samchain/econo-pairs-v1 huggingface dataset:
The distinguishing characteristic of bail-in, as a resolution tool, is that it applies losses upfront based upon a valuation rather than at the end of a liquidation of assets. As such, it prospectively avoids an unnecessary destruction of value. For those groups that issue debt from the holding company and downstream the proceeds to operating subsidiaries, it should be possible to bail in debt at the holding company and recapitalise distressed parts of the group. Where necessary, those distressed subsidiaries could be recapitalised by bailing-in – ie writing down and/or converting into equity – intergroup debt owed to the parent. The host authorities of those operating companies should in principle be prepared to go along with that kind of operation provided that the home country engenders the necessary trust and takes account of the need to maintain stability around the world not just in its immediate neighbourhood. Deposit insurance schemes and bail-in: multiple point of entry resolution We should not, however, assume a monolithic approach to resolution. It is not a case of one size fits all. What I have described could work for banking groups that issue plenty of debt out of a top company. It would not work so easily for groups operating commercial banks around the world that are funded to a very large extent from insured deposits. In a hypothetical extreme case, if they haven’t issued bonds, then there would be no bond holders to bail in.

Egil Matsen: The equity share in the Government Pension Fund Global Introductory statement by Mr Egil Matsen, Governor of Norges Bank (Central Bank of Norway), Oslo, 1 December 2016. * * * Accompanying slides  INTRODUCTION The discovery of oil off the Norwegian coast has shaped the economy for almost two generations. Norway’s industry structure has undergone a fundamental change. Oil has lifted the level of prosperity and generated substantial government revenues. Chart: The Government Pension Fund Global Twenty years have passed since the government made the first capital transfer to the Government Petroleum Fund, which has since been renamed the Government Pension Fund Global (GPFG). Since then, Norway’s subsea oil wealth has to a large extent been transformed into foreign financial assets. The GPFG serves two main purposes: to insulate the central government budget from the effects of large annual fluctuations in petroleum revenues and to preserve a substantial share of the oil wealth and increase it for future generations. A milestone in the management of the nation’s oil wealth was the fiscal rule, adopted in 2001. The fiscal rule permits the government to spend the expected real return on the GPFG, then estimated at 4 percent. The rule was introduced to phase in oil revenues gradually into the economy in pace with the increase in the fund’s capital. The GPFG has grown rapidly over the past ten years. In line with the fiscal rule, the fund’s contribution to the central government budget has increased.
At the monetary policy meeting on 13 March 2008, Norges Bank’s Executive Board decided to keep the key policy rate unchanged at 5.25 per cent. The press release issued after the meeting states that the Executive Board considered increasing the interest rate as an alternative, but that an overall assessment indicated that it was appropriate to keep the interest rate unchanged. Reference was also made to the analyses in Monetary Policy Report 1/08, which suggest that the key policy rate may be raised further in the period to summer. The Executive Board’s strategy is that the key policy rate should be in the interval 5 – 6 per cent in the period to 25 June, unless the Norwegian economy is exposed to major shocks. The Government Pension Fund – Global As I am addressing pension funds today, I must also take this opportunity to discuss the Government Pension Fund – Global. Heightened uncertainty concerning the financial system and global growth prospects is also having an impact on the Government Pension Fund’s investment markets. In recent months, price volatility in both equity and fixed-income markets has increased. The fall in equity prices, even after several years of gains, has drawn focus on variations in the Fund’s value. In such a situation it is important to step back and remind ourselves of the basis for the investment strategy that was chosen for the Fund. The strategy must be based on the Fund’s distinctive features, in particular the Fund’s long investment horizon.

The Fund’s own history includes a period that illustrates the importance of not changing strategy during a downswing. After the dotcom bubble burst in 2000, the value of the Fund’s equity holdings fell sharply for a period. At the same time, the Fund’s fixed-income investments partly offset the losses on the equity side. Norges Bank is the operational manager of the Government Pension Fund – Global. Since the Fund’s establishment, we have built up an organisation that is capable of implementing the strategy laid down by the Ministry of Finance. Pursuant to the mandate assigned to Norges Bank, we seek to generate value added in excess of the return that follows from the strategic allocation. The Fund has achieved an average annual real return of 4.25 per cent since 1997. The contribution to the return from active management has averaged 0.39 per cent annually in the same period. Active management has thus made a contribution of about 9 per cent of the Fund’s total return. This result has been achieved without changes in the Fund’s return variability or risk exposure. Norges Bank’s investment management has thus improved the risk to return trade-off. In the long run, even a small percentage increase in the average annual rate of return will have a substantial impact on the Fund’s size. A stated goal of operational management is that a large number of investment decisions are to be taken independently of each other both at a given point in time and over time.
In the near term, I think your experience from adjusting to the yen’s sharp appreciation should be particularly helpful to your local partners. Japanese companies are capable of lending a helping hand to your local suppliers as they try to upgrade their productive efficiency. That would help smooth their adjustment process during these rough and tumble times. Ladies and gentlemen, I hope I have contributed to your understanding of the economic conditions and outlook for Thailand. The Thai economy has shown that it is resilient to adverse shocks. I am confident that our fundamentals are strong. Public investment in basic infrastructure and the Bank of Thailand’s commitment to maintain economic and financial stability should translate into moderate long-term cost of investment financing. With the awareness of what’s in store for us and the right macroeconomic policy mix going forward, we should see the economy expand favorably and in a sustainable fashion. I need not mention how crucial it is to both Thailand and Japan in ensuring that our trade and investment partnership prosper in the years to come. Thank you for your attention. BIS Review 33/2008  5

As a result, we can even talk now about discouraged employers, as opposed to the periods that follow a crisis, when the employees are the discouraged ones. Thus, we have ourselves another dilemma: ensuring that wage levels are compatible with attracting investors, but acknowledging that, at least in certain areas, wages need to come up at present, in order to mitigate the labour force drain, which affects the private and public sector alike. The key is, in my opinion, to increase wages at an adequate, sustainable pace, so as to ultimately benefit from an improved living climate reflected in a higher purchasing power, but also from preserved macroeconomic equilibria, as well as higher-quality public goods – roads in particular –, because, after all, wages are not the only part of the emigration story. Speaking about roads, I would like to point out that infrastructure is essential for connecting different regions of Romania and promoting cohesion. This is all the more important that, even though EU membership has acted as a catalyst for country-level real convergence, the development gaps across the regions of the New Member States, including in Romania, have not diminished significantly. Let me conclude by recalling the words that Otmar Issing said during a dinner speech on his leaving the ECB, back in 2006, when things seemed to move into the right direction all by themselves: “We were all privileged to participate in a historically unique experiment: the creation of a new currency for Europe.
Areas where a conflict of interest might be apparent include the following: i. Financial reporting and auditing. The directors may try to disguise the true financial performance of their company by “dressing up” the published accounts and giving less than honest statements;  8  BIS Review 99/2008  ii. Director’s remuneration. Directors may reward themselves with huge salaries and other rewards, such as bonuses, a generous pension scheme, share options and other benefits with little regard to the needs of the shareholders and the company; and  iii. Risk taking. Directors of companies might take decisions intended to increase profits without regard to the changing risk profile of their existing businesses. •  Under the Companies Act, directors are liable for breaches of fiduciary duties and obligations. For instance, directors are liable for any loss suffered as a result of their acting outside their authority or for failure to exercise the degree of care, skill and diligence expected of them in the circumstances. The BFSA complements the provisions of the Companies Act by placing more duties and obligations on directors of banks and financial institutions. Chapter III, Parts III and IV of the BFSA deals with the boards of directors of banks and financial institutions. Under these parts: i. Every bank or financial institution is expected to have a board of directors in which shall vest all the powers of management and control and which shall be responsible for the formulation of policies of the bank or financial institution (Section 30(1);  ii.

BIS Review 99/2008  1  In line with this mission statement, the BoZ is responsible for regulating and supervising banks and the following types of NBFIs: •  Leasing and finance companies;  •  Housing financial institutions (building societies);  •  Savings and credit institutions;  •  Development finance institutions;  •  Microfinance institutions; and  •  Bureaux de change. As at June 30, 2008 there were 14 commercial banks and 71 NBFIs (see Appendix I). Currently, commercial banks dominate Zambia’s financial system with total assets and liabilities amounting to K14,465,045 million as at June 30, 2008 (about 31.8% of GDP). The reference NBFIs, notably, the leasing and finance companies (11, two of which are under statutory management of the Bank of Zambia 2 ), building societies (3), microfinance institutions licensed under the BFSA (15), development finance institutions (1) and savings and credit institutions (2). The combined balance sheet of these institutions, as at June 30, 2008 amounted to about 7.9% of the aggregated balance sheet of the commercial banks (see Table 1). 4.0  Access to financial services  In May 2007, here in Livingstone, the World Bank organized a Southern Africa roundtable discussion on the launch of their new report entitled, “Making Finance Work for Africa”. A common understanding arising from this debate was that financial exclusion has negative economic and social effects on society. These include the following: i.
According to forecasts by McKinsey Global Institute, off-shoring of services to countries with low manufacturing costs in the years 2003 – 2008 is going to grow at a rate of 30% annually. In 2003, the global trade in services was ca. USD 1.7 trillion, of which a mere 3% resulted from offshoring to low cost countries. It is expected that in 2008 the global trade in services will amount to ca. USD 2.4 trillion, of which 10% will represent offshoring of business and ICT processes to low cost countries. To compare, the travel industry represents 30% of trade in services in the OECD data, whereby transportation - 20%. Based upon an analysis of eight representative sectors, McKinsey Global Institute estimated that in 2003, 18.3 million jobs in services could have been transferred to other locations (this applies mainly to sectors such as IT - 2.8 million, banking - 3.3 million, insurance - 2.3 million, healthcare - 4.6 million and retail sales - 4.3 million). Extrapolating the results for the global economy, it may be estimated that in 2008 ca. 160 million jobs in services, i.e. 11% of the global employment in services estimated at 1.46 billion, may theoretically be performed at a distance from the customer. 8  European Restructuring Monitor is the European Commission service.

According to one of them, described as the conventional monetary policy, the central bank focuses on stabilising the inflation, treats changes in asset prices as an exogenous process and does not attempt to influence asset prices whatsoever. The other option, described by Kohn as the “extra action policy”, allows for a deviation of current inflation from a level determined as stable in return for improvement of the perspectives of achieving price stability in the future. However, the extra action policy does not mean piercing the speculative bubbles by central banks, and means rather “taking out” of additional insurance against possible negative shocks, which may happen in the future. In Kohn’s opinion, the extra action policy may be run very rarely and only where the three conditions are met: •  the central bank must be able to identify asset bubbles in a timely manner and high certainty as to the correctness of analysis conclusions;  •  there must be a high probability that a slight tightening of the monetary policy will be able to stand against the speculative activity on a given assets market;  •  the expected improvement of the future economic situation resulting from a smaller speculative bubble must be significant and higher than the costs incurred by the economy in the aftermath of running the extra action policy.
In summary, at macro level, the principles are as follows: Principle I : The market for remittances should be transparent and have adequate consumer production This requires transparency by individual remitting countries about their services as far as possible. The global price including fees at both ends, the exchange rate and other transfer fees should be made known to the remitter. Equally, the time it takes for transfers and accessing locations should be reduced. The receiver should be encouraged to provide bank account details to the formal channels to avoid delays. Principle II: Improvements to payment system infrastructure that has the potential to increase the efficiency of remittance services should be encouraged. This principle involves both domestic payment infrastructure in the remittance receiving countries, cross-border payment infrastructure in both home and host countries, including the infrastructure of corresponding banks. There is a role to be played by the central banks of both remitter as well as receiver's country in improving the cross-border payment infrastructure. Many central banks have taken the lead in facilitating the payment infrastructure, but there still seems to be gaps in the use of electronic networks in semi-urban and rural areas. The central banks and other relevant agencies should encourage the operators to increase interoperability of electronic networks. Similarly, the postal service should be encouraged to play a bigger role in transmitting remittances on a cross-border basis. The postal network is well known in semi-urban and rural areas and they are in a position to provide remittance services at competitive prices.

I hope that this will be a successful conference and all of you will have a fruitful and productive discussion. 9. Thank you very much. 2/2  BIS central bankers' speeches
We look at how much consumers are borrowing, what they are borrowing for and if they are experiencing difficulties in making their payments. As I mentioned earlier, we are always eager to engage with students, and our commitment to the region includes a number of educational programs worth highlighting. First, Math x Economics, which encourages students attending schools serving lower-income families to consider a career in finance or economics. And, second, our yearly Fed Challenge competitions, in which teams of students from high schools and colleges in the District take on the roles of the members of the Federal Open Market Committee (FOMC) and debate what the appropriate next step is for U.S. monetary policy. All in all, there is a lot to keep myself and my colleagues fully engaged with the communities we represent. BIS central bankers’ speeches  1  Let me now review recent developments in the national and regional economy, and at the end of my talk, I will be happy to answer questions you may have about the economic outlook. As always, what I have to say reflects my own views and not necessarily those of the Federal Reserve System or the Federal Open Market Committee. National economic conditions Since the official end of the Great Recession more than five years ago, the U.S. economy has grown at a disappointing 2.2 percent compound annual rate. Several times over that period it looked as though growth was breaking out on the upside, but each time such hopes were dashed.

Despite the challenges now facing recent college graduates, I want to assure you that the value of a college degree remains high. While the Great Recession and its aftermath have made it more difficult to find a job out of college these past few years, those without a college degree have had an even tougher time. Students who major in technical fields – such as engineering, mathematics and computer science – have tended to have a much easier time finding a good job and have earned a high return on their educational investment. Although it is true that the labor market has been difficult for college graduates in recent years, I am confident that most of you will find good jobs, especially as the labor market continues to improve. Thank you for your kind attention and I would now be happy to take some questions. BIS central bankers’ speeches  5
Until recently, most firms were using a rules-based approach to AML monitoring. But this is changing and firms are introducing ML software that produces more accurate results, more efficiently, by bringing together customer data with publicly available information on customers from the internet to detect anomalous flows of funds. About two thirds of banks and insurers are either already using AI in this process or actively experimenting with it, according to a 2018 IIF survey.4 These firms are discovering more cases while reducing the number of false alerts. This is crucial in an area where rates of so-called “false-positives” of 85 per cent or higher are common across the industry. ML may also improve the quality of credit risk assessments, particularly for high-volume retail lending, for which an increasing volume and variety of data are available and can be used for training machine learning models. But it is a prudential regulator’s job to be gloomy and to focus on the risks. We need to understand how the application of AI and ML within financial services is evolving, and how that affects the risks to firms’ safety and soundness. And in turn, we need to understand how those risks can best be mitigated through banks’ internal governance, and through systems and controls. Firms’ rates of adoption of AI and ML So what do we know about how – and how fast – the application of AI and ML is evolving within UK financial services?

The tale of the rivalry between Hong Kong and Shanghai is another hotly debated topic. But I have never thought of these two cities as deadly rivals. More than a year ago when Shanghai proposed the establishment of the “Free Trade Zone”, some predicted that, within 2 to 3 years, Shanghai would wrest from Hong Kong the position as Mainland’s offshore financial centre. They thought that further liberalisation of the Mainland’s capital account would enable Shanghai and other Mainland financial centres to take business away from Hong Kong. There is some truth in it. As the Mainland’s capital account liberalises, Shanghai will certainly carry out more cross-border and international financial activities and compete with Hong Kong. However, I would like to point out that the gradual liberalisation of the capital account is a two-way process, meaning a more efficient flow of funds into and out of the Mainland. It will then be much easier for Hong Kong to develop businesses targeting Mainland enterprises and residents, such as financing, debt issuance and wealth management. If we look at the size of the onshore renminbi financial market, with RMB110 trillion in total bank deposits and RMB160 trillion in total financial assets, we can imagine as the capital account continues to liberalise and create the necessary policy headroom for twoway fund flows, it would mean a huge market with enormous business opportunities for Hong Kong’s competitive banks and financial institutions. 8. So, I do not believe Shanghai and Hong Kong are rivals.