samchain/econo-pairs-v1 huggingface dataset:
The absence to date of underlying inflationary pressures is also seen in the moderate evolution of labour costs and of the indicators of long-term inflationary expectations. However, the upside risks to inflation have been growing in step with the improvement in activity and employment, which might drive the pass-through to consumer prices and wages of past rises in energy product prices. Faced with this, the ECB decided to readjust monetary conditions by raising its official interest rates on five occasions since December 2005. These measures have proved necessary to keep inflationary expectations anchored at lower levels, against a background of strengthening aggregate demand and a gradual move closer towards the potential level of output. In any event, I should stress that at present, even following these interest rate rises, the financial conditions in place remain conducive to economic activity. Having a monetary policy geared to ensuring price stability is a vital requirement for economic dynamism to be sustainable. However, monetary policy can in no way supplant the other economic policies which, in fact, are of paramount importance for the growth of our economies. In particular, the European authorities must strive more resolutely to eliminate the structural obstacles holding back growth potential. The relatively disappointing results in terms of economic expansion in the euro area in the past decade are due, above all, to the scant dynamism of labour productivity which, in turn, is largely a response to the relatively modest pace of innovation, and its spread and application to the rest of the economy.

But this advantage diminished since the global financial crisis. Firms may consider moving up the value chain to differentiate products and enhance value. There are two possibilities that exist in Thailand depending on the industry. The industries that are behind need to catch up with the ongoing trend, and industries that have the opportunity, can leap ahead of the trend. In either case, Research and development investment is needed. To address the issues just mentioned, Thailand’s financial sector, which includes my esteemed guests for today and the Bank of Thailand, must set clear directions for our roles. To deal with the structural challenges, the private sectors need support from the financial sectors. They will require long term and low cost funding, from both domestic and international sources. Ladies and gentlemen, your operation of financial institutions with both caution and long term vision has so far contributed to financial stability in Thailand. We would like you to continue placing value in the long term, and providing liquidity for established customers who will definitely return to growth after Thailand’s rebound. Such support creates long term value for your international investors and helps both your future returns, and to usher the economy through the slump. For the Bank of Thailand’s part, we continue improving financial system strength and efficiency.
Building on strong foundations: Why central banks bank for each other Remarks given by Andrew Hauser, Executive Director, Banking, Payments and Financial Resilience At the Federal Reserve Bank of New York’s Commemoration of the 100th Anniversary of the Federal Reserve System’s U.S. Dollar Account Services to the Global Official Sector  20 December 2017  I am very grateful to Simon Heywood for his help in preparing these remarks. 1  All speeches are available online at www.bankofengland.co.uk/speeches  Introduction  1917 was not a quiet year. In April, the United States joined World War 1. In July, the British royal family changed its name from ‘Saxe-Coburg and Gotha’ to ‘Windsor’. And in Russia, the October Revolution ushered in the most momentous political change of the twentieth century. Against that backdrop, the agreement by the Bank of England and the New York Federal Reserve in Spring 1917 to provide banking services to one another was never going to leave the same historical footprint. But that superficially unremarkable act was actually part of a seminal moment in the development of the international financial system. Those correspondent relationships between central banks, forged at a time of war but replicated widely in the years ahead, would achieve three key things:  1. They gave central banks safe, confidential and reliable access to overseas reserve currencies, assets and payments, and intelligence on the operation of those markets – and in so doing:  2.

Directors must devote their time to the bank, cannot be a director of more than three other profit-seeking companies, as well as disallowing of borrowing where cross ownership is more than one percent of the paid up capital of the borrower. Of the 92 people involved, 53 have now complied, and arrangements have been made for most of the others to comply, with the possible exception of the representatives of the Ministry of Finance who may find that their representatives are not the sort of people who can devote that much time to the bank because they are not part of the ownership or operation of the bank, but are just government representatives. We are looking into this and will discuss with the Ministry when the time is right. The problem in fact is not as innocuous as it looks as state bank remunerations are affected by considerations other than just how should directors be rewarded so that shareholders’ value can be maximised. But all this is being done through sanctions and coercion, and in the New Commercial Bank Act the authority will be explicit. My last words on commercial banks, the intervened banks might not yet be completely taken care of, but at least the cost of rescue can now be well estimated. The proper financing of the debt burden is probably one of the first jobs of the new government.
In doing so, it is important that we not lose sight of one of the longerterm goals of the New Capital Accord - that it will enhance the capabilities of banks and supervisors to better understand and address risk. 4. Next steps in finalizing the New Accord  Most of my remarks today have been centered on implementation of the new framework. I’d like to conclude by spending a few moments discussing where we are in the process to finalize the New Accord. As you may be aware, the Committee has just finished gathering data from the industry for its third impact study. The aim of the study was to collect and to analyze information from banks worldwide regarding the capital impact of the new proposals on their existing portfolios. The results are under review and will help us to determine whether any adjustments will be needed prior to release of the final consultative package this spring. This information, as well as feedback received through our ongoing discussions with industry participants, will be critical in shaping the final document. It will also help to ensure that the final framework meets the objectives the Committee has set out for itself in developing the New Accord. I'm very pleased to say that the preliminary indications from all of our efforts suggest that we look to be on track in meeting our primary goals.

In another case, the employees of a bank that reported a suspicious transaction, were called and probed in the prosecutor office as being those the persons of actually being involved in ML. The reporting subjects and the institutions that implement the law, must define among each other certain procedures that would eliminate the occurrence of such case and that ensure the protection of confidentiality of the persons that have filed the suspicious reports. As long as this element is not totally ensured, any other discussion on the matter risks being a purely theoretical one, without much practical values. In conclusion, as a Governor, I must say that I would encourage a better cooperation among the institutions that are subject or that implement the law on AML. At the same time, Bank of Albania as the supervisory institution of its licensees will promote a stronger contribution by banks in Anti Money Laundering requirements implementation. In exerting our function, we shall not be limited to the verification of the existence and the functioning of the internal structures and procedures, but will deepen further on assessing the support the management structures of the banks, give to the real implementation of the AML internal policies. The position of a central bank is, according to the law, very comfortable, but playing the proactive role of a responsible central bank, showing the concrete implementation of this responsibility, we will intensify our efforts together with the other actors of interest to enable a better implementation of the law on money laundering prevention.
Andrew G Haldane: Banking on the state Paper by Mr Andrew G Haldane, Executive Director, Financial Stability, Bank of England, and Mr Piergiorgio Alessandri, based on a presentation delivered at the Federal Reserve Bank of Chicago twelfth annual International Banking Conference on “The International Financial Crisis: Have the Rules of Finance Changed?”, Chicago, 25 September 2009. Contributions and comments were provided by Paul Doran, Marius Jurgilas, Samuel Knott, Salina Ladha, Ouarda Merrouche, Filipa Sa, William Speller, Matthew Willison and Nick Vause. * 1. *  *  Introduction  Historically, the link between the state and the banking system has been umbilical. Starting with the first Italian banking houses in the 13th century, banks were financiers of the sovereign. Sovereign need was often greatest following war. The Bank of England was established at the end of the 17th century for just this purpose, financing the war debts of William III. From the earliest times, the relationship between banks and the state was often rocky. Sovereign default on loans was an everyday hazard for the banks, especially among states vanquished in war. Indeed, through the ages sovereign default has been the single biggest cause of banking collapse. 1 It led to the downfall of many of the founding Italian banks, including the Medici of Florence. As awareness of sovereign risk grew, banks began to charge higher loan rates to the sovereign than to commercial entities.

Asia is reducing its dependence on manufactured exports as the main driver of growth, and Middle East is seeking to reduce its dependence on energy exports. Both regions are strengthening their social, transport and economic infrastructures as they diversify their economies. The examples are all around us, like India and Indonesia’s major energy and transport infrastructure plans, Bahrain’s Financial Harbour project, and Qatar’s Education City. Finally, the appetite for prosperity is unshakeable among our younger generations. Young people all across our regions can see what economic growth brings, for their families and themselves, and for their communities. Whether their quest is for material or spiritual fulfilment, young people know instinctively that economic growth and better jobs will help them fulfil their needs. They want to move ahead, to educate themselves, and to give whole communities pride in what they can achieve - in science, in business and in culture. These aspirations of our young are probably the biggest positive for our regions. They will also bring us together over the long haul. BIS Review 47/2005  1  High savings will be increasingly intermediated within Asia and the Middle East On the financial side of things, the fundamentals are also solid in both our regions. First, the supply of savings in Asia and the Middle East is higher than in any other region of the world. Savings rates in Asia are expected to remain in the region of 35-40% of GDP for some years to come.
Clearly, no financial system can be considered stable unless the individual institutions that comprise its whole are themselves healthy. Thus risk-based supervision and proper risk assessment by banks are essential measures to bring about financial stability. In this regard Basel II will no doubt help strengthen our collective financial systems by encouraging banks to adopt stronger risk management mechanisms. Pillar 2 of Basel II will add to the stability of the financial system by providing a deeper and richer mechanism to evaluate a broader range of risks - including risks that will impact on the system more broadly - such as credit concentration risk. Encouraging greater transparency by banks under Pillar 3 also contributes to making financial systems more resilient by providing a consistent framework across national boundaries for analysts to do their job in identifying weak or risky banks. Ensuring the soundness of individual banks – what some people now call the "micro prudential" perspective – is, however, only part of ensuring a sound financial system. Bank supervisors these days now talk about "pillars" and in addition to the three pillars of Basel II I believe that there are also two pillars of financial stability. One of these is the micro prudential perspective. The other one is the macro prudential perspective. They are mutually reinforcing and both are essential for ensuring financial stability.

Many other central banks have since followed the Bank of England’s lead, and in the HKMA we have published our own Monetary and Financial Stability Report for several years now. More recently we began an internal Banking Stability Report which aims to provide a macro prudential perspective on trends in the banking system that we can then use to target our on-site bank examinations more effectively. The eventual goal is to try to draw these two reports more closely together and to bring a more forward-looking perspective to our banking supervision work. When central banks make their financial stability analysis public it provides financial system participants with an insight into the central bank’s perception of the vulnerabilities of the system. It enables policymakers to be transparent in their views of where they perceive the risks and vulnerabilities to be. Hopefully, by raising warning flags at a sufficiently early stage – for example if we  BIS Review 106/2006  3  perceive risks in a build up of credit to a particular sector – we can encourage banks to review the risks that they are running and, if necessary, to take action to mitigate those risks. But it is important to be careful how the risks and vulnerabilities are presented. The last thing we want to happen is for the predicted problems to surface because everyone has rushed for the exit at the same time.
Zeti Akhtar Aziz: Strengthening the financial infrastructure for SMEs in Malaysia Keynote address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the Launch of Strategic Partnership between Credit Guarantee Corporation Berhad and the Islamic Financial Institutions, Kuala Lumpur, 6 February 2007. *  *  *  It is my great pleasure to be here this morning to witness the launch of the strategic partnership between the Credit Guarantee Corporation (CGC) and Islamic financial institutions. This strategic partnership will provide an important platform to the Islamic financial institutions to expand lending activities to the small and medium scale enterprises (SMEs). It therefore, marks an important initiative in the efforts to provide an increased range of financing products to SMEs in addition to enhancing the access to financing. A key national agenda of the Government is to promote a strong and dynamic SME sector which would contribute to ensuring sustainable and balanced economic development. The development of diverse and competitive SMEs will also promote greater resilience of the economy. The SMEs also represent important "incubators" of entrepreneurial talents that will provide for the potential for the development of larger Malaysian corporations. The SMEs can expect to represent an increasingly important source of endogenous growth and employment. The importance of the SME sector to the national economy is evidenced by the fact that it constitutes 99.2% of the total business establishments, employs about 5.6 million people, and contributes about 32% of gross domestic product.

Financial institutions with their extensive branch networks, qualified financial management officers and extensive experience in assessing the risks facing consumers are best positioned to increase the level of institutional capacity that can enhance financial literacy. We need to recognise our shared responsibility to equip the communities in our countries with the necessary skills and confidence in managing their personal financial matters. Collective efforts to develop institutional capacity to share information and knowledge about financial literacy across the region can also bring about mutually reinforcing results. Financial literacy needs to be elevated to a more important level on the national and international agenda for a greater shared economic prosperity. On that note, thank you for your attention. BIS Review 85/2005  3
It was therefore welcome that the Government put its foot down on 26 August regarding the allocation of responsibility for macroprudential policy – the new policy area that is intended to be the primary defence against this type of problem.9 Some details remain to be specified and it will take some time before the finished framework is in place, but it is clear that Finansinspektionen will have the main responsibility for macroprudential policy. The fact that uncertainty over the macroprudential policy framework has been largely dispersed will improve the conditions for managing risks linked to high and rising household debt. The risks should decline as measures are taken and as macroprudential policy settles into its role and working methods. This may also be expected to ease some of the pressure  7  In the Netherlands, household debt as a percentage of disposable income amounted to at most approximately 250 per cent, before a crash occurred. The corresponding figure in Denmark was around 300 per cent. 8  For example, in November 2013, Statistics Sweden’s housing price indicator reached its highest level since July 2007 (SEB, 2013) and SKOP’s November survey indicates “new record-high expectations” (SKOP, 2013). 9  Ministry of Finance (2013). BIS central bankers’ speeches  5  on monetary policy. However, it is difficult at present to say exactly how monetary policy will be affected. Time will tell.

Banks must not be able to reduce capital below a minimum level even if they extend loans that, according to the models, seemingly involve low risk. Second, regulation must to a lesser extent contribute to amplifying cyclical fluctuations. With losses now rising, as a result of the abrupt and pronounced turnaround, banks must increase equity capital. Consequently, the rules governing capital requirements amplify cyclical fluctuations. The rules must therefore require banks to build up strong capital buffers over and above the minimum requirement in normal times. Then the banks would not have to  4  BIS Review 60/2009  increase capital when a turnaround occurs, but on the contrary be able to absorb losses. This will counteract the need for banks to ration credit in adverse periods. Many Norwegian banks do not have sufficient buffers today to safeguard their own, their shareholders’ or the economy’s best interests. Third, banks’ funding methods make them vulnerable. Earlier, the two main sources of bank funding in Norway were retail and wholesale deposits. In recent years, banks have borrowed heavily in both domestic and foreign markets. During the crisis, this proved to involve high liquidity risk for banks. In the future, in regulations and in practice, deposits must again take precedence as the largest funding source for banks. We also anticipate that bonds collateralised by high quality mortgages will become important. The credit swap arrangements can be seen as building a bridge to such a market.
The Eurosystem could also outsource parts of the settlement, such as recording or validation, to intermediaries.   Moreover, it is clear that some functions should remain under the sole  responsibility of intermediaries. In particular, I believe that the Eurosystem should not have the role of managing digital euro holdings: the Banque de France closed its last private customer accounts over 20 years ago, and does not intend to reopen any. Customer relationship management is best handled by financial intermediaries, as they have the experience in this field. They would also ensure compliance with the related regulatory requirements, including KYC and AML/CFT. Such a design would allow them to preserve the role of financial intermediaries in the retail payment system, and would ensure the high level of privacy required by the public.   Finally, regarding the possible risks of banks’ deposit conversions, we  must and will ensure that a digital euro remains a means of payment rather than a saving/investment asset. This could be achieved by capping the maximum amount of digital euro in circulation, at a low enough level. In a completely other field, regulated savings, ceilings for the Livret A have proven an efficient tool, without requiring the intervention of a Big Brother to check on them. Page 5 sur 7 II.

Jean-Pierre Roth: Once a student, always a student Summary of a speech by Mr Jean-Pierre Roth, Chairman of the Governing Board of the Swiss National Bank, at the University of Bern, Switzerland, 9 February 2006. The complete speech can be found in German on the Swiss National Bank’s website (www.snb.ch). *  *  *  Like all decisions relating to the future, monetary policy decisions involve numerous uncertainties. Economic researchers are divided as regards both the effects of monetary policy and the form that this policy should take. There are a number of competing models in economic theory, and their policy recommendations often vary. Relationships that have been stable in the past may change at any time, due to the fact that the structural equations used in economic models are not based on the laws of nature. The Swiss National Bank's monetary policy concept takes account of these uncertainties. Our inflation forecast is a key element in this concept and combines the results obtained by a variety of different models. Research is extremely important in our changing world. We can only be sure of identifying new developments as early as possible and basing our monetary policy decisions on a solid foundation if we engage in constant research. BIS Review 9/2006  1