samchain/econo-pairs-v1 huggingface dataset:
The plan includes the development of a classification system for green investments. At the end of last year, the Commission communicated its “Green Deal”, which puts sustainability high up on the agenda.29 The Commission also intends to look more closely at how climate-related risks should be integrated into the financial system. This includes discussing banks’ capital requirements and the suitability of considering green asset types within the framework of the current capital requirements. To direct funding to sustainable loans and investments, supervisory authorities could be given powers to lower banks’ capital requirements for the funding of “green” assets. The opposite – that is punishing banks that fund unsustainable  25  See Bolton et al. (2020). See Sveriges Riksbank (2019). 27 See Finansinspektionen (2020). 28 A good example of the reporting of data is the initiative “Task Force on Climate Related Financial Disclosures” (TCFD). As of today, 930 companies and organisations, including 32 from Sweden, have backed the TCFD initiative globally. TCFD promotes consideration of the climate in governance, strategy, risk management and in established measurement values and targets. See Financial Stability Board (2017). 29 See European Commission (2019). 26  12 [18]  “brown” assets – is also a possible policy lever. The Riksbank’s view is that capital requirements should be set based on financial risks and not used as an instrument to distribute capital. Watered-down requirements risk undermining financial stability. The discussion on capital requirements should instead take its starting-point in risk – do brown assets imply higher financial risk than green ones?

Jean-Pierre Roth: Heading for more sustained growth? Summary of an address by Mr Jean-Pierre Roth, Chairman of the Governing Board of the Swiss National Bank and Chairman of the Board of Directors of the Bank for International Settlements, at the General Meeting of the Swiss Italian Chamber of Commerce, Zurich, 20 June 2006. The complete speech can be found in French on the Swiss National Bank’s website (www.snb.ch). *  *  *  Lately, Switzerland has been experiencing an encouraging upturn in the economy on the back of growth in the international economy. This development is particularly welcome because it follows a number of years of economic listlessness which have prompted repeated criticism from international bodies, due to the lack of growth in the Swiss economy. However, Switzerland's medium and long-term growth problem has not disappeared. Faster economic growth is the only possible response to the challenges posed by an ageing population. Moreover, it is the sole antidote to Switzerland's continuing loss of ground with respect to the other members of the OECD. Reforms are needed to ensure that, in the future, we can achieve more with fewer resources. The ways and means of doing this are evident. The Federal Council's package of growth measures is a move in the right direction, and the current improvement in the economy gives Switzerland the opportunity to move ahead with the requisite reforms. BIS Review 59/2006  1
This creates a risk that innovative new businesses aren’t able to access the funding they need to grow and develop their ideas. In addition, having a financial system that supports business investment is particularly important as we transition to net zero carbon emissions. UK businesses will need to make significant investments in coming years – in technology, energy efficiency and decarbonising their processes. That will only happen with the financial system’s support. So what has the FPC done to make sure the financial system supports business investment? Let me highlight two strands: removing barriers to long-term, stable funding for businesses, including to support the transition to net zero; and improving our understanding of UK businesses’ access to finance and ability to invest. The types of productive investment businesses need to make – to support long-term growth and transition to net zero – are long term. For businesses to commit to long-term investment they need long-term finance. Few CFOs will be happy investing in a multi-year project when its finance might not be rolled over next month. So to facilitate the type of investment we need, we need patient funding. That means pools of capital with the right long-term investment horizon, and well-designed investment structures to channel this capital into companies and projects that need it. The FPC has been active in both these areas. On pools of capital, we have worked with other UK authorities to set up the Productive Finance Working group, which brought together experts from across the financial services industry.

Having domestic players as part of the insurance landscape is a goal that is shared by most countries, if not preferred by all. The progressive approach towards integrating the regional insurance market already recognises the unique circumstances and different stages of development in each ASEAN member state. This is intended to provide lead time to domestic players to prepare themselves for regional insurance integration. Unfortunately, many of the domestic players have yet to develop their own competitive advantage. They have yet to reach a sizeable scale of operations in order to compete effectively against their foreign counterparts. As the region moves into the next phase of growth and progresses towards becoming a more integrated market, domestic players will need to strengthen their capacity and capability, or risk being driven out of the market. Reshaping the landscape of the ASEAN insurance industry ASEAN’s economic and financial sector growth will see the insurance industry grow correspondingly. Given the potential, it could grow faster but it will require the insurance industry players to step up and seize the opportunities. Amid the advent of Industry 4.0 and digitalisation, much needs to be done to transform into the players for this new phase. Besides technology, 2/4  BIS central bankers' speeches  this is also a phase where consumer interests and protecting the well-being of the underserved have become more important goals for societies.
This means that more and more forms of activity will be generated by international optimisation of business processes. This in turn will force individual countries/regions to increase their attractiveness for the global business, which requires an active attitude of local selfgovernments. For instance, Dubai Outsource Zone is a government initiative, aimed to make Dubai a highly attractive international off-shoring/outsourcing centre. The concept of multi-off-shoring appears, where a decision on globalization of manufacturing entails starting business activity (routing orders) in several locations. There is a lot being said and written on the impact of globalization on the US economy, but there is a lot going on across Europe as well. Off-shoring of manufacturing and services to other countries is not the key reason for restructuring yet; however its significance grows year by year. The European Restructuring Monitor 15 website, at the end of 2005, contained a description of ca. 3500 cases of company restructuring in Europe, which has been announced in the media (international and national) since 2002. In the years 2002 - 2005 there were only 202 cases of company restructuring (i.e. 6% of total) which, as their main reason, reported the transfer of manufacturing or service abroad (that is colloquially called off-shoring), whereas in 47% the reason was internal restructuring, which could have partly resulted from the growing competitive pressure ensuing from globalization. The EU enlargement in 2004 led to significant changes in the off-shoring process across Europe.

Polska, Czechy, Słowacja.” [“The future of labour. Poland, the Czech Republic and Slovakia.”] concludes that out of the three analysed countries, the culture of innovation has the smallest chances for development in Poland. The author recommends to launch a modernisation project under the name Polska 2.0. It appears that in the homo sapiens globalus society of the 21 st century, many of the terms used in the debate on a unified Poland or the IV Republic of Poland, should adopt totally new meanings. Solidarity should not mean an algorithm for sharing the growth fruit, but should mean a policy which will allow the greatest possible number of Poles to function well on the global labour market. Patriotism should not confine to the roots of Poland, the tradition of the great fellow countrymen, but should also have a global character, i.e. lead to such behaviour and policies that will enable Poland as a country and its citizens to become successful in the fast globalizing economy, whilst maintaining close ties of Poles with their homeland. In this context, it is worth raising a few questions. -  Is the Polish educational system able to deliver a sufficient number of specialists in the fields on which the success of Poland in the global economy depends, in particular engineers, IT specialists, people with multi-language skills, incl. e.g. Chinese? 18  See the study by Aguiar M. et al. (2006) referred to in footnote 2. 19  For example, Baily M., Lawrence R. op. cit.
As many as 14 banks have already joined the system, and 114 more have applied. Our estimates suggest that early next year, 250 banks will have joined the system. At the later stages, only small banks with a basic licence, which need more time to introduce changes, will join. According to our estimates, the introduction of the Faster Payments System will reduce fees for retail remittances more than 2-3-fold. We are currently working to further develop the system and ensure payments for goods and services via the Faster Payments System. Firstly, this will support the trend toward the rise in cashless payments, given that FPS fares for trade and service companies will be lower than those for merchant acquiring services. You may remember that this topic is currently very acute. Last year, we also introduced remote biometric identification for financial services provision. Biometrics is currently collected in branches of 146 banks; by the end of the year, these will be collected in all banks with a universal licence in accordance with regulatory documents. In the near future, biometrics will also be collected in multifunctional centres and used to provide not only financial services, but also other public services in digital format. Given these factors, we expect that the use of biometrics will expand considerably next year. Last year, we launched Masterchain, a blockchain-based project elaborated in association with FinTech Association and market participants; this is an advanced transaction record system. Together with Rosreestr, we have already implemented a masterchain-enabled electronic mortgage project.

Inheritance, insurance or social payments, payments awarded by a court decision, proceeds from the sale of real estate, etc. are cases where we deem it possible to raise the insurance coverage to 10 million rubles. Another aspect of consumer protection is conduct supervision. This is a system that controls whether financial organisations conduct sales, conclude agreements and deliver on their obligations in a reliable manner. Do sellers disclose information about potential risks when they sell their products? Do they provide fair information about returns? Do they impose unnecessary services to customers? Last year, we had to pay attention to the practice of life insurance policy sales. We received a lot of complaints that customers had been lured by high returns, but as a result earned less than they could have earned if they had deposited their money with a bank. Investment life insurance grew at an outpacing rate and the collected insurance premiums reached large amounts. Currently, the market is on a downward trend, shrinking by 27% in the period from 2018 Q1 until 2019 Q1. It is an expected development. This is the result of both the public’s disappointment in the product and the regulator’s tighter requirements. We want the financial market to demonstrate healthy growth rather than to be driven by deception. Moderate growth rates are acceptable if the market develops in a healthy manner. Last year, we established the institute of financial ombudsman. A special law we had discussed for many years was adopted.
Since the inflation target was introduced, the Riksbank has tried in different ways to become ever more open and clear with regard to how monetary policy is conducted. More and more information on the bases for the decisions has been published, not least the forecasts for inflation and the economy as a whole. I think that the decision to publish our own forecast for the repo rate was a natural continuation of this process. One should also bear in mind that the Riksbank must in any case make an assumption about the interest rate as a basis for its forecasts regarding growth and inflation. To begin with, an unchanged policy rate was used in the forecasts. This method had the advantage of making it easy to explain that the interest rate needed to be raised or cut, but it also involved an unrealistic forecast. The interest rate does not normally remain unchanged during a forecast period of a couple of years. After this the Riksbank changed over to using implied forward rates as a base for its forecasts. One problem is that these interest rates do not unambiguously reflect expectations of the repo rate, as they also contain risk premiums that may vary over time. Although adjustments were made for this, there was another type of problem with using forward rates. If market agents’ expectations differ from the Riksbank’s view, it is problematic if forward rates are nevertheless used as a base for the forecasts. Using one’s own forecast is much more transparent and direct.

My motives for the decision are expressed in more detail in the minutes from the meeting, so I shall not say very much on this point. The statistics received regarding developments in Sweden during the second quarter showed a slightly tighter labour market than we expected in June and unemployment was slightly lower than we were predicting (Figure 1). The hiring plans according to the National Institute of Economic Research’s business tendency survey for July also indicated that employment would continue to rise during the third quarter. At the same time, labour shortages in the business sector had continued to increase (Figure 2). I therefore repeated by view from June, namely that companies could be forced to increase their remunerations to obtain skilled labour. This could push up wage increases. If companies instead choose to lower their requirements regarding qualifications this could have an effect on productivity growth which would then risk being weaker than the development we envisaged. In both cases cost and inflationary pressures rise. According to the preliminary National Accounts, which were published in August, productivity showed much weaker development during the second quarter than we had predicted in June (Figure 3). But even if there was reason to believe that it would be short-lived, there is nevertheless considerable uncertainty regarding how productivity will develop in the future. And inflation, what has happened there? It had only been slightly higher than the forecast in June (Figure 4). However, companies’ costs had increased more rapidly than expected (Figure 5).
8  BIS Review 9/2010  Figure 5 Spread of short-term external financing of resident banks (*) (monthly average, percent) 2.5  2.5  2.0  2.0  1.5  1.5  1.0  1.0  0.5  0.5  0.0  0.0  03  04  05  06  07  08  09  (*) Loans of non-related banks at variable rates. Gray area depicts the interval between percentiles 5 and 95 of the sample in each month. Source: Central Bank of Chile. Figure 6 World growth (annual change, percent) 5  5  5  5  4  4  4  4  3  3  3  3  2  2  2  2  1  1  1  1  0  0  0  0  Sep.  09  May  Sep.  1990-1998 average (a) Projections for 2010  Dec.  Sep.09  Dec.09  2000-2004 average (b) Projections for 2011  Source: Central Bank of Chile.

Nevertheless, currently the Albanian economy is being influenced by second round effects that have affected the advanced economies of the world. In general, first effects of the financial crisis outburst in American, Asian and European markets were: tightening of lending terms, reduced liquidity and decreased value of the national wealth of those economies. These phenomena triggered less consumption and investments, and eventually led to overall economic slowdown of all those regions. Such developments have also affected the developing economies, since globalization process has turned them into factories of large economies. In consequence, this phenomenon has triggered the spread of crisis effects even in the developing economies. Naturally, reduced demand has caused overall decreased investments of developed economies in traditional exporting markets. Currently, capital flows that have financed high current deficits, particularly into transition economies of the Central and Eastern Europe, are interrupted. Furthermore, financial and manufacturing companies, as well as households from advanced economies, being faced with financial difficulties, are exercising pressures to withdraw their funds from the developing economies. All these developments have shaken the macroeconomic equilibrium of the developing economies, which are experiencing current deficit deepening and strong pressures on their currencies. This contagion mechanism, through which the crisis ignited in most advanced economies of the world is spreading worldwide, has made Albanian economy feel the effects. Even though the financial system was not influenced by the world financial crisis, second-round effects are being reflected and will be reflected even in the future.
The measures included in this plan would have a positive impact of 0.2 pp on the average GDP growth rate. 3  situation, use of the Next Generation EU (NGEU) funds and financing conditions that, while somewhat tighter than in previous quarters, remain favourable. Turning to the inflation forecasts, in step with the paths of the corresponding futures markets, the upward pressures of the energy component are expected to peak in the second quarter of 2022 and then decelerate. The inflation projections rest on two assumptions: (i) that, in line with the information from the EBAE, the pass-through of higher intermediate costs to final prices will only be relatively moderate (albeit more forceful than envisaged in the December projection exercise); and (ii) that the second-round effects will be limited, i.e. scant feedback effects between inflationary pressures on prices and wages. Inflationary pressures will be partly alleviated by the measures contained in the National Plan to respond to the economic and social consequences of the war in Ukraine.4 Furthermore, these projections do not yet include the possible changes in prices on the electricity market that are currently being negotiated in the European Union. Against this backdrop, the projections see inflation standing at 7.5% in 2022. It will then fall in 2023 to around 2%, thanks, above all, to the moderation of the energy component. Underlying inflation will not start to decline until end-2022, once the upward pressures on firms’ costs associated with energy prices and bottlenecks have corrected.

The current economic situation Before the war, the world economy was on a path of gradual recovery, following the most acute phase of the pandemic, although the recovery was already flagging from the second half of 2021 owing to global bottlenecks and the increase in inflationary pressures. The gradual path of recovery in activity prior to the Russian invasion of Ukraine was, in any case, highly uneven across geographical areas and sectors of activity. Thus, while some economies had already regained or even surpassed their pre-crisis levels of activity, others had not. Spain, despite having one of the highest levels of vaccination in the world, was among the latter. At the end of 2021, Spain’s output was still 3.8 percentage points (pp) below its pre-pandemic levels, while in the euro area as a whole this gap had already closed. One factor that would explain the difference in progress is the sectoral composition of activity. In particular, the recovery tends to be more delayed in those countries, like Spain, in which services that are highly dependent on personal interaction, such as those linked to tourism, account for a large share of the economy. Economic developments in Spain, and in the rest of the world, have been affected by upward inflation surprises since the second half of 2021, driven in particular by energy and food, although there has also been a slight rise in underlying inflation. Between December 2020 and March 2022, the annual increase in consumer prices rose from -0.6% to 9.8%.
Employment was indeed somewhat higher in 2003 as a whole than we expected at the beginning of the year. But this was primarily because the unexpectedly robust growth in the public sector countered weak growth in the private sector. We have no reason to expect any such pattern during 2004. The strained financial situation in the public sector points to weak employment growth in the public sector, while the economic upswing is likely to be reflected to a rather small extent in a rise in employment during 2004 in the private sector. Of course there is a risk that the weak labour market growth will affect households’ expectations of the future and propensity to consume, which is a risk that we highlighted back in December. The higher the rate of unemployment, the more cautious households are likely to be when it comes to purchasing and consuming. This in turn could entail a risk of lower growth in 2004. Nor as regards domestic economic activity is there now reason to make any large revisions compared with our assessment in December. A number of factors are indicating possibly weaker growth, but at the same time there are factors that are pointing in the opposite direction. Compared with the picture we had in December, however, developments in the labour market at the end of the year constitute a somewhat greater risk to economic activity at least in the coming year.

There is possibly a risk that labour market conditions in Sweden could result in a somewhat weaker economic upswing than we expected, mainly in the current year. As regards the view of domestic cost pressure, there are reasons to be somewhat more optimistic. It appears possible that the rate of wage increases could be slightly lower. At the same time, productivity was unexpectedly positive last year. Inflation in November and December has also been slightly lower than we expected in our last forecast. One of the risks of higher inflation that we stressed - that rises in electricity prices would filter through to other areas of the economy - also appear now to be somewhat lower. This is both because electricity prices have fallen sharply and that those rent negotiations that have been concluded have not resulted in such high outcomes as could have been feared. So it is a case of small adjustments to our assessment on  4  BIS Review 6/2004  a few points that, on the whole, imply somewhat lower inflation. But as the inflation outlook as early as December was judged to be fairly benign, even a small revision as I now see it could be significant for the monetary policy decision we will make at the beginning of February. By way of conclusion, there is, as always, reason to underline the fact that new data is being received every day and that any decision on interest rates at the next monetary policy meeting can not be made now.