samchain/econo-pairs-v1 huggingface dataset:
That included starting a Bank-wide Operational Risk Committee (a predecessor to the Risk Subcommittee) led by the First Vice President, establishing the risk event reporting and risk control self-assessment processes, and creating the Centralized Operational Risk Function (then located in the Bank’s Corporate Group). Later developments included instituting new Bank-wide control policies reflecting a deeper understanding of sources of operational risk. For example, the Bank established policies to govern end-user developed automation tools and the management of contingent workers. The past several years have been characterized by a focus on integration of the Bank’s risk management program. As part of a review of the Bank’s governance, the Risk Subcommittee of the Management Committee was established with a broad risk management mandate spanning financial, operational, and compliance risk. The Bank also enhanced the coordination of risk management, resource allocation, and strategic planning through linkages between the Risk Subcommittee and our planning and resources committee. Most indicative of this trend was the establishment in 2015 of the Risk Group’s Enterprise Risk Management Function which is responsible for providing an integrated view across all of the Bank’s risks. In thinking about areas for future improvement, I ask myself: How can we accelerate organizational learning from our mistakes? Does our analysis of risks and risk events sufficiently reveal organizational and structural issues that contribute to the risk? How can I further create a positive risk culture that encourages reporting and escalating of risk issues?

The Riksbank’s independence  Legislation  Public authority under the Riksdag, not the Government  EU legislation Sveriges Riksbank Act and ban on instructions  Goal independence  The Riksbank’s goal  Instrument Independence  The Riksbank’s tools  Personal independence How members are appointed and dismissed  Financial independence The Riksbanks financing/budget  Figure 2. Clearer independence in Sveriges Riksbank Act 1999  Swedish Riksdag Riksdag Committee on Finance General Council of the Riksbank  Executive Board of the Riksbank 1  15 [20]  Figure 3. Lower inflation since the inflation target was introduced CPI, annual percentage change 16  CPIF  1981-1992 Means: 7.4 Std. dev. : 2.9  12  12  8  8 1995-2021 (Apr) Means: 1.5 Std. dev. : 0.7  4  4  0  -4  16  0  80  84  88  92  96  00  04  08  12  16  20  -4  Source: Statistics Sweden  Figure 4. Falling real interest rates Per cent 6  6  4  4  2  2  0  0 Sweden Euro area  -2  -2  United States United Kingdom  -4  96  00  04  08  12  16  20  -4  Sources: National central banks and the Riksbank  16 [20]  Figure 5. Policy rates Per cent  Sources: National central banks, Reuters and the Riksbank  Figure 6.
In brief: the definition of capital set in Basel I included instruments that did not properly absorb losses; capital requirements were too low in relation to the underlying riskiness of assets, particularly for the trading book; and banks were able to move risk assets increasingly into the trading book. The finger is often pointed at Basel II for enabling all of this to happen, but the timeline suggests that the problems built up under the combined Basel I and Market Risk Amendment regime. That said, Basel II had its own flaws, and was not well implemented, points I will return to later. But, first, I want to look more at the flaws of the pre-crisis regime, starting with the definition of capital. This was flawed from the outset in the late 1980s, both in the definition of eligible capital instruments and the approach taken to the adjustments which should ensure that accounting balance sheet items such as goodwill are not recognised in regulatory capital. A further issue in my view has been the treatment of provisions. Basel I allowed hybrid debt instruments to count as Tier 1 capital even though they had no principal loss absorbency mechanism on a going concern basis. They only absorbed losses after reserves (equity) were exhausted or in insolvency. It was possible to operate with no more than two per cent of risk-weighted assets in the form of equity.

Last but not least, rules and principles for economic policy were introduced in Norway, as in other countries, to prevent policy decisions based on shorter-term considerations and shifting preferences. The Norwegian economist Finn Kydland, who is from my home district of Rogaland, received the Nobel Prize in economics for his study showing that economic  4  BIS Review 109/2010  performance can be improved if policymakers can commit to a pre-established set of credible policy rules. 7 Four pillars were established in the 1990s and in 2001 to stabilise economic developments: •  the petroleum fund mechanism  •  the fiscal rule  •  a floating exchange rate  •  inflation targeting  This system was introduced in response to the sharp upturns and downturns in the economy over the first twenty years of the Norwegian oil age. As a result of the petroleum fund mechanism, a greater share of government petroleum revenues is invested abroad. This curbs the impact of oil price fluctuations on demand and output – as well as on inflation and the exchange rate. The rules for the investment of these oil revenues prevent individuals or groups from gaining strong control over Norway’s oil wealth. The fiscal rule for the central government budget states that petroleum revenue spending shall be limited to the return on the funds invested abroad. This provides for a gradual phasing-in of oil revenues and a rate of spending that can be sustained for several generations.
References: Bank for International Settlements, “Report on Financial Stability in Emerging Market Economies”, April, 1997 Bullock, Alan, Stallybrass Oliver and Trombley Stephen, The Fontana Dictionary of Modern Thought, Fontana Press, 1988 Commonwealth of Australia, “Financial System Inquiry: Final Report Overview” - the Wallis Report -, Australian Government Publishing Service, March 1997 Dale, Richard, Regulating the New Financial Markets, Proceedings of a conference “The Future of the Financial System” held at the H.C. Coombs Centre for Financial Studies, Kirribilli on 8/9 July 1996, Economic Group, Reserve Bank of Australia Davies, Howard, Market and Regulatory Structures in a Global Environment, speech at the Federal Receive Bank of Atlanta’s Financial Markets Conference, February 1997 Goodhart, Charles, Some Regulatory Concerns, LSE Financial Market Group, An ESRC Research Centre, Special Paper No. 79, December 1995 Greenspan, Alan, Remarks at the Spring Meeting of the Institute of International Finance, Washington DC, April 1997 Hoenig, Thomas M., “Rethinking Financial Regulation”, Federal Reserve Bank of Kansas City, Economic Review , Second Quarter 1996, Vol.81, No.2  BIS Review 55/1997  -9-  Lindgren, Carl-Johan, Gillian Garcia, and Matthew I. Saal, “Bank Soundness and Macroeconomic Policy”, International Monetary Fund, Washington, DC , 1996 Sheng, Andrew, “Bank Restructuring: Lessons from the 1980s”, World Bank, 1996 Sheng, Andrew, “Managing Derivative Market Risks”, Hong Kong Monetary Authority, January, 1997 The Palgrave Dictionary of Economics Footnote: I am grateful to Carmen Chu for research assistance in the preparation of this paper and to Raymond Li and Osbert Lam for useful comments. BIS Review 55/1997

Speech by François Villeroy de Galhau, Governor of the Banque de France, Université Paris-Dauphine/House of Finance Paris, 9 January 2020 “Low rates: what are the causes and what are the effects for France?”i  Press contact: Mark Deen (mark.deen@banque-france.fr), Déborah Guedj (deborah.guedj@banquefrance.fr)  Page 1 of 14  Ladies and gentlemen, dear teachers and students, I am very happy to start the year with you here at Dauphine and to offer you my warmest wishes. The New Year is often a time to make resolutions, but it is also the perfect time to take stock. Among the surprises of 2019 was the extension of highly accommodative monetary policies when many expected – or indeed hoped? – to see a normalisation. So low rates are going to persist: “low for longer”; an increasing number of people are worried about the effect this will have on banks, insurers, savers. It is perfectly legitimate for there to be a debate around monetary policy, but the fact that even the general public is now showing an interest is something altogether new. That is why I stand here before you this evening, as one of the heads of the Eurosystem: to give an account of the causes underlying low rates – they are not just the result of monetary policy – and then to assess their consequences: the positive effects are still predominant, even if they have their limits, which I shall also talk to you about later. ** I. Low rates: why?
I take this opportunity to assure you that, in the future, the Bank of Albania will continue to fully support the new and talented generation of Albania, as we keep our doors open, in all possible ways and forms. Dear students, Today you have reached an important milestone in your life. It is up to you, only to you, to take the destiny in your hands, and determine with courage, determination and the characteristic vivacity of your age the future path in your lives. Wherever you are, in Albania or abroad, never give up on your ambitions and dreams. To make them come true, you have to work tirelessly, with confidence, integrity and professionalism. 1/2  BIS central bankers' speeches  I wish and hope everyone would find the right path! 2/2  BIS central bankers' speeches

Since its launch, the Financial Education Plan has raised awareness of financial planning and encouraged households to treat savings as a fixed expense, helping them to build up a financial safety net based on what they can afford. Further, the plan also aims to teach the general public, and students in particular, to make responsible use of credit as and when it is needed, and to invest their savings based on sound risk assessments and in awareness of the risk-return trade-off. The Banco de España has redoubled its engagement in financial education, with recent structural changes aimed at reinforcing this function and helping the public to make better financial decisions, including when it comes to their savings and investments. In conclusion, Spanish households’ ability to appropriately manage their savings, based on informed decision-making, is a cornerstone of their financial health and, therefore, of stability for society at large. Thank you very much. 5
Yet the considerable slack in productive capacity and the sluggish recovery in demand and activity across Europe suggest that inflation rates, while positive, will hold at moderate levels in the near future, with no risk of deflation discernible for the moment. Given the incipient pick-up in activity and the continuation of very modest levels of both actual and expected inflation, the official interest rate for the euro area, at 1% since last May, is at the appropriate level. Switching our focus to the Spanish economy, the decline in output in 2009 is not going to be sharper than in other countries, but the contrast with the growth rates of the ten previous years is more patent. The fact is, as I have explained on other occasions, the Spanish recession shares features with other countries, but has its own hallmarks, such as the real estate adjustment and the behaviour of the labour market. The powerful external contractionary forces generated by the international crisis compounded the internal adjustment on which the Spanish economy had embarked, exacerbating the decline in domestic spending and employment. The latest figures indicate that, as in the euro area and the rest of the world, the sharpest phase of contraction in the Spanish economy is now behind us. According to the data released some days back by the INE, activity slipped once more in the third quarter, unlike in other developed countries, although it did so at a quarter-on-quarter rate of 0.3%.

Foreseeably, a phase of gradual growth will begin over the course of the coming year, based on a continuing positive contribution of external demand and on a progressive pass-through of the improvement in the world economy to business investment and employment. On average, however, 2010 might still see a moderate decline in activity, the result above all of the carry-over effects of the negative rates in 2009. The growth path in 2010 might also be affected by the VAT rise announced for next July, since this measure might bring forward  BIS Review 151/2009  3  some spending decisions to the second quarter, raising demand and activity in this period but reducing them in the second half of the year. This slow path of recovery in activity broadly matches the government's macroeconomic forecasts on which the State Budget for 2010 is based. The setting I have described highlights the significant challenges the Spanish economy faces. For the recovery to materialise and firm, the Spanish economy must first check and then absorb unemployment, restore health to business and household finances, rebuild confidence in the economy's productive capacity and reduce the large budget deficit. To achieve these goals, I reiterate that it is vital to adopt an ambitious agenda of reforms. The economic policies pursued since the start of the crisis have focused on countering in the short run a very adverse economic and financial situation, and there is broad consensus that the efforts made have contributed positively to this end.
It cannot be acceptable in a democratic society that a group of unelected individuals are vested with important responsibilities, without being open to full public scrutiny and accountability.” As I previously noted, establishing an appropriate and responsible transparency regime for emergency lending in the midst of a severe crisis is an especially challenging task. With sufficient time to assess the maximum amount of information that could be released without frustrating its mission, the Federal Reserve now discloses extremely detailed information to the public about all of its facilities. 5 However, the fact that such information was not instantly available gave rise to public criticism. Another lesson that emerged strongly in this phase of the crisis was the need for adding to the regulatory toolkit a robust and effective method for resolving complex financial institutions without imperiling the safety of the broader system. In the case of Bear Stearns, the presence of a willing acquirer presented the opportunity for an assisted transaction that effectively amounted to an ad hoc resolution mechanism for the failing firm. One sense in which this solution was ad hoc was that policymakers could not be sure that a willing acquirer would be found in the case of distress in the future, but another, perhaps more important sense is that the rules of the game were not clearly established in advance.

The four distinct phases of the recent crisis were as follows:   The initial disruption in money markets in the summer of 2007 – I will call this the “what are these securities worth?” phase;    The abrupt takeover of Bears Stearns by JPMorgan Chase – I will call this the “unusual and exigent” phase;    The 30 days following the bankruptcy of Lehman Brothers – I will call this the “panic” phase; and    The period from mid-November 2008 to early May 2009 – I will call this the “viability of large U.S. banking organizations” phase. One consistent theme that emerges across all these phases is that central banks must have the ability to respond quickly and flexibly in a crisis situation. This ability is crucial in preventing the emergence of an adverse feedback loop between instability in the financial system and weakness in the real economy. Another theme that emerged as these phases played out, however, was that an ability to move with speed and flexibility comes with the challenge of ensuring that accountability and transparency keep pace with the actions being taken. The need for accountability and transparency is especially true when central bank actions are being used to innovatively fill holes in a regulatory and legal framework that has not kept pace with the evolution of the financial system. Phase 1: What are these securities worth?
The decline in commodity prices, above all crude oil, will curb inflation further over the short term. We continue to assume that global economic growth will gradually firm over the course of next year. The considerable fall in oil prices should be a contributory factor. However, the  BIS central bankers’ speeches  1  prospects for individual countries vary widely. For the US, we are expecting that growth will remain robust over the next few quarters, leading to better utilisation of economic capacity. For the euro area, by contrast, we have revised the growth forecast downwards once more, and the outlook for this region remains very subdued. The picture for the emerging economies is mixed. China will continue to be a driver of the global economy, although it is likely to see a gradual weakening of growth. For India, growth prospects are picking up again. The outlook for Brazil and Russia, by contrast, remains muted. Overall, the global economic outlook is still very uncertain and dominated by downside risks – the most important of which are the continuing difficult conditions in the euro area and a possible escalation in geopolitical tensions. Swiss economic outlook I will now look at economic developments in Switzerland. Following a weak second quarter, real GDP growth was unexpectedly favourable in the third. On the demand side, the increase was supported predominantly by goods exports, with manufacturing the main beneficiary of the strong export demand.

Complementing the MII's efforts for the insurance industry, the International Centre for Education on Islamic Finance, or INCEIF which was launched in March this year seeks to produce high-caliber practitioners, professionals, specialists and researchers in Islamic finance. It offers the world's first certification on Islamic finance, the Certified Islamic Finance Professional (CIFP) programme as well as post-graduate programmes in Islamic finance. This initiative is aimed at supporting the global development of the Islamic financial services industry. Ladies and Gentlemen,  2  BIS Review 76/2006  The further development and growth of the insurance industry brings with it new potential and opportunities for professionals like yourselves. The challenge is to embrace the opportunities as they present themselves and to continuously develop new skills and competencies that will be needed in this changing environment. In relation to this, I would like to urge you to rise to the challenge by building on your achievements today to continually improve your skills and knowledge. The inculcation of a culture of lifelong learning is essential to enable you to adapt to the constantly changing environment and to contribute to the growth and development of the insurance industry, and to the overall financial services industry. In closing, let me congratulate once again all the graduands of MII. I wish each of you every success in your career and future endeavours. Thank you. BIS Review 76/2006  3
This is reflected in two aspects of the design: the fact that a number of measures will phase out naturally; and the fact that the size and scope of the outright purchases for which exit would require either an unwinding or offsetting operations has been carefully calibrated. a.  Phasing out  A degree of phasing out has been built into the exit process through the design of our measures. In the absence of new policy decisions, many of the measures will naturally unwind over time. An overwhelming proportion of the additional liquidity provided during the financial crisis has been offered through repurchase agreements. Once these operations mature, their impact naturally phases out. Another example concerns the agreements with other monetary authorities to provide liquidity in foreign currencies. These agreements are priced in a way that makes it likely that they will face less demand once tensions in the market subside. Hence, here too a “natural phasing out” is envisaged, essentially reflecting lower demand. b. Size and scope of the intervention  We have also carefully guarded against undertaking outright operations of a scope and magnitude that would make them difficult to offset or unwind. Notably, the covered bonds purchase programme is limited in size compared with the overall scale of our refinancing operations and compared with our balance sheet. Its effect on total liquidity can easily, if desired, be neutralised via adjustments to our monetary policy instruments. 3.

From the building of the foundation of legal, regulatory and shariah framework, the Islamic Banking Act (1983) to the formation of the first Islamic bank and Takaful Company to instituting Islamic windows concept for banking institutions and encouraging competition amongst the Islamic financial institutions in the nineties (1990s), to establishing key infrastructures and institutional arrangements such as the Shariah Advisory Council and the Islamic Money Market, we are on a mission to be the center for Islamic finance. Today we have a comprehensive system for Islamic finance but as you would expect, because of competition and the fast changing pace of the banking industry, we must continue to strive to maintain the lead in this industry. There are a few pre requisite to maintain this competitive edge. It is the ability of the industry to meet the evolving and discerning needs of the users of Islamic finance and the ability to meet those needs in a timely and comprehensive manner. The solutions to customer needs must be as innovative and competitive as any other alternatives offered by the financial market. The shariah aspect of the products must be recognized and accepted by the majority of players practicing Islamic finance. The supply and ability to attract and retain talent, not only in shariah area and Islamic finance, but also those who are conversant in IT, legal, accounting, risk management and communication. The next level of development will probably entail the enhancement of linkages between various centers, be it in the financial markets, credits or investment of funds.