samchain/econo-pairs-v1 huggingface dataset:
“Special report on central banks and the world economy: only human”, The Economist, October 20th-26th 2007. 4  BIS Review 15/2008

In the UK, moves have recently been made to improve the competitiveness of SME finance; I believe that the new Basel framework could in turn be a positive contribution to banking stability but we stand ready to monitor developments. Although this conference is essentially about the issue of banking capital, I would like to end by emphasising that capital is only one component of banking stability; many other factors also come into play. In the field of prudential regulation, I would like to highlight two: valuation and provisioning frameworks, and liquidity management and regulation. There will be little point to all the Committee's work on risk sensitive capital measures if this is not underpinned by adequate loan valuation and provisioning practices - preferably ones which incorporate a forward-looking view of risk and deterioration in loans. A lot of valuable work has been done on loan provisioning by the Basel Committee and other bodies, and I welcome the debate that is currently being sponsored by the IASC on valuation frameworks. 4  BIS Review 29/2001  Secondly, adequate liquidity is a vital counterpoint to capital for banks; the regulation of capital adequacy and liquidity are interrelated. Rationally, solvency ought to be a guarantee against funding problems, with customers happy to roll over deposits where they are confident that a bank is soundly capitalised. But reason does not always prevail, in part because solvency is sometimes hard to ascertain, more often because, swept along by animal spirits, markets can behave emotionally and perversely.
Miguel Fernández Ordóñez: The real economy and the financial system – the importance of reforms Speech by Mr Miguel Fernández Ordóñez, Governor of the Bank of Spain, at the meeting on the reform of the Spanish financial system, organised by Expansión and KPMG, Madrid, 23 February 2010. *  *  *  Firstly, I should like to thank Expansión for their kind invitation to speak today in this forum, where matters of great importance for the future of the Spanish economy and financial sector will be discussed. The latest available figures suggest we are leaving the worst of the crisis behind. On the international front, despite some isolated bouts of tension, financial market behaviour continues to improve, the main developed economic areas have resumed positive growth and the pace of expansion in the emerging economies has stepped up. Against this background, and although doubts remain over the consistency of the recovery, the growth projections of the main analysts and international agencies have been revised upwards. In Spain, too, the latest indicators suggest the sharpest phase of the decline in output is behind us. And, while with some delay compared with most of the developed economies, the outlook is for the start of a gradual growth phase during this year, based on a continuing positive contribution by external demand.

After struggling to reach the targets in the early years, the Central Bank has managed to keep inflation within the targeted range (since 2005 at 4.5% plus or minus two percentage points) for 5 years in a row. In fact, last year, when global inflationary pressures were quite strong (at least until the third quarter), the BCB was one of the few monetary authorities, within the set of those formally targeting inflation, not to miss its target, even though economic activity, until the end of the third quarter, remained quite strong. Thus, from a narrow balance of payments viewpoint, as well as from a macroeconomic stance, the floating BRL has been remarkably successful. BIS Review 8/2009  1  That has not meant that the regime has counted with unqualified support. Time and again criticism of the floating BRL has mounted, be it because the currency is seen as not floating enough, or floating too much, or being too weak, or too strong, or helping some sectors of the economy or regions of the country at the expense of others. More fundamental is the criticism that the exchange rate is too important to be left to the markets. The recent financial crisis and misdemeanors have made this position fashionable again in mature economies. In Brazil, with a long tradition of heavy state intervention in the economy, which was characterized by close linkages between a few privileged segments and the government, this position has always had, and still has, its vocal advocates in all sorts of media.
Similar to the experience in the GBP bond markets, compounded in arrears rates have quickly established themselves as a robust and useable market standard. They offer borrowers a transparent rate based on substantial volumes of real transactions and lenders a durable rate that will function through a range of scenarios. It is promising to see the progress made in SONIA and as liquidity continues to shift, the benefits of transitioning new business from Libor becomes even clearer. But it is also imperative we have a clear path for existing or ‘legacy’ Libor contracts to transition in a robust manner. Legislative processes in the US, EU and UK continue to progress in establishing safety nets for those contracts that can’t actively transition ahead of cessation. Strong adherence to the ISDA IBOR fallbacks protocol, in the US and UK in particular, has been encouraging. Clearing houses are also following suit with their own conversion processes on similar terms. We estimate over 97% of sterling interest rate derivatives have a robust safety net in place. [7] But more can and should be done – the protocol remains open for entities that have not yet adhered and it is critical that equally robust fallback arrangements are adopted in cash products too.

We know liquidity attracts liquidity, it is clear there is demand from borrowers and we welcome initiatives to continue to increase SOFR usage. There is also broad international consensus to support the US authorities and limit new use of US dollar Libor from the end of this year. So with the summit in sight let’s reflect on how far we have come in what was always a challenging climb, but let’s also make sure we complete the job properly and safely descend the mountain that is Libor. I am grateful to Raza Rehman, David Geen, Arif Merali, Stefania Spiga and Alastair Hughes for their assistance in helping me prepare these remarks. 1. Based on data from LCH. 2. The FCA and the Bank of England encourage market participants in further switch to SONIA in interest rate swap markets 3. Based on data from ClarusFT and Bank of England estimates. 4. The FCA and the Bank of England encourage market participants in a switch to SONIA in the sterling non-linear derivatives market from 11 May 5. Path to ending new use of GBP LIBOR-linked derivatives 6. Based on reporting to the Bank of England and Financial Conduct Authority. 7. LIBOR – are you ready for life without LIBOR from end-2021? 8. Based on reporting from International Capital Markets Association. 9. Announcements on the end of LIBOR 10. Interest rate benchmark reform: overnight risk-free rates and term rates 11. Interim Financial Stability Report - May 2020 12. Consultation on Term SONIA Reference Rates – Summary of Responses 13.
Reinhart, C. M. and Rogoff, K. S. (2009), “The aftermath of financial crises”, American Economic Review, Schumpeter, J. A. (1939), Business Cycles: A Theoretical, Historical, and Statistical Analysis of the Capitalist Process. New York: McGraw-Hill. Sims, C. and Zha, T. (2006), “Were there regime switches in US monetary policy?”, American Economic Review, vol. 96(1), pages 54-81. BIS Review 101/2009  19  Stock, J. and Watson, M. (2003), “Has the business cycle changed? Evidence and explanations”, in Monetary Policy and Uncertainty, pp. Federal Reserve Board of Kansas City: Kansas City. Taylor, J. B. (2007), “Housing and monetary policy” in Housing, Housing Finance and Monetary Policy, pp. 463-476. Federal Reserve Bank of Kansas City: Kansas City. Taylor, J. B. (2009), “The financial crises and the policy responses: An empirical analysis of what went wrong”, NBER working paper 14631, January. Tobin, J. (1969), “A general equilibrium approach to monetary theory”, Journal of Money, Credit and Banking, vol. 1(1), pp15-29. Uhlig, H (2009), “A model of a systemic bank run”, NBER working paper 15072. Van den Heuvel, S.J. (2008), “The welfare cost of bank capital requirements”, Journal of Monetary Economics, vol. 55, pp. 298-320. White, W. R. (2006), “Is price stability enough?”, Bank for International Settlements working paper 205, April. Woodford, M. (2003), Interest and Prices: Foundations of a Theory of Monetary Policy. Princeton University Press: Princeton.

Consider for a moment a very simple financial intermediary (a “bank”) that can finance risky lending with either debt, which here encompasses both deposits and credit market instruments, or equity. Assume that the bank pays RD on its debt and earns (a stochastic) RL on its loans, net of intermediation and monitoring costs. Then the return on its capital, RK, is given by: RK = (1+λ)RL – λRD, where λ is the leverage (debt-to-equity) ratio. In the normal course of events, one would expect the return on debt to be an increasing function of leverage, as the greater the leverage, the greater the chance that the bank’s capital will be wiped out in the event of low returns on the loans and they will be forced to default on part or all of the debt. Indeed, with symmetric information between bank and creditor, there should be no gain from raising leverage at all by virtue of the Modigliani-Miller theorem. For a number of reasons, however, this may not work in practice. Creditors – especially if they are households rather than sophisticated financial market participants – may not even factor in the implications of higher leverage for the possibility of default. And even if they do, the debt may be partially or wholly underwritten by the state, with the cost of the insurance only imperfectly passed back to the bank.
Lucas Papademos: Opening remarks at the press briefing on the occasion of the publication of the December 2009 ECB Financial Stability Review Opening remarks by Mr Lucas Papademos, Vice President of the European Central Bank, at the press briefing on the occasion of the publication of the December 2009 ECB Financial Stability Review, Frankfurt am Main, 18 December 2009. * I. *  *  Introduction  My colleagues and I would like to welcome you to today’s press briefing on the occasion of the publication of the December 2009 edition of the ECB Financial Stability Review. 1 The primary objective of the Review is to consider the main sources of risk to the stability of the euro area financial system and provide a comprehensive assessment of the capacity of the financial system to absorb adverse disturbances. As usual, the Review has integrated the interdepartmental work of the ECB with that of the Banking Supervision Committee (BSC) of the ESCB. It contains 14 boxes and five special feature articles that address topical financial stability issues in a more focused and analytical manner. As in the past, we have prepared a summary note that highlights some key messages of our analysis and assessment. Over the past 12 months, the extraordinary policy measures taken by central banks and governments have succeeded in restoring confidence in, and strengthening the resilience of, financial systems around the world. In particular, financial system support measures have been addressing the funding problems of key financial institutions and have bolstered their capital positions.

Will there be a budget, a macroeconomic forecast and a medium-term fiscal programme and what will be the parameters, a question that has a direct bearing on the Maastricht criteria? Will there be a decision about the mandate and horizon for action of the Central Bank's Governor and management? Because, and let me finish with this, with a caretaker government and an 'acting' management of the Central Bank the entry into the euro area is just not going to happen. Mr. Speaker, I and my colleagues in the Governing Council are available to answer the questions that the members of Parliament may have. 4/5  BIS - Central bankers' speeches  5/5  BIS - Central bankers' speeches
The Malaysian bond market has also been liberalised to enable foreign entities to raise ringgit and foreign currency denominated funds from our market. International issuers may thus issue multi-currency Sukuks or alternatively have the flexibility to swap domestic currency funding into other currencies. At this juncture, I'm also pleased to inform you that a Malaysian corporation recently issued the largest-ever sukuk issue in the world amounting to equivalent USD4.7 billion which was two times oversubscribed. This hybrid sukuk which has  BIS Review 23/2008  3  both equity and debt natures is one of the several innovative instruments that has been issued in the sukuk market. Malaysia's development of Islamic finance has contributed positively to our overall financial system in several respects. This has resulted to a more diversified financial system that has increased its overall resilience. Secondly, it has increased our international linkages. Thirdly, it has also contributed to greater financial inclusion particularly in the area of financing for small and medium scale enterprises and micro financing. Then, enhanced with the in-built checks and balances, it contributes towards financial stability. Finally, Islamic finance has become a new area of growth that has become very vibrant in generating income, wealth and employment. Opportunities in Sukuk In the current liberalised and globalised environment, Islamic finance is now at the threshold of a new dimension in strengthening financial inter-linkages between nations in the global economy.

6  To-date there is more than 10 retakaful companies providing retakaful capacity for both family and general takaful business. 7  United Nations Conference on Trade & Development's (UNCTAD) World Investment Report 2007. 8  Sources: JETRO from Ministry of Finance Balance of Payments Statistics and Bank of Japan foreign exchange rates. BIS Review 23/2008  5  markets would contribute towards further international financial integration and thus achieve a more efficient allocation of resources across borders. Conclusion Let me conclude my remarks. The increasing awareness and appreciation of the inherent strengths of Islamic finance and its tremendous potential for advancement have ignited interests amongst the global financial community to venture into this new sphere of finance. Taking advantage of the increasing role of Islamic finance in bringing together different parts of the world with surplus funds in search of investment opportunities, with those that have financing needs, will increase these mutually reinforcing prospects. We look forward to Japan's participation in this new financial evolution. Thank you. 6  BIS Review 23/2008
8 Đ Đ These factors underpin the promising economic prospects in ASEAN, with the corresponding need for regional enterprises to raise capital to support their growth. 9 Đ Đ Looking ahead, these are opportunities to be harnessed both within ASEAN and globally, and exchanges as well as clearing houses need to innovate and remain relevant to all stakeholders.Đ I will now speak about three key trends, the opportunities they present, and what MAS is doing to support the Singapore financial services industry in these areas. Trend 1: Catalysing Sustainable Finance for Growth 10 Đ Đ The first trend is growth in sustainable finance. This is increasingly an area of both concern as well as interest to financial players, especially millennial investors. 11 Đ Đ The estimated financing needs to support the greening of Asian economies are high. China has estimated that it will require $ billion of investments annually to achieve its green policy goals under its 13th Five Year Plan while ASEAN will need an estimated $ billion in green investments annually through 2030 [5] . 12 Đ Đ Sustainable finance is still at a nascent stage but we are seeing increasing focus from financial institutions to develop new environmental, social and governance (“ESG”)-related products. Similarly, with increased investor demand and awareness for sustainable financial products, exchanges like yourselves can look to expand and support product owerings that will meet the needs of socially and environmentally conscious enterprises and investors.Đ 13 Đ Đ One such area of growth is in green bonds.

Global green bond issuance volume reached $ billion in 2018, a four-fold increase from $ billion in 2015. The Asia-Pacific region accounted for almost $ billion of issuance, or almost 30% of global volumes, of which $ billion was from China. Exchanges can support the listings of green, social, and sustainability bonds, as countries and corporates transition towards a low-carbon and climate resilient model. • To foster sustainable growth in ASEAN, the ASEAN Capital Markets Forum (ACMF) has developed the ASEAN Green Bonds Standards, in collaboration with the International Capital Market Association (ICMA).Đ The standards, based on ICMA’s globally recognised Green Bond Principles, seek to facilitate ASEAN capital markets in tapping green finance to support sustainable regional growth and meet investor demand for green investments. As of October 2019, 80 such bonds from Singapore, Malaysia, Thailand, and the Philippines have been issued for renewable energy, green buildings and low carbon transportation [6] . 14 Đ Đ Exchanges can also play an active role in supporting sustainable growth through sustainability reporting and integrating sustainability considerations in products that you launch. In particular, sustainability reporting is a key tool in encouraging enterprises to integrate ESG considerations in their performance and value proposition to both internal and external stakeholders.Đ • Sustainable reporting has become more important with growing concerns from consumers and investors that financial returns are achieved with integrity, backed by ESG considerations.
Integrating sustainability factors into own-portfolio management Central banks must send the right signal and lead by example in their investment and disclosure policies. The DNB has signed up to the UN Principles for Responsible Investment. Norges Bank, which manages the Norwegian sovereign wealth fund, has advocated a diversification of the portfolio and is implementing a divestment strategy dedicated to selling off some oil and gas stocks. We, at the Banque de France, adopted in March last year a Charter on Responsible Investment for the management of our own funds and our pension portfolios: this means allocating them to socially and environmentally responsible investment funds. With respect to disclosure, in March 2019 we were the first central bank to publish our climate-related risks’ exposures. We are also working to further align our reporting with a TCFD-like approach that would fit the specificities of central banks. We trust our experience will be useful to the NGFS membership in defining some best practices as far ESG investment for central banks is concerned. We can be proud of what we have achieved in 16 months, but it is “time to roll up our sleeves”: the merciless perspective of a more than 2°C world requires us to strive to do better and to do it now. Developing practical solutions now tops the agenda of the NGFS “Season 2”. II. The road ahead for central banks/supervisors and other players too a. Disclosures and taxonomies, two faces of the same coin We are currently facing a chicken and egg dilemma.

Through Hong Kong, they can enter Chinese markets on a platform that is proven and familiar, using English-language documentation and applying international norms and practices. 30. The opening-up of various channels into China’s domestic markets gives options to international investors. They can choose to have an onshore presence and trade directly in the local market. Or they can continue to use Hong Kong as their base if it makes sense for their strategy and resources. 31. The fact that the majority of foreign investors access the Mainland capital markets using the two Connect schemes speaks volumes about the unique value proposition of the Hong Kong platform. In recent years, that financial connectivity has been boosted by increasing ‘southbound’ traffic from the Mainland to Hong Kong. 32. It is well known that Hong Kong is the leading hub for Mainland enterprises looking to issue equity or debt in the international market. That activity continued to thrive in 2020, thanks to the secondary listings by home-coming Mainland corporates and IPOs by new economy companies. 33. But Hong Kong is much more than a capital-raising gateway for Chinese firms. Today, Mainland institutions and individuals use Hong Kong to put their capital to work. Southbound flows from the Mainland to Hong Kong through the Stock Connect schemes rose by 128 per cent last year. 34. The volume of capital flowing from the Mainland into Hong Kong is set to grow further. Very soon, we will be launching a Wealth Management Connect scheme.