samchain/econo-pairs-v1 huggingface dataset:
Parliament can tie us to the mast and rely on us not to seek to wriggle free. •  But, as with monetary policy, this makes it vital that Parliament frames the objective and that we are sufficiently transparent to enable ex ante public accountability. •  Objective: The legislation governing the FPC is clear that resilience of the system as a whole is the primary goal but that we must not aim for the stability of the graveyard. Resilience is not quantified, however. •  Transparency: While respecting the confidentiality of data on individual firms, FPC is required by Parliament to be as transparent as possible – via the published Record of our policy meetings and the twice-yearly Financial Stability Report. •  This is the background to the FPC calling on the Bank to develop a regime for stress testing to be used for both micro and macro prudential supervision. (Part of a much bigger project that is needed for policymakers to gauge just how much stress our economy can take at any time without serious adverse consequences, and what to do about it.) •  One possibility is for FPC to use stress tests to define the degree of resilience the system needs. Maybe that could become to financial stability what forecasting is to monetary policy. In the USA and elsewhere the results of such stress tests have been published. BIS central bankers’ speeches  3  •  That represents quite a change in regime for regulated firms.

Commentators sometimes attribute a perceived asymmetry to our current definition of price stability “below, but close to, 2%”. The Governing Council has frequently re-affirmed its commitment to symmetry – as it stands in our Introductory Statement since Mario Draghi. Nevertheless, we should examine whether the current formulation casts doubt on this. o medium term means that we should judge our inflation performance over a long enough period. We shouldn’t forget what Jean-Claude Trichet often stressed as an optimal performance in the first years of the euro. “Over these 12 years, the average annual inflation rate in the euro area has been 1.97%. We have achieved price stability in the euro area over what has already been quite a long horizon.”vi As I said in previous occasionsvii, our medium-term target needs to be viewed in two ways: it has to be forward looking to guide inflation expectations, but it cannot ignore the past either. Page 6 sur 10  All this is not explicit average inflation targeting ex ante, but would achieve very similar outcomes ex post. We will have to discuss that.  We will also have to discuss the precise formulation of our inflation objective, in at least two respects: the “below but close to” as already mentioned and the measure of inflation we use. Continuity is a positive asset but the inclusion of “owner-occupied housing” in the HICP is frequently, and somewhat rightly, suggested by the general public.
First, procyclicality of the financial system poses risk to financial stability, and to address it, efforts call for policy to dampen the procyclical effects through counter-cyclical financial regulation and macroprudential measures. Second, to avoid large build-up of excesses, macroeconomic policy especially monetary policy has an important role to play. And in the case of emerging markets, the procyclical behaviour of international capital flows adds another dimension of challenge because of its effects on domestic monetary conditions. Hence, to effectively address the issue, a combination of macroeconomic policy and financial regulation is needed to restrain the build-up of imbalance, a process to which procyclical financial behaviour is a key contributing factor. The current financial crisis also raises the issue of procyclicality. Apart from its global nature, a key feature of the current crisis when compared with past crises is the scale of excessive risk-taking and leverage that took place that was accentuated by procyclical financial behaviour. This, therefore, puts the issue of procyclicality and financial regulation into the policy spotlight. What I want to do this afternoon is to discuss procyclicality and the policy approach to address it from a wider perspective of macroeconomic management aimed at ensuring financial stability. My focus is to offer a framework for analyzing procyclicality, and to propose a view that policies from different orientations, especially financial regulation, are needed to deal effectively with the issue. In its simplest form, procyclicality refers to the interactions between the financial system and the real economy which are mutually reinforcing.

It is important that banks adopt a consistent approach to dealing with restructuring requests across the organisation and provide ready access for customers in difficulties to approach the bank to discuss relief. Working together, banks and their customers can help one another to deal with the effects of  BIS Review 21/2003  3  SARs and position themselves for recovery. I am confident that the banks have been taking the right action, and will continue to do so. 4  BIS Review 21/2003
To the extent that the US financial system does not generate enough “pure” safe assets, this creates an incentive for the financial sector to manufacture such assets from the securitization of lower quality ones, but at the cost of greatly increased financial fragility (Caballero, 2009). Global imbalances and the policy agenda Contemporary analysis therefore points to “structural” causes behind the pattern of capital flows and global imbalances (Blanchard and Milesi-Ferretti, 2009). The policy consequences are important. First, current account imbalances will likely prove more resilient than expected to exchange rate movements or inflexions in macro policies. If the causes are “structural”, significant shifts in demand and relative prices between countries may well lead to suboptimal growth and excess volatility. In the immediate future, “financing” those imbalances should take precedence over their “adjustment”. Second, global imbalances reflect a mix of different national preferences and inflexions caused by public interventions. One important focus in the policy debate should be to disentangle those two types of structural causes, and eliminate pure policy induced distortions. Obviously, this is no easy task, but, in the end, a crucial one if imbalances are to be addressed and reduced. Finally, financial development matters. This is one area where preferences differ between nations and public policies have a huge impact. This is also a source of major uncertainty for the future. Will there be convergence or divergence in financial regulation across countries?

Caleb M Fundanga: The Bank of Zambia’s management development programme for managers Remarks by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the opening of the Management Development Programme for Managers, Livingstone, 4-15 December 2006. *  *  *  • Director – Human Resources • Assistant Director – Organisation Development • The Consultants • Participants • Ladies and Gentlemen I welcome you all to this Management Development Programme. Management development programmes are crucial not only to Staff development but also to the realisation of the Bank of Zambia vision. As you are aware, our vision is “To be a world class central bank”. Our vision can only be realised if the performance of our employees measures up to world class standards, because it is employees who make an institution what it is. In other words, we can not have a world class central bank without world class employees. Ladies and Gentlemen: I would like to refer you to our strategic plan document. You will note that in its values statement, the Bank states that employees of the Bank of Zambia shall at all times endeavor to direct their efforts towards the achievement of the mission of the Bank by consistently following the values encapsulated in the BoZ Way. You will also note that the Bank has, in turn, undertaken to support employees by, inter-alia, continuously enhancing the capacity of the Bank through the development of all staff.
The northbound Stock Connect has presented a huge opportunity for Hong Kong to develop risk management capability for understanding of the risks and the pricing of such risks for offshore investors interested in the A share markets. Apart from helping to channel foreign investments into the Mainland market, the Stock Connect has also contributed to the inclusion of bigger weights of A shares in the global stock market indices such as the MSCI. Asian Equity Derivatives Hub 8. Another recent trend that is relevant is that several international financial firms have decided or are planning to relocate their Asian equities derivatives booking hubs from Europe to Asia. This is very logical as the underlying securities and clients are based in Asia. The HKMA welcomes these moves and stands ready to facilitate such moves, on the condition that the booking business must be accompanied by the necessary risk management functions. Again, this will enhance Hong Kong’s position as the risk management hub for Asian equities and derivatives, particularly Mainland related stocks. Bond Connect 9. By the same token, the launch of the northbound Bond Connect in 2017 has opened another window of opportunity for Hong Kong to enhance its risk management functions for offshore investors wishing to invest in the Mainland bond market. It is still early days yet, but I am confident that Bond Connect offers attraction to those investors who prefer using a nominee holding structure through the Central Moneymarkets Unit of the HKMA.

If Hong Kong wishes to remain the preferred centre for private wealth management, we must strive to strike the right balance between the need to accord appropriate investor protection and allow the banks to provide user-friendly and efficient services to clients. To succeed in this endeavour, the regulators must work in close collaboration with the industry to continue adapting the rules and practices to cater for the evolving demands of the customers and the rapidly changing financial markets. There is no magic quick fix available, and I hope that the stakeholders would agree to adopt a truly risk-based approach. What it means is that the regulators should articulate the risks or problems that they seek to address while the industry should consider how proper risk management could be achieved without over-interpreting the regulations or imposing rigid processes that drive away customers. Soft Power 12. At the end of the day, any premier IFC must possess superior soft power if it wishes to sustain such position. Soft power is the sum of a wide range of tangible market infrastructure and intangible strengths. While there must be a robust but market-friendly regulatory regime, we need to have a high degree of professionalism amongst the industry practitioners. Fully cognizant of this principle, the HKMA has in the last decade or so launched many soft power enhancement schemes for the banking industry.
Although in some of the countries banks do not face funding problems, SME securitization allows for transformation of SMEs loans that have low liquidity into tradable securities. This creates secondary market, for SMEs loans, but also contributes to the general market development. The need for deeper and more developed capital markets, to complement traditional sources of financing and support investment and innovation is common feature for the region. Yet many country specifics are in place, and this makes proposing “one-fit all” solutions very difficult. Following the findings of the Vienna initiative group on capital market development11, and the way the obstacles and solutions are schematized, several conclusions can be drawn. 11  Report by the Working Group on Capital Markets Union, March 2018. 14  First, CESEE countries must develop comprehensive policies and strategies aimed at addressing the financing gap in infrastructure and SMEs financing. Strategies should include a clear assessment of the role that capital markets in general and institutional investors in particular can have, along with the measures necessary to use the potential. In practice, challenges of mobilization institutional investors to infrastructure and SMEs financing are complex, and addressing them requires participation of many public entities in coordination with the public sector. Second, conducive regulatory environment is an important prerequisite for the development of capital markets. The perception of the level of investors` protection and the degree to which the markets are fair and transparent are the key factors that investors take into consideration when investing in jurisdiction.

According to the Police, the number of financial scams reported in Malaysia has risen to an alarming 1,883 cases between 2015 up to the 1st quarter of 2017, accumulating a total loss of RM379 million. This suggests that greed and ignorance can give way to rational financial decisions for many victims. Based on these observations, a lot more is left to be desired on the state of financial literacy to realise financial well-being for Malaysians. It is acknowledged that improving financial literacy is an intricate and long term journey. Through continuous and effective financial education, consumers would be able to improve their understanding of financial products and services, and develop skills and confidence to make informed financial decisions in their daily life. Financial education would encourage consumers to better manage their finances, plan for the future and manage risks associated to financial matters. While we agree that financial education plays an important role in elevating financial literacy, engaging in financial education alone is insufficient. It is equally important that the acquired knowledge and skills are put into practice and lead to a positive change in behaviour towards a healthy financial lifestyle. To this effect, initiatives to improve financial literacy must be implemented holistically. The ultimate aim is to promote sustainable behavioural changes at all life stages.
An organic law in force since 1989 establishes that the BCCH’s objective is to “safeguard the stability of the currency and the normal functioning of domestic and external payments”. 1  See Table 1 at the end of this document. BIS Review 142/2010  1  The first part of this objective is interpreted as the maintenance of price stability or, in other words, low and stable inflation. For the past ten years, the BCCH has applied a policy framework with an inflation target of 3% and a 1% tolerance range. The second part of its objective is directly related to financial stability. For payments to be made normally, the banking system, money and credit markets and supporting infrastructure must all function properly. The reference to external payments seeks to highlight the importance that trade and financial flows with the rest of the world have for an open economy such as Chile. Financial stability is, in other words, an essential part of the BCCH’s responsibilities, very much in line with what we see in most of the world’s economies. In the eyes of BCCH, the two parts of its objective are different and separable, but affect and reinforce each other. The management of monetary policy, which seeks price stability, requires that money and financial markets work well while financial stability requires, among other conditions, that inflation remains low and stable. The recent financial crisis has underlined the interrelations between these two objectives.

Hamad Al-Sayari: Challenges posed to investment in Saudi banks Speech by His Excellency Hamad Al-Sayari, Governor of the Saudi Arabian Monetary Agency, to the Symposium on Challenges Posed to Investment and Saudi Banks, Riyadh, 2 December 2006. *  *  *  Dear Audience, At the beginning, I would like to welcome all honorable attendance. It gives me a great pleasure today to address you at the outset of the deliberations of this symposium on "Challenges Posed to Investment and Saudi Banks in an Environment of Global Economic Openness" which is convened at a time the Kingdom is witnessing a period of economic growth accompanied with and enhanced by steps of economic reforms in the fields of streamlining of regulations, restructuring of the national economy, and approval of a number of mega development projects as well as the accession to the World Trade Organization which is an important step towards enhancing integration into the world economy, coping with economic developments, and attraction of foreign investments apart from accession to global markets which will be reflected on the competitive capacity of the national economy. Dear Audience, The current Symposium is being held in a promising economic environment in this country. The Kingdom has recorded outstanding economic results. The real gross domestic product rose by 6.5 percent in 2005. This growth rate was reflected on almost all sectors of the economy which is characterized by strong investment. International rating agencies recorded their appreciation and certified the efficiency and strength of the national economy.
We will see what the precise outcome of the present dialogue will be, but already I would like to say that I find some of the resistance shown by banks generally, and even more so, the controversy that has arisen in Italy in particular, inappropriate and unfounded. For non-performing loans, we have to plan ahead if we are to stop picking up the pieces afterwards. If we ever needed proof of the necessity for independent European supervision, this controversy has provided it. II. The second challenge is to encourage consolidation within the Banking Union  Consolidation must be the result of consistency, and consistency is considering the Banking Union as a unique jurisdiction. -  We must therefore stop hindering cross-border bank consolidations in the euro area. 3  We need to ensure that the implementation of new regulations does not give rise to new barriers. The development of cross-border banking activities is essential to reinforcing the single market, facilitating the allocation of savings and financing investment. We still lag far behind the American market in this respect: the market share in the United States of the top five banks is more than 40% whereas the market share in the euro area of the top five banks is less than 20%. Sound and safe cross-border consolidations would make banks better able to diversify their risks across the euro area, and channel savings more effectively towards productive investment.

Speech by François Villeroy de Galhau, Governor of the Banque de France and President of the ACPR  ACPR conference of 22 November 2017 Bank resolution: from regulation to implementation  Ladies and Gentlemen,  I am delighted to welcome you to this new conference organised by the Autorité de contrôle prudentiel et de résolution. For the first time, the morning of this conference will focus on bank resolution. This is always a somewhat paradoxical subject: if we are spending time on it today, it is in the hope that we will never have to deal with it in the future. "Si vis pacem, para bellum", as the Romans said... just as they prepared for war to maintain peace, we must be fully prepared for a crisis if we are to avoid it. But I would like to start by noting an important victory: that of Paris and France, which will welcome the European Banking Authority. It represents an achievement for a highly motivated and dynamic team, as well as a threefold recognition, i.e. that of the attractiveness of France and the Paris financial centre today; the richness of a financial ecosystem that boasts one of Europe's most impressive talent pools; and lastly, I believe, the quality of the public regulators and the supervisor – the ACPR. And the European Banking Authority's decision to move from London to Paris clearly bodes well for other post-Brexit financial relocations.
At the outset of these purchases, we communicated that ETFs would only be used if their purchase is reasonably expected to achieve the objectives of the SMCCF more effectively than the purchase of underlying bonds.11 One month after starting ETF purchases, the Federal Reserve announced a framework to use corporate bonds as the SMCCF’s primary vehicle for providing support. In preparation, we had created a “Broad Market Index” of eligible corporate bonds, weighted proportionately by amount of debt outstanding from individual companies.12 We then began purchasing bonds across the index in a rules-based manner, taking care that our purchases are neutral toward eligible sectors and companies. I should note https://www.newyorkfed.org/newsevents/speeches/2020/sin201020  2/5  20/10/2020  The Federal Reserve’s Corporate Credit Facilities: Why, How, and For Whom - FEDERAL RESERVE BANK of NEW YORK  that in making an assessment of credit eligibility, we broadened our use of ratings to include perspectives from all Nationally Recognized Statistical Rating Organizations. Providing broad access also applies to the service providers that support the facilities. In early September, we announced the expansion of counterparties to the SMCCF, including several smaller and minority-owned broker-dealers.13 In early October, we announced the launch of our process to re-bid our engagement with the facility’s investment manager. This process has begun with the CCF cash management role, and in the coming weeks and months we will re-bid the remainder of the role.

As many of you are aware, the Federal Reserve Bank of New York published a white paper in May 2010 that highlighted three critical sources of instability associated with practices in the tri-party repo market: (1) the market’s excessive reliance on intraday credit from the clearing banks; (2) weaknesses in the liquidity and credit risk management practices of cash lenders and clearing banks that left them vulnerable to stress environments; and (3) the lack of a mechanism or process for liquidating collateral during periods of stress in a manner that did not destabilize other segments of the financial system. After the crisis, we asked the industry to help develop a plan to reengineer the tri-party repo settlement infrastructure to mitigate these risks. The industry responded by identifying key changes that could be made to the platform to eliminate market reliance on intraday credit, thereby removing a key source of fragility observed in 2008. This process was challenging at times, and ultimately required our intervention as a supervisor to move forward. But the industry successfully developed a roadmap for reform that is the basis for the changes now being implemented. The clearing banks are making substantial investments to reengineer  BIS central bankers’ speeches  1  their tri-party repo settlement processes, while lenders and borrowers are making adjustments to their business practices and technologies to ensure they are ready for changes that are occurring in the market.