samchain/econo-pairs-v1 huggingface dataset:
A monetary policy that succeeds in maintaining stable prices promotes financial stability by encouraging investment and economic growth. Conversely, a stable financial system helps monetary policy achieve its primary objective by, for example, ensuring the smooth propagation of the central bank’s interest rate signals throughout the economy. At this point it is useful to dwell briefly on the meaning of the concept of financial stability. In Malta we define it as “a condition where the financial system – comprising institutions, markets and infrastructure is able to: allocate savings to investment opportunities efficiently; ensure the rapid settlement of payments; effectively manage potential risks that may harm its performance; and absorb shocks without impairing its operations.” If there was ever any doubt as to the importance of ensuring the realization of such conditions, it can surely no longer be the case after the experience of the past three years. The financial crisis has clearly underlined the vital role of central banks in safeguarding financial stability and the importance of adopting a macro-prudential approach to regulation and supervision. This thinking lies behind the many initiatives taken recently to strengthen the institutional framework for financial stability, most notably in the EU and on which Mr Fell will be elaborating later on. It is not surprising that in this new emphasis on macro-prudential supervision of the financial system, central banks are expected to play a key role.

At a time when we are witnessing an increase in corporate nonperforming loans, I reiterate my call for the banks to expand their provisions commensurately with this heightened credit risk. At the same time, dividend policies must be mindful of the need for higher levels of retained earnings in order to further strengthen capital buffers, also in view of the more onerous requirements of Basel III. Finally, I would encourage risk officers to go beyond simple compliance with regulations and proactively espouse prudent risk management practices and good judgement. BIS central bankers’ speeches  3  Before I hand over the floor to Professor Bannister, I would like, on this my last official meeting with the financial community, to express my sincere appreciation to you all for the cooperation and understanding I have benefited from over the past twelve years. Thank you. 4  BIS central bankers’ speeches
As evidenced by panel 4, little information on cybersecurity is actually shared, due to sensitivity issues and trust. A pragmatic approach is for financial authorities to engage bilaterally in Memoranda of Understanding (MOUs) with authorities with whom they share mutual trust. Singapore and Hong-Kong already paved the way. This can be done between G7 countries and among other trusted countries as well. III. Preparation for cyber crisis management through large scale exercises The third panel showed how valuable crisis simulations are in the building of an operational preparatory capacity. The exercises organized so far, at domestic or regional levels, allowed us to acquire experience in coordinating a response and the recovery during a major incident. Our ambition must be as high as the risks to which our evolving and interconnected financial systems are exposed to, due to the increasing sophistication of cyber-attacks. In other words, and this is something that clearly emerged from today’s discussions, a more global approach to cyber resilience exercises is needed. In this regard, let me briefly insist on the G7 joint crisis management exercise to be held in early June, coordinated by Banque de France. We will have an excellent opportunity to assess our ability to exchange information and take collective decisions in a mock crisis situation. Good and clear communication 1  FSB, 12 November 2018. Page 5 sur 6 will be essential, underlying the critical role of the communication protocol designed in this regard. But preparation against cyber threat is a moving target.

Net capital inflows into the euro area continued to be the main factor supporting annual M3 growth, while the annual rate of change of loans to the private sector remained weak. The annual growth rate of loans to households (adjusted for loan sales and securitisation) stood at 0.3% in October, broadly unchanged since the beginning of the year. The annual rate of change of loans to non-financial corporations (adjusted for loan sales and securitisation) was –2.9% in October, following –2.8% in September and –2.9% in August. Overall, weak loan dynamics for non-financial corporations continue to reflect their lagged relationship with the business cycle, credit risk and the ongoing adjustment of financial and non-financial sector balance sheets. Since the summer of 2012 substantial progress has been made in improving the funding situation of banks. In order to ensure an adequate transmission of monetary policy to the financing conditions in euro area countries, it is essential that the fragmentation of euro area credit markets declines further and that the resilience of banks is strengthened where needed. The ECB’s comprehensive assessment before it adopts its supervisory role under the single supervisory mechanism will further support this confidence-building process. It will enhance the quality of information available on the condition of banks and result in the identification and implementation of necessary corrective actions. Further decisive steps to establish a banking union will help to restore confidence in the financial system.
Swedish banks must not take this possibility for granted and thus take unnecessary risks. Here there is a link to our ambition to be open and clear. An open attitude sets limits and shows the game rules. We have clearly described how we view our role as “lender of last resort”, for instance, in our Financial Stability Report. 3 By being open about how we manage emergency liquidity assistance we reduce the risk that a situation may unnecessarily arise  3  Financial Stability Report 2003:2  BIS Review 106/2007  7  where we are forced to provide assistance. It also reduces the risk that we will be forced to provide support when this is not appropriate. Giving the right information at the right time and in the right way is important. It is particularly important in times when uncertainty is increasing. I hope that I have managed to communicate today not only the principles that have guided us with regard to our external communication in recent years, but also our picture of the recent situation. I also hope that I have succeeded in communicating that our ambition is to clearly report what we do and why. Thank you! 8  BIS Review 106/2007

But looking forward, given the size of the OTC derivatives markets and the participation of hedge funds in those markets, it is worth reflecting on whether central counterparty clearing arrangements for the more standardized portion of the OTC derivatives market could play a useful role. Certainly, there are many challenges associated with such a project, and its potential to mitigate risks effectively would have to be clearly demonstrated, but surely it is worth looking carefully at whether that or similar efforts could provide meaningful improvements to the core infrastructure of what is undoubtedly a systemically important set of markets. Taken together, these areas of focus are important to ensure that there is adequate capital not just against growing direct exposures to hedge funds, but the indirect exposures that could affect market conditions and firms’ positions in a more stressful environment. We believe that the dealers that act as major counterparties to hedge funds have a collective interest in improving market practice in these areas. This is a good time for them to reassess how practice has evolved against the standards set out by the CRMPG in 1999, and to examine whether the bar established at that time is appropriate for the conditions that exist today. It took a major market event to expose the extent of weaknesses in market practice that prevailed prior to 1998 and to catalyze improvements across the financial community.
Ethical choices in an open economy], Høyskoleforlaget, and Fritz Hodne and Ola Honningdal Grytten (2002): “Norsk økonomi i det 20. århundret” [The Norwegian economy in the 20th century], Fagbokforlaget. 14  BIS Review 154/2010  bank. The central bank did not provide long-term loans on a large scale. 46 This distinguishes the management of the financial crisis in Norway from a number of other countries in that we are of the view that it is appropriate for such medium-term financing – as in the case of solvency support – to be provided by the government and not Norges Bank, if the situation has reached a point where this is necessary. 47 The measure is given a broad democratic grounding through government and Storting deliberations. This approach also serves to counter the kind of criticism that was levelled at Norges Bank when it provided funding for banks in the mid-1980s. Financial imbalances ordinarily build up over a long period before they trigger a crisis. Internationally, measures intended to prevent systemic risks in the financial sector are usually referred to as macroprudential policy. The government authorities should primarily use structural measures to dampen selfintensifying forces behind credit growth and rising property prices. The most important measure will be to increase banks’ capital requirements. The international minimum standard for banking regulation will be strengthened under the forthcoming Basel III framework. However, we note that some countries do not wish to subject their banks to stringent standards.

Given the recourse to the asset by investors, it provides the incentive for disciplined and appropriate governance of the management of the project. Additionally, multilateral development banks may also facilitate this process by providing credit guarantees to these countries to reduce the financing cost and improve the quality of the sukuk issuances. On this front, multilateral development banks such as The Islamic Development Bank (IDB) Group and The Asian Development Bank (ADB) commenced initiatives to support member countries to leverage on Islamic finance for sourcing of funds, through the provision of advisory services, capacity development and technical assistance. Allow me to now share Malaysia’s experience in the development of the sukuk market in our Islamic finance marketplace. The Islamic capital market in Malaysia has been systematically developed to ensure accessibility whilst ensuring the protection of investors and efficiency in the intermediation process. The initiatives to develop the market are also strongly backed by the legal and Shariah framework which is further supported by a robust financial infrastructure, including the settlement and bond information system that enables Malaysia to provide a complete sukuk issuance and trading platform. Since the first sukuk issuance in 1990 by a multinational corporation in Malaysia, the sukuk outstanding in the Malaysian marketplace is now $ billion. In 2002, the Malaysian government issued its inaugural global sovereign sukuk, raising $ million, which became an international benchmark for the issuance of global sovereign sukuk.
If you have followed the Swiss franc closely over the past months, you will know that it has gradually appreciated and has at times even fallen below parity to the euro. We have quite deliberately allowed this to happen. The reason is that inflation abroad is significantly higher than in Switzerland. This means that our economy can withstand the franc being stronger in nominal terms. The higher prices abroad and the nominally stronger Swiss franc roughly balance one another out, and there has therefore been hardly any change in the real exchange rate over the past quarters. Without the nominal appreciation of recent months, our monetary policy would have become more expansionary. Given the current development of inflation, that would not have been appropriate. Allowing the appreciation helped us to keep inflation comparatively low in Switzerland. 3/5  BIS central bankers' speeches  Why did we not simply raise our policy rate? Two reasons have spoken against such a measure to date. First, inflationary pressure is moderate here in Switzerland. Second, inflation is likely to return to the range compatible with price stability in the foreseeable future. Thus far we have seen hardly any indication of a broad spillover of the rise in commodity prices to the prices of other goods and services. Accordingly, our inflation forecast indicates that inflation will average 2.1% in the current year, and decline again in 2023 and 2024. The monetary conditions are therefore appropriate at present.

that is simple, transparent and standardised, to free banks’ balance sheet and thus encourage the issuance of new loans, while offering bond market exposure to borrowers which generally do not have access to such markets, such as SMEs. The potential for development is significant: in the euro area, ABS and MBS issuance is three times lower today than before the 2008 crisis1. 1/4  BIS central bankers' speeches  Other actions concern investment vehicles that enable companies to benefit from resources stemming from investors willing to take greater risks. For example, Euro Private Placements (EuroPP), for which a charter was drawn up in 2015, are now complementary to USPPs in the United States and Schuldscheine in Germany. Amounts issued by French companies totalled EUR 2.28 billion in 20182, but have been declining since the peak of 2015 (EUR 4.3 billion) because they do not offer sufficiently attractive interest rates. It is therefore important that market professionals pursue their efforts to promote this type of investment and step up their actions to standardise the market. Conversely, the growth of crowdfunding platforms, albeit modest, is rising in France, even if the economic model for these platforms has not yet reached its equilibrium, with EUR 402 million3 raised in 2018, up 20% on the previous year, and a growing number of funded projects. This development benefited from the regulatory framework for crowdfunding implemented in 2014 and updated in 2016. This French framework should be further relaxed with the PACTE Act.
Same as most central banks throughout the world, the National Bank, as specified by the Statistical Research Program generates three sets of macroeconomic statistics: •  Monetary statistics that includes processing and presentation of data on the money supply (monetary aggregates), banks' interest rates on approved credits and accepted deposits, and many other data on the banking sector;  •  Balance of payments statistics that includes processing and compiling data on the developments in the balance of payments in the Republic of Macedonia; and  •  External debt statistics that includes processing and presentation of data on the foreign debt of the country. The National Bank has developed all these major sets of macroeconomic statistics in line with the international recommendations and standards. The harmonization of the method of developing such statistics with the international recommendations and standards has permanently been subject to verification by international institutions and organizations, primarily by the International Monetary Fund, as an institution that creates the methodological standards and recommendations in the area of central banking statistics. I would like to take this opportunity to mention the report of the so-called IMF ROSC (Report of the Observance on Standards and Codes) Mission, where the assessments of the  BIS Review 100/2006  1  central bank statistics are particularly positive, i.e. the development of the NBRM monetary and balance of payments statistics is largely harmonized with the international recommendations and standards.

For the time being, that includes the survey of the most important exporters and importers, the inflation expectations survey, and the survey of banks' credit activity. The State Statistical Office contributed to  BIS Review 100/2006  3  the realization of part of the aforementioned surveys, by providing information and consultations, for which we are especially grateful. However, I would take this opportunity to ask the entities selected for the needs of these surveys to maintain and improve their cooperation with the Central Bank, since at the end of the day, those surveys serve for the needs of the entire economy, including themselves. Central banks are providers, but also massive users of statistical information and data, which will continue to be the case in the future, too. However, the nature of the information and data necessary for performing the tasks of the central banks constantly changes. Statistics departments are aware of this fact and in order to be able to take the new challenges and meet the new requirements they have to improve their knowledge and techniques continuously, and apply operational methods in accordance with the international standards and recommendations. It is a great task, which will never come to an end.
Exploring the issuance of CBDC in order to be ready to launch a CBDC, if necessary The third response is to be ready to launch a Central Bank Digital Currency (CBDC) , which means a digital form of central bank money, possibly for both the public and the financial sector. This response would help reassert the anchoring role of central bank money in both the retail and wholesale settlement and payment space, if needed in complement to what can be achieved with the regulatory and market response. This might prove useful for instance to address challenges coming from the introduction of CBDC by other countries. Central banks are actively exploring its potential. This is notably the case of the Banque de France. We have successfully carried out since 2020 seven experimentations on wholesale CBDC – and we will carry out two more by the end of this year, with private and public actors alike, covering a wide range of use cases (DvP and PvP), including cross-border transactions. Let me point out that a CBDC should be designed in our view in a way it is distributed by intermediaries, to allow the banking sector to keep a key role in the monetary policy transmission. C. Possible impacts of a CBDC on monetary policy implementation: preliminary thoughts When decided and depending of course on the specifics of the project launched in the concerned jurisdictions, a CBDC could have several consequences on monetary policy implementation.

Recent studies attempting to assess the effectiveness of compliance programs have developed a measure called the “PEI”, or Program Effectiveness Index. Early work with the PEI shows that companies combining their ethics and compliance programs tend to have better PEI scores. The reason for the higher effectiveness measure seems to be something that I find perfectly rational. Ethics programs, consisting of measures taken to inculcate organizational values, help to create a culture that is not only conducive to following rules that are embedded in law and regulation, but also conducive to compliance with company mores. A strong ethical culture breeds a more compliant culture. The symbiotic relationship between ethics and compliance arises because of the close connection between values and rules. Ethics is about values and compliance is about rules. You obtain the beneficial symbiotic effect when the values and the rules live in harmony. A different result is obtained when you have organizational values that conflict with the rules. One of the very exciting areas in compliance today relates to how a company’s strong ethical culture can impact corporate behavior. One aspect of this behavioral change relates to the greater tendency of corporate constituents to follow the applicable rules when the culture is right. Looking to the future, I envision we will see much more empirical research that shows the benefits of merging ethics with compliance, and placing both in the hands of a trusted corporate officer with a catchy new name – the chief ethics and compliance officer.
The chart shows Norges Bank’s estimate for public purchase of health and care services. The estimate is based on the assumption that the public sector will finance the same share of public services as today. The source for the estimate for public consumption is the Government’s Long-Term Programme, and the estimate is, among other things, based on unchanged tax rates. The fundamental problem is that demand for health and care services is growing faster than tax revenues. There will be a limit on the extent to which the state can reduce appropriations for other important social objectives such as education, research and the judicial system. Something has to give. 17  BIS Review 14/2000  Chart 20  Even after all the structural changes of recent years, there is probably still room for efficiency gains in the health and care sector. However, this is hardly sufficient to fully address the challenges. Users may therefore have to finance a substantially greater share of these services, whether the services are provided by public or private operators. There are limits to the extent to which the public sector should and can impose user fees without creating unacceptable distributional effects. A private insurance system is not a fail-proof solution. It seems obvious that there is a need for a clearer definition of the public sector’s core activities in the health and care sector, and in other areas. There is a need for delimiting what the public sector should finance based on tax revenues.

We have a long history of working together and reaching remarkable useful consensus on critical issues when it matters most, this time will be no different. Honourable Ministers and Governors I am sure we have all had a very hectic day on discussing all these issues and look forward to a very relaxed evening. For those that have not had time to look around this beautiful and historic city I implore you to find time to explore our beautiful beaches and various historic sites. BIS Review 115/2010  1  I wish you fruitful deliberations and hope that Freetown would forever be remembered as the venue where key decisions affecting the African continent would be made. I thank you. 2  BIS Review 115/2010