samchain/econo-pairs-v1 huggingface dataset:
Cœuré’s report – compiled over four months and published in October – provides a full assessment of the risks posed by stablecoins from a microeconomic viewpoint, in terms of anti-money laundering and consumer protection, but also from a macroeconomic one, in terms of financial stability. Within the framework of the Financial Stability Board (FSB), we are now preparing a coordinated regulatory response to these challenges, due to be published by next summer. I shall turn now to the second pillar of our response: supporting innovation to enhance our payment systems and meet the growing expectations of consumers. We first have to take advantage of the opportunities offered by the digital revolution to develop a genuine panEuropean payment solution. As Steve Jobs said, “innovation is saying no to a thousand things”. This observation sheds light on the challenge that European banks are about to face with the PEPS-I project (Pan European Payment Solution Initiative). I have every hope that they will be able to forces – and go beyond “national” practices – and rapidly propose a single, panEuropean payment solution, thus avoiding market fragmentation and the dominance of nonEuropean solutions. The Eurosystem will be ready to provide support as and when needed, in line with what we are doing to promote the use of TIPS (Target Instant Payment Settlement). As a market infrastructure capable of processing pan-European instant payments, TIPS could be used for the interbank settlement of transactions initiated via PEPS-I.

According to some estimates, in the past ten years European investment banks have lost 10 percentage points of their market share to US banks.iii This can be attributed to the difficulties European banks face in achieving the critical mass needed to operate in a global market. And Brexit will do  Page 3 of 5  little to change this trend if the European market remains fragmented. Conversely, US investment banks have the benefit of a huge domestic market where margins are higher. Their size gives them a decisive advantage when it comes to achieving economies of scale and competing for large-scale financing transactions. Faced with these structural challenges, French banks’ CIB divisions have already begun to refocus on more profitable activities and implement major cost-cutting plans. However, there is still a lot to be done, notably when it comes to industrialising processes and flows; digitalisation is also changing trading activities. 2.2  Banks and regulators therefore have three focuses for action  The main prerequisite for improving profitability is for banks to put in place individual restructuring strategies. There are a number of levers they can use for this: technological innovation, cost control or the diversification of revenue sources [slide 5]. On this latter issue, I would like to underline the resilience of the French “universal” or diversified banking model.
I wish you success and thank you for your attention. 2  Werkgroep Bestuurlijke en Financiële Verhoudingen Nederlandse Antillen – Nu kan het… nu moet het!, p. 11 (8 October 2004). 3  H.J. Brouwer (director DNB) – Schuldsanering van het Land Nederlandse Antillen en de afzonderlijke eilanden., Staten-Generaal, vergaderjaar 2005–2006 30 461, D en nr. 4 (Bijlage 4). 4  BIS Review 164/2009

Over the past five years, significant efforts have been undertaken to modernise Malaysia’s retail payment infrastructure and migrate away from inefficient paper based payment instruments such as cash and cheques. Good progress has since been made, especially in the displacement of cheques. The annual decline rate had accelerated from an average of –1.6% in 2011 to 2013 to –10.1% in 2014 and –16.5% in 2015. Concurrently, there is also an increase in the uptake of electronic fund transfer services. The annual growth rate for the Interbank GIRO (IBG) had increased from an average of 18.8% prior to 2013 to 34.1% in 2014 and 2015. The Instant Interbank Funds Transfer (IBFT) service had also recorded encouraging growth where its annual growth rate of over 60% since 2011 had further increased from 67.8% in 2014 to 76.7% in 2015, signifying greater confidence in the use of e-payments. However, we must not be complacent. As we move forward, there are two technology trends that hold immense promise to revolutionize the payments market. The first is the proliferation of mobile technology and ubiquitous communications. Increasingly, mobile devices are the preferred channel for consumers to make payments conveniently from anywhere and at any time. The second is the ability to process payments and move funds instantaneously around the clock. Towards this end, Bank Negara Malaysia’s wholly-owned subsidiary MyClear has initiated a multi-year program to modernise Malaysia’s payment infrastructure.
In Europe, the Stoxx 600 lost around 9% over the same period. Various factors contributed to the weak performance of European stocks. Economic momentum has weakened of late and corporate earnings growth remained below expectations in the third quarter overall. Moreover, currency turmoil in Turkey and the budget dispute between Italy and the EU weighed on Europe’s stock exchanges. In Switzerland, the SMI has managed to gain around 1% since mid-year. This  Page 1/5  Berne, 13 December 2018 Andréa M. Maechler  News conference  above-average showing was predominantly due to a strong performance in July, which in turn was mainly driven by positive corporate news in the pharmaceutical sector. On the interest rate markets the picture initially remained mixed due to uneven growth momentum in the major economic regions since mid-2018 (cf. chart 3). In the US, the Federal Reserve confirmed that it intended to maintain its policy of gradual interest rate rises. Against this backdrop, yields in the US continued to rise and the yield on 10-year US Treasuries hit a multi-year high at the beginning of November. This rise in yields receded again in response to another dip in risk sentiment at the beginning of December. Most recently, the yield on 10-year US Treasuries stood at almost 2.9% – close to the level recorded at the end of June. In Europe, on the other hand, yields have been more stable. Yield differentials between US and European government bonds thus also reached a multi-year high in November.

Thomas Jordan also referred to this phenomenon in his remarks on exchange rates. Replacing Libor with SARON  I would now like to update you on the work that is under way to replace Libor with SARON as a reference interest rate. Since the UK Financial Conduct Authority announced nearly a year ago that it would not guarantee the continuation of Libor beyond 2021, this topic has attracted significant public interest. Alternative reference interest rates have now been identified for all currencies in which Libor is used as a reference rate. In Switzerland, the National Working Group on Swiss franc Reference Interest Rates (NWG) is drawing up  Page 2/5  Berne, 13 December 2018 Andréa M. Maechler  News conference  recommendations to ensure a smooth transition. Many of the leading market participants sit on the NWG, which is co-chaired by the SNB and a representative from the private sector. The SNB principally acts as a facilitator and is responsible for running the secretariat. 1 It also maintains links with international bodies charged with preparing recommendations for reference interest rate reforms and ensuring a well-coordinated transition. In October 2017, the NWG recommended that the Swiss franc Libor be replaced by the Swiss Average Rate Overnight (SARON) used for overnight transactions in the secured segment. SARON has already gained in importance as a reference interest rate. In the course of 2017, an interest rate curve developed based on swap transactions referencing SARON.
Such events might mean that the bank would have to suffer a loss although it thought it had protected itself. The conclusion is that the authorities must force the banks to assess whether the risk buyers have adequate financial and organisational capabilities and whether the legal arrangements are robust. As in many other countries, there is a strong tendency in the Swedish financial sector to move from “bricks and mortar”, such as having many branch offices, to providing their services through the Internet and telephone. About half of all payments of companies and physical persons in Sweden are made through the Internet and by phone. This has made it possible to increase bank efficiency in  6  BIS Review 111/2006  terms of staff numbers and branches. Each Swedish bank branch now services an average of 4,700 persons in the population compared to, for instance, only 1,900 being serviced by the German banks’ branches in Germany. Of course, each country is free to choose its own service level and may prefer a higher level, although it brings higher costs. Modern regulation In my view, Sweden abolished its old-fashioned regulations for good reasons. Using the banks for directed lending and for other non-commercial purposes may seem handy for the government, but entails large risks and costs.

As I mentioned, one of the core objectives of supervision and regulation is to support resilience in supervised firms so that they can contribute to the sustained provision of credit and other financial services. We strive to do that in the most effective and efficient manner possible. I mentioned just a few examples of our work in this area, and I look forward to continued dialogue on this key topic. Conclusions We at the Federal Reserve Bank of New York and the Federal Reserve System have a strong interest in understanding the issues facing community banks and ensuring that they continue to play their critical role in the U.S. financial system. We hope that today’s conference sparks an informative discussion around many of those issues. 5/6  BIS central bankers' speeches  I’ll conclude by noting that this conference is just one of several initiatives to encourage communication and outreach with the industry. The Federal Reserve Board also has initiated numerous industry outreach opportunities to provide resources on key supervisory policies, including the development of two programs—"Outlook Live” and “Ask the Fed"—as well as the publication of three newsletters—Community Banking Connections, Consumer Compliance Outlook, and FedLinks. We hope you are able to utilize these resources, and our team will be happy to provide instructions on how you can subscribe to them. Thank you for joining our conference today; I hope you will find today’s presentations useful and informative. 1 FDIC Community Banking Study (December 2012). 2 A Perspective on Supervisory Objectives and Trade-offs, February 23, 2017.
Although that could change depending on how the economy evolves, my views on “when” do not differ appreciably from the most recent primary dealer and buy-side surveys undertaken by the New York Fed prior to the October FOMC meeting.3 I hope the economic outlook evolves so that it will be appropriate to begin to raise interest rates sometime next year. While raising interest rates is often portrayed as a difficult task for central bankers, in fact, given the events since the onset of the financial crisis, it would be a development to be truly excited about. When the FOMC begins to raise its federal funds rate target, this would indicate that the U.S. economy is finally getting healthier, and that the Committee believes it is on a sustainable track to achieving its dual mandate objectives of maximum employment and price stability. That would be very good news, even if it were to cause a bump or two in financial markets. So, when the appropriate time comes, how is the process of monetary policy normalization likely to unfold? In this regard, the revised policy normalization principles and plans that the FOMC released following the September FOMC meeting are informative.4 In particular, the Committee will begin to normalize monetary policy by first raising its target range for the federal funds rate and short-term interest rates will be the primary tool used for tightening monetary policy.

3  See, for example, Joseph Gagnon, Matthew Raskin, Julie Remache, and Brian Sack, “Large-Scale Asset Purchases by the Federal Reserve: Did They Work?” Federal Reserve Bank of New York Staff Report no. 441, March 2010. Several private-sector firms have estimated yield effects of similar magnitude. In addition, a working paper by James Hamilton and Jing Wu, “The Effectiveness of Alternative Monetary Policy Tools in a Zero Lower Bound Environment,” finds that changes in the Federal Reserve’s asset holdings produce considerable yield effects. 2  BIS Review 128/2010  Under this view, the FOMC’s influence on financial conditions is associated with the size and composition of its securities portfolio. This perspective provides a clear rationale for the reinvestment decision made at the August FOMC meeting. The decline in the size of the Federal Reserve’s portfolio that would have occurred in the absence of the reinvestment program would have amounted to a passive tightening in the stance of monetary policy, as the portfolio balance effect would have gradually reversed. Moreover, the extent of this tightening was increasing in response to the weakening of the economy, as lower longerterm yields were leading to more rapid repayment of MBS. This perverse effect was seen by the FOMC as working against its efforts to reach its dual mandate. In effect, the policy approach that was implemented before the August meeting acted to mute the amplitude of movements in longer-term interest rates.
When a shock hits and the correlation breaks down, the hedge breaks down too, with a double whammy to VaR and so, for regulated firms, to regulatory capital requirements: through higher volatility, and a higher measured exposure. To be clear, this is not the fancy of the ivory tower. As discussed in the Bank’s latest Financial Stability Report, it was one of the factors contributing to the recent volatility in the market for US sub-prime mortgage securitisations. Indeed, this hazard may conceivably have increased during a period when markets have not been especially volatile. If investment banking entails warehousing optionality and complex forms of basis risk, it puts a premium on stress testing. Speaking as a policy maker, I would want so-called macro stress tests to be complemented by more fine-grained stress tests in which management explore the exposure to complex risks given their qualitative understanding of their business, and taking into account the possibility of impaired market liquidity. In other words, risk managers need to do “market intelligence”  7  The Bank of England took some steps in this direction as part of the fundamental reforms to its Sterling Monetary Framework market operations in summer 2006. The role of central banks in accommodating sharp (velocity) shocks to the demand for their money was discussed in Tucker P M W (2004), “Managing the central bank’s balance sheet: where monetary policy meets financial stability”, Lecture to mark the fifteenth anniversary of Lombard Street Research, London, June 2004, Bank of England Quarterly Bulletin, Autumn 2004, pp 359-382.

Similarly, in the sterling market here, lower grade spreads widened from around 80 basis points to over 150 basis points but yields paid fell from just over 7% to around 6%. The result has been a notably effective contribution by the bond market to meeting the financing needs of the corporate sector. The past year has, also, in a real sense been the year of Europe. In any event, the prospect then advent of the euro was undoubtedly a major factor driving the increase in bond market activity. Issues by European borrowers accounted for some 25% of the total, and issues in European currencies rose to nearly 30%. Many issuers took the opportunity to issue tributary or parallel bonds which were fungible with the launch of the euro. Others offered large benchmark issues with provision for redenomination into the euro. In parallel, 1998 saw a further rapid expansion in the volume of equity issuance by European names, fed partly by privatisation sales, but reflecting also increased corporate use of the equity market to finance expansion and acquisitions. Even more remarkably, merger and acquisition transactions in Europe rose nearly 50% in 1998, continuing a trend which has seen this area of activity increase by around 35% a year over the past five years. BIS Review 17/1999  –2–  Moreover, January 1999 has by all accounts started the New Year in an even more active vein, with a very high volume of bonds issued, and with the euro accounting for over a third of the total.
Funding of pensions  The savings market in various countries 31.12.2000. As a share of GDP 2.5 Pension funds Securities funds Life insurance  2 1.5 1 0.5 0  um mark land ance many eland Italy lands rw ay tugal Spain eden rland lgi r Fr Ger Ir Fin Sw itze No Por Be Den the Sw Ne  UK  Source : OECD SG Kommunalbanken, 30.august 2002  The organisation of the pension system in Norway will also be of considerable importance to the local government sector as a big employer. The securities market will also be influenced by the pension system Norway will have in the future. Life insurance companies and pension funds are major operators in the Norwegian securities market. • Design of a new pension system: - "Pay-as-you-go" - Fund-based schemes: – Defined contribution – Defined benefit  • Who should bear the risk? SG Kommunalbanken, 30.august 2002  In Norway, the bulk of pensions are funded through the pay-as-you-go system. It is the taxation of current income that pays for the National Insurance Scheme’s current pension benefits. For the vast majority of western countries, estimates show that substantial tax increases will be needed to cope with the ageing of the population. The alternative to the pay-as-you-go system is to build up funds prior to the payment of pensions. These funds can consist of different assets such as stocks and bonds.

This, for example, can be done by refraining from rolling over short-term loans. The spillover effects of unexpected events may therefore be more substantial for bank loans than for securities debt. c)  A well developed debt securities market provides the financial system with two legs to stand on  Financial crises are normally related to the banking system. The crises have partly been the result of a very high concentration of risk in banks. In crisis situations, we have seen that financial institutions and securities markets can be complementary and prevent a credit crunch. One example is the crisis that followed the collapse of the US hedge fund LTCM in 1998. For a period during the crisis, there were substantial problems in the private bond market in the US. Financial institutions increased lending and prevented a more extensive credit crunch. Conversely, we have seen that when there have been problems in the banking sector, securities markets have replaced bank loans. BIS Review 48/2002  7  Changes are now taking place, which I think will contribute to strengthening the Norwegian bond market. Proposed legislation changes will for example provide for the sale of housing loans to a separate entity that finances the purchase by issuing bonds. The proposed legislative amendments would permit a wider range of issues in the bond market. In general, a larger number of issuers and investors would enhance liquidity in the secondary bond market. This could also directly or indirectly strengthen banks’ position.
His belief, with justifiable pride in the Foundation, was that there was no more important contribution the Fed could make and no more competent institution engaged in this effort than the Foundation. Fortunately for the New York Fed, we have a long and productive collaboration with the Foundation. We provide support on curriculum design and professional development. We are working together to help create a new high school in the city with a finance theme. The NAF has adopted the Fed Challenge for its Academies throughout the country. And we benefit in turn by using the Academy’s work as a model for the economic and financial programs we support and initiate. If you care about the economic future of America, you have to care about educational reform and the mission of the NAF. This mission has always been important, but it is particularly important today. Confidence in America depends importantly on success in the education mission. Improving educational achievement will play a critical role in generating the innovations necessary to drive future productivity growth. And yet, US students remain math challenged, and we are awarding a diminishing share of the world’s PHDs in science and engineering. Improving the quality of education is vital to improving the capacity of our citizens to manage the challenges that come from global competition, rapid technological change, and the greater share of the risk they now bear for saving for retirement.

In this pursuit, greater collaboration among the law enforcement agencies (LEAs) as well as between LEAs and the private sector is essential for us to efficiently and effectively connect and assess all relevant information, which will no doubt further strengthen our efforts to fight ML/TF/PF threats. In this respect, it is observed that the Public-Private Partnership (PPP) is gaining momentum and is fast becoming known as a key success factor for effective information sharing in the 1 the Joint Money Laundering Intelligence AML/CFT/CPF ecosystem. To quote some examples, Taskforce (JMLIT) established by the United Kingdom in 2016 has prompted a key shift in 1/3  BIS central bankers' speeches  addressing ML/TF threats. As of June 2020, JMLIT has completed over 750 cases and detected more than 5,000 suspected accounts linked to financial crimes. Similar achievement was also experienced by the Fintel Alliance in Australia where within the span of one year between 2018 to 2019, over 300 cases were successfully completed through the partnership. Other countries within the region have also followed suit – Hong Kong’s Fraud and Money Laundering Intelligence Taskforce (FMLIT) and Singapore’s Anti-Money Laundering and Countering the Financing of Terrorism Industry Partnership (ACIP). In Malaysia, the PPP is undertaken through the Financial Intelligence Network (MyFINet), which involves collaboration and information sharing between LEAs such as the Central Bank, Royal Malaysia Police and Malaysian Anti-Corruption Commission, and private sectors such as financial institutions.