samchain/econo-pairs-v1 huggingface dataset:
That is because, as I have discussed, the central vulnerabilities in the financial system, and the mechanisms through which it can amplify the credit and business cycles, are leverage (inadequate capital) and maturity mismatch (inadequate liquidity). Today, I shall focus almost entirely on the macroprudential deployment of capital requirements. That is largely because the microprudential toolkit for liquidity regulation is still in its infancy and subject to international discussion. So why are we doubtful about simply varying headline capital requirements through the credit cycle? Imagine that the authorities judge that a boom in lending to (or related to) a particular sector of the economy had become overly exuberant. To make it topical, assume that this was lending to the shadow banking system (say conduits, SIVs etc). The authority raises the minimum capital ratio by Xpp. The affected banks could respond in a number of very different ways. This could include the perverse reaction of cutting lending to unexuberant parts of the real economy, while continuing to lend on overly relaxed terms to, in this example, the exuberant shadow banking system. That kind of thing really could happen if such lending seemed to offer terrific returns. What lies behind this problem is, of course, that quite often a credit boom is at least initially concentrated in one or a few sectors of the economy. That being so, the appropriate instrument needs to be able to work with a degree of granularity.

It just cannot be acceptable that the downside from excessive risk across the financial system as a whole falls to the general taxpayer, to households and firms throughout the economy, if the upside is enjoyed by a narrower group of shareholders and managers. This is not just an issue of economic efficiency – of the allocation of resources – and of leaning against the risk of even bigger crises down the road, but also of social justice. That is why the debate has attracted so much interest. But I hope I can persuade you that the Too Big To Fail problem matters to bankers too. Because the Lehman case demonstrates that in a democracy, political constraints are uncertain and so even Too Big To Fail firms can sometimes be allowed to fail. Banks need a system in which they are better protected against mismanagement by their peers. The debate calls for technocratic solutions to be laid out, but choice amongst those solutions should be understood and accepted by society at large. And the solution needs to be an international one. It is therefore good news that the G20 has commissioned work from the Financial Stability Board on the Too Big To Fail issue. So the stakes are high. By the lights of our successors, we are bound to get it wrong, but can we get to the right ballpark?
400 million and Rs. 300 million,  In line with the developments in the  respectively. These will be increased to  banking sector and the guidelines from  Rs. 2 billion and Rs. 1 billion, respectively  the Basel Committee on Banking  on a staggered basis to facilitate the  Supervision, we will be taking steps to  smooth transition. This will serve as a  review the existing criteria and  structural capital buffer for further  mechanism for the selection of the panel  consolidation of this sector. It is  of qualified auditors in order to  expected to improve the existing  strengthen the current assessment  framework on capital adequacy, which  process and enhancement of audit  will be more risk sensitive, focusing on  quality. credit risk based on borrowers’ risk  In recent years, the Central Bank has introduced a broad range of prudential  profiles as well as operational and market risk in the trading book. regulations to strengthen risk  Further, in order to strengthen the  management, corporate governance,  governance framework of the non-bank  capital adequacy and internal controls of  financial sector, we will introduce  the non-bank financial institutions. Going  appropriate policy changes to the  forward, the stability of the financial  existing Corporate Governance  sector will also be strengthened by  Direction.

In the assessment of the Executive Board, the sight deposit rate should lie in the interval 2-3 per cent in the period to the publication of the next Inflation Report in March 2006, conditional on economic developments that are broadly in line with the projections. In the press release following the Executive Board’s meeting on 2 November, the following factors of uncertainty were highlighted: •  Stronger trade shifts and increased labour market competition may result in lower price and wage inflation and weaker pressures in the economy. In isolation, this would imply less frequent interest rate changes. •  We have little experience of such low interest rates over a long period. There is a risk that an interest rate that is kept low for a longer period may lead to expectations of a persistently low interest rate. This might result in a higher-than-projected rise in output and inflation and would in isolation suggest a faster interest rate increase. •  Developments in the global economy are uncertain. Our projections are based on favourable growth prospects in other countries and continued high oil prices. Different developments in global growth and in oil prices would result in a different path for the Norwegian economy. Interest rate setting must also be assessed in the light of developments in property prices and credit. Wide fluctuations in these variables may constitute a source of instability in demand and output in the somewhat longer run.
Based upon the aforementioned assumptions and trends, the Reserve money target for end 2007 has been computed by allowing the necessary increase from that as targeted at the end 2006 value to accommodate the expected GDP growth of 7.5 per cent, inflation of 8.5 per cent, and an extra 1.6 per cent to cover the change in velocity, a total of 17.6 per cent. The Broad money (M2b) target too, has been computed by applying the properties of the Quantity Equation, the inflation target and expected economic growth 3 . The Reserve money growth will be facilitated by two major developments, the change in the Net Foreign Assets and the change in the Net Domestic Assets of the Central Bank. The Net Foreign Assets of the Central Bank have been determined by the expected BOP surplus of US dollars 200 million. As already explained, the planned monetary programme requires the Reserve money growth to be maintained at 17.6 per cent from the targeted level of Reserve money as at the end of 2006. At the same time, the expected reserve build up of the Central Bank indicates an increase in Net Foreign Assets of the Central Bank by Rs. 21 billion while the Net Credit to the Government from the Central Bank will increase by Rs 11.5 billion, which includes provisional advances of Rs 12.5 billion, and a decline of Treasury bills by Rs. 1.0 billion. 3  A crucial factor in developing the monetary programme is the assumptions in velocity of money and money multiplier.

The euro is now used worldwide, with around 15 billion notes in circulation worth over 900 billion euros in all. That’s broadly comparable to the total value of the US dollar bills, no mean feat in just 12 years. Today is also a chance to highlight the importance of maintaining people’s trust in the euro. One of the main reasons for introducing a new series of notes is to ensure that everyone who uses them can continue to do so with complete confidence. That’s why we have drawn on a number of new technologies to modernise the security features, making the notes even more resistant to counterfeiting. In addition, the new banknotes have an innovative coating that makes them more durable than the first series. The five euro and ten euro notes are not always treated kindly. By protecting them better, we can prolong their service life and reduce their environmental impact. The new ten is the second note in the Europa series and follows the new five, which started circulating in May last year. As I’m sure you’ll agree, the note you’re going to see is instantly recognisable as a ten. It certainly resembles the ten euro notes you have in your pockets, with its distinctive Romanesque architecture. However, perhaps it will have more of a visual impact, as the images are larger and more defined, the colours are stronger and the bridge has added depth.
The bumper maize harvest this season has helped to ease pressure on food prices and to keep food inflation and thus overall inflation low. Distinguished Ladies and Gentlemen, with respect to developments in the money market, commercial banks lending interest rates have also been coming down, though not as fast as the decline in inflation and yield rates on Treasury bills. Commercial banks nominal weighted average lending base rate declined from 29.8% in 2004 to 27.6 % in 2005. As at June 21, 2006, the weighted average lending base rate stood at 21.6%. Clearly, there is an urgent need for commercial banks to do more to reduce lending rates in order to influence a substantial expansion of private sector credit. Lower lending rates will contribute to the reduction in the cost of doing business in Zambia. In the current environment of low inflation, sustainable lowering of lending rates by commercial banks should be a logical course of action. The next issue I would like to address is that of the appreciation of the Kwacha against major currencies. The appreciation has occurred mainly due to the higher supply of foreign exchange on the market than demand. The key factors underlying the increased foreign exchange supply include: 1. Increased copper output and exports as well as record high prices of the commodity. The volume of copper exports has in recent years registered sustained growth, increasing from 353,000 metric tons in 2003 to 423,000 metric tons in 2005.

Caleb M Fundanga: Future of the Zambian economy – a balanced look Paper presented by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at a discussion sponsored by the LSA Group, Ndola, 30 June 2006. * •  Mr. Chairperson  •  Distinguished Guests  •  Ladies and Gentlemen  *  *  On behalf of the Bank of Zambia and indeed on my own behalf, I wish to express my sincere gratitude to Lawrence Sikutwa Associates for inviting me to this very important discussion. Our interaction with the corporate world on the subject “The Future of the Zambian Economy – A Balanced Look” is indeed appreciated and very important. This subject, as you rightly pointed out in your letter of invitation to us, is vital considering that Zambia, in general, and Ndola, in particular, are in dire need of investment. It is this investment, Mr. Chairman, which would create employment and accelerate economic growth, a necessary condition to combating extreme poverty among the Zambian people. Ladies and Gentlemen, the future of the Zambian economy can only be known, if one understands the past and the present. Therefore, with your permission, I would like to begin by giving an account of the macroeconomic developments in Zambia in the recent past. I am certain that many of you have been following the economic trends and have seen that the economy has performed relatively well in recent years.
In addition to supporting price stability, the Bank of Albania has also paid attention to the promotion of financial stability, through the supervision and careful regulation of the banking 1/3  BIS central bankers' speeches  sector, as well as through the coordination of work with other supervisory authorities of the financial sector. 2. Banking supervision and financial stability The Albanian banking sector continues to remain financially sound and has shown increasing dynamism. This sector has been profitable during 2019, while its liquidity and capitalization indicators are above our regulatory requirements. Also, resistance testing exercises show that the banking sector exposure to systemic risks is controlled and that the banking sector’s ability to withstand risks is strong. Below I will briefly list some of the main directions of our work to strengthen banking supervision and to support financial stability. First, the Bank of Albania successfully administered the banking sector consolidation process. This process reshaped the domestic banking market, bringing in new and motivated actors, as well as increasing domestic capital. Second, the Bank of Albania fulfilled all its obligations under the national plan for the reduction of non-performing loans. Thanks to measures taken over the years, the nonperforming loan ratio fell from a maximum of almost 25% in 2014 to 8.4% at the end of 2019. Third, the Bank of Albania worked to meet the recommendations of the CoE Committee of Experts on the Evaluation of Measures against Money Laundering and Terrorist Financing (MONEYVAL).

Much has been done; however, looking at the bull’s-eye scorecard, I would argue, if anything, the FOMC has been less aggressive than the policy loss function calls for. And to me, in the current circumstances, accountability and optimal policy mean we should be maintaining a large degree of accommodation for some time. Policies that would instead place us on a slow glide path toward our targets undermine the credibility of our claim that we will do our job and meet mandated policy goals in a timely fashion. Timid policies would also increase the risk of progress being stymied along the way by adverse shocks that might hit before policy gaps are closed. The surest and quickest way to reach our objectives is to be aggressive. This means, too, that we must be willing to overshoot our targets in a manageable fashion. Such risks are optimal if the outcome of our policy actions implies smaller average deviations from our targets over the medium term. We should be willing to undertake such policies and clearly communicate our willingness to do so. References Board of Governors of the Federal Reserve System, 2013, “What are the Federal Reserve’s large-scale asset purchases?,”(external) Current FAQs, December 19. Federal Open Market Committee, 2014a, press release(external), March 19. Federal Open Market Committee, 2014b, Transcript(external-pdf) of Janet Yellen press conference, March 19. Federal Open Market Committee, 2014c, “Statement on longer-run goals and monetary policy strategy,”(external-pdf) as amended January 28.
There is a debate regarding the fixed exchange rates in the Baltic countries. The Riksbank has no reason to question the Latvian government’s wish to retain its fixed exchange rate. The main argument for our stance is that the Latvians themselves wish to maintain a fixed exchange rate to be able to ultimately apply to adopt the euro. They are prepared to make far-reaching sacrifices in the form of wage reductions, budget cutbacks and the ensuing unemployment, to attain the cost reductions that will restore competitiveness. I consider that the possibilities for the Latvian government to obtain popular support for such painful measures would be greatly undermined if other countries were to force an unwanted solution on Latvia. Nor is devaluation an easy path to take. There are considerable risks that it will not be possible to control the magnitude of the exchange rate changes and that there may be large distortion of the economy. I also want to refute the argument that the Riksbank is supporting fixed exchange rates in these countries because the Swedish banks would suffer large losses in the event of devaluation. Devaluation or not, economic restraint is required over a long period of time to restore balance to the economies. This implies that the banks’ loan losses will be around the  4  BIS Review 11/2010  same size in both alternative scenarios, but will probably have a slightly different distribution over time. What has the Riksbank learned?

Thus, emerging market central banks must be prepared for policy contingencies ahead. At the core, monetary policy must continue to safeguard price stability, while taking into account concerns about economic growth and financial stability. The Bank of Thailand, on our part, will do our best to steer the Thai economy and financial system through the global turbulences, to ensure the continued well-being of the Thai people in years ahead. Thank you. BIS central bankers’ speeches  1
Across the world, the prices of all kinds of assets have risen - not just of government bonds, but also of equities, houses and other real estate, commodities and gold and other precious metals. Moreover, risk premia have become unusually compressed and the expansion of money and credit may have encouraged investors to take on more risk than hitherto without demanding a higher return. It is questionable whether such behaviour can persist. At some point the ratio of asset prices to the prices of goods and services will revert to more normal levels. That could come about in one of two ways: either the prices of goods and services rise to “catch up” with asset prices as the increased money leads to higher inflation, or asset prices fall back as markets reassess the appropriate levels of risk premia. In neither case would it be easy to keep inflation close to the 2% target. I do not pretend to know whether the signpost of low levels of long-term interest rates is primarily related to underlying preferences for saving and investment, or to the global growth of money and a possible under-pricing of risk, or, in all probability, to some combination of the two. Nor, since we do not know the causes of low long-term rates, can we be sure for how long they will persist.

Monetary policy will, therefore, need to be alert to the information contained in a wide range of asset prices, to be forward-looking in its aim of maintaining low and stable inflation, and to be ready to respond to changes in the signposts. The remarkable degree of stability that the UK economy has enjoyed over the past decade has been less evident over the past twelve months. Growth slowed and inflation rose above target. But after a period driving along a smooth new highway, a change to a more challenging road surface does not, as I said recently to the House of Lords Economic Affairs Committee, mean that the wheels are coming off the economy; rather, it tells us that there are somewhat more and somewhat larger bumps on the road. Monetary policy can try to avoid some of the worst bumps, but it cannot ensure a flat road surface. Nevertheless, growth has picked up and inflation has fallen back close to its 2% target. Our central view remains one of steady growth and low inflation. But there are risks to that central view emanating from the rest of the world and we shall watch developments in world capital markets carefully. By keeping inflation close to the target, and so doing what it can to maintain economic stability, the Monetary Policy Committee aims to allow you and other businesses to follow the signposts which guide a market economy.
The learning and sharing among peers will also encourage cross-fertilisation of ideas, identification of best practices, and collaboration in green investments. 11. Asia is a good starting point for this global alliance. It represents a good mix of developed and emerging economies at different stages of economic development. Each has its unique set of environmental challenges but together we share a common commitment to creating a greener and more liveable region. Closer to home, Hong Kong hosts three quarters of the world’s 100 largest banks, with many of their Asia Pacific headquarters based here. So, we are uniquely placed to serve as the testing ground for the Alliance by connecting banks in the region to their global peers to facilitate sharing and learning. We are confident that the experience gained in Asia will provide useful insight and reference for the IFC to promote green banking in other parts of the world.10. Equally important, by helping banks build their capacity, the Alliance will complement the efforts of banking regulators across jurisdictions to enhance the banking sector’s management of climate-related risks and promote sustainable banking. Participating banks will benefit greatly from the IFC’s wealth of knowledge and expertise in the field of green finance. The learning and sharing among peers will also encourage cross-fertilisation of ideas, identification of best practices, and collaboration in green investments. 12. The Alliance is a new initiative for both the HKMA and the IFC. Today marks the first step of an exciting journey.

The Western governance concept including the appointment of an independent director in the Board of Directors, the introduction of an Audit Committee, and other new initiatives to improve the governance structure, have helped to address some of the problems of the past —but only to a limited extent. Unfortunately, there have been some actual practices in the Western corporate world which are contrary to the intended ideals of good governance. The notorious examples of Enron and WorldCom are all too well-known, notwithstanding the fact that both corporations had Boards of Directors established in accordance with the Western concept of good governance. Yet both eventually faced severe financial difficulties. As I see it, there are two critical aspects of the Western practices which may potentially lead to serious financial difficulties for the firm. The first is that the Chairman and the CEO is one and the same person. The second is the practice of allowing company stock options to be part of the compensation for company Directors. Allow me to elaborate. A CEO is by designation the Chief of Management, responsible for achieving the best possible performance of the company. This means maximizing profits, increasing growth and market share, expanding business lines, and doing all that it takes to maximize the company’s share value. On the other hand, the Board of Directors has to oversee the operations of Management, ensuring that they operate well within the bounds of acceptable risks in order to ensure business continuity.