samchain/econo-pairs-v1 huggingface dataset:
While this is not really a new type of risk, the relevance of misconduct costs became painfully clear in the aftermath of the global financial crisis. If we also include the reputational costs associated with these forms of malpractice, the actual damage to the banking sector goes far beyond the standard estimates presented. At a time when regulation and supervision have been strengthened and when the banking sector is facing fierce competitive pressures from brand new players, any additional governance failure may lead to both an economic penalty and reputational damage that could jeopardise the solvency of the affected bank(s). In this respect, it is crucial that financial market participants keep improving their governance and restore the confidence of their clients as soon as possible. These efforts should be pursued even though they may impose an additional burden in the short run both in economic and administrative terms. 10  Progress towards the Capital Markets Union: the need for deeper euro area financial integration Against the backdrop of the complex global financial stability outlook outlined above, let me now address the issue of the Capital Markets Union and, more broadly, reinforcing European financial union. Barely two weeks ago, the United Kingdom officially departed from the European Union. Discussing financial integration in Europe has now become even more relevant, because the City of London has played a notable role as a provider of financial services for the whole Union.

The main challenge is to understand these activities, technologies, players and instruments before it is too late and they originate disruptive episodes. Largely, this can only be achieved through strengthened  1  8  See “The Cost of Cybercrime”, Ninth Annual Cost of Cybercrime Study, Accenture, 2019.  and strategic collaboration not only across regulators but also with financial market participants. -  ESG principles: climate-related risks  Besides the new risks stemming from the irruption of new technologies, at a time when ESG principles are gaining momentum I would also like to highlight risks to financial stability from climate change and governance failures. Climate change and the transition towards a more sustainable economy is currently a most topical issue. This is so for obvious reasons. It is a challenge that affects virtually all economic and social agents, and it has the potential to lead to a major transformational change not just for the economy but for society at large. Of course, the financial sector is not immune to these developments. In particular, climate change may affect financial stability through two types of risks. Following a classification that has already become standard, we can distinguish between physical and transition risks. The former have to do with the direct consequences of climate change on the value of financial and real assets, due for instance to natural disasters, floods, drought and migration flows.
The aim of preventing inflation expectations from becoming entrenched markedly below target was one of the main reasons for reducing the key policy rate to a very low level when inflation fell and approached zero in 2003 and 2004, at a time when there was also spare capacity in the Norwegian economy. We indicated that the interest rate would remain low until we saw clear signs of rising inflation. Since summer 2003, the Norwegian economy has been in a clear upswing. Low interest rates, high oil prices and a favourable global environment have been important driving forces. Growth is strong in most industries, and profitability in the business sector is solid. Underlying inflation is still considerably lower than the inflation target. However, several factors point to higher inflation further ahead. Capacity utilisation is high and there is little spare capacity in the Norwegian economy. Employment is  BIS Review 10/2007  1  rising rapidly and unemployment has fallen markedly. There are signs of higher wage growth and expectations of rising inflation. We are now normalising the interest rate gradually. Since summer 2005, the key rate has been increased by 2.0 percentage points and there are prospects of further interest rate hikes. The shortest money market rates are determined by the central bank via the key policy rate. But private-sector consumption and investment decisions depend more on expectations regarding future developments in the key rate. To be successful, monetary policy must be able to influence these expectations.

Accountability and transparency are essential counterparts of independence, and the media play a fundamental role in ensuring that they are put into practice, which is why our participation in events such as this one is so important. So I should like to thank the APIE for organising this event and inviting us to participate. This look back reminds us that, more than 10 years ago now, an international financial crisis hit Spain particularly strongly, arriving at a time when the economy was suffering from significant domestic and external macro-financial imbalances. Spain’s banking system was clearly excessively large at the time, over-concentrated on lending funds to real estate and residential construction activities and highly dependent on international wholesale financing. These significant vulnerabilities meant that the cost of the crisis in terms of GDP and – even more importantly for society – unemployment, was very high and much larger than for our main competitors. In fact, Spain’s GDP returned to its pre-crisis level only two years ago. As regards the labour market, the unemployment rate is still five percentage points higher than in 2008 and more than 10 percentage points higher than in countries like the United States and Germany. And that is a reminder of the importance of strengthening mechanisms to analyse and diagnose promptly the risks and vulnerabilities facing the economy and, in particular, the financial system.
Despite many challenges, I am delighted that exciting developments and initiatives are taking place in Thailand and around the region using fintech to address these problems. Allow me to highlight some of these initiatives. We have:  Accounting service applications for SMEs and start-ups on cloud platforms  Online mortgage refinance portals that help select the best refinancing option for mortgage clients  Real-time and low cost cross-border money transfer and remittance platforms  Biometric verifications for e-KYC to facilitate remote access to financial services  Machine learning using alternative data such as social media for credit scoring  Real-time invoice financing through common supply chain platform  Standardized QR Code for e-payments, which has reached nearly 1 million merchants within six months after exiting from the Bank of Thailand’s Regulatory Sandbox; and last but not least  PromptPay, a real-time payment infrastructure that has facilitated electronic payments for over 39 million registered IDs in Thailand 6-7  These are just some of the solutions available for SMEs and consumers in our market. To this end, I believe that over the next two days we will get to see many more exciting products and projects that can inspire innovation; broaden our understanding of the current technology landscape; and help set the policy agenda for strengthening Thailand’s and our region’s fintech ecosystems, especially to serve SMEs and consumers.

These include changes that have heightened competition and which have fostered the emergence of increasingly diverse market participants and organisations. The dramatically changing landscape calls for a new generation of highly-qualified professionals equipped with more comprehensive skills. To support and sustain these developments, the education system must evolve so as to meet these new demands. Against this backdrop, our ability to sustain long-term growth clearly depends on our ability to build, maintain and continuously expand our knowledge base. The key to this process is thus to be able to adapt to the new environment. As Charles Darwin observed "It is not the strongest", "nor the most intelligent that survive" but it is those that are "the most responsive to change." It is this capability that needs to be cultivated to ensure a mobile and agile work force that can adjust and respond to the emerging developments in the changing environment. As graduates today, you embody the hopes of the nation in making the transition towards a knowledge-based economy a reality. In graduating today, you would have achieved an important milestone in your life. This is indeed an important and distinct mark of success for all of you. Not so much because of the degree which you now hold in your hand, but more importantly its promise for your future. Your journey to reach this moment is a testimony of your own individual potential, determination and hard work. BIS Review 3/2006  1  The learning experience, however, needs to go on.
Regional cooperation in different fields like food and energy security – focal points of today’s conference – might be initiated at a high political level, but its implementation requires an active, broader and more informed participation of private sector and civil society, as the main vehicles of cross-border cooperation. The expansion of each one’s participation has a double effect; it allows for more informed regional policies and faster project implementation, on one hand, and it cultivates an understanding that regional cooperation has a direct impact on everyday life and individual citizens’ welfare on the other hand. The Romans used to say “mens sana in corpore sano”. The way I see it, it greatly matters what you fuel your body with. Greater food production for an increasing population goes hand in hand with ensuring access to affordable, safe and nutritious food. The way food nourishes our bodies, energy fuels the economy. So, energy needs to be secure, affordable and sustainable. I could go further and stress once again that for a healthy economy there is a substantial need for a healthy financial and banking systems. However, today’s conference will not generate either solutions or concrete answers to the multiple of issues the food and energy security rises, but it will most certainly cast a new light on possible ways to handle the challenges ahead of us.

Yes, we have had one or two very highly publicised revelations on legacy problems – but none of that should take away from the fact that the UK system is stronger today, in my view markedly so. But, I can tell you that achieving such progress on this public good has not been as straightforward or uncontroversial as you might think. And that continues to concern me, because it conveys the message that acceptance of the benefit of the public good is not as entrenched as it needs to be – we have work to do to build the consensus around what constitutes financial stability. I am firmly of the view that last year’s actions on capital were correct, and I have no doubt at all that the recovery in bank lending to support economic activity requires a belief and an expectation that the banking system is and will remain well capitalised, and that if we doubt either of these positions, action will be taken. And that is why we, and other countries, are introducing, or have done introduced, regular stress tests. It is about regulation being forward-looking and using judgement. The second point I would make here is that a stable financial system is a necessary precondition of realising other benefits. Let me give a few pertinent examples. The first one comes from the insurance industry, in which I also have a very strong interest. The Government announced some very major reforms in the Budget to the provision of pensions, notably in the annuities market.
But this does not seem to be an excessively long period, given that we were affected by the worst financial turmoil in the recent history of the region. I am aware, however, that there has been some controversy over the performance of the Hong Kong economy, compared with that of other Asian economies, in coping with the Asian financial crisis. There seems to be the impression that Hong Kong has been the slowest to recover. This may be true according to one measure or another, and we should obviously look critically into the reasons, if indeed there are structural defects that may have inhibited our recovery. Economic cycles come and go, and there is no way that Hong Kong, as an open and externally oriented economy, can be immunised from external shocks of the dimension that we have seen. But we need to make sure that we come out of the crisis stronger rather than weaker. Structural defects, if any, need to be corrected decisively, to the extent that this is within the powers of Government to do so. But we also need to keep our heads cool and be objective in this self-assessment. The loud and heartfelt complaints of a community in pain, legitimate though they may be, can sometimes drown out the arguments in support of policies that are in the long-term interests of Hong Kong.

Although this was not a major decision for us, it was a very prominent confirmation of our status in the world economy. BIS has less than 50 shareholders and is really an elite clique of the leading central banks. That it has decided to invite us to become shareholders was in recognition of the status that Thailand now has in the financial and economic market place of the world. That the BIS last week decided to buy back all its privately held shares, becoming purely a central bank for central banks is of course a reinforcement of this development. Another achievement of our own doing, this time towards transparency is that we are now qualified in the Special Data Dissemination Standard of the IMF, the 21st country to do so in May this year. This set of data is a guarantee whereby a country delivers enough information in a timely manner, such that international investors have a reasonable chance of evaluating its performance and prospects. Many leading countries are still unable to qualify, because they have things that they wish not to be shown to the public, whereas we have taken the road that what cannot be shown in public perhaps  1  BIS Review 86/2000  should not be done. We therefore participated also in the international reserves template both voting for it, and qualifying in the first group of countries to do so that have subscribed to the SDDS.
Our robust regulatory infrastructure, sound Shariah governance framework, wide international connectivity, diversified players and products, elevated by the Malaysia International Islamic Financial Centre (MIFC) agenda, provides a conducive landscape for the Islamic financial industry to tap into emerging opportunities in these areas of focus. To underpin this is the development of a vibrant Islamic Financial Market. As part of Financial Market Committee’s (FMC) effort to further develop the onshore financial markets, we have established two subcommittees: the Bond Market Subcommittee and the Islamic Financial Market Subcommittee to formulate specific market development initiatives to take us forward. The creation of these subcommittees underlines the importance of both of these markets in the context of overall development of the domestic financial markets. The Islamic Financial Market Subcommittee will review the current landscape to identify and address challenges to the continued growth and development of the Islamic financial market, particularly in light of the growing importance of Malaysia's Islamic Banking sector as well as the significance of Malaysia's Islamic capital market, both domestically and globally. Domestic Islamic banks account for about 42.5% of the overall commercial banking loan book and could reach 45% by the end of 2026[1]. In the Sukuk segment, Malaysia has maintained its leadership position in the global sukuk market in 2021 by commanding a market share of 37% of the global sukuk outstanding[2]. The industry has already developed an encouraging track record in the sustainable finance space, as evident from the sovereign and corporate sustainability sukuk issuances to finance green and social-related projects.

Islamic financial institutions now play a major role in driving the sustainability agenda in Malaysia hence, it is encouraging to see players such as CIMB Islamic and Standard Chartered Saadiq keep the momentum with this landmark deal which furthers Islamic finance and ESG convergence. I’m confident the Islamic finance sector will continue to do more in advancing sustainability practices by leading ESG innovations aligned to the value-based intermediation agenda. The introduction of ESG Islamic Repurchase Agreement is thus timely and it will further encourage the development of Islamic Repurchase market. Islamic Repurchase market registered RM39.4 billion in volume in 2021, more than double the volume in 2020[3]. The huge potential lies ahead as the volume registered is thus far, only around 1% of the total Islamic money market volume during the year. I would like to thus congratulate CIMB Islamic and Standard Chartered Saadiq on today’s signing. I wish you a successful partnership in this and potentially pave the way for more within the industry. Thanks also to the organisers for inviting me today and wish everyone a good weekend. Thank you  [1] Source: S&P Global [2] Source: Moody’s Investors Service [3] Source: BNM
The guideline for fiscal policy implies that the central government budget deficit shall be equivalent over time to the expected real return on the Government Petroleum Fund. The new guidelines for economic policy received broad support in the Storting. The guideline specifying that only the real return on the Petroleum Fund is to be used means that the capital in the Fund is not depleted. The capital in the Petroleum Fund will increase as long as there is a positive cash flow (to the central government) from petroleum activities. When the conversion from petroleum assets to financial wealth has been completed, the objective will still be to restrict withdrawals so that the real value of the Fund’s capital is maintained - in principle, indefinitely. The guideline thereby provides a long-term anchor for fiscal policy. The guideline provides a stable framework that contributes to curbing fluctuations in the Norwegian economy that are caused by converting petroleum assets into investment at home and abroad. The guideline has been adhered to in the past two years. As mentioned, the largest conversion of our national wealth in the next thirty years will be from oil as recoverable reserves to oil as financial wealth. The question might, of course, be raised as to whether an alternative option would be to keep our wealth in the form of oil and extract what we needed. Whether this would be profitable or not depends on oil price developments compared with the return on financial assets.

The chart illustrates developments in the labour force and the number of pensioners in the period up to 2050. The blue line shows that the labour force is projected to increase by about 150 000 from 2000 to 2030. Old-age and disability pensioners will increase by some 500 000, shown by the grey line. This means that the number of persons in the labour force relative to the number of pensioners will fall from 2.6 to 1.8. These rough estimates are among other things based on the assumption that labour immigration remains at the present level. The increase in the number of pensioners will result in a sharp increase in the obligations of old-age and disability pension funds. Expenditure on old-age and disability pensions is expected to more than double as a share of total GDP in the course of the next 30 years. The increase in the number of elderly, especially those over the age of 80, will in time require an increase in resources for nursing and care services. Welfare reforms that have been adopted will also contribute to increasing the need for resources in the public service sector in the years ahead. BIS Review 13/2003  1  With an ageing population and strong growth in expenditure on pensions and nursing and care services, our petroleum wealth will be a welcome source of revenues. This is why it is particularly important that it is managed in a sound manner. Petroleum activities are a substantial component of the Norwegian economy.
Despite the series of shocks from the foreign and domestic environment which the Macedonian economy has faced in recent years, we maintain the average inflation rate at the level of 1.5%, which is very close to the average inflation of the Euro area countries and confirms the adequacy of the monetary setup in this period. The nominal exchange rate of the denar against the euro has been maintained at a stable level, contributing to stable expectations and maintaining the confidence of economic agents. We have maintained the foreign reserves at a comfortable level by guarantying currency stability and dealing with shocks. The banking system is set on a completely market basis, with the presence of renowned international banking groups – stable, liquid and capitalized. Our permanent investment in observing the international standards in the banking regulation and the modern supervisory standards has made a great contribution. 1/2  BIS central bankers' speeches  No central banking institution can be set on firm grounds without dedicated and responsible people who have a vision, follow the direction of the modern central banks and at the same time work very hard to follow that path. In recent years, we have been continuously investing in the human capital. The support that we receive from international financial institutions, along with our dedication enables us to have a high quality core of professionals.

The first years of monetary independence were years of hyperinflation, recession, insufficient foreign reserves, permanent depreciation of domestic currency and general macroeconomic instability. I would like to mention, as an illustration, that just after the monetary independence, the exchange rate depreciated almost on a daily basis, which along with the high monetary and fiscal expansion led to hyperinflation. In 1993, for instance, the average inflation reached nearly 350%, which was devastating for the economy. With the joint efforts of policy makers and scientists, policies for managing the exchange rate volatility as well as inflationary spiral were quickly adopted, which together with the support of the international financial institutions enabled the economy to stabilize and market principals to function. In October 1995, a monetary strategy of stable exchange rate of the denar against the Deutsche mark was adopted and against the euro since January 2002 – a strategy that then as well as now is considered to have been one of the supporting pillars of the stability of the Macedonian economy. Today, after 28 years of monetary independence, it is my pleasure to note that the National Bank is an institution whose credibility and integrity are being permanently reaffirmed. Maintaining price stability is the ultimate objective of the National Bank’s monetary policy.