samchain/econo-pairs-v1 huggingface dataset:
Mugur Isărescu: Strengthening supervision, corporate governance and risk management in the financial sector of the Republic of Moldova Speech by Mr Mugur Isărescu, Governor of the National Bank of Romania,at the event for the launching of the Twinning project “Strengthening supervision, corporate governance and risk management in the financial sector of the Republic of Moldova”, Bucharest, 18 January 2022. * * * Esteemed President of the Parliament of the Republic of Moldova, Dear Governor Armașu, Your Excellency, Ambassador of the European Union to the Republic of Moldova, Dear President of the Central Bank of the Kingdom of the Netherlands, Mr. Klaas Knot, Dear President of the Board of the Central Bank of Lithuania, Mr. Gediminas Šimkus, Mr. Vice-President of the Administrative Board of the National Commission for Financial Markets of the Republic of Moldova, Ladies and gentlemen, I am honoured to address the audience today, not only as Governor of the NBR, but also as a long-trusted and close partner of the National Bank of Moldova. Looking back, I am pleased to see the progress made in the last decades by the Republic of Moldova, on its path towards a banking and financial system at international and European standards. The modernisation of the banking and financial system of the Republic of Moldova is, ultimately, to the benefit of the society and citizens. Ever since 1991, Romania and the NBR have supported the Republic of Moldova and the National Bank of Moldova.

Ladies and gentlemen, We find ourselves, today, at a juncture where governments and central banks alike have promptly stepped in globally to counter the negative impact of the coronavirus pandemic through social, economic, fiscal and monetary policies. The unprecedented mobilisation of the authorities 1/2  BIS central bankers' speeches  in a complex and determined manner has largely ensured the proper functioning of markets, and of the economic and social mechanisms. In this regard, enhancing the response capacity to adverse situations is essential, and this goal can also be achieved by strengthening corporate governance, supervision, and risk management in the financial sector. These are the key coordinates of the new twinning programme as well. The twinning project we are launching today has a wide scope, not only for the banking sector, but also for the entire financial market in the Republic of Moldova. It aims to be beneficial for both the National Bank of Moldova and the National Commission for Financial Markets of the Republic of Moldova, by strengthening institutional capacity and governance, as well as developing the regulatory, supervisory and operational frameworks for enhanced functionality. From my perspective, the National Bank of Romania has gained over time, after 1990, with the support of its partners in the European Union – including the support of De Nederlandsche Bank, which I would like to mention explicitly – a solid experience and expertise.
Barbro Wickman-Parak: New international regulations for banks – a welcome reform Speech by Ms Barbro Wickman-Parak, Deputy Governor of the Sveriges Riksbank, at a meeting with Tjänstemännens Centralorganisation (TCO), Stockholm, 26 November 2010. *  *  *  Over the past three to four years the world has undergone the largest financial crisis since the Great Depression of the 1930s. The scope of the crisis and its catastrophic economic consequences quickly led to the realisation that something had to be done to avoid this happening again. As soon as the worst phase of the financial crisis was over, extensive work began on correcting the inadequacies in the regulatory systems that had come to light. The reform work is conducted in many forums at both national and international levels. And not least at EU level. But today I shall focus on the reform work in the Basel Committee on Banking Supervision, in which both the Riksbank and Finansinspektionen (the Financial Supervisory Authority) participate. This Committee is the international body that has established frameworks for bank regulation since 1974. In line with internationalisation that has taken place in recent decades, banks in different countries have become increasingly dependent on one another. This also applies to our Swedish banks, which to a great extent fund themselves on the international markets. Both Swedish banks and Sweden in general therefore benefit from banks around the world becoming more resilient.

The economic impact of globalisation and the role of EMU I would now like to turn to the main area of my paper and discuss, first, the economic impact of globalisation on economic linkages – most notably trade and capital flows – and second, the impact of EMU on regional financial integration and global portfolio reallocation. Impact on trade, foreign direct investment and cross-border portfolio flows The effects of globalisation are channelled via trade in goods and services, all of which has a tangible impact on businesses and households. Globalisation means that transport costs have decreased, technological innovations are more easily diffused, information is readily available at a low cost, and consumer tastes have been converging with an increasing number of global brands. Over the last three decades, tariffs have halved and a large number of trade agreements have entered into force between various countries. These developments have resulted in a steady opening of markets in Europe and around the world. In the early 1970s, for example, global exports accounted for only onetenth of world GDP, compared with one-quarter today. The share of intermediate inputs in total trade flows is also at a historically high level, reflecting the dramatic deepening of global economic interlinkages in recent years. Higher global demand and increase in the use of the euro in international trade have contributed to this new phenomenon. While intra-euro area trade has grown robustly since the introduction of the euro, extra-euro area trade has recorded even more rapid growth.
In the panic that gripped global financial markets after the collapse of Lehman Brothers, Iceland’s big banks were faced with a wholesale run on their foreign currency liabilities and were therefore heading towards a default on those liabilities in the absence of LOLR assistance in foreign currency. However, given their size, it was impossible for the Icelandic authorities to provide such assistance on their own. Given the lack of international cooperation, the Icelandic authorities were forced to consider radical solutions. Although they were probably not articulated fully at the time, these solutions entailed several goals: preserving a functioning domestic payment system, ring-fencing the sovereign in the case of bank failures, limiting the socialisation of private sector losses, and creating the conditions for the reconstruction of a domestic banking system. In essence, the adopted solution saved the domestic operations of the banking system and let the international part to go into a resolution process. The new banks were created by carving the domestic assets and liabilities out of the old, failing banks. The new banking system amounted to 1.7 times GDP. To a significant degree, these measures were successful in keeping the domestic payment system and basic banking services up and running, which was a key factor in dampening the effect of the banks’ failure on the economy. There were two key elements to the policy response during the autumn of 2008. The first was crisis management vis-à-vis the failing banks, which I have just mentioned.

This goes to a more general point: a variety of aspects of the UK’s monetary policy framework – including our open letters, our new MPR and greater clarity over forecast assumptions and sensitivities – are designed 20  All speeches are available online at www.bankofengland.co.uk/news/speeches  20  to help market participants, businesses and households understand the MPC’s reaction function and thereby anticipate how monetary policy will evolve with the economy. This makes policy both easier to predict and more effective. Second, monetary policy is also more effective when it is combined with vigilant macro- and micro-prudential policies. A frequently expressed concern is that low policy rates are generating risks to financial stability – often linked to undesirable “search for yield” behaviour. 24 While vigilance is required, it is essential to leverage the synergies of monetary and macro-prudential policies. In many situations monetary policy actions are complementary to financial stability. After all, stimulating more risk taking is one of the goals of low policy rates, whereas recessions emerge when demand shifts away from risky assets and towards safe assets. Easing monetary policy changes people’s incentives in order to mitigate that shift. 25 Low interest rates can also benefit financial stability by making debts more serviceable. More fundamentally, risks to financial stability should primarily be addressed by (macro and micro) prudential policy, with monetary policy as the last – not the first – line of defence.
The fact that the failure of the planned economy finally became blindingly evident meant that not only the Soviet bloc, but also most of the developing countries that had experimented with planned economies abandoned these ideas in favour of a market economy approach. This led to the old Comecon, China, India and several other countries in Asia, Latin America and, unfortunately to a much lesser extent, Africa, becoming integrated into world trade and the global financial system. The fact that many more countries are now participating in the world economy has been a contributory factor to the increasing economic integration over the past twenty years, when world trade has increased at twice the rate of GDP growth, direct investment has increased three times as much and both foreign exchange trading and share trading have been around ten times faster than GDP growth. This most recent “globalisation wave” has benefited more than three billion people and led to the doubling of annual GDP growth per capita in many developing countries; in China GDP growth per capita has even increased fivefold. The conclusion that increased openness contributes to higher growth is also supported by research; for instance, Sachs and Warner found in a study published in  2  BIS Review 60/2004  1995 that open economies, all else being equal, grow at an average of 2 percentage points a year faster than closed economies.

The deliberate work on liberalising trade and capital flows, as well as payments for these transactions, within a strong multilateral framework began almost sixty years ago and is an important explanatory factor behind the increased economic growth we have experienced since then. The strategy was mainly based, within the framework of the GATT, on a gradual removal of trade barriers and the building up of a multilateral trade system via regular negotiating rounds and, within the framework of the IMF, to jointly promote financial stability and free payments, initially for current account transactions and later for an increasing number of capital account transactions. Moreover, the World Bank was established, whose primary purpose is now to reduce poverty in the world. The endeavours towards liberalisation have been, and still are, very successful. With regard to trade, this can be illustrated by the fact that average tariffs on manufactured goods have fallen from over 40 per cent at the end of the Second World War to under 5 per cent today. Trade liberalisation has led, through increasing specialisation and competition, to a more efficient distribution of labour between countries, which has contributed to higher growth, and also to greater options and lower prices for consumers. However, the adjustments have not been easy, as we know from our experiences of the  1 Branchföreningen för Kontorsartiklar, Emballage, Papper och Angränsande produktområden  BIS Review 60/2004  1  changes in the Swedish shipyard and textile industries.
To illustrate this, let me share with you an anecdote from ASEAN’s financial integration experience under the AEC. The core principles of our framework are inclusiveness and readiness. For example, under the ASEAN Banking Integration Framework, two or more ASEAN countries can liberalise their banking sectors if they are mutually ready. But what if a member is not ready? Do we leave them behind? The answer is, no, we do not. Instead, ASEAN countries help each other by providing capacity building to those who need them the most. This pragmatic approach is unique, but it allows us to continue pursuing integration without compromising national priorities. The way forward for ASEAN Close cooperation among member states and appropriate safeguards are therefore crucial to ensure integration creates a more resilient ASEAN. This can be made possible through greater collaboration between private and public sector to develop innovative solutions. This is where ASEAN Business Advisory Council (ABAC) plays an important role to further strengthen this partnership. ABAC has been active in promoting this partnership and providing consultation to assist ASEAN integration initiatives. For example, ABAC’s ASEAN Business Award – It not only recognises businesses that contribute to the growth and prosperity of the region, but also brings to the spotlight small-and-medium sized enterprises that have the potential of becoming global economic players in their respective industries. In addition, it also serves as a platform to disseminate AEC-related information.

Moving forward, greater investment by the private sector in human capital development and innovation is critical for us to maintain the current momentum. The return on investment on these two areas will be visible in the reduction of the development gap among ASEAN countries. Public-private partnerships to address this gap is essential to foster sustainable economic growth and achieve a globally competitive ASEAN. ASEAN has come a long way in fostering cooperation and collaboration to achieve current levels of development and integration. The principle of ‘prosper-thy-neighbour’ is the defining mantra of the ASEAN movement and has been integral to our achievements so far. Therefore, let us 2/3  BIS central bankers' speeches  develop mutual understanding on the varying degrees of economic development and strategically address the needs of each member country. Let me conclude with a quote, by the author Virginia Burden: “Cooperation is the thorough conviction that nobody can get there, unless everybody gets there”. I believe the spirit of cooperation and dynamism will accompany us on our journey towards building a more vibrant ASEAN Economic Community by the year 2025. 3/3  BIS central bankers' speeches
The fourth lesson is on capital flows: Deal with the inflows if you want to avoid the risk of having to introduce comprehensive capital controls on outflows, which can work as in Iceland but have increasingly negative side effects on the economy. The measures that can be taken to deal with the inflows include adopting correctly aligned macroeconomic and macroprudential policies, leaning into the wind by buying part of the inflows into foreign exchange reserves, and even in extreme cases, deploying selective capital inflow management tools. The final lesson from all of this is that if we are going to reap the benefits of financial globalisation, we must make it safer. 4  BIS central bankers’ speeches  BIS central bankers’ speeches  5

We need financing for more sustainable supply chains, less disruptive infrastructure, and better farming practices that preserve yield while minimising land degradation. 2/4  BIS - Central bankers' speeches  The Nature Conservancy estimates that the nature funding gap may be as high as 824 billion US dollars per year. So, what is needed for effective transition finance for natural capital? First, a clear set of goals to galvanise collective action to restore our natural capital. The goals must be ambitious yet realistic. Just as the Paris Agreement catalysed the push towards net zero, so can the Global Biodiversity Framework provide a nexus for science and finance to come together to tackle the systemic risks that nature loss poses. Goals to protect key biodiversity areas and integrate nature-related risk management into sustainable production will help to focus the financial sector's efforts. Second, forge public-private partnerships to mobilise financing for naturepositive outcomes. Public capital can help to mitigate project risk and catalyse private capital, especially for marginally bankable nature-related projects. We also need to combine financing with capacity building, technology transfer, and institutional support, to reduce risk and enhance the bankability of such projects. At the same time, financial institutions must dis-incentivise production processes that are harmful to biodiversity while ensuring equitable development. Third, strengthen the quality, availability, and comparability of nature-related data. Good-quality data enables effective allocation of capital towards transition finance, and combats greenwashing. Unlike climate risks, nature-related risks are often location-specific.
There are also vulnerabilities in the non-bank financial sector, which has significantly expanded its role in financing the real economy in the euro area. Total assets held by nonbanks have almost doubled over the last ten years, growing from € trillion in 2008 to € trillion in 2018, while the size of the banking sector stagnated over this period. Non-banks currently account for around 55% of the euro area financial sector. While a larger non-bank financial sector has the benefit of helping to diversify the funding sources available to the real economy, it may also entail rising risk taking in the current market environment. We are closely monitoring two developments in this context: first, non-bank financing activity is growing, in particular in higher credit risk corporate financing, where indebtedness is already higher. Second, as institutional investors are searching for yield, they may amplify the cyclical underpricing of risk, potentially also taking on more leverage and liquidity risk. In the euro area investment fund sector, we have observed increasing liquidity risk for some time. This reflects a falling share of holdings of liquid government bonds and a fall in cash holdings across the sector. We have recently witnessed cases in which funds holding considerable amounts of illiquid assets (Woodford, H2O and GAM – all UCITS funds) faced severe difficulties in dealing with large-scale outflows. These cases had no systemic repercussions – partly because the outflow triggers were idiosyncratic and partly because the market environment was benign.

Jean-Pierre Roth: The economic situation – la vie en rose? Summary of a speech by Mr Jean-Pierre Roth, Chairman of the Governing Board of the Swiss National Bank and Chairman of the Board of Directors of the Bank for International Settlements, at a meeting with representatives of Ticino industry, Centro di studi bancari, Vezia, 28 November 2006. The complete speech can be found in French on the Swiss National Bank’s website (www.snb.ch). *  *  *  It is true that our exports continue to benefit from a buoyant global economy, that areas of concern such as the volatility of oil prices or the possibility of a significant and lasting downturn in the US economy have partially receded, and that the current economic recovery has led to an improvement in the labour market without endangering price stability. Is this la vie en rose (living life through rosetinted spectacles)? A brief outline of the situation in the national and international economies is given, indicating that the overall perspective remains favourable. It concludes with a concise evaluation of the risks, showing that the current euphoria may conceal significant risks that we must not lose sight of. BIS Review 116/2006  1
0909  0309  0908  0308  0907  0307  0906  0306  0905  0.0  0 Services  Other Services  Transport services  Rent  Restaurant services  Source: TURKSTAT, CBRT. As I believe that movements of core inflation indicators are essential to better understand the underlying trend of inflation and to evaluate developments more effectively, I would like to further elaborate on these developments. Core inflation indicators maintained their downward trend in the third quarter. By September, annual inflation measured by the CPI excluding energy, unprocessed food, alcoholic beverages, tobacco and gold (H index) became 2.44 percent, while annual inflation measured by the I index, which excludes processed food prices, became 3.37 percent. In this period, although the partial withdrawal of tax cuts on durable goods pushed core inflation indicators upwards, seasonally and tax adjusted data indicate that the underlying trend of inflation is still low (Figure 7 and 8). Here I would like to highlight that the said indicators might increase, albeit modestly, in the upcoming period with the expiration of temporary tax cuts in October.

The Swiss franc only weakened again recently with the prospect of a COVID-19 vaccine and hopes of a faster recovery of the global economy. On a trade-weighted basis, the Swiss franc is almost 1.5% stronger in nominal terms than at the end of June (cf. chart 3). It thus remains highly valued. As reported in our interim results, we carried out foreign exchange market interventions totalling CHF 90 billion in the first half of this year. On a trade-weighted basis, the Swiss franc has strengthened some 5% in real terms since the beginning of 2020. Had we not intervened, the franc would have appreciated significantly more, and this would have placed an additional burden on our economy in an already exceptionally challenging environment. Page 2/5  Zurich, 17 December 2020 Andréa M. Maechler  News conference  Final sprint in transition to SARON  Let me now say a few words about the changeover from Swiss franc Libor to SARON. The end of Swiss franc Libor is fast approaching. In November, the Libor administrator launched a consultation procedure on the discontinuation of Swiss franc Libor as per end-2021. Market participants in Switzerland may therefore only have around 12 months to complete the necessary work for a smooth transition to SARON. Only the heavily used tenors of US Libor are expected to be granted an extension until mid-2023. However, this will not affect the Swiss franc Libor I have been focusing on in my remarks.