector value added and how these have evolved over time. In Section 3, we consider a growth accounting breakdown of the factor inputs which have driven growth – quantities of labour and capital and the returns to these factors.
Some of these indicators may contain information relevant to early warnings as they may draw attention to rapidly increasing exposures to specific asset classes, broad-based increases in financial leverage and dynamics in the maturity profile of financial institutions’ debt which could indicate roll-over problems. 12 In the ESRB context, early warning indicators and early warning signal (EWS) models should play an important role in both the risk surveillance phase and in the lead-up to the risk warning phase. EWS models are designed to indicate when a financial system, market or intermediary reaches a “danger zone”, which usually points to a crisis ahead. In the past, a number of forward-looking stability indicators were used by most central banks, but these were not necessarily comprehensive frameworks of developed EWS models covering most financial systems. One reason for this may have been that the older generation of these models performed well in the sample but they typically failed to predict future crises. Recent research suggests that their out-of-sample performance can be improved, in particular with respect to credit cycles and asset price bubbles. 13 A caveat that remains is that it seems difficult for them to improve their predictions on the timing of credit booms and asset-bubble bursting. 12  See, for example, ECB Financial Stability Review, December 2007, Box 16 “A market-based indicator of the probability of adverse systemic events involving large and complex banking groups”; ECB Financial Stability Review, June 2006, Special Feature B “Assessing banking systemic risk with extreme value analysis”.

Bandid Nijathaworn: Is climate change a big deal for the financial system? Speech by Dr Bandid Nijathaworn, Deputy Governor of the Bank of Thailand, at Bank Indonesia’s Annual International Seminar on “Macroeconomic Impact of Climate Change: Opportunities and Challenges”, Bali, 2 August 2008. *  *  *  Thank you Chairman, First, let me thank Bank Indonesia for the kind invitation. When I was asked whether I could speak on climate change and the financial system, I felt the suggestion was a challenging one, especially at this time when we need to build some momentum on this important issue. My topic today is “Is climate change a big deal for the financial system?”. Given the limitations of time, I want to focus my discussion on just two issues. The first, is why climate change is a big deal for the financial system, and the second, is to offer some thoughts on how to engage the financial system going forward on climate change, especially in the context of emerging market economies in Asia. Much of what I will say is still very much a preliminary thought, which is still evolving. Is climate change a big deal for the financial system? The answer is definitely yes, and there are a number of good reasons why this is so. First, although uncertain, the macroeconomic impact of climate change is thought to be large, which is likely to pose risk to the financial sector, as well as to financial stability.
The second adjustment went into effect on 1 April this year. It was part of the SNB’s response to the coronavirus crisis. We raised the aggregate exemption thresholds by a further 20% to increase the banks’ latitude for lending during this challenging time for the economy. These adjustments have helped to reduce significantly the interest burden borne by the banking system as a whole. As noted earlier, the banking system’s average interest burden had been rising since 2015, mainly due to the foreign exchange market interventions undertaken for monetary policy purposes; this burden declined following the revision of the exemption threshold regime and the threshold increases. The average interest rate on all sight deposits is currently around −0.2% and is thus less than a third of what it would be in a system without exemptions. 3  4  5  The exemption threshold of a bank is calculated as a fixed multiple of its minimum reserve requirement, which itself is a function of its short-term liabilities. Thus, a bank with a higher stock of short-term, safe assets (including repos) relative to its short-term liabilities receives a relatively lower exemption threshold as a share of its short-term, safe assets. When first introduced, the banks’ exemption thresholds were static, in the sense that they were calculated on the basis of a fixed reference period, viz., October 2014.

This implies that sooner or later, if nothing were done, the rapid growth at present would lead to overheating and an acceleration of inflation. One factor behind the current trend has been monetary policy’s stimulatory direction ever since the repo rate cuts that were initiated in 1998. This illustrates that over a complete business cycle, the repo rate of 2.90% that applied up to last November is too low. GDP growth at the current rate of 3.5-4% implies an expansion of demand that clearly exceeds the rate of 2-2.5% that the economy can cope with in the longer run. It is only feasible in a limited, transitional period, that is, for as long as there is a supply of labour for the available jobs. The repo rate hike may not suffice; inflation prospects set the pace As monetary policy works rather like the helm of an oil tanker - it takes rather a long time to shift the economy onto a new course - it was necessary to make the adjustment to a more neutral monetary stance. Thus, GDP growth will continue at a higher rate for some time to come and then, after perhaps one to two years, successively slacken towards the economy’s long-term potential. The task the Riksbank is endeavouring to perform is to achieve an economic transition from a fairly normal upward phase to a growth trend that is more sustainable. This task, which is not simple, follows implicitly from our statutory function of “maintaining price stability”.
29.09.2022  Monetary policy in the euro area: where do we stand and where are we going? XXI Congreso de Directivos CEDE, Bilbao Pablo Hernández de Cos Governor  Your Majesty, authorities, ladies and gentlemen, Let me start by thanking the organisers for the opportunity to address you at this XXI CEDE Congress. Today, I will elaborate on how we can bring price stability back to European citizens in the context of current turmoil as it is the responsibility of the ECB’s Governing Council to bring inflation down to 2% in the medium term, the inflation target that operationalises our price stability mandate.1 And we have to do this in none too easy times. After a pandemic that has cost more than a million lives in Europe alone, and with a war of aggression in Ukraine, European households are experiencing a drastic surge in their costs of living. Consumer prices in the euro area rose by 9.1 % in August compared to the previous year, an all-time high for the monetary union. The increase in prices has been especially acute in the energy and food components of the consumption basket. But it has become more general over time, as reflected in an underlying inflation rate of 4.3 % in August, another record high, reflecting to a large extent indirect effects of higher energy and food commodity prices through firms’ production costs.

It will contribute to strengthening of the role of the National Bank in ensuring price stability and the stability and efficiency of the financial system in the country, as well as strengthening the capacity of the National Bank in meeting the challenges that lie ahead on the road to the accession of the Republic of Macedonia into the EU. Let me discuss briefly the results and significance of the project in relation to the further operation of the National Bank. The first and most important benefit of the project is the set of relevant findings of the experts on the existing gaps, and the recommendations for their overcoming within time frame and resources needed. In this regard, the Needs Analysis Report will be the basis for strategic planning of the National Bank and for setting the future strategy for joining the European System of Central Banks and the Eurosystem. With great pleasure I would point out that in the Report, the NBRM is regarded as a professional, independent, technically efficient and strategically oriented institution, and in some areas of central banking it is noted that it already operates in accordance with EU and ESCB standards. Also I am pleased to say that some recommendations that were given  BIS central bankers’ speeches  1  during the project have already been implemented, which encourages me to confirm our strong commitment for implementing and applying the recommendations given in the Report.
The primary objective of the European System of Central Banks (made up of the European Central Bank and national central banks) will be price stability. The ECB Council of Governors (only those of countries participating in monetary union) will decide independently the level of official interest rates. Representatives of the European Council may attend the ECB Council meetings, but they will not participate in the voting procedure. Monetary union will be characterized by a single monetary policy and national fiscal policies. In this context, the issue of fiscal discipline and coordination is crucial. Sound fiscal policies will help the ESCB to maintain price stability. Coordinated fiscal policies will contribute to a balanced policy mix in Europe. Fiscal discipline will prevent free-rider strategies by countries running large deficits and raising funds at low interest rates, thanks to the credibility and stability of other countries. This question of European fiscal discipline is important in the context of the main criticisms which are presently enumerated, particularly from outside Europe, in the analysis of the concept of EMU. Without being exhaustive in this listing, I personally see four major criticisms: First, it is sometimes argued that EMU will lead to greater rigidity, in diverting attention from the necessary structural reforms and inducing an inward-looking posture over Europe at the very moment when global competition is of the essence.

The preparatory work is well on track and will allow the ESCB to perform its tasks right from the start of Stage Three in January 1999; moreover, the EMI is often consulted by other European authorities, who pay careful attention to the advice it provides; this was notably the case for the changeover scenario adopted by the Heads of State and of Government in Madrid in December 1995, and for the elaboration of draft regulations concerning the legal framework for the use of the euro. Here again, France and Germany are playing a very active role in these preparations, and as early as tomorrow I will meet President Tietmeyer in Frankfurt, together with our colleagues, to attend the monthly EMI Council meeting. FRANCO-GERMAN MONETARY COOPERATION WILL ULTIMATELY BE CROWNED BY THE CREATION OF A EUROPEAN MONETARY UNION IN 1999 I am personally convinced that the creation of monetary union in 1999 is the logical consequence of economic, monetary and financial developments that have been taking place during the past years. The increasing integration of the European economies - and in particular those of France and Germany - called for a single monetary policy and a single currency. I am also convinced that monetary union will successfully go through, right from 1999 since: - it is a credible process; - it will create an environment of stability. EMU is a credible process Indeed, the case for a European monetary union is based on solid economic grounds, and it will be implemented in a realistic way.