samchain/econo-pairs-v1 huggingface dataset:
In fact, it cannot be ruled out that banks will step up the growth of the most profitable portfolios, which are precisely those the authorities are trying to moderate, to the detriment of the rest, in order to safeguard aggregate profitability. To achieve the objective of exclusively moderating the growth of the exhuberant portfolios, it would be necessary to act on the relative costs of financing, making these more expensive in relative terms, through the activation of a countercyclical capital buffer to be applied exclusively on those credit segments. However, the coexistence between both tools can be complex, especially if a  8/11  transition from one or several sectorial buffers to the total buffer must be made. Accordingly, its use should be confined to very specific circumstances. Another example is the use of capital instruments vs borrower-based tools. From my perspective, making all prudential supervision rely upon the amount of capital that entities need is too reductionist: the experience accumulated during the last financial crisis clearly shows how credit underwriting standards are a crucial element for the stability of the banking system. And this same evidence4 also shows that the analysis of credit standards must be multidimensional. Therefore, it is not enough to supervise and control a specific characteristic of the loan; rather, a comprehensive approach must be adopted in which the different dimensions are addressed. This would also prevent entities from eluding restrictions by adjusting some other dimension of the loan.

Nevertheless, this has been important in not burdening those at the top with micro-management tasks and in ensuring that no decisionmaker has an information advantage ahead of a policy decision. A final reflection regarding internal matters (following the perspectives of WHAT we should do and HOW we should do it) is in fact WHERE? Our playing field is increasingly stretching beyond national borders, above all in the case of stability work in an open economy with cross-border banking operations. In the central bank of the past, international work was something that was conducted by experts in this "craft" (whatever this craft may be). Today, the international arena is a necessary playing field for us in the performance of our ongoing  2  BIS central bankers’ speeches  tasks and we must create an organisation that is capable of working effectively and in a coordinated way in several different arenas at the same time. International work must become an integral part of our day-to-day work on the issues, not least since the outcome of international negotiations will affect ourselves in the form of EU-legislation or peer pressures from the BIS, IMF or other bodies. Lessons from the recent financial crisis So far, I have discussed how the Riksbank organisation has developed on the basis of the experience gained during the previous crisis. What lessons should we now learn from the latest global crisis? What are the greatest challenges and what form should a useful central bank take in the future?
Sarah Dahlgren: Supervisory reform for global banks Remarks by Ms Sarah Dahlgren, Executive Vice President of the Financial Institution Supervision Group of the Federal Reserve Bank of New York, at the Center for Transnational Legal Studies Seminar on “The impact of US regulatory reform on global banks”, New York City, 12 February 2013. *  *  *  Thank you for the invitation to speak today. Please note that the opinions I express today are my own and do not necessarily reflect those of the Federal Reserve Bank of New York or the Federal Reserve System. Although the topic of the seminar is “regulatory reform”, I will focus my comments on “supervisory reform”. Regulation and supervision work together to ensure a strong global financial system. While rules and regulations set out the standards that must be met, supervision provides the necessary oversight and enforcement to ensure firms are following the rules. It’s a challenge to supervise a large internationally active firm. Many businesses are truly global and often include complex booking models that may involve trades being originated in one domicile with various sub components being booked in one or more other jurisdictions. As Governor Tarullo noted in a recent speech, there are unique challenges in regulating and supervising the U.S. operations of a global institution. Although we have full authority over the local operations, we see only a piece of your global operations and regular access to information can be limited.

The Swedish economy appears to be growing at a rate that is reasonable and broadly expected. At the same time, inflation is lower than expected. The prospect that the Riksbank faced last autumn, of inflation two years hence being half a percentage point above the target, no longer seems probable. For monetary policy, the outlook has accordingly changed. The present inflation prospects clearly imply that the need to raise interest rates has disappeared for now. A strict interpretation of the Riksbank’s rule that monetary policy is to focus primarily on the second of the coming two years could even indicate some downward adjustment of the instrumental rate. What the BIS Review 47/1998  -7Riksbank now has reason to consider is whether a minor downward interest rate adjustment would lead to good conditions for a stable economic development in the future. 4. Conclusion Stabilisation policy in Sweden was realigned in the early 1990s and focused on low inflation. The background was our own and other countries’ experience in the 1970s and 1980s. Repeated attempts to stimulate demand, with a view to boosting employment, and accept the associated increase in inflation had failed to produce the intended results. On the contrary, economic activity had become more unstable and growth in the longer term had, if anything, weakened. In recent years the results of the policy realignment have been good in many respects. Economic growth in Sweden has been higher than in the latter part of the 1980s and it has proved possible to combine this with low inflation.
Let me end with a few reflections about European financial integration in my capacity as Governor of the Bank of Spain. European financial integration should also be further enhanced by taking further steps to cover the existing gaps in the Euro area financial architecture that still prevent the complete eradication of fragmentation risk among European countries. Completing these well-known gaps by finalizing the Banking Union should also come to the fore of EU financial policy priorities. While banking activity transcends national frontiers, and supervisory and resolution powers have been transferred to common institutions, the guarantee on deposits is still borne by Member States. Completing the third pillar of the Banking Union, namely a fully-fledged Deposit Guarantee Scheme, will not only provide a credible safety net for depositors in an integrated banking market, but also will provide the necessary legitimacy of any institutional arrangement. In sum, completing the Banking Union is a crucial ingredient in helping to create the appropriate institutional and regulatory conditions for banks, investors and other stakeholders to adapt to the profound challenges the financial sector is and will be facing in the future. Many thanks for your attention. 3/3

Conclusion 30 I have probably spoken longer than I should. I think this only goes to show the many areas of supervision which the different panels will no doubt delve further into. May I wish everyone a most fruitful and interesting meeting. I do hope that all visitors in this meeting will also be able to set aside a little time to enjoy Singapore’s lively sights and sounds. 5/5  BIS central bankers' speeches
In big picture terms, the Bank of England’s programme of auctions to purchase small amounts of a fairly wide range of sterling corporate bonds can be viewed as one manifestation of that broad approach to MMLR. The aim has been to aid improvements in the liquidity of the market, including by reducing the inventory risk to “market makers”. But our community is some distance from thinking through the extent to which this kind of thing should feature as a permanent part of our armoury. While not an urgent issue, it is an important one given the increasing role of capital markets in our financial system. Recovery plans, and contingent capital Whether provided to individual firms or to markets, routine liquidity insurance will not always suffice. Sometimes a liquidity problem is triggered by fundamental problems. Sometimes a liquidity crisis creates credit problems through the effects of a fire sale of assets. Firms must plan for distress. Not only is that in the interests of the financial system and, indeed, of the economy more widely, it is in the interests of firms themselves. At not a few distressed firms around the world, at times over the past three years the leadership “lost it” under the pressure of events. Contingency planning is essential. Regulators must make firms do it – properly. And that means for really disagreeable scenarios. As the UK’s FSA has recently explained, 3 the clear recommendation of the G20-sponsored Financial Stability Board is that these contingency plans need two, distinct components.

•  In lending against a wide class of collateral, the central bank must apply appropriate haircuts, and must be capable of valuing the assets and of managing them in the event of a counterparty default. Our haircuts are published and include various addons for particular risks. And the underlying assets accepted as collateral should have a viable underlying market. BIS Review 144/2009  1  •  As a means of effecting the delivery of insurance, secured loans (repo or collateral swaps) are preferable in most circumstances to outright purchases, as during the life of a loan central banks can update the value of the security, the collateral margins and other terms that control the risk to them. •  Such lending against wider collateral should routinely be for sufficiently long maturities to help forestall panic by avoiding rollover risk for the firms without exposing central banks to risk by tying them in for unduly long periods. •  Permanent facilities providing bilateral liquidity insurance should routinely be made available only to commercial banks (and other authorised deposit takers). They unavoidably need such insurance because their deposit liabilities are money, giving them a vital role, as monetary institutions, in the economy and financial system. •  But such public facilities should not be available to banks where in the judgment of the central bank there are serious question-marks over their viability or solvency. (As I shall discuss later, that need not exhaust our menu for providing liquidity to individual firms in support operations.
This should be complemented with an incentive structure within each bank that not only rewards revenue generation but also cost reduction. Payment system infrastructure providers Basic payment infrastructure should be viewed as a form of ‘utility services’ such as electricity, telephone and broadband lines, where it is regarded as a key enabler for innovation. Hence, access to payment infrastructure should be made as open and as affordable as possible. The bigger the network of a payment infrastructure, the more value it can bring to its participants in terms of economies of scale and multiplier network effects. Payment system infrastructure development should be shared and not be regarded as a competitive tool as investments in this space is expensive and continuous. Therefore, payment system infrastructure providers such as MEPS and MyClear should collaborate more effectively to avoid duplication and wastage. In addition, MEPS and MyClear should also collaborate and put in place common payment system infrastructure that would benefit all stakeholders. The recent collaboration between MEPS and MyClear under the Malaysian Chip Card Specification (MCCS) initiative to migrate the domestic debit card to the Europay-MasterCard-Visa (EMV) standard and contactless feature is a step in the right direction. 2  BIS central bankers’ speeches  Moving forward, MEPS and MyClear should jointly identify areas for strategic cooperation, with a clear line of sight to the future, to ensure that payment system infrastructure in Malaysia continue to keep pace with innovation and meet user needs.

Migration path, five years after In 2011 Bank Negara Malaysia had developed a comprehensive roadmap in its Financial Sector Blueprint to drive the migration to e-payments with measurable targets to be achieved by 2020. Over the last 5 years, Bank Negara has worked with the payments industry to put in place conducive regulatory frameworks, agree on market incentive structures and build enhancements to e-payment infrastructure and services. Our aim is to provide an enabling environment for individuals and businesses to migrate away from paper based payment methods and adopt e-payments instruments. The results have been encouraging. Since the implementation of the Pricing Reform Framework in May 2013 and the e-Payment Incentive Fund (ePIF) Framework in January 2015, cheques which had only declined at a marginal rate of 2% on average from 2011 to 2013, had declined at a higher rate of 10% in 2014. The decline in cheque usage had accelerated to 16% for the first 9 months of this year. Consequently, the number of cheques cleared is projected to fall from about 207 million in 2010 to 149 million by the end of 2015. If such decline rate is sustained, the target of reducing cheques to 100 million per year by 2020 would be achieved. The reduction of about 100 million cheques above saves a minimum of RM300m not taking into account other savings in terms of efficiency and security. Similar trend was observed in the number of electronic fund transfer transactions.
Both global trade and financial integration aided the growing US domestic consumption as well as the twin deficits of the current and fiscal accounts. Trade integration facilitated exports especially from Asia to meet the US demand. On the other hand, increasing financial integration allowed emerging economies with fast rising export revenues to invest the money in the US market where there is a wide variety of financial assets and instruments. At the same time, financial institutions in most  BIS Review 147/2008  1  advanced economies and a number of emerging economies have invested in opaque financial products, which originated in the US and spread globally through financial integration. Therefore, with economic integration at the global level, the large global savinginvestment mismatches between the US, who is a net spender, and emerging market Asia and others, who are net savers, were allowed to persist for a continued period. In addition, with global financial integration, what was originally expected to be a US problem once imbalances unwind, has turned into a global crisis. Ladies and Gentlemen, One common and frequently asked question is whether further integration at both the global and regional levels, especially financial integration, should be deterred as it has created channels that allow a financial crisis in one country to spread to various parts of the world. I believe that, like all economic matters, integration offers benefits and comes with costs.

While 4% may not sound much higher than 2%, the difference is large enough that people would have to consciously take account of inflation in their decision making. Moreover, it is unexpected movements in inflation that are particularly costly and capricious in their impact, and there is a well documented empirical relationship between the level and the volatility of inflation (see, for instance, Chart 10). There is a risk that even a modest increase in the target, such as the IMF advocates, would lead to a corresponding increase in inflation volatility. Such an increase in the target should not be regarded as costless. Moreover, it would be particularly dangerous to raise inflation targets at this juncture, as one should expect nominal interest rates to rise roughly in line. Even if expected long-term real interest rates were thus unchanged, the fall in bond prices would lower wealth and worsen the already-impaired balance sheets of financial institutions. So raising the inflation target represents a risky way of providing more room for manoeuvre in the face of a once-in-acentury financial crisis, whose potential repetition is any case best prevented through other means, as I will explain below. A more potent challenge to the regime comes from the charge that, while the inflationtargeting regime may have delivered the goods during the Great Moderation, it singularly failed to prevent the build-up of the financial imbalances which are now unwinding so painfully.
Adnan Zaylani Mohamad Zahid: Charting the next financial sector blueprint – digitisation, climate change and resilience Speech by Mr Adnan Zaylani Mohamad Zahid, Assistant Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Financial Market Association of Malaysia's Annual Dinner, Kuala Lumpur, 22 November 2019. * * * It is an honour and a great pleasure to be here and see many familiar faces at tonight’s Financial Market Association of Malaysia’s annual dinner. The last time I attended this dinner was three years ago, when I was the Assistant Governor overseeing the financial markets and the Financial Market Committee chair. I left this role in September of 2017, unable to resist the offer and allure of pursuing a public policy degree. Though we had done much by then to deal with the many challenges following the financial market development measures put in place at the end of 2016, I have to admit that I left with a sense of regret and uncertainty. The regret was from not being able to be part of the team to see things through, and uncertainty from the fact that the stakes were high and any measure of success then was fleeting. These concerns proved to be unwarranted. The FMC continued to play a key role in mobilising the industry and providing a much needed reality check and feedback from the market in terms of intelligence and insight, which helped the Bank navigate through those challenging times.

Financial market conditions are expected to be increasingly complex with rapid changes in technological advancements. The ever-changing geopolitical positioning also continuously shifts investment priorities and risk appetite. Closer to home, while domestic growth is expected to remain sustainable, many uncertainties and challenges persist, and thus it is critical to ask ourselves, how do we respond? With the current 10-year Financial Sector Blueprint approaching the end of its horizon in 2020, the time has come to chart our path for further development. At the Bank, we are in the midst of 2/4  BIS central bankers' speeches  much research, analysis and formulating possible paths for our future. Based on this, we will be looking to engage financial markets stakeholders to set the framework for market development over the next five years. We have set a shorter horizon, acknowledging that in this era, changes occur rapidly and the longer horizon is rife with greater uncertainty than before. While these discussions are ongoing, I wish to share three main focus areas for the next plan as follows: Firstly, given the active adoption of advanced technology in all aspects of our lives, the digitisation of the financial markets is not only an obvious step forward but an inevitable one. With evolving business practices and economic activities, there is urgency for us to adapt and elevate our infrastructure to ensure that our markets remain competitive and dynamic, while preserving an environment of financial and market stability.
A rough measure of liquidity, the ratio of bonds sold and the stock of outstanding bonds, shows that bonds were sold around 4 times during one year in the Swedish mortgage bond market. This can be compared with the market for Swedish government bonds, where the corresponding turnover rate is around 7. The difference is not insignificant, and indicates that more can be done to create a more liquid secondary market for Swedish mortgage bonds. The new legislation will create the conditions for improved terms for mortgage institutions and housing finance. However, the responsibility for making use of these conditions will lie with the banks and mortgage institutions themselves. A decisive factor as to whether the banks and mortgage institutions will succeed in utilising the new conditions offered through secured bonds is that they listen to investors’ wishes. First and foremost, this requires establishing a liquid secondary market for secured bonds. This requires willingness to issue large volumes of bonds in the primary market. Maturities and constructions must also be tailored to investors’ requirements. The institutions have not always had to work in this way in the domestic market. The composition of mortgage institutions’ loan portfolios, and the state of the institutions’ borrowers, are of course decisive factors in pricing the securities issued by the mortgage institutions. The mortgage institutions’ lending, broken down into different types of property, shows that most of the lending, around 94 per cent, goes to financing ownership of single-family dwellings and apartment buildings.

Lars Nyberg: Economic activity and housing finance in Sweden Speech by Mr Lars Nyberg, Deputy Governor of Sveriges Riksbank, at a conference, in Frankfurt am Main, 4 June 2004. *  *  *  I would like to begin by thanking you for the invitation to come here to Frankfurt and introduce “EuroCatalyst Investment Focus: Nordic covered bonds”. I shall start with a few words about the Riksbank’s activities. With the objective of maintaining price stability, the Riksbank conducts a clear monetary policy with an inflation target of 2 per cent one to two years ahead, with a tolerance for deviations of plus/minus 1 percentage point. In addition, the Riksbank has the task of promoting a safe and efficient payment system. As part of its work on carrying out these two tasks, the Riksbank publishes an Inflation Report four times a year and a Financial Stability Report twice a year. The most recent Inflation Report was published last week, while the latest Financial Stability Report was published the day before yesterday. For those of you that are interested in economic and financial developments in Sweden, I would recommend that you read both Reports. Economic activity Everything I mention now about economic activity and the assessment of inflation is taken directly from the Riksbank’s latest Inflation Report (2004:02), which was presented on Friday, 28 May. In the Report we forecast GDP growth in the OECD area to average around 3 per cent over the coming three years.