samchain/econo-pairs-v1 huggingface dataset:
Eddie Yue: Hong Kong's positioning and prospect as an international financial centre Opening remarks by Mr Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, at The People's Bank of China and Hong Kong Monetary Authority Joint Seminar “Hong Kong's positioning and prospect as an international financial centre”, 9 December 2021. * * * Distinguished guests and friends in Beijing, Hong Kong and overseas: Good afternoon, and a very warm welcome to you all. I begin with heartfelt thanks to Governor Yi, not only for his inspiring opening remarks, but also for the unfailing support the PBoC has given to Hong Kong over many years. My colleagues and I also extend our gratitude to international institutions such as the BIS and the IMF for your close partnership through all these years. Without your support, Hong Kong’s financial sector would be in a far less robust position than it is today. In a little over six months we will be celebrating the 25th anniversary of Hong Kong’s establishment as a Special Administrative Region. This is a good moment to pause – both to reflect on Hong Kong’s success as an international financial centre, and to consider the steps we need to take to build on that success. Tackling such a vast subject in ten minutes is a tall order. Let me make an attempt by asking two simple questions. What are the attributes of an IFC? And, how far does Hong Kong possess them? I do not have all the answers.

Christian Noyer: European financial markets – opportunities for growth and value creation Speech by Mr Christian Noyer, Governor of the Bank of France, at the First French-Indian Financial Forum, Paris EUROPLACE, Mumbai, 16 May 2007. *  *  *  Ladies and Gentlemen, In the absence of Mr Mestrallet, Chairman of Paris EUROPLACE and CEO of Suez Group, who cannot be with us today because of last minute commitments that require his presence in France, I have the great pleasure of welcoming you to our first French-Indian Financial Forum in Mumbai. India’s rapid economic growth in recent years makes it an attractive investment destination for international investors. And the economic revival in Europe also offers interesting opportunities to Indian investors and issuers wishing to diversify their investment strategy. That’s why Paris EUROPLACE believes that we all have a common interest in attending this forum today to discuss business opportunities between European and Indian Financial Markets. I would like to express my warm thanks to my friend Dr. Rakesh MOHAN, Deputy Governor of the Reserve Bank of India, for being with us today. We are also very honoured to welcome Mr Ashok WADHWA, Chairman, Capital Markets Committee of FICCI, the partner of Paris EUROPLACE in the organization of this forum, Mr Ravi NARAIN, Managing Director and CEO of the National Stock Exchange of India Ltd and Mr Peter KURIAN, Chairman of the Association of Mutual Funds in India, as well as all the other distinguished representatives of the Indian and French financial communities.
The new legislation will make clear that the aim  2  BIS central bankers’ speeches  of banking regulation will be to ensure that the adverse impact of a failure of a firm on the stability of the system as a whole is minimised. That is why resolution will be at the heart of the new regulatory regime – supervisors should act knowing that resolution powers can and will be deployed in the event of failure. But adequate resolution procedures are not an alternative to ensuring that banks have sufficient loss-absorbing capital; rather they are complements. All institutions, especially so-called systemically important financial institutions, must have much higher levels of loss-absorbing capital than before the crisis. That should be in the form of common equity. A crucial part of the new Basel III framework is the recognition that only common equity is ultimately a truly loss-absorbing layer of capital. I am, therefore, concerned that the European Commission will propose a weakening of the Basel standards in that area. Moreover, as the IMF made clear in its recent Article IV Report, it would be misguided for the EU Capital Requirements Directive to prevent member countries from imposing higher capital requirements to protect the interests of domestic taxpayers. Nor should European legislation try to prevent the FPC from varying macro-prudential instruments, including capital ratios and risk weights, as appropriate to national circumstances. The Basel framework was agreed globally after long and difficult negotiations, at the request of the G20.

While such a divergence of opinions in Islamic financial transactions is not a new phenomenon, it has now prompted increased international dialogue among the Shariah scholars from the different parts of the world. It is the closer linkages between the global Islamic financial markets and the increased platforms for greater engagement on Shariah issues that will contribute towards promoting an increased common understanding and mutual acceptance on the rules, standards and Shariah views, and for convergence to occur. This would evolve global Shariah standards for the Islamic financial industry. As Islamic finance continues internationalise with expanding scale, there will be greater financial intermediation linkages among the East Asian, West Asian, and the Middle East regions – creating the "New Silk Road". While this New Silk Road of financial flows is enhancing connectivity between Asia and the Middle East, both regions have, as in the case of the old Silk Road, extended the New Silk Road to the rest of the world. Global investors and the international financial community have already drawn benefits from the increased diversification of investment activity to the two regions. The expansion of the interlinkages of  4  BIS Review 136/2008  intermediation to and among these regions would in turn contribute towards a more efficient allocation of capital in the global financial system. Closing remarks Against a backdrop of an increasingly uncertain global environment, Islamic finance, as a form of financial intermediation in the international financial system, has continued to be viable and competitive.
Reflecting the complex, systemic, and cross-national nature of the threats, recent global initiatives have been undertaken at multiple levels. At the international level, SWIFT has taken the lead through its Customer Security Program (CSP). At the core of the CSP is promoting increased transparency concerning the adherence of SWIFT users to best practices on internal controls, with a related attestation required by the end of this year. At the global standard-setting level, the BIS Committee on Payments and Market Infrastructures (CPMI) initiated last year a Task Force on Wholesale Payments Security. The Task Force was established to look into the security of wholesale payments that involve banks, financial market infrastructures and other financial institutions. This effort builds on previous work by the CPMI on cyber security and operational risk and is working to make sure there are adequate checks and balances in place at each stage of the payments process. While these international efforts are important and necessary, they are in themselves inadequate unless there is buy-in at the institutional level for strengthening internal risk frameworks, controls, and cultures. For some, this may require investing in expanded technical capabilities. But for all, this is represented by “going back to basics” by continuously reinforcing strong risk management policies and practices in your work environments. Cyber incidents often originate from an initial breakdown at the human level, be it inserting an unauthorized USB drive, leaving a token inserted overnight, clicking on an improper link, or falling prey to social engineering.

But the degree of commitment is bound to be greater, compared with job creation of any kind, for new capital investment. And it’s clear in the data that it’s investment that’s particularly susceptible to uncertainty, much more so than employment. One way of demonstrating that is Chart 9. The blue line in this graph is the difference between the growth rates of employment and investment. The spread between the two is clearly correlated with uncertainty and, in that context, the fact that employment growth has held up much better than investment in the past year or so is less surprising. What the generic relationship in [1] tells you (as  9  Even the dictum that one “marries in haste [only to] repent at leisure” could perhaps be seen, if only to an unromantic economist, as a lesson about the option value of waiting. 10  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  10  does its particular incarnation in [2] and [3]) is that greater uncertainty – an increase in downside risks in particular – has exactly the same effect as an increase in the cost of finance or a tax on capital income: it penalises investment relative to employment. What is the scale of this effect?
Altmann, R (2009), ‘Why quantitative easing is a disaster for pensions’, article in The Telegraph. Atkinson, A (2015), Inequality, Harvard University Press. Ball, L, Furceri, D, Leigh, D and Loungani, P (2013), ‘The Distributional Effects of Fiscal Consolidation’, IMF Working Paper, No. 13/151. Ball, R and Chernova, K (2008), ‘Absolute Income, Relative Income, and Happiness’, Social Indicators Research, Vol. 88, No. 3, pp. 497-529. Barnes, L, Feller, A, Haselswerdt, J and Porter, E (forthcoming), ‘Information, Knowledge and Attitudes: An Evaluation of the Taxpayer Receipt’, Journal of Politics. Brynjolfsson, E and McAfee, A (2016), The Second Machine Age – Work, Progress, and Prosperity in a Time of Brilliant Technologies, W. W. Norton & Company. Büchs, M, Bardsley, N and Duwe, S (2011), ‘Who bears the brunt? Distributional effects of climate change mitigation’, Critical Social Policy, Vol. 31, No. 2, pp. 285-307. Buiter, W (2014), ‘Central banks: Powerful, political and unaccountable?’, Journal of the British Academy, Vol. 2, pp. 269-303. Bunn, P, Drapper, L, Rowe, J and Shah, S (2015), ‘The potential impact of higher interest rates and further fiscal consolidation on households: evidence from the 2015 NMG Consulting survey’, Bank of England Quarterly Bulletin, 2015 Q4, pp. 357-368. Bunn, P, Pugh, A and Yeates, C (2018), ‘The distributional impact of monetary policy easing in the UK between 2008 and 2014’, Bank of England Staff Working Paper, No. 720.

For example, the MPC’s monetary loosening added around £ per year to the average household’s net interest income, £ to their labour income and £ to their net wealth. The lower part of Figure 1 looks at the effects of non-financial channels on well-being, namely the reduction in the probability of unemployment, translated into income-equivalent units. 44  The increased probability of  being in a job adds in excess of £ each year for the average household. All in, this gives a boost to welfare for the average UK household of close to £ This is large relative to annual household income of £  As a memo item, and point of comparison, Figure 1 also shows an estimate of the annual cost of undertaking monetary policy, using data from the Bank of England’s accounts. 45  On a broad estimate, this annual cost  amounts to around £ per household per year. This “servicing charge” for monetary policy is clearly a very small fraction of the annual benefit to households from looser monetary policy over the period. The disaggregated analysis set out means that, in principle, a monetary policy scorecard like this could be fitted to any individual’s circumstances. As an illustration, Figures 2-4 show scorecards for three different hypothetical households: a renter under the age of 30; a 30-50 year old mortgagor; and a 50-plus home-owning household.
The capital requirements and other constraints we place on the regulated institutions have played an important role in encouraging the transfer of risk to a broader range of institutions, including the leveraged private pools of capital. As the aggregate size and importance of those funds increases, distress among those institutions can have greater effects on overall market dynamics, potentially increasing risks to the regulated core. Over time, this will force us to consider how to adapt the design and scope of the supervisory framework to achieve the protection against systemic risk that is so important to economic growth and stability. For the present, however, our hierarchy of priorities should focus on improving supervisory incentives to make counterparty discipline more effective and to strengthen the resilience of the core institutions to more adverse economic and financial conditions. Thank you. 8  BIS Review 85/2006

One of those efforts is our plan to bring in a simpler regime for smaller banks and building societies – we call this “strong and simple” just in case anybody thinks we want to have a weak regime for such firms. The prudentist does not believe in letting her younger patients develop cavities, but she does want to make their visits more pleasant. As far as I can work out from the many responses to our discussion paper, pretty much everyone thinks this is a good idea. The question now is how to design the simpler regime. The responses set out a broad range of views, which we are currently analysing. For instance, the discussion paper set out two alternative approaches to designing prudential requirements for the simpler regime – a ‘streamlined’ approach, which takes the existing framework as a starting point and modifies elements that are too complex for smaller firms, and a ‘focused’ approach, which is based on a narrower but more conservatively calibrated set of prudential requirements. There are advantages and disadvantages to each, and these will need to be weighed up when 3/5  BIS central bankers' speeches  designing the regime. The responses to our discussion paper seem to suggest relatively stronger support for a streamlined approach, but we’ll keep going through the responses in detail and then bring forward proposals for consultation in due course. Our other main early reform effort is less popular, strictly for the prudential enthusiast only. But it may well be more important.
Statistics do not have a heart or a religion When we express our personal experiences, we step into a dangerous territory. Our personal experiences are guided by our emotional and subjective feelings. When we share them with others, we are inviting them to accept our emotional and subjective feelings as if they too have experienced the same. This is where we run into problems. Unless others too have the same emotional and subjective feelings, there is no reason for them to accept our experiences as their experiences. Hence, statistics to be shared by everyone should necessarily be based on objective considerations. In other words, statistics should not have a heart. Its religion should be pure objectivity. It should convey facts as has been observed by an individual free from personal biases or prejudices. Only such an impersonal statistical framework has the capability of serving people intending to use them for making judgments about the real world. How economic development occurs? An economy has to play a specific role towards its members. It has to produce and supply goods and services as demanded by them having consideration for timeliness, quantity and quality. When an economy produces these goods and services in larger and larger volumes year after year, new wealth is created, raising the well-being of its members. The continuous creation of wealth by people in this manner raising the overall welfare levels brings about what is called “economic development”.

The market for information and statistics There are market based statistics-producers in developed countries. The market agents are ready to pay a price in order to acquire such statistics. The producers of statistics conduct frequent market surveys, analyse results, supply them on line at a price and help market agents to create wealth. Unfortunately, in Sri Lanka, we do not have such market based statistics-producers. The collection and analysis of vital data that are useful to market agents are being done by a few governmental organisations. Like any other product supplied by the government, such data are also supplied as a public good free of charge. Even when the governmental agencies could sell statistics at a price, they do not venture to do so, because they are guided by such principles as “doing utmost benefit” to people as a social service. The country too, therefore, expects free goods from these governmental organisations. But this creates a problem known as “the agent-principal problem” in economics. The agent-principal problem The agent-principal problem is typical to any government service. It says that the agent who is a government bureau or a department or even a university does not have incentive to produce its output at its best. The principal who is the user of the service, on the other hand, is scattered and not in a position to influence the agent to improve quality.
Thus, while the euro area shows a unique institutional setting – in contrast to monetary policy, fiscal policy is far from being single – national governments have agreed to common rules which ensure that the euro area remains an efficient and stability-oriented single economic area. 4  BIS Review 61/2001  Conclusion Let me conclude by saying that the single currency and the establishment of a new European institution responsible for monetary policy in the euro area complemented the process of economic integration that started half a century ago in Europe. This process and the institutional build-up, together with clear and coherent policy goals and an efficient allocation of the respective responsibilities, are transforming the euro area into an increasingly unified economic entity which, in many respects, resembles the US. Although most of the required structural reforms still have to be implemented, it cannot be denied that substantial progress has been made. The introduction of the euro has been and will continue to be a powerful catalyst, contributing to greater competition in the economic and the political sphere, thereby further enhancing the welfare of the citizens in the euro area. Ladies and gentlemen, political leaders throughout Europe have recognised the need for structural changes in both taxation and expenditure policies and regarding the deregulation of product and labour markets.

For instance, what was first a European Assembly with only consultative powers has now become a European Parliament with legislative responsibilities extended to more and more areas, and members of parliament who are directly elected by European citizens. Within the Council of Ministers, majority voting has increasingly become the norm at the expense of unanimity. Finally, in addition to institutional reform, economic integration has also served to foster progress in areas beyond the economic sphere. In order to effectively guarantee the four freedoms, it has, for example, been deemed necessary to grant powers to the EU in fields such as immigration and human rights. Ladies and gentlemen, as a consequence of the integration process that began largely in the economic sphere, the EU already exhibits a number of features of existing political unions in terms of both its institutional structure and its competencies. However, it is clearly not a complete political union. The extent to which further integration is either desirable or necessary is an ongoing debate. It is a debate that is ultimately for politicians, not for central bankers. Nevertheless, the process of European integration will undoubtedly also have implications for the conduct of the single monetary policy. No central bank operates in a vacuum. It needs to be supported by an appropriate underlying framework. There is no doubt that the overall performance of the euro area economy depends not just on economic, but also on institutional and political structures.
Thus, at the statistical cutoff date it was within the range of estimated shortterm fundamentals, but below its 15- to 20-year average. The baseline scenario uses as a working assumption that the real exchange rate will depreciate steadily throughout the projection horizon, reflecting the interest rate differential with the US rates (figure 10). Abroad, incoming figures for output and inflation show no big changes in these tendencies so far. In the United States, activity and labor indicators point to a strong economic performance. In other developed economies, there are signs of an incipient recovery. As regards emerging economies, China’s growth is stable and Latin America shows heterogeneity. In this context, the need for further monetary stimulus in Europe and Japan is not so urgent anymore, and the expectation of a new policy rate increase by the Fed has consolidated. As I said earlier, this decision occurred after we had stopped the presses for this Report. It is worth noting that the Fed announced that the withdrawal of the monetary stimulus would be slightly faster. The copper price was fairly stable up to early November, when it jumped from around 2.2 dollars per pound to nearly 2.6. Nonetheless, this movement seems excessive given the evolution of its fundamentals. Oil, in turn, over the past few months, has fluctuated between 45 and 50 dollars per barrel most of the time.

Determination is necessary in order to act in a timely way, because an untimely monetary policy will delay the convergence of inflation to the target or will do so at an unnecessary cost. 9 / 19  BIS central bankers' speeches  In practice, this means making robust monetary policy decisions in uncertain conditions. Thus, in our last monetary policy meeting we communicated that, in the most likely scenario, a bounded easing of the monetary impulse would be needed. The search for the right combination of prudence and determination is also necessary in the other fields where the Central Bank operates. To monitor the financial sector without restricting its ability to innovate; to develop instruments and facilities that are attractive to the market, and to improve risk management and transparency without compromising efficiency and timeliness. Identifying the new challenges facing the Central Bank and finding the answers that best balance prudence and determination requires organized and systematic efforts. As an expression of it, in the coming months we will develop a new institutional strategic planning exercise. We intend to consult with various players, both public and private, including, of course, this Committee. The purpose of this exercise, of the initiatives we undertake, and the conduct of our regular policy decisions must be particularly explicit. What we ultimately aspire is to continue to strengthen the Central Bank of Chile as an institution of excellence, that our fellow Chileans can trust. Thank you.