samchain/econo-pairs-v1 huggingface dataset:
But this discussion does reveal a catch-22 – which is that participants on both sides of the market typically want two inconsistent things: (a) they’d like everyone else’s information in a publicly-visible price so they can trade in full knowledge of their positions, but (b) they want to keep their own information out of that same price, to avoid driving it against them. One response to this, which TCA may itself recommend, is to take trades ‘dark’. But that risks undermining the robustness of that TCA (by reducing the quality of the market data on which TCA assessments are based), and may also harm the efficiency and resilience of the market, if it increases market fragmentation. I can’t help feeling that a highly fragmented world in which everyone pays up individually to secure information privately through TCA tools and market data that they could have publicly under a market-wide public disclosure standard seems deeply suboptimal and costly. Such a standard is clearly not feasible to impose by edict in a global market – but it is worth reflecting on whether current developments are heading in the right direction. 16  State of Transaction Cost Analysis 2019, quoted in https://www.fixglobal.com/home/mifid-ii-boosts-tca/. 11  All speeches are available online at www.bankofengland.co.uk/news/speeches  11  Underpinning many of my remarks today is a sense that the buyside has so much to gain, and to offer, from a more active collective participation in FX markets. And that is where we need more of you sign up to the Global Code.

This should also result in risk being priced into these loans to banks. Creditors have been written down while a bank was kept open. On 5 February 2011, the Danish resolution authority Finansiel Stabilitet A/S took control of Amagerbanken, a midsized Danish bank. 13 All equity was written down to zero, and non-guaranteed deposits and wholesale funding were initially written down by nearly half of their original value. This was done over a weekend. On Monday morning, the online banking service was open and all  10  The Bank Recovery and Resolution content/EN/TXT/?uri=celex:32014L0059. 11  A more detailed description of the rules for bail-in and how it works is found in Vale, Bent (2014), “Kriseløsing av banker ved hjelp av bail-in – momenter ved innføring i Norge” [Bank resolution with the aid of bail-ins – factors associated with introduction in Norway], Norges Bank Staff Memo 12/2014 (in Norwegian). 12  In addition, a number of other types of liabilities are exempted, such as covered bonds, accrued but unpaid salary, taxes payable and liabilities to ordinary commercial suppliers of goods and services necessary for the daily functioning of the bank. 13  A detailed description of the resolution of Amagerbanken is found in the Finansiel Stabilitet A/S Annual Report for 2011 (in Danish). 6  Directive  may  be  found  at  http://eur-lex.europa.eu/legal-  BIS central bankers’ speeches  depositors obtained access to their remaining deposits. The bank was kept open as a subsidiary of Finansiel Stabilitet A/S.
As a matter of fact, the effect of the recent increases in commodity prices has been materialized on inflation in many countries and more primarily in emerging economies. One reason for this is the higher share of food and energy in the consumption basket in emerging economies compared to that of advanced economies. Another reason is the rapidly closing output gaps amid the strong course of economic activity in emerging economies causing higher pass through of commodity driven supply-side shocks to prices. Hence, advanced and emerging economies diverge significantly not only in terms of economic activity, but also in terms of inflation outlook. 10. This divergence between growth and inflation outlook also led to differences in monetary policy practices between advanced and emerging economies in 2010. In this period, central banks of advanced economies focused on supporting the economic recovery and speeding up the improvement in employment and credit conditions. Accordingly, the low  BIS central bankers’ speeches  3  level of interest rates in advanced economies was maintained, and monetary easing continued in 2010 as well. 11. Ample liquidity as a result of low interest rates and the ongoing quantitative easing in advanced economies encouraged global investors to seek higher returns and demand risky assets. Consequently, emerging economies experienced a surge of capital flows. The divergence between the pace of recovery in advanced and emerging economies in favor of emerging economies, as well as the permanent improvement of the risk sentiment for emerging economies in the post-crisis period also supported these capital inflows.

Accordingly, in the upcoming period, the CBRT may alter its liquidity management strategy to meet the emerging needs and actively use additional policy tools, such as the corridor between borrowing and lending rates and reserve requirements, to maximize the effectiveness of the 1-week repo auction rate, the main policy tool, and to contain macro financial risks. 52. In the period ahead, monetary policy will continue to focus on achieving price stability on a permanent basis. To this end, the impact of the macroprudential measures taken by the CBRT and other relevant institutions on the inflation outlook will be considered carefully. Fulfillment of the commitments to fiscal discipline in the medium term and strengthening the structural reform agenda will contribute to the improvement of Turkey’s sovereign risk, and thus, support macroeconomic stability as well as price stability. Sustaining the fiscal discipline will also provide room for monetary policy maneuver, supporting the social welfare by keeping interest rates permanently at low levels. In this  16  BIS central bankers’ speeches  respect, I would like to conclude my remarks by underlining that timely implementation of the structural reforms envisaged by the MTP and the European Union accession process remains to be of utmost importance. Thank you. BIS central bankers’ speeches  17
Vítor Constâncio: Principles of macroprudential policy Speech by Mr Vítor Constâncio, Vice-President of the European Central Bank, at the ECBIMF Conference on Macroprudential Policy, Frankfurt am Main, 26 April 2016. *  *  *  Ladies and Gentlemen, It is with great pleasure that I host this dinner today, in the first edition of our annual Macroprudential Conference, this time jointly organised with the IMF. The Single Supervisory Mechanism Regulation 1 confers upon the ECB and National Competent Authorities or National Designated Authorities specific powers and responsibilities in the field of macroprudential policy. This calls for substantive conceptual and analytical work in this new policy area which is very ambitious, requiring considerable research efforts that we want to stimulate by launching this series of annual conferences. The financial crisis and its aftermath confirmed the need for system-wide surveillance and led to the establishment of macroprudential policy as a new policy area with the objective of addressing systemic risk. At the European Central Bank (ECB), systemic risk is defined “as the risk that financial instability significantly impairs the provision of necessary financial products and services by the financial system to a point where economic growth and welfare may be materially affected”. 2 Important in this concept is the fact that the materialisation of systemic risk brings along significant costs to the real economy – implying the destruction of economic value and leading to losses in terms of economic growth.

What I mean here, and this is my third point, are the effects related to financial contagion emerging from interconnectedness and resulting from dynamic interactions between the financial economic agents that can embed non-linear features that could lead to fire-sales. Direct financial contagion via the interbank channel has been one of the features of the ECB top-down stress tests for some years already and we have been regularly publishing the results of the second round effects (related to possible domino effects in the interbank market) in the ECB Financial Stability Review. Yet, macroprudential stress tests should also consider the second round effects from indirect contagion, most prominently due to possible fire-sales, which could also emerge as an outcome of interactions between banks and shadow banks. We are developing agent based models that could take account of these interactions and allow for endogenous asset price determination. 14 This implies that the macroprudential stress test framework should encompass the direct stress test of shadow bank balance sheets. Recent ECB research suggests that the shadow banking sector has a natural tendency to grow until it becomes systemically important for the entire financial system and endangers the stability of the banking sector. 15 Stress testing shadow banks could unveil the  11  G. Hałaj, (2013), “Optimal asset structure of a bank – bank reactions to stressful market conditions”, ECB Working Paper Series No. 1533.
This ratio has doubled in the United States since 1980, while it has remained relatively stable in Europe. xvi Our social welfare system plays a key role here: it even defines Europe, whether it is based on a Bismarck or a Beveridge model. Secondly, the European model organises industrial relations and economic power relations in a more balanced way between employers and employees. This is enshrined in the Charter of Fundamental Rights of the European Union, whether one follows the Nordic traditions of negotiation or the Latin ones of regulation. Finally, a high level of public services remains a key factor of integration, from transport to health. As regards the level of public spending, there are significant differences between European countries: unfortunately, France displays the highest level of public spending, at 56% of GDP, and must make its public sphere more efficient. But the euro area average, at 47% of GDP, illustrates a different societal choice to that of the United States and the United Kingdom, with ratios of 35% and 38% respectively, and even more so the large emerging countries Redistribution and social welfare system + industrial relations + public services: let us call it the European social model, or "Soziale Marktwirtschaft" if one is German and more liberal. The vast majority of our fellow citizens, beyond their national or political differences, are attached to this common matrix. Let us affirm it, without shame: it is not only a legacy from the past, it is an asset, today.

The German philosopher Hans Jonas urges us to respect the imperative of responsibility: you should always consider the possible worst case as a likely option and act accordingly. xxiv And is this respect, Europe is ahead and Donald Trump's America is behind. But climate is the very example of a global public good: no country has the means or even the incentive to act alone. All European countries signed the Paris Climate Agreement in 2015. Supervisors and central banks are also strongly committed. In December 2017, some of them – including in several European countries – set up the Central Banks and Supervisors Network for Greening the Financial System (NGFS) at the initiative of the Banque de France. Today, this network has nearly 50 members: it works concretely – and with great enthusiasm – to ensure that banks and insurers better integrate climate change risks and promote green financing. And we must, as Christine Lagarde told the European Parliament, take climate change into account in monetary policy: I made proposals in this respect. 2.4  A new model to renew multilateralism  European integration is based first and foremost on a method: multilateralism and cooperation. These are no longer very fashionable terms, but we must use them without wavering. Nationalist escalation does not provide solutions for the major issues facing citizens.
Second, we need to ensure that the legal and regulatory regimes remain robust in ensuring the safety and soundness of markets and institutions, and yet conducive for Islamic finance to grow at a sustainable rate. Some progress has been made on this front with the IFSB issuing new regulatory standards that serve as useful reference points for supervisors. However, as the global financial reforms take shape, all financial institutions including Islamic institutions will have to rethink the assumptions underlying their business strategies and reassess their business models in light of the structural shift. They will have to retool their organizations so as to remain competitive and to serve their customers better. 13. Third, the industry’s need for more manpower will be an important issue, given the lead time needed to develop new competencies. As Islamic finance becomes more widely accepted and more financial institutions begin to offer a greater variety of Islamic products, the demand for financial, accounting and legal professionals who are conversant with Islamic finance will rise. In this regard, institutes of higher learning, such as the Singapore Management University’s International Islamic Law and Finance Centre, and quality training providers can play a vital role to increase the knowledge of Islamic finance, and develop new capabilities and products through industry-relevant research. Singapore’s role 14. I will now briefly touch on Singapore’s role in growing connectivity in the global arena. Singapore already enjoys excellent and long-standing relations with the GCC.

The Governing Council fully supports all steps to avoid the occurrence of excessive deficits and all efforts to reduce the public debt and bring the fiscal stance into line with the stability programmes in individual member countries in order to ensure the credibility of the commitments made under the Stability and Growth Pact. In the same vein, we very much support the continued initiatives to foster structural reform. We welcome the focus placed on these issues in the context of the forthcoming Barcelona summit and we are looking forward to swift and determined delivery of essential structural reforms in the goods, services and labour markets to promote the euro area's growth potential. 2  BIS Review 9/2002
And then, when the European chapter of our story is completed and the denar remains our historical symbol of stability, I believe that it will be confirmed once again that as a central bank we have walked down the right path. Since the 2008/2009 Global Financial Crisis and the experiences of the COVID crisis, in a time of accelerated changes on the world stage as a result of globalization, digitalization and financial innovation, the mandate of central banks has been constantly changing and expanding with new functions. All current and new functions and activities  3/4  BIS - Central bankers' speeches  of modern central banks that protect the public interest are already part of our vision, but not as an activity that we forecast for the time future and distant, but as something we are already working on. Among other things, we are particularly dedicated to financial education and inclusion given the importance of increasing knowledge about financial services, especially at a time of rapid fintech development, which would eventually provide easier access to finance for citizens and companies. In support of the fintech development, we drafted the first version of the national strategy, with a view of making our story a regional leader in this area as well. Following the example of the European Central Bank, this year, when we celebrate thirty years of the introduction of the denar as our currency, we initiated activities to consider the introduction of a digital denar.

Replenishing their inventories, companies substantially increased their demand for commodities worldwide. Russia is a major producer of key commodities. High demand for Russian exports spurs economic growth this year. As companies complete their inventories, the effect of this factor will be tapering off gradually. The growth of oil export quantities will also be supported by the easing of the OPEC+ oil production cuts in response to the recovery of demand. Taking this into consideration, we have raised the oil price path in our forecast by 5 US dollars per barrel in the next three years. According to our preliminary estimates, the expansion of oil output under the new OPEC+ agreements will add about 0.1 pp to GDP growth this year and 0.2–0.3 pp next year. Another important growth driver is domestic demand, including both consumer and investment demand. Considering these trends, we have revised our economic growth forecast for this year upwards from 3–4% to 4–4.5%. After the recovery, the economy will expand at a pace close to its potential. We forecast that GDP will equal 2–3% in the next two years. The possibility to achieve higher economic growth rates will depend both on the expansion of production and logistics capacities and on labour resources, their expertise and performance. T hird. Monetary conditions have been progressively adjusting to the earlier increases in the key rate, but are still accommodative.
New risk management and insurance major As the industry seeks out profitable growth and new horizons, it is critical that the right talent and skills are available to support this. In the face of new and emerging risks, as insurance roles evolve and become more complex, different and deeper skillsets will be essential. Skillsets will also need to be widened as technology and financial services converge. To this end, I am glad to announce that the Nanyang Technological University will be launching the Risk Management and Insurance major next year. BIS central bankers’ speeches  5  Beginning in August 2016, this new Insurance major will be structured as a major specialisation under the NTU Business Degree. It is expected to produce 50 new graduates every year starting from 2018, providing a strong and sustainable talent pipeline to support industry growth. Alongside a robust curriculum, the students will get to build up their research, analytical and modelling capabilities, through working on research projects like the Nat Cat DAX and Cyber Risk Test-bed. Conclusion Insurance will continue to increase its relevance in an uncertain world. In these times of new risks, capital and technology, it is not sufficient to rely on a red ocean strategy. We need to open new horizons, and open them together. MAS will be a partner of the Singapore insurance industry as you forge a blue ocean strategy, manage risks and capitalise on the opportunities in the new reality.

New capital The second opportunity is in new capital. New or alternative capital continues to increase its share in the global reinsurance industry, as alternative risk transfer solutions in the form of insurance-linked securities (ILS) such as catastrophe bonds, collateralised reinsurance and sidecars, among others, gain acceptance. Alternative capital grew 6% in the first half of 2015 to $ billion, while traditional capacity fell by 3% to $ billion. While the influx of alternative capital may have led to excess capacity, softening rates and narrowing of profit margins, this same capital has the potential to unlock opportunities for insurers to access new products and markets. As I mentioned earlier, Asia, in particular, is especially attractive to insurers and reinsurers:  BIS central bankers’ speeches  3  •  Alternative capital, when deployed to markets in need of risk capital for protection against losses, will allow insurers and reinsurers to underwrite more risks and better serve society’s needs. •  As countries in Asia look to strengthen resilience to potentially debilitating events like catastrophes, it is not unexpected that alternative risk transfer mechanisms, such as catastrophe bonds and government pools, will increasingly feature as regional insurers leverage alternative sources of risk capital to complement traditional reinsurance. The management of catastrophe risks in Asia-Pacific is a priority for insurance players as well as governments in the region. A research by Lloyd’s has shown that a 1% rise in insurance penetration translates to a 22% reduction in taxpayers’ contribution following a disaster.
This also means that, at this stage, the best the ECB can do is to concentrate its efforts on creating the right conditions for supporting the flow of capital into sustainable sectors. In this way, it will remain faithful to its primary objective of price stability and the Treaty requirement of an open market economy with free competition, while supporting environmental objectives. Conclusion Let me conclude. More frequent climate-related shocks may increasingly blur the analysis of the medium-term inflationary pressures relevant for monetary policy. More fat-tailed shocks may erode central banks’ conventional policy space more often in the future. And uncertainties surrounding the speed and scope of the transition towards a low-carbon economy can potentially impact medium-term inflation expectations, posing challenges to central banks as the horizon of monetary policy is stretchable but not infinite. These and other questions deserve further careful analysis. More imminently, the ECB will concentrate its efforts on supporting market participants, legislators and standard-setting bodies in identifying the risks emerging from climate change and providing a clear framework to reorient financial flows and reduce such risks. A unified framework is the gravitational force needed to finance the greening of our economy. And it is the precondition for central banks themselves to expand the use of ESG criteria in the build-up and management of their own asset portfolios. Thank you. 1 I would like to thank Torsti Silvonen, Fabio Tamburrini and Sam Langfield for their contributions to this speech. I  remain solely responsible for the opinions contained herein.

Moreover, to ensure that the quality of the assessment of each financial institution is of the same standard and to ensure transparency in the process, the supervision report will be submitted to the Financial Institution Development Committee, which comprises the Heads of all Supervisor Teams. The Bank of Thailand’s management will meet with the Board of Directors of the financial institution to present the findings of the supervision report, and there will be a close monitoring and follow up on the directives given, as well as the points raised in the supervision report. To put in place this new supervision framework, the Court of Directors of the Bank of Thailand has approved the new structure of the Supervision Group due to be effective on the first of January 2001. Under the new organisational structure, there will be a clear separation of the three lines of work, namely supervision, examination, and research and analysis. This will provide for checks and balances within the system as well as serve to develop depth in supervision work. Moreover, a new Department of Risk Supervision and Department of Information Technology Supervision will also be set up, which will help ensure that the supervision process will be more proactive and forward looking, focusing on strategic as well as management risk. It is quite pleasing that the work, which has been undertaken, has begun to bear fruit, and we will have by the end this year a strengthened financial institution system.