samchain/econo-pairs-v1 huggingface dataset:
This evolution in the Committee’s thinking about capital adequacy follows from much of our recent work on risk management and the surveys we have conducted on banks’ disclosure practices. It is also consistent with the broader notion of supervision I’ve discussed today. We encourage comments on the Committee’s proposals from both supervisors and industry participants through 31 March 2000 - which is next week - and plan to publish, hopefully early next year, a comprehensive set of proposals that will be responsive to the comments and input we have received. Let me highlight briefly each of the three pillars and provide some perspective on the key challenges that the Committee faces in relation to each. The first pillar is minimum capital requirements. To address the shortcomings in the 1988 Accord, the Basel Committee has proposed two primary approaches: •  an enhanced standardized approach that ties risk weightings to external credit assessments such as credit ratings; and  •  an internal ratings-based approach that would begin by mapping internal risk ratings into standardized risk weightings, but might eventually evolve into something closer to the full use of credit risk models. Each approach treats the trade-off between simplicity and accuracy somewhat differently and thus one or the other is likely to be relevant to banks with different levels of sophistication. Most importantly, both proposed approaches attempt to introduce greater risk sensitivity into the minimum capital standards to address the unfortunate incentive problems that have evolved from the 1988 Accord.

In this connection, it should be emphasized that, because of the inherently partisan nature of politics, and for other reasons as well, the government or state is not well-equipped to make credit decisions. Recent experience here in Asia, and before that in the former command economies of Eastern Europe, makes clear just how dangerous “policy lending” can be. Decisions as to who gets credit and who does not must be left to private initiative within a context where those making the decisions have a major stake - their own capital and economic livelihood. If the system is working properly, those receiving credit will be the most efficient, competitive, and profitable - those most capable of producing the stream of goods and services that will enable the economy to grow and, as a result, for living standards to rise. The purpose of supervision - preserving financial stability This, then, is the fundamental tension of commercial banking - how to meet the credit needs of a healthy and expanding market economy, which necessarily entails the taking of calculated risks, and yet preserve the confidence of depositors whose savings are the raw material that enable banks to perform their essential functions. Negotiating that tension, helping banks meet that challenge, is the critical task of supervision. And so what is the purpose of supervision in the 21st century? What are the objectives? How can those objectives be best pursued? Let me say first of all that there is no quick-fix or single answer.
Lars Heikensten: Introduction on monetary policy Speech by Mr Lars Heikensten, Governor of the Sveriges Riksbank, at the Riksdag Committee on Finance, Stockholm, 1 April 2004. *  *  *  Let me begin as usual by thanking you for the opportunity to come to the Riksdag Committee on Finance and give an account of monetary policy. The committee’s public hearing of the governor is an important part of the transparency the Riksbank wishes to uphold. These meetings illustrate the clear link between the bank and the democratically-elected body in Sweden. Now these meetings are a part of our legislation. As is usual on these occasions, I intend to begin by commenting on our current assessment of inflation and our view of monetary policy. Then I shall briefly discuss events in the Swedish economy last year and the results of the monetary policy we conducted. The current assessment World economy recovering As Sweden is a small country, very dependent on events in the outside world, it is natural to begin a discussion of the current economic situation with a description of developments in the world economy. Global economic growth has largely followed the path anticipated by the Riksbank and most other analysts during the autumn and winter. Compared with the picture we envisaged in December, we are now assuming that international growth will be slightly stronger.

Assistant Governor’s Welcoming Remarks at the Signing of the First ESG Islamic Repurchasing Agreement Speaker: Encik Adnan Zaylani Mohamad Zahid / Venue: IBFIM Kuala Lumpur / Language: English / Speech/Interview Date: 17 Jun 2022 /  Distinguished guests, ladies and gentlemen. Assalamualaikum w.b.t and a very good afternoon. Malaysia has been ranked first among 135 countries in the Global Islamic Finance Development Indicator and first among 81 in the Global Islamic Economy Indicator, both for the 9th year running, something we are all proud of. The Financial Sector Blueprint 2022 – 2026 sets out BNM's development priorities for the financial sector over the next five years. One of the thrusts is to “Advance value-based finance through Islamic finance leadership” aimed at spurring growth that is progressive, sustainable and inclusive. This includes strengthening Malaysia’s proposition as an international gateway for Islamic finance, augmenting the Malaysia International Islamic Financial Centre (MIFC) agenda. As part of our effort to raise the bar and catalyse global opportunities, there will be several areas of focus but one that is highly relevant for today is our emphasis and a greater focus on opportunities in sustainable finance. This builds on our pioneering work in VBI, and synergise with our efforts on climate and environmental risks – a key piece of the sustainable finance agenda. The SDGs funding gap of OIC countries is estimated around USD 1 trillion a year, hence represents a major opportunity for us.
However, looking at studies of Swedish data covering the period from the end of the 19th century up to the mid-1990s, it is difficult to find evidence of this. 9  8  See, for instance, Chapter 5 “The changing dynamic of the global business cycle”, in World Economic Outlook 2007, IMF. See also T. Dalsgaard, J. Elmeskov and C-Y. Park. ”Ongoing changes in the business cycle, evidence and causes.” OECD Working Paper ECO/WKP(2002)1. 9  Jesper Lindé, ”Swedish postwar business cycles: Generated at home? Scandinavian Journal of Economics, 2004:4, 623-45. and V. Bergström and A. Vredin, ”Measuring and Interpreting Business cycles”, Clarendon Press Oxford, 1994. BIS Review 121/2008  3  If one looks at the period from 1980 to 2008, however, the turning points in the economic cycle appear to systematically occur a few quarters earlier in the United States than in Sweden. 10 This could imply that international developments have also gained increased significance in recent years as capital markets have been deregulated and the exchange rate has been allowed to float. One can also see that exports often show a turnaround a quarter or so before GDP. However, there have been few cycles since 1980 and it is therefore difficult to reach any conclusions. Let me illustrate how the components of GDP in Sweden move in the example of a “normal” economic downturn. Export growth often turns around a few quarters before the turnaround for GDP.

There was thus no scope for stabilising monetary and fiscal policies. Since then the pendulum has swung back a little with the neo-Keynesianism, which has reintroduced some of the elements of the classical Keynesian analysis. Due to different reasons it can take time before the economy returns to its long run equilibrium after a shock. Monopolistic competition and sticky wages are a few examples. The participants’ expectations can play a major role according to these theories. Monetary and fiscal policy can therefore be used to stabilise the economy. Macroeconomic analysis is often carried out with the aid of general equilibrium models (DSGE models, Dynamic Stochastic General Equilibrium). 5 The Riksbank, like a number of other central banks, uses one of these models for forecasts and simulations. The Riksbank’s model is called Ramses (Riksbank’s aggregate macromodel for studies of the economy in Sweden). In Ramses, goods and labour markets are assumed to be in monopolistic competition and wages and prices are sticky. However, the Ramses model analysis is only part of the forecasting process, which is also based on other statistical analyses and of course assessments. In the short term, that is to say the current quarter and one quarter ahead – what is usually called “now-casting” – we use different statistical models and indicators to make an assessment of the current situation. This analysis strives for the best possible accuracy in the forecasts and is often only vaguely anchored in economic theory.
This leads to my third example, the “Flash Crash” of 6 May 2010. That day, the Dow Jones Industrial Average plunged almost 1,000 points in five minutes, only to regain almost 600 points twenty minutes later. Full explanations for this turn of events have yet to be determined, but a report by U.S. regulatory authorities, the Commodity Futures Trading Commission and the Securities and Exchange Commission, concluded that: “One key lesson is that under stressed market conditions, the automated execution of a large sell order can trigger extreme price movements, especially if the automated execution algorithm does not take prices into account. Moreover, the interaction between automated execution programs and algorithmic trading strategies can quickly erode liquidity and result in disorderly markets.”6 Technological developments would therefore  2  The VIX tracks volatility on the S&P 500 Index. 3  Merrill Lynch Option Volatility Estimate Index. 4  “History of New York Stock Exchange Holidays,” New York Stock Exchange, revised in January 2011. 5  Brady Report 1988, Study III, p. 21. Cited in, “Marc Carlson: A Brief History of the 1987 Stock Market Crash with a Discussion of the Federal Reserve Response,” p. 9. 6  “Findings Regarding the Market Events of May 6, 2010,” Report of the Staffs of the CFTC and SEC to the Joint Advisory Committee on Emerging Regulatory Issues, 20 September, 2010. 2  BIS central bankers’ speeches  seem to be like a dual-edged sword. On the one hand, they increase efficiency and reduce costs.

What now? The principle of “Gemeinschaftswerk” has served us very well of late. Its technical and economic efficiency has permitted a convergence of individual institutional interests with those of the Swiss financial centre. However, the environment in which Switzerland’s financial market infrastructure operates is now changing considerably. To remain reliable, efficient and competitive, it must evolve. This is a challenge, not only for the SNB, but for all financial markets, that is all stakeholders in the “Gemeinschaftswerk”. The Swiss financial centre urgently needs to agree upon a clear proactive strategy to ensure that Switzerland’s FMI remains competitive in the long-term. Should the “Gemeinschaftswerk” not be the chosen modus operandi in the future, this issue could prove to be even more pressing. Let me now conclude my thoughts on the plumbing of our financial markets and return to the front office to discuss the more prominent challenges on the foreign exchange market. Part II: The strong Swiss franc Since the breakdown of the Bretton Woods system in 1973 the Swiss franc has significantly appreciated against most major currencies. From this juncture, its value increased massively, in nominal terms, with respect to the US dollar, the British pound, and, in the relevant period, to the Deutschmark. Since the inception of the euro in 1999, the franc also appreciated against the euro - the currency of our primary trading partner, though the exchange rate was stable until the onset of the recent crisis. Little can be gleaned from a comparison of the various currencies’ nominal values, however.
That said, it is equally important for policymakers to ensure that mechanisms for swift NPL resolution remain appropriate, not only to prevent an accumulation of legacy NPLs in the banking sector but also to provide borrowers impacted by this pandemic an opportunity to bounce back once the crisis abates. Such a balanced approach helps to preserve the value and productive capacity of borrowers in turn limiting long-term damage to the economy. For Malaysia, work is underway to strengthen legislation which will expand the coverage of businesses that can benefit from court-sanctioned recovery mechanisms. This will help flatten the insolvency curve and avoid more permanent scarring, if NPL cases were to spike. Admittedly, this is an area where there are opportunities to do more and one where all of us can potentially learn from each other. Concluding remarks Let me conclude. Looking ahead, we are cautiously optimistic that the tide may be finally turning in this crisis. However, we certainly can’t conclude that the COVID-19 pandemic is firmly behind us. We humbly admit that the virus has wrong footed us several times. The hallmark of good policymakers is to, as the saying goes, “hope for the best, but prepare for the worst”.

Our challenges may differ, but I believe for all of us attending this webinar, our end goal is the same – to successfully navigate the exit from this pandemic and effectively manage any potential surge in NPLs such that our financial sectors are able to continue to lend support to the recovery process while mitigating more permanent economic scarring. On that note, I wish everyone a day of engaging discussions and fruitful learning. 3/3  BIS central bankers' speeches
5 There are two key principles to keep in mind as we fine-tune regulations: risk proportionality and global consistency. Risk proportionality We need to be mindful of proportionality when applying international regulatory standards. Subjecting banks of different sizes, different scope of activity, and different degrees of internationalisation, to the same rules is not appropriate. Most of the new regulations were designed with large, cross-border financial institutions in mind. They are a poor fit for smaller institutions – like local community banks and finance companies – that tend to pose fewer systemic risks. Here in the US, there are concerns that post-crisis regulations have been unduly punitive on smaller banks and have affected their ability to support small businesses. Regulators need to review their frameworks to ensure they remain risk proportionate. They are not starting from a blank slate. In the US, for example, the Dodd-Frank Act already exempts firms with less than $ billion in assets from the tougher prudential requirements. And Bill Dudley, President of the New York Fed, has suggested: “… this threshold could be raised significantly without unduly increasing the risk to the broader financial system.” 6 Global consistency Adjustments to domestic regulation must not lead to inconsistency with agreed international standards. Global harmonisation of regulation enables fair competition and minimises regulatory arbitrage. Harmonisation does not mean identical rules. Country differences matter. We therefore need to establish effective mechanisms to recognise and defer to one another’s national regulatory regimes. Conflicting rules on cross-border OTC derivatives trading is a case in point.

Overall, the economy in the euro area stagnated. As in the last monetary policy assessment, we assume that the global economy will continue to recover slowly. This will be driven by globally expansionary monetary policy and strong domestic demand in the emerging economies. In the euro area and the US, developments are likely to be more subdued. Here we assume that the European financial and sovereign debt crisis will gradually ease. However, risks in this respect remain high. In particular, the difficult situation in Greece and Spain has already led to a significant deterioration in the  BIS central bankers’ speeches  1  confidence of households and companies in the euro area. As a result, the economic situation remains vulnerable. These high risks are also affecting the financial markets. Following a temporary recovery at the beginning of the year, the situation on the financial markets at present is again tense. A substantial correction has taken place on the share markets. By contrast, investments perceived to be safe, such as US, German or UK government bonds, recorded all-time low yields and correspondingly high price gains. Real yields on these investments are in negative territory for most maturities, measured in terms of inflation expectations. In addition, interest rates on money markets are at record-low levels worldwide. Swiss economic outlook In Switzerland, real GDP rose faster than expected in the first quarter.
Since then, over 35 programmes covering an additional 17 job families have been accredited. In the coming months, the accredited providers will roll out over 100 programmes covering 38 job families, including Compliance, Anti-money Laundering, Risk Management, Trade Finance, Product Control, Deal Processing & Settlement, Investment Advisory, Private  BIS Review 81/2008  1  Equity and General Insurance Underwriting. We now have 93 certified competency-based assessors, who can provide the assessment of candidates. On the demand side, 470 individuals have undergone the FICS accredited programmes. A total of 49 financial institutions have benefited from the FICS accredited training or assessment programmes. Apart from sending staff or programmes run by the lead providers, I am pleased that several financial institutions have adopted FICS for their in-house programmes. I encourage more financial institutions to make use of the FICS framework and the grants available to step up their training. Last year, IBF introduced an additional set of standards on life insurance–relationship management. IBF will continue to review and expand the scope of the standards when new needs are identified. Please let us have your suggestions. Another important milestone was also reached when we appointed the pioneer batch of 11 Financial Industry Certified Professionals (FICPs) in October 2007. Our FICPs are professionals who exhibit high standards. I am delighted that so many of our top professionals have stepped forward for this accreditation. You will serve as role models for our young.

Going forward, IBF will continue to take a proactive role in promoting best practices and thought leadership in talent management strategies. On thought leadership, I am delighted to warmly welcome our keynote presentation speaker Professor Ronald Collard for this year’s Annual Conference. Professor Collard will speak on the topic of “Talent Strategies for Sustained Profitable Growth”. I believe you will learn much from Professor Collard’s extensive experience and expertise in the area of talent strategies. I also wish to thank the panelists, David, Richard, Robert and Mark for their participation, and look forward to a lively discussion later. 2  BIS Review 81/2008  As IBF management is quite confident that Professor Collard and our panel of speakers will whet your appetite for more learning, I am pleased to announce that we will be holding the Beacon Series for HR Professionals in October and the Distinguished Speaker Series for business leaders in November. The year ahead will be exciting. Many of you have contributed to IBF in various ways. I wish to thank my fellow Council members, the FICS Steering Committee, the FICS Working Group members, and FICPs for your contribution to promoting the FICS framework.
Though from experience, I know the bottom of the ninth can last for eternity in a close baseball game. The continued importance of the transition away from Libor  Public authorities and market participants across jurisdictions have now been working together to transition away from reliance on Libor for a number of years. Its weaknesses were originally exposed during the global financial crisis and while reforms have improved the governance and administration of the rate, the markets on which it is based have long since shrunk to a trickle of transactions. We see little prospect of those markets returning. Plans now need to be in place to transition from Libor to alternative reference rates by end 2021. John and I will speak about the progress that has been made. With 18 months to go these plans must now be acted upon in the time remaining. With the authorities, businesses and households all having to adapt to the challenges of lockdown and new ways of working, there have been calls to step back from the Libor transition as a priority. We understand the level of disruption there has been and central banks have worked to ensure financial institutions have had the support and capacity to be able to ensure a continued flow of financing to support the economy. But in my view, what we saw in financial markets in March in response to the shock of Covid only reinforces the importance of removing the financial system’s dependence on Libor in a timely way.

Third, the U.S. has an independent central bank – the Federal Reserve – which has been successful in keeping inflation low and stable. As a result, the dollar has been a reliable store of value in recent years. Another point in the United States’ favor is the considerable steps taken to shore up areas of weakness revealed by the financial crisis. In particular, the safety and soundness of our financial system has been enhanced. Capital and liquidity requirements for U.S. banks have been raised significantly. Stress tests have been imposed to enhance the viability of large systemic institutions even in very adverse economic and financial environments. Reforms have been enacted to facilitate the recovery and resolution of troubled institutions. This  2  BIS central bankers’ speeches  includes living will requirements for the major systemically-important financial institutions, and the development of an improved resolution regime to ensure that institutions that do get into difficulty can be resolved without disrupting the stability of the financial system. In conclusion, I welcome other countries’ progress toward achieving the preconditions necessary for their currencies to attain the stature of a reserve currency. However, we should not act as if this is sufficient to achieve a well-functioning global financial system. In particular, the current regime is inefficient in a number of important ways. Countries have found it necessary to self-insure against the risk of large capital flow reversals. This has led to a very sharp rise in aggregate foreign exchange reserve holdings.