samchain/econo-pairs-v1 huggingface dataset:
Overall, looking forward, euro area insurers continue to face challenges mainly due to the subdued economic activity, which is reflected in the uncertainty of their earnings prospects (see Chart 14). At the same time, the disclosed solvency positions of euro area insurers indicate a reasonable amount of remaining shock-absorption capacity to weather the materialisation of the risks they currently face. 6  BIS Review 168/2009  V.  Overall assessment  Let me now conclude by providing an overall assessment of the identified risks to euro area financial system stability. As mentioned at the beginning of my presentation, the extraordinary policy measures taken by central banks and governments since late last year have been successful in restoring confidence in, and improving the resilience of, financial systems around the world. A recovery of risk appetite, underpinned by lowered systemic risk, has contributed to the turnaround in financial markets since March 2009 and supported the trading income of large and complex banking groups. Many of these institutions also benefited from a considerable boost to net interest income on account of very steep yield curves. The significant strengthening of the profitability of many LCBGs enabled them to absorb considerable writedowns on securities and loans while still, on average, reporting profits. Some were even able to return the capital they had received from governments, thus exiting from financial support. Despite the recovery in financial markets and improved financial performance of euro area LCBGs, there are several grounds for caution in assessing the outlook for financial stability in the euro area.

Whether for time-sensitive transactions as part of the often intricate choreography of global financial stability operations or for more routine official payments, the insights developed and experiences with the policies, environments, and constraints of other central banks provide the Federal Reserve with enhanced capabilities to formulate and execute policies. The dedication, skill, and expertise of this staff transform on a daily basis the abstract principle of safe, confidential, and reliable service provision into an operational reality. So, to the current and former staff here today, I pay tribute to your service to the global official community, to the Federal Reserve, and to the U.S. You are worthy heirs to the legacy of Benjamin Strong, Montagu Norman, and other early giants of central bank cooperation. The evolving risk environment in cross-border payment operations Even as we hold this commemoration and celebrate the legacy of central bank cooperation in this most tangible of forms, the evolving risk environment in cross-border payment operations requires us as central bankers to continually rededicate ourselves, in word and deed, to the mission of providing safe, confidential, and reliable services to each other. As we are all no doubt aware, risks in cross-border payment operations have undergone major shifts in recent years, with cyber threats in particular emerging as one of the most critical security issues facing our community.
As described  10  In addition to improving competition in money markets, by conducting a daily operation with a known, fixed rate, the Fed can reduce uncertainty and absorb day-to-day variations in the supply of and demand for funds and collateral. An eligible lender that cannot earn the IOER rate and that has an unexpectedly large amount of funds to invest would be able to place the funds in the ON RRP facility rather than sell them in the market at an unusually low rate. This should reduce downward pressure on money market rates. 11  See the discussion in the minutes to the June and July FOMC meetings, http://www.federalreserve. gov/monetarypolicy/fomcminutes20140618.htm and http://federalreserve.gov/monetarypolicy/fomcminutes 20140730.htm. 12  See the Survey of Primary Dealers and the Survey of Market Participants. BIS central bankers’ speeches  5  earlier, if the magnetic pull of IOER alone is insufficient, ON RRPs should help to form a floor on rates by providing a risk-free, overnight asset to a broad range of non-bank investors. As a result of these forces, the effective funds rate should generally print within the target range. That said, as the Chair noted during her September press conference, the Committee expects that the effective fed funds rate may vary within the target range and could even move outside of it on occasion. For example, the effective rate could move outside the target for a day or two around key financial reporting dates, such as quarter-ends, when some banks’ marginal balance sheet costs are particularly high.

According to data of the Ministry of Finance, the Kingdom registered a real surplus of SAR 180.3 billion (6.5 percent of GDP) in its budget during 2013. The public debt fell to SAR 75.1 billion (representing 2.7 percent of GDP). Moreover, the Kingdom achieved a surplus of SAR 486.8 billion (17.4 percent of GDP) in the current account of the balance of payments (compared to 22.4 percent in the preceding year). The inflation rate increased from 2.9 percent in 2012 to 3.5 percent in 2013. However, it is still under control. According to the latest data of the Central Department of Statistics and Information, the inflation annual rate declined to 2.8 percent during February 2014, given that the inflation rate in emerging and developing economies was estimated at 6.2 percent in 2013. Inflationary pressures in the Kingdom were due to the housing sector and food prices. At the time when a number of industrial countries are witnessing a decline in their credit rating, Fitch Credit Rating Agency promoted the Kingdom’s sovereign credit rating from (AA-) to (AA) with a stable outlook, strengthening confidence in our national economy and making it more attractive to investments. Ladies and gentlemen, Allow me to talk about activities supervised by SAMA. In the banking sector, domestic banks continued to play their roles in serving the national economy in accordance with latest secure technologies in the banking services field. Monetary base (M3) increased by 10.8 percent in 2013 (by 12.8 percent in January of this year).
On one hand, it implies that the speed of the disinflation process may need to take the "catching-up" component into account and that the monetary policy objectives in accession countries might need to be different from those applied to high-income countries or to the euro area for some time. On the other hand, it also means that other macroeconomic and microeconomic factors (including a relatively loose policy-mix, wage inertia, stubborn inflation expectations) as well as transition-related factors (price liberalisation, privatisation) continue to play a key role in explaining inflation outcomes in many accession countries and that, therefore, the persistence of inflation differentials with the euro area cannot be attributed to the Balassa-Samuelson effect alone. Also with regard to real convergence, the challenges are significant. Income levels in accession countries are far below the levels of the euro area, and discrepancies of this magnitude have never been observed in previous EU enlargements. Moreover, the process of catching-up in terms of real incomes will be very slow, likely to take many years, if not decades. Hence, even if different income levels are compatible with Economic and Monetary Union (EMU), it is desirable that the real convergence of accession countries towards the euro area increases further, particularly as real convergence will foster economic integration with the euro area and minimise the risks and effects of asymmetric shocks in an enlarged euro area.

Efforts to strengthen the financial and banking systems need to be made in the next years, also for the fulfilment of the so-called "economic" Copenhagen criterion, which requires the existence of functioning market economies and the ability to cope with competitive pressures. Compliance with this criterion for EU accession will require the adoption of EU legislation in the area of financial services, including those related to banking, insurance and investment firms, as I have mentioned before. All in all, in order to fully comply with the acquis communautaire, it would be necessary to further advance institutional reforms related to the applicability and enforcement of laws, in particular as regards the enhancement of corporate governance and legal frameworks. Finally the development of a stable and well-functioning financial sector in the accession countries is also key to the smooth conduct of monetary policy in an enlarged euro area. Efficient and competitive banking sectors as well as smooth functioning capital markets are needed to ensure macroeconomic and financial stability in the accession countries and to support the convergence process of these economies. They are also needed for the proper conduct of monetary policy and, thus, for the successful participation of accession countries in the euro area. Indeed, deep and liquid capital markets are key to enabling an efficient use to be made of monetary policy instruments, since structural weaknesses in the banking sector could have severe implications for the monetary policy transmission mechanism and could affect the responsiveness of banks to changes in the monetary policy stance.
8  BIS central bankers’ speeches  Figure 3 Inflation indicators (annual change, percent) 10  10  8  8  6  6  4  4  2  2  0  0  -2  -2  -4  -4 06  07  08  09  10  11  CPI  EES two years hence  12  13  CPISAE  Sources: Central Bank of Chile and National Statistics Institute (INE). Table 1 International baseline scenario assumptions 2012  2013 (f) Mar.13 Sep.13 Report Report  Growth Trading partners' GDP World GDP at PPP  3.4 3.1  3.6 3.3  3.3 3.0  2014 (f) 2015 (f) Mar.13 Sep.13 Dec.13 Sep.13 Dec.13 Report Report Report Report Report (annual change, percent) 3.4 4.2 3.6 3.6 4.0 3.8 3.0 3.9 3.5 3.5 3.9 3.7  United States Eurozone Japan China India Rest of Asia (excl. Japan, China and India) Latin America (excl.

An important objective consists in raising the potential output growth of the European economy If France and Europe seek to secure sustainable growth at levels that are as high as possible, the key variable is potential output growth. There are three ways of raising the level of potential output growth: First, to boost investment: the more we invest and the lower inflationary pressures, the stronger potential output growth. For example, a two-point increase in the productive investment ratio (productive investment / GDP, 11,4 % during the last five years in France) over the next decade would bring about an average acceleration of more than 0,5 point in potential output growth over the same period. The second way of raising potential output growth is to increase the quantity of actual labour: The European Council of Lisbon set as a central objective the rise of the employment rate of our populations from 60 to 70 % in 10 years. The Council also fixed two sub objectives: to raise the employment rate of women to 60 % and employment rate of older workers (from 55 to 64 years old) to 50 %. As a comparison, the same overall employment rate stands at 75 % in the USA. Although some progress has been achieved in this area, the lack of substantive change and the tendency in some member states to continue to use early retirement schemes remain causes for concern.
Then, Secretary Paulson revealed the initial plan of 700 billion $ for purchasing assets in order to support the banking sector. However, this did not eliminate the doubts. The pressures grew in Europe, too. In September, Dexia, Fortis and Hypo Real Estate had to receive an urgent capital injection, mainly from the governments. In England, the authorities facilitated the quick consolidation in the mortgage sector by having Abbey Santander buying Alliance and Leicester, they supported some mergers in the construction sector and suggested a merger of LTSB and HBOS. Finally, at the end of September, the transparent authorities in England intervened in order to solve the rising difficulties in Bradford and Bingley, by transferring the deposits and the branch network to Abbey Santander and by undertaking the remaining assets and liabilities in public ownership, and subsequently closing them in an organized manner. All analysts perceived the events on the financial markets as something unseen ever since the great financial crisis in the period 1929-1933 of the previous century. As early as in the second half of September the companies and non-banking financial institutions accelerated their withdrawal even from the short-term financing of the banks, and the banks were increasingly losing the confidence for extending loans to each other. The costs of financing grew tremendously. Many institutions could make only overnight borrowing. The credits to the real sector almost stopped.

ancillary functions bestowed upon us  In this context, we believe that  effectively. harmonisation of purpose and better  During 2016, we have implemented  coordination among private sector and  several proactive policy measures in  public sector operations would enhance  order to ensure economic and price  the effective implementation of our  stability. These policies have helped curb  policies and measures, thereby helping  demand pressures in the economy and  to achieve our common development  maintain inflation at a low level. At the  goals. same time, we have introduced several policies related to the financial sector with the view of strengthening  Central Bank of Sri Lanka – ROAD MAP 2017  2  institutions and ensuring effective and  to strengthen the delivery of credit to  active markets as well as safe and sound  the agriculture sector and to small and  payment mechanisms. medium scale enterprises as well as the  In addition to our core functions related to the key objectives I have just outlined, we have performed a number of agency and ancillary functions, thus contributing to enhance the overall performance of the economy. The Central Bank manages the Public Debt to ensure that the government's financing needs and its payment obligations are met at the lowest possible cost over the medium- to longterm, consistent with a prudent degree of risk.
Year 2004 was characterized by the achievement of fiscal objectives in terms of budget expenditures and budget deficit, and also by a more uniform allocation of fiscal expenditures. Government demand for loans has been distinguished by a rising level during the second semester, however remaining within the projected levels. Also, the annual rate of the change of current budget expenditures was stable. The implementation of a prudential fiscal policy has provided the appropriate conditions to better control inflation rate. During the second half of 2004, the Bank of Albania monetary policy has kept an easing tendency, aiming above all at reducing the borrowing cost in the economy. Bank of Albania has twice cut the core interest rate, in July and November, by 0.25 percentage points. These cuts have brought the core interest rate to the lowest historical rate, by 5.25 percent. The banking system was characterized by an accelerated lending activity to the economy during 2004. The credit balance increased by LEK 9.2 billion during June-November 2004, being 51 percent higher than the balance growth in the first semester of the year. Lending to the economy is given an everincreasing importance in the assets structure of the banking system, constituting a considerable source of the demand for monetary assets. The credit/deposit ratio increases on a continuous basis, an indication that positively introduces the function of the intermediation role of the banking system in supporting the economic development.

It corrupted the idea of market openness and the liberalisation process. Such destabilising risks bear upon the integration process among financial markets of this region. Developing long term solutions through the Financial Markets Committee Addressing the speculative impact of the NDF market is only part of the solution. Of greater importance is the need to put in place sustainable long-term solutions. With this in mind, the Financial Markets Committee (FMC) was established in 2016, and tasked with the responsibility to look into the overall development and strategy for the Malaysian financial market. The FMC also looked into the factors that caused imbalances in the demand and supply of foreign currencies in the domestic market, including the reduced capacity of the market to provide liquidity to intermediate the portfolio adjustment by non-residents. The underlying motivation of the FMC is to create a deeper and more liquid onshore market that will enhance its capacity to intermediate these flows and strengthen our resilience against excessive volatility. Despite the havoc caused by episodes of volatility from the opaque, unregulated and value destroying activities of the NDF market, the FMC in identifying the possible remedial measures have concluded that market based mechanism and solutions is still the best way forward. Through close consultation with various stakeholders, including corporate entities and small and medium size enterprises, the FMC developed a series of targeted initiatives to develop the onshore financial market.
The IMF could, for instance, encourage its Governors, in general the Ministers of Finance, to become more actively involved in its work, in terms of decision-making and not merely in a consultative capacity in the Interim Committee. A similar question faces the G-7, which feels the need to embrace emerging market countries, but is unclear about how to go about it, and finds it difficult to come up with acceptable ways of choosing its partners. The design of a new architecture provides, perhaps, a good occasion to address these long-avoided questions. Two avenues could be explored. BIS Review 43/1998  -8-  The first would be to “revitalize” the IMF Interim Committee. It could become an essential structure, because no other can match the scope of its responsibility and the legitimacy of its members, who are collectively responsible for key developments in the world economy. At present, however, it is hampered by the ritualism of its meetings and an insufficient awareness of its uniqueness and potential. This is why I think that the suggestion of the French Minister of Finance, M. Strauss-Kahn, to consider its transformation into a “Council” with decision-making, rather than merely consultative, powers, is particularly important. This is not a new idea. This transformation, pursuant to Article XII, Section 1 of the Fund’s Articles of Agreement, could give it a new start. This approach was envisaged under the Jamaica accords, but deferred at the time because of the experimental nature of the Interim Committee.

May they share these approaches and concerns. Their confidence in the lasting benefits of globalization will be fully justified as a new world, born from the opening of economies, the unification of markets, and the universal availability of information and knowledge, has an immense potential for high-quality growth. May they also validate their own message of confidence by a clear demonstration of their sense of universal responsibility and solidarity. BIS Review 43/1998
This picture is broadly mirrored when turning from returns to labour to returns to capital. In the 1950s gross profitability of the financial sector relative to capital employed was broadly in line with the rest of the economy (Chart 16). But since then, and in particular over the past decade, returns to capital have far outpaced those at an economy-wide level. Chart 17 plots UK banks’ return on equity capital (ROE) since 1920 (Alessandri and Haldane (2009)). Although conceptually a different measure of returns to capital, the broad message is the same. Trends in ROE are clearly divided into two periods. In the period up until around 1970, ROE in banking was around 7% with a low variance. In other words, returns to finance broadly mimicked those in the economy as whole, in line with the gamble payoffs in Chart 6. But the 1970s mark a regime shift, with the ROE in banking roughly trebling to over 20%, again in line with gamble payoffs. Excess returns accumulated to capital as well as labour. These returns were by no means unique to UK banks. Chart 18 plots ROEs for major internationally active banks in the US and Europe during this century. Two features are striking. First, the level of ROEs was consistently at or above 20% and on a rising trend up until the crisis. This is roughly double ROEs in the non-financial sector over the period. Second, the degree of cross-country similarity in these ROE profiles is striking. This, too, is no coincidence.

It is striking that, in the last five years, global standard setting bodies such as the Basel Committee on Banking Supervision have moved to address risk culture, risk appetite setting and risk governance more explicitly in regulatory standards. This was not the case prior to the crisis, when emphasis was predominantly placed on risk management processes and systems, believing that this ought to be sufficient. Organisations largely failed to take into account behavioural biases that play such an important role in senior management decisions which ultimately affect the risks that a company will be willing to take or tolerate. These decisions include how performance targets are set for staff, how incentive structures are designed, and the stature and resources that are provided to risk management functions within the organisation – all of which can create a constant uphill struggle for risk managers to have any meaningful impact on risk outcomes. To illustrate the point, a report published by  BIS central bankers’ speeches  1  the Office of Financial Research in the United States observed that much of the advancements in risk management over the last decade have resulted in a highly analyticalfocused discipline, while largely ignoring the fundamental drivers of risk-taking that are rooted in more subtle behavioural characteristics. Within the financial industry, financial institutions in Malaysia are required to establish a wellresourced independent risk management function that reports directly to a board risk committee, and take active measures to promote a prudent risk culture in the organisation.