samchain/econo-pairs-v1 huggingface dataset:
We also need in the Euro area sound public finances and bold reforms. These two goals are closely correlated to the extent that a number of structural reforms in the domains of public administration and social protection would diminish overall public spending. We encourage the Eurogroup of Ministers of Finance to proceed resolutely in this direction under the presidency of Gerrit Zalm today and of Jean-Claude Juncker tomorrow. Third, let me say simply that I find the present enlargement a formidable success for all our democracies that have voluntarily created together a new concept of a union of sovereign states which has no precedent in history. Of course we have many challenges associated with the fact that we are 25 today and more tomorrow. But we should not lose sight that we will all “10” and “15” greatly benefit from the success of our ideas. Fourth, we are living in demanding times. The world is changing. Europe is changing. Future changes look rather unpredictable. I would consider this unpredictability as the very mark of history in the  BIS Review 59/2004  5  making. And I will never forget what Jean MONNET noted in his memoirs: “Those who decide not to start any enterprise because they are not assured that things will move in strict conformity with their plans are condemning themselves to absolute immobility.

We should certainly not forget that as the new Member States differ greatly in terms of economic structure, exchange rate and monetary regimes, and in the degree of nominal and real convergence already achieved, they will need to be assessed on a case-by-case basis throughout the process leading to the eventual adoption of the euro. In this respect, no single path towards ERM II and the adoption of the euro can be identified. In other words, many strategies may be feasible, provided they are based on sound economic reasoning, conform to the existing institutional framework and contribute to the high level of sustainable convergence which is essential in maintaining the status that the euro has gained in the few years of its existence as a respected and credible currency. We should also consider that the eventual adoption of the euro by a new Member of the EU is the end-point of a structured convergence process in which peer surveillance is called upon to preserve the common interest of all participants. The multilateral nature of the framework means that, at least at the ultimate stage in which full integration into the euro area is debated, decisions concerning one country or one currency are collective decisions. And this simple fact argues for the fundamental principle of equal treatment. So, while each country would be considered according to its specific merits, comparable situations and cases will be assessed on the levelled playing field provided by objective criteria.
In carrying out this review, is it a condition for the ECB that countries commit themselves in advance to covering a capital shortfall if necessary? This asset quality review will provide clarity about the banks’ balance sheets. Of course we don’t want to take on any “bad eggs”; the reputational risk is ours alone. However, from our perspective, a lack of clarity about the balance sheets is one of the main obstacles preventing banks from extending more credit. Clarity would also improve the functioning of the interbank market. In that sense, the review is not a threat but an opportunity. If it is to be a success, we must know what will be done should a capital shortfall emerge. If there is no  BIS central bankers’ speeches  3  answer to that, people will suspect that the review was too favourable. That doesn’t help anybody. So you are confident, all in all. But some observers find that the crisis is unresolvable, pointing to what they see as unbridgeable conflicts of interest. Yes, I have a fundamentally different view. Look at what has happened since 2012, much of that would have been hard to imagine in advance. To name a few examples: the fiscal compact, the German-style debt brake in 25 EU countries, the steps towards banking union with the single supervisory mechanism and the ESM. I am aware that the ESM is controversial in Germany, but as a crisis management tool that did not exist before, it nonetheless fills an institutional gap.

While the financial sector has, over the years, strengthened its risk management and control functions to combat financial crimes, a higher degree of emphasis and attention by senior management and the Board, on issues relating to AML/CFT, can further improve the standards of compliance and the effectiveness of measures put in place to fight against money laundering and terrorist financing. We also observed that financial institutions exhibiting effective defences against financial crimes shared four common attributes in their AML/CFT framework. These are: (i) well developed and clearly articulated policies and procedures; (ii) effective governance structure, particularly on the compliance function; (iii) incorporation of AML/CFT compliance assessments in the audit and capacity development programmes; and (iv) increased and effective use of information technology and management information systems for AML/CFT risk monitoring and management. therefore, talent development in this area is becoming increasingly critical. A well trained workforce is a valuable asset that would contribute to the implementation of an effective compliance framework with impactful results. This can be achieved through the formulation  2  BIS central bankers’ speeches  of structured and coordinated capacity development programmes aimed at elevating the level of technical skills, leadership and professionalism. On this note, Bank Negara Malaysia lauds the initiative by the financial sector in formulating the AML/CFT Certification Programme for compliance officers that will be launched during this conference. This conference and indeed the theme “Raising the Bar in Compliance and Enforcement” is very timely and relevant.
Initiatives are well advanced to introduce electronic ‘straight-through-processing’ in various markets, allowing the transaction process to be automated from the initial trade right through to settlement. On top of all this there is the as yet unknown potential of the internet. In the US, there has been an explosion of retail investment activity through the internet; in Europe we are still way behind. Much of the internet business that is already taking place – here or in the US – is essentially substituting for speaking to a broker, and the brokers that have adjusted most quickly to this change in the US have benefited accordingly. But use of the internet has already led to a change in retail investor behaviour in the US. And if the internet is eventually to have a really profound impact on the investment landscape – wholesale as well as retail – it may come through its capacity, as an almost completely open system, to link investors of all types directly into order and execution systems. But that is much easier said than done. There are a whole range of factors – technological limitations, regulatory issues, settlement and the like – which mean that the eventual impact of the internet is very uncertain. What are the implications of all this? First, electronic trading widens access to markets. It removes any need for geographical proximity to an exchange and relaxes any limit on the number of firms that can participate directly (subject to any credit or regulatory constraints).

Luis M Linde: The internationalisation of the Spanish economy Testimony by Mr Luis M Linde, Governor of the Bank of Spain, before the Special Senate Committee for the Development of Internationalisation, Madrid, 2 June 2014. *  *  *  Ladies and gentlemen, Allow me to begin by thanking Mr. Pío García-Escudero and the Chairman of this Special Committee, Mr. Iñaki Anasagasti, for the opportunity to participate in your work. First, today, I shall set out some matters relating to the internationalisation of the Spanish economy and capital flows between Spain and the rest of the world. Next, I shall detail the main characteristics of the international trade financing structure and of the funding of longerterm projects. And finally, I shall review the characteristics of, recent developments in and regulatory treatment of such trade in respect of the remit of the Banco de España. Recent developments in the external sector of the Spanish economy In the second half of 2013 a scenario of recovery began to take shape in our economy. A combination of several positive factors, both at home and abroad, has contributed to a situation in which Spain is beginning to overcome its second recession since 2008. The gradual improvement in GDP growth figures has been accompanied by a sustained correction of the main imbalances built up during the previous upturn.
3  Preliminary estimates. 4  BIS central bankers’ speeches  Foreign exchange market 31. The Kwacha was firm against major traded currencies, backed by consolidation of macroeconomic gains and improved liquidity in the foreign exchange market. A sustained increase in the international price of copper to an average of US $ per ton provided further support to the local currency. Thus, the Kwacha appreciated by 2.1% against the US dollar to an average of $ at the end of the fourth quarter. 32. The Kwacha also appreciated by 2.4% against the pound sterling to an average of £ and by 1.1% against the euro to an average of € These gains were partially attributed to the lingering European debt crisis despite the bailouts extended to Ireland and Greece. In contrast, the Kwacha depreciated by 2.0% against the rand to an average of K691.22/ZAR. The South African currency was broadly stronger on account of higher price of gold and lower policy uncertainty after the Government clarified speculation on privatisation of public enterprises. 33. In terms of volume of transactions, commercial banks made spot purchases of US $ million from the non-bank public against sales of US $ million. This translated into net purchases of US $ million in the fourth quarter. Commercial banks also made net euro and pound sterling purchases € million ₤0.3 million, respectively. However, banks recorded net sales of ZAR853.1 million in the fourth quarter, underpinning the continued demand for the South African rand. 34.

The team visited a petroleum refinery complex 1/3  BIS central bankers' speeches  in Pengerang. It was towards the end of the event; it had been a long day and all they could think of was going back to be in the comfort of their own accommodation. This was when they noticed a number of migrant workers of various nationalities, noticeably tired from many hours of working – they were using their mobile phones; engaged in highly animated video conversation with their families back home. Some of these workers had not seen their family for years; some were fathers who left for Malaysia before their children were born – and the closest that they can get to see their families was through the small screens of their mobile phones. Listening to this story, I was reminded to a quote by the former Secretary General of the United Nations, Ban Ki- Moon on migration. He said “Migration is an expression of the human aspiration for dignity, safety and a better future. It is part of the social fabric, part of our very make-up as a human family.” Indeed, the single most important reason why these workers travelled thousands of kilometers away, was to seek for opportunities to secure a better future for themselves and their families; and the simplest form of these opportunities is to earn more money. This brings me to my second story; on remittances.
This special form of financial engineering has made it possible for lenders to sell credit risk together with the right to the payment flows from the loans to prospective investors around the world. What this means, basically, is that a number of loans are combined and put into a an investment vehicle created especially for this purpose, which is in turn financed by issuing securities, what are known as mortgage-backed securities. In principle, this is a way of making illiquid assets liquid. BIS Review 30/2008  1  This has become increasingly common among banks and other credit institutions around the world. One can say that they have thus increasingly moved away from the traditional role as monitor of credit risk. Instead they have to a greater degree originated loans, where the inherent credit risks have immediately been distributed to investors in the financial markets willing to take risks. Their business strategy has changed from focusing on long-term customer relations to repackaging and selling. Having said this, securitisation is not necessarily a bad thing in itself. What has been new and something of a problem this time has been the way in which the securitised loans have been repackaged and sold through several stages. They have created so-called structured credit risk products, which have often included a large portion of subprime loans. The variety of these has been impressive. Often one product has been included as a component in another product, which in turn has been repackaged and included as a component in a new product.

It was quite simply impossible to know who was actually left with the direct or indirect exposures to the subprime loans. This led to liquidity waning in parts of the interbank market. It therefore became more difficult and more expensive for the banks to refinance themselves. When many banks experienced problems, a number of central banks chose to take measures to increase liquidity in the interbank market. The unease in the credit markets has continued during the winter and spring. Many large and established banks have been gradually forced to write down the value of their subprimerelated assets. This has led to some major financial groups requiring new capital. At the same time, there has been increased uncertainty over international economic activity. This has in turn contributed to major fluctuations on the world’s stock markets. Over the past week the unease has increased again. This has contributed to rising interest rates on the interbank market in, for instance, the United States and the United Kingdom. With the free capital movement this of course also affects Swedish interbank rates. But higher interest rates in the interbank market do not by definition mean that the banks will experience liquidity problems. The Swedish banks have had good liquidity throughout the entire period of turmoil. They have not been exposed to subprime-related securities to any great extent. Their solidity was and remains good and their loan losses are at present very small. Nevertheless, the Swedish banks have not been able to entirely escape the effects of these events.
See Berg, Claes, och Jonung, Lars (1999), "Pioneering price level targeting: The Swedish experience 1931-1937," Journal of Monetary Economics 43(3), 525-551. 8  See Nessén, M. and Vestin, D. (2005). ”Average inflation targeting”. Journal of Money, Credit, and Banking. v. 37, iss. 5, pp. 837-63. 4  BIS Review 19/2009  way: "[T]he appropriate target for monetary policy is to achieve an inflation rate of 2-3 per cent on average over the cycle". 9 If the central bank by means of convincing analyses and forecasts can gain credibility for such a temporary price level target – a temporary average inflation target – the price level target's inherent stabilisation of the real economy could then be used. 10 Observe inflation and price level expectations – the exchange rate as an indicator As expectations of the future inflation rate and the price level are so important to the development of the real interest rate in the event of a binding zero lower bound for the interest rate, it becomes even more important to observe and measure these expectations. There are several ways for a central bank to observe expectations of the future price level. The Riksbank, for example, commissions Prospera to conduct quarterly surveys about expectations for inflation one, two and five years ahead. Inflation expectations can also be estimated by comparing market rates for nominal and indexed bonds. In this way, the central bank can observe whether measures taken to influence inflation expectations are having any effect.

M R Pridiyathorn Devakula: Commercial Banking and Financial Services - our Vision for Thailand Speech by M R Pridiyathorn Devakula, Governor of the Bank of Thailand, at the Conference on “Modernizing our Financial System: Challenges for the New Millennium”, Bangkok, 23 January 2002. *  *  *  Your Excellencies Distinguished Guests Ladies and Gentlemen, I would like to take this opportunity to welcome all of you to our conference on "Modernizing our Financial System: Challenges for the new Millennium". I would also like to express our deep appreciation for the distinguished speakers who came all the way from Australia, Canada, Hong Kong, and South Africa to share with us their expertise and knowledge on this very important topic. And, of course, to the World Bank, our co-host, for help organizing the conference. Our financial crisis in 1997 and its subsequent impacts highlighted the lesson of critical importance that dynamic and strong domestic financial institutions are vital to sustainability of development and growth. Over the past 20 years, financial sector has been one of the major forces that support our progress and financial services share in our GDP has grown from a mere 3 percent to roughly 8 percent. It is the fifth largest industry in term of value added to our GDP, and currently employing more than 300,000 of our workforce. Nevertheless, despite such favorable development, there are some concerns: -  First, in term of competitiveness of our financial institutions, there is room for improvement.
The study showed that out of the violin students in the elite Berlin Academy of Music, those who were ranked as top of the class and attained performer soloist standard were students that had practised most: over 10,000 hours by the age of twenty. Students ranked at the next level, i.e. professional but not quite soloist standard, had practised less, with 8,000 hours by the age of twenty. For students at the next level down, they had practised for just around 4,000 hours. The results of this study seem to suggest that, once a student had reached a certain level of aptitude and talent, at least good enough for admission into an academy of music, those who practised most diligently tended to yield the best outcome. The study did not find students that had practised more than 10,000 hours had failed to reach the top level. On the other hand, the study did not find students who achieved the top level without putting in a huge amount of practice. The reason why I wish to share these fascinating stories with you today is not out of pure academic interest or curiosity. To me, these stories carry a message with profound importance. The message is that success or more precisely, great success, does not come naturally. It is often too easy to say Bill Gates or the Beatles became idols of the world because they were born geniuses.

We all know who Bill Gates is and how he set up the most profitable software company called Microsoft. Bill Gates is now the richest man in the world and is spending most of his time doing charity work worldwide. Bill Gates is clearly an idol for lots of people, old and young, and a symbol of great success. But how come Bill Gates has become so successful? Many say he is a genius, both in computer programming and in doing business. But is it that simple? I have just recently come across a book written by Malcolm Gladwell, who has referred to an interesting thesis called the 10,000 hours rule. To understand this thesis, you have to look closer at Bill Gate’s life. No doubt Bill Gates is very clever and is extremely talented in computer programming. However, what made him so special as distinct from so many other equally clever and talented people in the past three to four decades is that by the time Gates dropped out from Harvard in his sophomore year in mid-1970s to set up his little backyard software company, he already had 8 solid years of non-stop computer programming experience, something that was exceptionally unique at that time for a young man just over 20. For a number of very peculiar reasons, Gates started his programming venture in as early as 1968 when he was just an eighth grade kid in a high school in Seattle.
To return to my marine analogy, the good ship Solvency II has more up-to-date and useful features than the old one. But it is an evolution, not a revolution, in ship design. It still has cabins, a bow, and propellers. More importantly, we may have tuned up the engine a bit and altered course by a few degrees, but we have clearly not changed our course or our destination. Thank you. References Adams, J. The impact of changing regulation on the insurance regulation on the insurance industry, speech delivered at the Nicholas Barbon Lecture, London, 2012. Alborn, T. Regulated Lives: Life Insurance and British Society 1800-1914, Toronto, University of Toronto Press, 2009. Andromachi, G. and Goldby, M. (eds), Systemic Risk and the Future of Insurance Regulation, London, Informa Law, 2015. Bailey, A. The evolution of insurance regulation: a shifting scope and new frontiers, speech delivered at the Nicholas Barbon Lecture, London, 2013. Bernstein, Peter. L. Against the Gods: the remarkable story of risk, New York, Wiley, 1996. 8  BIS central bankers’ speeches  Black, M.A., ‘Chronological and Statistical Chart of the Life Associations Established in the United Kingdom from 1706 to 1863 Showing Where They Are, When & How They Disappeared,. Published by Edward Stanford, 1864. Borscheid, P. and Haueter, Niels-Viggo. World Insurance: The Evolution of a Global Risk Network, Oxford, Oxford University Press, 2012. Clark, G. ‘Insurance as an Instrument of War in the 18th Century’, The Geneva Papers on Risk and Insurance, Vol. 29, No. 2, (April 2004), pp. 247–257.

Sam Woods: Embarking on a new voyage? Solvency II in context Text of The Insurance Institute of London Lecture by Mr Sam Woods, Executive Director of Insurance Supervision of the Bank of England, at Lloyd’s of London, London, 27 January 2016. *  *  *  I am grateful to Kayleigh Guinan and Mark Cornelius for their assistance in preparing this speech. I am also grateful to Norma Cohen (Bank of England), Dr Adrian Leonard (Cambridge), Professor Philip Rawlings (Queen Mary) and Robert Thoyts (FCA) for their views and input. Good afternoon. The good ship Solvency II is now afloat. It has taken a long time to make it seaworthy. Some might question whether we need this newly improved vessel. Indeed, some might challenge whether we should have a ship at all. But that is largely academic, given we are now under way and in light of the gargantuan efforts insurance firms and regulators have put into getting us to this point. In my speech today, I would like to look at this development in the wider context of insurance history. First, I would like to offer a brief view on why, looked at through the lens of today, we regulate insurance companies at all. Second, we will take a very whirlwind tour of 5,000 years of insurance activity, for the single purpose of pointing out that for at least four-and-a-half of those five millennia there was very little regulation of insurance, if any.