samchain/econo-pairs-v1 huggingface dataset:
However, analysis of Spanish bank capillarity shows that between 2007 and 2017 the increase in the proportion of the population without a bank branch nearby was 0.7%, as the closures were concentrated in areas of high branch density. Also, the emergence of new technologies allows bank services to be offered using more flexible and mobile methods. In any case, we should not forget that the average size of Spanish bank branches remains small, in comparison with other European countries. This drive to correct the excessive size of the Spanish banking system has been accompanied by significant restructuring. As you well know, the financial crisis led to considerable deterioration in the quality of Spanish banks’ assets. In fact, the excessive concentration of Spanish banks on the real estate sector and the intensity of the recession caused the non-performing loan (NPL) ratio to reach, within just five years, unprecedented levels of around 14% by the end of 2013. Moreover, as a consequence of defaults, banks foreclosed a considerable volume of real estate, which formed part of the collateral for many loans. In 2014, their foreclosed assets amounted to more than € billion. The lower return on assets, along with the increase in provisions for NPLs, when a large part of the general provisions built up during the preceding expansion had been used, caused the banking industry as a whole to post a loss in 2012.

17.06.2019  The Spanish banking system: transformations and challenges Opening of the seminar “Sustainable finances and their importance in the future of the economy”, Universidad Internacional Menéndez Pelayo, organised by the Spanish Association of Economics Journalists Pablo Hernández de Cos Governor  Ladies and gentlemen, good morning: It is an honour and a pleasure to be able to participate in the opening of this seminar, organised by the Spanish Association of Economics Journalists (APIE) as part of the Universidad Internacional Menéndez Pelayo’s summer programme of seminars, being held, once again, on this Santander soil, of which I am so fond. I should like to begin by recalling, here in this historic Magdalena palace, that 2019 is particularly rich in anniversaries relating to the opening up and liberalisation of the Spanish economy. The process began with the Stabilisation Plan 60 years ago, while one of the most important milestones was passed 20 years ago, when Spain adopted the single European currency, the euro. And, exactly 25 years ago, in order to reach that stage, it was necessary for the Spanish parliament to approve the Law of Autonomy of the Banco de España, which confirmed the Spanish central bank’s autonomy and independence. By means of this law, moreover, Spain established an institutional framework in line with the requirements for adopting the single currency, and also put in place a fundamental pillar for a culture of stability in the conduct of economic policy.
BIS Review 150/2007  3  Observed inflation December 2007 2004 Q1  Inflation  2005 Q2  Q3  Q4  Q1  2006 Q2  Q3  Q4  Q1  2007 Q2  Q3  Q4  Q1  Q2  Q3  Q4  0.06 0.87 0.91 1.38 1.35 1.06 1.18 1.10 1.23 1.33 1.22 0.46 0.09 0.52 0.63  Inflation forecast of September 2007 with Libor at 2.75% and of December 2007 with Libor at 2.75% 2007 Q1  Forecast September 2007, Libor at 2.75% Forecast December 2007, Libor at 2.75%  4  2008 Q2  Q3  Q4  Q1  2009 Q2  Q3  Q4  Q1  2010 Q2  Q3  Q4  Q1  Q2  Q3  Q4  0.66 1.20 1.50 1.38 1.57 1.69 1.75 1.80 1.85 1.91 1.96 2.00  1.62 2.14 1.54 1.56 1.51 1.47 1.46 1.46 1.48 1.51 1.53 1.55  BIS Review 150/2007

It has not only expanded the investor base, but reduced the cost of capital and enhanced its liquidity. By operating beyond their domestic borders, financial institutions also provide their services from different geographical locations. There has also been greater use of international financial institutions by corporations, households and funds to increase their ability to diversify their risks. Investments in the domestic economies have also been financed by foreign capital. International firms have also participated in local markets through Islamic based financial structures. With increased liberalization, there is also increased foreign presence in terms of foreign entry into the domestic financial system. This is an area where Malaysia is taking a step forward during the course of this year. The globalisation process has also taken place in terms of participation by firms in international capital markets through cross listings. My remarks today will focus on the strategies on the approach to accelerate the transition of Islamic finance towards being an integral part of the international financial system in terms of both the international financial architecture of the Islamic financial system and the development of a comprehensive domestic financial infrastructure. The establishment of the Islamic Financial Services Board (IFSB) has been an important initiative in the development of the international Islamic financial architecture. It has been established to  BIS Review 51/2004  1  promulgate the international regulatory and supervisory standards for Islamic financial institutions aimed at achieving best practices and to secure soundness and financial stability in Islamic finance.
This is the right place to stress that the BNB is aware of its huge responsibility for the financial stability of this country and consistently works in fulfilment of the functions and tasks assigned to it by law. In its work, the Central Bank collaborates with many other international and national institutions, and whenever a need arises, it steps into the role of a constructive opponent. Because, as I have stressed on various occasions, it should not surprise us, nor should we show intolerance to the fact that the political institutions in the democratic countries are very sensitive especially with regard to quick achievements within the context of the electoral cycle. Whereas the tasks of central banks go beyond the horizon of the next parliamentary or presidential elections. We are guided by the understanding that we have to keep our reputation as institutions with national responsibility, holding as our priority the long-term economic interests of the people and of the state. Hence, the fundamental logic of the so very important (and very strictly adhered to throughout the EU) principle of national central bank independence and the need to provide independent analyses and information to the general public.

Against the background of this interest to higher education in economics, the VUZF University gained a reputation as one of the most attractive higher education establishments for young people seeking the optimum combination between theoretical knowledge and practical training. One of the reasons is that VUZF University is known for its policy of attracting as priority professors of great experience, acclaimed as practiced professionals in their area of expertise. This is very gratifying for me, because as an employer in large financial institutions since 1997 I have been aware that the discrepancy between theoretical knowledge and practice is a serious issue facing newly-minted economists upon their graduation. And practical experience gives a great momentum at the beginning of any young person’s career – because it not only teaches them specific professional skills, but also develops their comprehensive qualities, such as team work skills, efficient time management, motivation to seek alternative solutions in a competitive environment, etc. VUZF University however is not just a place of education, it is a centre of research, discussions and generation of ideas. Today’s forum is another proof of this. A year ago, again before the audience of a scientific conference organized by VUZF University, I expressed my purely professional dissatisfaction with the fact that we rarely hear the prudent voice of the Bulgarian academia.
A further problem that has plagued the credit schemes meant for poverty alleviation has been the tendency for providing loans at subsidised interest rates. Such subsidies have been prompted by the belief that they would allow the poor to obtain the required credit facilities at affordable costs. However, when credit is subsidised, borrowers would flock around such credit schemes, not because they want to use the funds for gainful self-employment projects, but to enjoy the subsidy and use the funds for other uses. Hence, borrowers of such subsidised credit have the pre-intention of misusing the funds and eventually defaulting the loans thereby passing a cost on the lending institutions. As a result, such borrowers are adversely selected right at the beginning and those credit schemes are doomed to failure. Hence, the more important requirement for sustainable poverty alleviation is not subsidised credit, but the rectification of impediments such as lack of physical, human and financial infrastructure and absence of competition and efficiency 16 . Part II Sustainable poverty alleviation: lessons from the Isuru Project As mentioned above, mid-1980s became a crucial period in the history of Sri Lanka with rising poverty levels at both the national level and in isolated pockets. It, therefore, became necessary for Sri Lanka to address this issue on a priority basis. Accordingly, supported by IFAD and CIDA with funding, Central Bank of Sri Lanka (CBSL) pioneered a model poverty alleviation project in four selected districts 17 in 1989.

While Asia is one of the most diverse regions in the global economy, it has been able to take advantage of the complementarities in the region to generate significant expansion in intra-regional trade, intra-regional investment activities and increased intra-regional financial flows. Vision of Asia This award speaks to the growing importance of Asia within the world economy. Allow me to touch on three major trends in Asia that are likely to influence Asia’s role in the world as we advance into the future. First, the role of the growing cumulative domestic demand in Asia for the regional and global output. Second, the role of Asia in the more efficient intermediation of funds mobilised in Asia arising from the more pronounced regional financial integration. BIS Review 91/2010  1  Third, is the policy strategies being adopted by the region to address challenges and the model for the management for international relations. The economic transformation of Asia in this decade has resulted in Asia becoming an important source of cumulative demand in the global economy. Rising incomes, low unemployment, a young demographic structure that has higher propensity to consume, relatively low level of household debt and policies to encourage consumption have spurred consumption demand. Other measures being initiated include putting in place social safety nets in the form of schemes and programmes for education, healthcare, retirement and unemployment benefits. This has not only resulted in significant expansion of the retail trade sector in the region but Asia is increasingly becoming an important consumer in the global economy.
These challenges lie less in the types of things that can be captured in a financial ratio or balance sheet, or in changes to the risk premiums attached to the financial claims on the country. They lie more in the realm of improving how markets work and how efficiently resources are allocated. These factors include the development of the types of institutions that are the subject of DeSoto's work or the reports. They involve the development of the legal system and World Bank's Doing Business its ability to ensure that property rights can be established and that the protections they engender can be enforced. They are about creating the conditions for more competitive domestic financial and product markets by reducing barriers to starting and building a business, and by building better transportation, power and telecommunications infrastructure. And they are about broadening access to and improving the quality of public education. Allowing competitive pressures to operate is undoubtedly the best way to foster the investment, innovation and risk-taking that is central to raising an economy's long-run sustainable growth rate. But markets can't solve all problems, and they don't always function perfectly. This means that the policy imperative isn't simply to reduce regulation; it is to improve the design of the regulations that are important to dealing with market failures. Finally, future growth outcomes will depend importantly on the success of governments in fostering the development of the domestic financial system.

Part of this is aversion to appreciation, and part of it aversion to variability in the exchange rate. In this sense, the high level of reserves today could be read less as an indication of fundamental strength than as an indication of the need for more progress toward completing the transition to a modern monetary policy regime. Even though reported inflation in most emerging economies has been moderate, the observed preference for nominal exchange rate stability suggests a monetary policy regime with less independence to sustain price stability over time. Emerging market economies have retained controls on cross-border capital flows, some quite comprehensive, some more selective. These come with a range of different justifications, from insulation against volatility and speculation, to protection of the domestic financial system, to limiting variability in the exchange rate or maintaining a specific objective for the level of the exchange rate. By design, these controls limit the degree of integration with the global economy and they necessarily distort incentives in ways that affect all economic and financial activity. Their appeal as a source of durable stability has diminished over time, and we now have a greater understanding of the effects they can have in lowering long-run growth potential. For policymakers in many emerging economies,  BIS Review 91/2006  3  the question is not whether to remove controls, but when and how to do it without significantly raising short-run vulnerability to financial instability.
In doing so, I will focus on two prime channels underlying the second stage of transmission: the exchange rate channel and the real interest rate channel. My remarks will therefore be neither exhaustive nor complete, given that monetary policy can affect the economy through many other channels as well, such as its impact on the valuation of equities and, hence, on firms’ cost of capital and investment decisions, Tobin’s q in short.3 Another channel of relevance is the bank lending channel as formalised by Bernanke and Gertler (1995). But by focusing on the exchange rate and interest rate channels, we can get a good understanding of how effective recent policy measures have been. In particular, I will show that monetary policy-induced exchange rate movements may have considerable impact on consumer prices, but that this relationship depends on the state of the economy and the shocks driving it, much in line with the recent literature in this field. And I will show that the New Keynesian Investment and Savings (IS) curve is alive and well in the euro area – that is, aggregate demand responds to changes in real ex ante interest rates, and can also be shown to have done so in recent times, provided it is measured properly. A state-dependent exchange rate pass-through Let me start with the exchange rate channel – a channel that has been heavily debated in recent months in the light of the large movements that we have observed in the foreign exchange market.

This means that, compared with past demand shocks, policy will remain more accommodative for longer, thereby likely muting further the pass-through of any growth-driven exchange rate appreciation. And with the current recovery in the euro area being largely driven by domestic demand, euro strength may also have less of an impact on growth than, for example, after the Great Financial Crisis. All of this suggests, therefore, that monetary policy never acts in isolation on the exchange rate and that, in periods of recovery, the positive confidence and stimulus effects of monetary policy are likely to offset, at least in part, the disinflationary effects of a stronger currency coming from expectations of tighter policy. Of course, this also means that should the contributions of the different shocks driving the exchange rate change over time, then also our assessment of the impact on inflation will have to change – expansion or not. Exogenous shocks to the exchange rate, if persistent, can lead to an unwarranted tightening of financial conditions with undesirable consequences for the inflation outlook. As shown on slide 6, the emerging disconnect between the euro’s exchange rate vis-àvis the US dollar and the long term interest rate differential between the US and Germany may suggest that we are entering such a situation. Against this background, the recent volatility in the exchange rate represents a source of uncertainty which requires monitoring.
Timothy F Geithner: Reflections on the changing global economy Remarks by Mr Timothy F Geithner, President and Chief Executive Officer of the Federal Reserve Bank of New York, at the 46th ACI Financial Markets Association World Congress, Montreal, Quebec, 4 May 2007. *  *  *  Good morning. I am pleased to be able to join you today. And it is a privilege to be here today with Canada's accomplished central bank governor, David Dodge. There are few people in central banks or in governments around the world today that have presided over as far reaching and successful a set of macroeconomic policy reforms as has David Dodge. I want to offer some reflections about the challenges managing macroeconomic policy in a more open and integrated world economy. And I want to say something about how the international monetary system, and the current framework of exchange rate regimes, might develop in the coming years. For the past century or more, choices about exchange rate regimes have played an important role in economic outcomes across countries. From the Gold Standard of the late 19th and early 20th centuries through the Bretton Woods system and the episodes of exchange rate cooperation among the G5 and the G7 in the 1980s and after, the desire to achieve exchange rate stability was a major preoccupation of policymakers. The economic damage inflicted by the disastrous competitive devaluations among the major economies in the 1930s had a profound influence on thinking during much of the postwar period.

I understand that among other things, it intends to designate Singapore as its Southeast-Asian hub for RMB business and will make Singapore its wealth management hub covering Southeast Asia and South Asia. BIS central bankers’ speeches  1  7. ICBC and Singapore can together play a big role in promoting the greater use of the RMB for trade settlements and other economic activities within Asia, and particularly in Southeast Asia. 8. I congratulate ICBC for its commencement as Singapore’s RMB clearing bank. Thank you. 2  BIS central bankers’ speeches
With regard to real economic stability, it is not as simple as merely focusing on employment and unemployment. It is actually not clear which real-economy target variable should be used. The other kind of objection ultimately entails sustainable growth in mortgages and financial stability being separate objectives for monetary policy. One can then neglect the objective of price stability and highest sustainable employment for a while in an attempt to slow down mortgage growth, promote financial stability and maintain a higher interest rate, as it is assumed that low interest rates would build up unsustainable financial imbalances. Clear targets mean that monetary policy is less arbitrary and easier to assess In response to these objections I would like to state that several and unclear targets for monetary policy risks making it arbitrary and difficult to assess, which the work on formulating the Sveriges Riksbank Act aimed to counteract. Delegating monetary policy to an independent Riksbank requires that monetary policy has clear objectives. 7  6  See the discussion of the “normalising argument” in the minutes of the monetary policy meetings and Svensson (2011). 7  “In the opinion of the government, a delegation of monetary policy to an independent Riksbank cannot take place unless the objective of the activities is clear. An independent Riksbank must therefore be given a democratically-anchored objective for its activities. If no objective is formulated, there would be scope for an arbitrary conduct of monetary policy.

It is possible to assess these things with the aid of the so-called four-panel figures that I usually refer to at the monetary policy meetings, and which are included in the minutes of the meetings. These figures are central to monetary policy, as they make it possible to compare different repo-rate paths and to see what level of target fulfilment for inflation and unemployment they result in. I consider these figures very useful when choosing a repo-rate path, when justifying the choice of the repo-rate path and when evaluating monetary policy. In Figure 1 I summarise some possible policy choices at the monetary policy meeting in April. The figure is based on the assessment of the current situation and the economic outlook presented in the Monetary Policy Update (Sveriges Riksbank 2012c). 5 The figures show clearly that a lower repo-rate path entails better target fulfilment, with inflation closer to the target and unemployment closer to a long-run sustainable rate. At the monetary policy meeting in April I considered that the forecast for foreign policy rates presented in the Update was too high, and that a much lower forecast in line with implied forward rates was more realistic. I also considered that the forecast for euro area growth was too optimistic. As I illustrated with a further figure at the meeting, an even lower repo-rate path would then be needed to best stabilise inflation and unemployment.