samchain/econo-pairs-v1 huggingface dataset:
The whole our work was supported by qualitatively improved financial literacy of the public, analytical study of several phenomena, matters of interest for the development of the country, and production of financial statistics conform to international standards. Finally, I would like to emphasize that the Bank of Albania has been a serious and important player in Albania’s integration project, completing and updating all its legal responsibilities and institutional commitments. *** Honourable Ladies and Gentlemen, In my speech, I will address the key issues of the Annual Report, focusing on main directions of Bank of Albania’s work over the past year. I will start my speech with our work and results in fulfilling the primary objective: achieving and maintaining price stability. 1. Economic developments, price stability and monetary policy in 2012  As I said in the introduction of my speech, the year 2012 was another difficult year for the Albanian economy. Weaknesses in our financial and trading partners were manifested in a low demand for Albanian exports, tight financing conditions for foreign capital, and elevated uncertainty among economic agents. Also, the public and private sector domestic demand remained weak in the Albanian economy. Besides these factors, two other specific shocks hit the economic activity over the past year. Hence, bad weather in the first quarter was reflected into a sluggish activity in construction and export over the period. The banking system’s response to new and tighter regulatory measures provided by the European Banking Authority (EBA) was the other shock of higher importance and influence.

To combat and address the consequences of climate change, we should all work together in supporting the transition to a low-carbon economy, and factoring in these climate-related risks in our business strategies and investment processes. On this, we are delighted to see that the momentum of sustainable finance has been gaining traction in the past few years, which has also brought about new opportunities in this fast-growing space. Green bond issuance 14. One of the HKMA’s priorities in recent years is to continue to strengthen Hong Kong’s position as a regional green and sustainable finance hub. With that in mind, we have put in substantial efforts and resources in this area, and actively reached out to potential green bond issuers to grow the market. On this front, we are pleased to note that the green and sustainable bond issuance amount in H1 2021 has already exceeded the whole year of 20201. More recently, the Shenzhen Municipal Government has successfully issued a total of RMB5.0 billion of offshore bonds in Hong Kong, RMB3.9 billion of which were green bonds. It was the first time for a Mainland local government to issue offshore bonds in Hong Kong. We hope that this would attract other Mainland local entities to follow suit and make use of Hong Kong’s platform to issue green bonds, thereby enhancing Hong Kong’s role as a major green finance hub for the Mainland, in particular the GBA. 15.
In addition, this will help reduce the feedback loops between the banking sector and the public sector. These loops arise when risks in the financial sector are resolved using public funds, weakening the fiscal budget which can, in turn, increase risks in the financial sector. The way forward As I said, these are key lessons for Sweden and the international community more generally and, as a result, there has been a significant amount of work by authorities and academics on the issues since the crisis began. The Riksbank is involved in this work through its engagement in the national and international debates and proposals on possible reforms to the financial system and through its own work on possible measures. For example, the Riksbank recently published an inquiry into risks on the Swedish housing market, including the risks associated with rising house prices and increasing household indebtedness and possible measures to address these risks. The new capital adequacy and liquidity rules included in Basel III form a major element of the international response to the crisis. The new regulations are welcomed by the Riksbank. Basel III will introduce a counter-cyclical capital buffer which will form a part of the macroprudential toolkit and entail higher minimum capital requirements which will improve the ability of authorities to resolve failing banks effectively.

(2017), “The treatment of global firms in national accounts,” Central Bank of Ireland Economic Letter No. 2017-1; Avdjiev, S., Everett, M., Lane, P.R. and Shin, H. S. (2018), “Tracking the international footprints of global firms”, BIS Quarterly Review, Bank for International Settlements, March; also Lane, P.R. (2020), op. cit., and Di Nino, V., Habib, M. M. and Schmitz, M. (2020), “Multinational enterprises, financial centres and their implications for external imbalances: a euro area perspective”, Economic Bulletin, Issue 2, ECB. 4. See Lane, P.R. (2020), op. cit. 5. See Pastoris, F. and Schmitz, M. (2020), “Box 5 Euro area-US current account asymmetries: the role of foreign direct investment income in the presence of multinational enterprises”, Economic Bulletin, Issue 2, ECB. 6. See Lane, P.R. and Milesi-Ferretti, G.M. (2018), “The External Wealth of Nations Revisited: International Financial Integration in the Aftermath of the Global Financial Crisis”, IMF Economic Review, Vol. 66, No 1, International Monetary Fund, pp. 189-222; and McQuade, P. and Schmitz, M. (2017), “The Great Moderation in International Capital Flows: A Global Phenomenon?”, Journal of International Money and Finance, Vol. 73, pp. 188-212. 7. See also Di Nino, V. and A. Ekstam (2020), “What value added in the trade balances of euro area financial centres?,” ECB Working Paper Series, No. 2506. 8. See Lane, P.R. (2015), “Risk Exposures in International and Sectoral Balance Sheet Data", World Economics, Vol. 16, No 4, pp. 55-76. 9.
And that, according to Eurosystem calculations, the output gap will return to close to zero by the end of the year ( 0.6%), even though France’s situation is less favourable due to its growth lag (output gap of around 1.4% according to our calculations). The non-standard monetary policy that we have been conducting since 2014 is contributing to this acceleration of growth in the euro area, by supporting domestic demand and by fostering very favourable financing conditions. In concrete terms, this acceleration results in more jobs – over 6 million jobs created in the euro area since the start of 2013 – and in a pick-up in investment. Corporate investment in particular, decisive for supply capacities, is clearly recovering: up 4.7% in 2015, 6% in 2016, and is expected to be up 4% in 2017 and 2018). [slide] This improvement in investment is underpinned notably by ongoing growth in lending to the private sector, at 2.5% year-on-year in August 2017 for firms and at 2.7% for households, with interest rates moreover remaining very low. This growth in lending is over twice as high in France, which incidentally leads us to be very vigilant at the High Council for Financial Stability. We are also observing favourable developments in inflation, which is gradually moving back towards our target of 2% over the medium term [slide]. After peaking at the start of 2017, the inflation rate stood at 1.5% year-on-year in August.

This is, of course, particularly true for those euro area countries that are currently under an EU/IMF programme or are experiencing disruptions in their sovereign debt markets. Much remains to be done, but we should not forget the steps that have already been taken – although there is no room for complacency. Based on a direct estimation of revenue and spending (rather than on the cyclically adjusted primary balance), the cumulative fiscal consolidation achieved thus far is in excess of 10% of GDP in each of the three countries under EU/IMF programmes. While some countries have, most regrettably, fallen behind the targets in their programme, the consolidation efforts are significant in absolute terms. One of the reasons why countries did not reach their headline deficit targets is to be found in the economic headwinds they are experiencing. Negative economic growth, higher interest  4  BIS central bankers’ speeches  payments and higher social security spending have led to quasi-automatic increases in expenditure and obscure the fiscal consolidation efforts. This stresses the importance of the implementation of well-designed and ambitious fiscal adjustment programmes being accompanied by growth-enhancing structural reforms. There is no doubt that the long-term effects of fiscal consolidation on growth and employment are positive and significant. Whereas fiscal consolidation may have a dampening effect on economic activity in the short run, the extent to which it does so depends on several factors, such as the composition of the fiscal adjustment. National authorities need to set ambitious and credible targets, and to stick to them.
Research on central bank committee design shows that diverse decision‐making bodies benefit from:   Having a clearly defined policy objective;    Having relatively small policy committees, with external members;    Publishing policy decisions, and;    Allowing for external scrutiny. How the Bank of England is becoming more diverse Five years ago we made Diverse and Talented one of four pillars of our strategic plan. Our aim was not just to increase diversity; but also to choose inclusion. Inclusion unlocks the true value of an organisation’s diversity. Only through inclusion can people realise their full potential. That’s why the Bank is focussing on building a culture that values diverse ideas, encourages open debate, and empowers people at all levels to take initiative. Our strategy has three elements:   Inclusive recruitment,    Inclusive culture, and    Inclusive communications. First, inclusive recruitment We are fishing from a larger pond. In recent years our graduates have come from 40 different universities, a six-fold increase in the past decade. Of our 2019 intake, due to join us in September, 46% of graduates are female and 39% are declared BAME students. This compares to a BAME share of 20% five years ago. To support diverse recruitment at all levels our managers are now required to undertake unconscious bias training. We use anonymous CVs for internal and external recruitment and strive for balanced shortlists and interview panels.

While BAME representation at senior levels has increased from 2% to 5% since 2013, we still have some way to go to meet our ambitious target of 13% by 2022. The Bank’s experience is consistent with that of other organisations as documented by “The Middle” (a thorough, evidence-based research report on progressing BAME Talent in the Workplace commissioned by the Black British Business Awards).3 This study concluded that across organisations the challenges were greatest in retaining and promoting ethnic minority professionals from middle management to senior executive roles. We’re pleased that the changes the Bank is already making are consistent with the report’s recommendations. To maintain momentum, the Bank recently created a BAME Diversity Taskforce, chaired by Deputy Governor Sir Dave Ramsden and attended by members of both Court and our BEEM network. This Taskforce is now focusing on: First, supporting the progression of BAME colleagues to leadership roles by rolling out inclusive leadership training for all colleagues and having all senior management including the Bank’s Governors participate in our Sponsorship programmes and mentoring schemes. Second, supporting our ethnic minorities network (BEEM), which has achieved much since its foundation in 2012. This includes implementing reciprocal mentoring of 150 of our BAME colleagues each year. BEEM has also set up, with HR, the Bank's African/ African-Caribbean scholarship programme. Launched in 2015, we have awarded 10 scholarships and 8 bursaries to talented students studying a range of subjects from Chemical Engineering to Politics and International Relations.
At the regional level, countries can make a valuable contribution to regional and global stability by joining voluntarily with their neighbors in mutual surveillance. The objective should be to complement IMF surveillance by developing a “club spirit” through which neighboring countries can encourage one another -- and, at times, exert some peer pressure on one another -- to pursue sound policies. We welcome the efforts being made in this direction in various fora. To be effective, such regional surveillance will, of course, have to be based on sound economic analysis. In this connection, the management and staff of the IMF are ready to contribute to regional surveillance in Asia, as they already do in Europe, the G-7, and other fora. Indeed, one of the tasks of our new regional office in Tokyo could be to help promote more intensive regional surveillance. V. The response of the Fund At the multilateral level, the international community sees it as indispensable to work and cooperate through a central institution, the IMF, in order to help countries deal with the opportunities and risks of globalization. And given the challenges of the global financial markets, the international community has encouraged the Fund to strengthen its capacity in this respect. The Fund’s response centers on four broad areas. First, we have strengthened Fund surveillance, which, as you know, lies at the heart of the IMF’s efforts to maintain an orderly international monetary system.

Øystein Olsen: Management of the Government Pension Fund Global (GPFG) Introductory statement by Mr Øystein Olsen, Governor of the Norges Bank (Central Bank of Norway), before the Storting’s Standing Committee on Finance and Economic Affairs, Oslo, 30 April 2013. *  *  *  Please note that the text below may differ from the actual presentation. Charts in pdf I would like to thank the Chairman and thank you for giving Norges Bank the opportunity again this year to report on the management of the Government Pension Fund Global (GPFG). Chart: Changing the regional allocation The investment strategy of the GPFG builds on its specific features, purpose and our perception of the functioning of financial markets. The GPFG is a large fund and features a long investment horizon. The objective of investment management is to preserve the longterm international purchasing power of the GPFG. In 2012, the investment strategy was changed. As a result, investments in emerging markets have increased. Just over 10 percent of the overall portfolio is now invested in these markets. Chart: Increasing investments in real assets The allocation to equities was increased to 60 percent between 2007 and 2009. When the allocation to real estate reaches 5 percent further ahead, the GPFG's allocation to real assets will make up two-thirds of the overall portfolio. The long-term expected return on real assets is higher than on nominal bonds. The risk is also higher, but the long-term investment horizon puts us in a solid position to carry that risk.
I am not going to reflect on that tonight, but while the original announcement came as a shock to some business models, the PRA’s assessment was that it did not appear to compromise the safety and soundness of firms in way that threatens our objective, and nor did it threaten our insurance objective of policyholder protection. No firm has failed, but bear in mind that orderly failure is very much consistent with our objectives being met. That is what should happen in my view, namely the prudential position should be sufficiently safe and sound to accommodate changes in other areas of public policy. It is not easy in our world to point to indications of when our objectives are met, a point made to us quite rightly by the National Audit Office. I would offer this as one such indicator. I will spend the rest of my time commenting on a four areas where we are either taking action or watching very carefully to determine whether action may be required. The first is the capital framework for banks – which is distinct from, but related to, the capital position of banks that I mentioned at the start. There are now three planks to the capital framework: a risk-based assessment which may be based either around firms’ internal models or a standardised approach; a measurement of leverage; and stress tests.

We take all of our responsibilities very seriously, as of course we should. Across the board, there have been developments over the last year that give me a sense of cautious satisfaction – by the way, that is at the happier end of the spectrum of emotions for a central banker Seriously, I am afraid that we must not get carried away here. We are in many ways in the second phase of the financial crisis. The first phase was a prudential one, while the second phase has revealed past misconduct. Fixing the financial system requires more than just fixing capital and liquidity standards. Standards of governance, conduct and the right incentives structures are all extremely important. After commenting on two material development this year I want to use the rest of my time to set out four areas where we are either taking action, or watching very carefully to determine whether action may be required. Let me start by describing two developments which point to some cautious satisfaction. First, the capital position of UK banks has strengthened. Market conditions have supported actions to raise capital and reduce non-core assets, and banks have taken advantage of those conditions. The targets that were set as a consequence of the FPC and PRA exercise of nearly two years ago have been met ahead of schedule. The banking system is now more able to support lending and the growth of the economy.
That higher demand comes from two main sources:  -  First, the number of firms with access to the Bank’s balance sheet through the SMF has increased ten-fold, from 17 in 2005 to over 200 today.10 That follows a deliberate push on our part to expand access to smaller banks, CCPs and broker-dealers as part of ensuring the Bank is ‘open for business’ and responsive to changing market needs. -  Second, there has been a sharp rise in SMF members’ target liquidity holdings, reflecting both the material strengthening in post-crisis regulatory requirements, and firms’ wish to hold buffers well above those minima. To give a sense of the scale of this effect, major UK banks now hold more than £ trillion of assets classed as liquid for regulatory purposes – more than four times higher than pre-crisis. A quarter of that is held as central bank reserves. In addition to implementing unconventional monetary policy and meeting firms’ financial stability needs, the Bank’s balance sheet operations have also delivered effective interest rate control. The key to this is that there is an abundance of reserves, all remunerated at Bank Rate. The excess of reserves pushes down on overnight markets rates, but they are prevented from falling much below a floor of Bank Rate by the fact that banks can borrow reserves in the market and earn Bank Rate by depositing them at the Bank of England.

23  14  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  14  A benefit of our approach is that it allows choices over the asset composition of our balance sheet (eg between OMOs and outright holdings) during QT. At the same time, we retain one of the key benefits of a floor system, which is the capacity to allow for the smooth expansion in assets and reserves in the future, whether for liquidity insurance purposes or for monetary policy goals as directed by the MPC, without interfering with interest rate setting. At least two design challenges remain, however. The first is that we cannot perfectly anticipate how short-term market interest rates will behave in the new system, and will therefore need to be responsive in our operational approach:  -  It is likely that market rates will be a little higher on average relative to Bank Rate than they are now, reflecting the fact that reserves will be in somewhat scarce, rather than ample, supply. As a one-off shift, this is unlikely to be of great significance to the setting of monetary policy. -  Market rates may be slightly more variable too, particularly initially as banks adjust to the new system and learn to identify and bid for the amount of reserves they need.
Key entry points for financial inclusion These could be through: (a)  Direct loans or banking facilities to the targeted vulnerable communities or groups;  (b)  Facilitation of economic activity in a particular geographical area of operations or location;  (c)  Development of local or national infrastructure to enable a particular type of business activity, which could then be practiced or performed by a group or groups which can include women; and  (d)  Providing an enabling environment and/or enhancements for such economic activity to take place. The enabling environment includes laws, regulations, taxation, skills development, duty waivers, subsidies, etc. In this context, tax concessions and duty waivers given to make enterprises be “financially inclusive” are often forgotten. In fact, due to lack of awareness, enhancement of access to finance or financial inclusion that has already taken place in various sectors, and the enabling environment that has been created, are taken for granted with no value attached to them. Women’s contribution to economic development Let me now deal with the importance of women’s contribution to the economic development in Sri Lanka and assess whether financial inclusion of, and access to finance by women are on par with the contribution they make. Women in Sri Lanka have been engaged in economic activities over centuries of history primarily through employment. Due to low productivity and inadequate incomes in the agricultural sector, women in small farm families have moved from unpaid family labour to other occupations, in particular, to garment factories and employment abroad.

This initiative has helped to enhance financial inclusion as post offices are patronized by women as well;  •  Setting up of a credit and debt management council by the Central Bank: to provide advice to individuals and companies on their credit problems and denial of access to finance, the Central Bank of Sri Lanka has initiated this process; and  •  Preparation of a Micro Finance Regulatory Act by the Central Bank of Sri Lanka: One of the impediments in Sri Lanka is that the system does not enable an effective monitoring system through a regulatory framework, which monitors progress of women accessing credit and their financial inclusion. To remedy the problem, the Central Bank is now working on a Micro Finance Act, through which micro finance institutions will be brought under a prudential regulatory framework. Need for a comprehensive program to increase financial inclusion of women It is important to note that initiatives cannot be taken and implemented by the Government alone. Government could perhaps be the main motivator and driver. The promotion of women entrepreneurial activities and financial inclusion has to be elevated to a policy debate. There should be a serious commitment by banks and financial institutions, and their business development sections should be proactive and ensure that credit delivery to women engaged in relevant sectors is given priority. In addition to the major infrastructure development projects, many village level enterprises and projects are coming up within a short period of time.