samchain/econo-pairs-v1 huggingface dataset:
These advocates say that this would make it easier for the central bank to implement an efficient monetary policy with a negative interest rate. 10 This reasoning is based on the central bank being prevented from setting a negative interest rate to the extent considered necessary to stimulate economic activity. Personally, I am not convinced that this problem would arise in Sweden and I would once again like to say that the Riksbank has a statutory requirement to issue banknotes and coins. I see e-krona primarily as a complement to cash. 10 The idea is as follows. If the central bank introduces a negative interest rate, economic agents will choose to  hold cash, which does not have an interest rate, instead of deposits with the banks. This means that the central bank's policy loses impact at the level where the agents begin to prefer cash. This is often referred to in academic research as the “zero lower bound” problem. 8 [10]  The issuing of e-krona together with a positive interest rate on e-krona could affect financial stability in the banking sector. Today, the banking sector functions as a system of communicating vessels. If a consumer or a company withdraws money from a bank, this money comes into another bank, either as a deposit or as payment for a product or service.

In 2010, Swedes withdrew around SEK 225 billion and in 2015 they withdrew only SEK 153 billion, which is also a clear decline. Figure 1. Cash in circulation measured as an annual average, excluding the banking sector’s holdings. Sources: The Riksbank and Statistics Sweden. There are also some statistics on the use of cash. We at the Riksbank make a survey every second year, in which households are questioned about their payment habits, which payment services they have access to, their attitudes and so on. The first such survey was made in 2010 and then almost 40 per cent said that they had made their most recent payment in cash. In September this year, the corresponding figure was only 15 per cent. This is a very marked change. Seen together, all indications point to a decline in the use of cash, and therefore a decline in demand for cash in society. Nevertheless, the interviews show that it is rarely a problem if one wants to make a payment in cash. A large majority stated that they never or very rarely have problems paying in cash, which is pleasing. If you want to see the survey responses, you can find them on our website: http://www.riksbank.se/en/Statistics/Payment-statistics/ A further clear sign of the decline in the significance of cash, and one that cannot be ignored, is that a number of bank branches are currently cashless. It is thus not possible to do any business with cash over the counter, although they may have ATMs or CDMs.
Fernando, Nimal A, Understanding and Dealing with High Interest Rates in Microcredit, (2006), ADB Nagarajan, Geetha & Meyer, Richard L, “Rural Finance Today: Advances and Challenges” in Finance for the Poor, Dec, 2006 Owens, John V & Agabin, Meliza H, “Experiences of the Philippines’ Rural Banks in Microfinance” in Finance for the Poor, June, 2006 Report of the Impact Assessment of the SFLC Project – 1997 (memeo)  BIS Review 22/2008  11  Report of the Impact Assessment of the SFLC Project – 2005 SAARC, Meeting the Challenges, (1992) SAARC Finance, Governors’ Symposium on Microcredit, (2006), Dhaka. World Bank, World Development Report 1990 – Poverty World Bank, Global Economic Prospects, (2007)  12  BIS Review 22/2008

To increase our exports, domestic costs have to remain on a moderate path and the strategies for opening up the economy and fostering trade have to be developed. There are government initiatives to promote economic and trade relations with new areas (such as the Integral Market Development Plans), which are delivering good results and in which firms should not hesitate to take part. Finally, firms should continue to pursue innovation and quality as a means of enhancing competitiveness, a strategy which calls for specialised, well-trained workers. In this respect, education should pay greater heed to the practical needs of the productive sector by involving the business world more closely in the design and definition of vocational-training and university course contents. Here it is fitting to point out that some areas of education in  BIS Review 117/2008  5  Spain continue to produce disheartening results: in particular, the percentage of young people completing secondary school studies continues to be among the lowest in Europe. Hence government policies aimed at remedying this underperformance (in which the regions play a central role) should be prioritised. Firms, along with trade unions, also face the challenge of containing the effect of the adjustment on employment. Given the repercussions that unemployment has for spending and, above all, for household confidence and the general climate of uncertainty, this variable is crucial, since a smaller impact on employment would reduce the fall in demand and lower the probability of being caught in a vicious circle.
An awareness of, and responsiveness to, the needs of the customer, whether saver or borrower. A focus on longterm relationship-building, often starting from the earliest age. A recognition of the benefits of mutualising both risks and returns. In short, the importance of banks being built, first and foremost, on trust. The crisis of trust From the past, then, to the present. A year ago almost to the day, the investment bank Lehman Brothers filed for bankruptcy in the United States. Activity across the globe, financial and non-financial, froze. Recently, there are indications of some thawing. But a year on, many economies around the world remain mired in recession. What explains the severity of this crisis and how much longer can it be expected to last? 4  See E.J. Cleary (1965), “The Building Society Movement”, Elek Books. See also S.J. Price (1958), “Building Societies, their origin and history”, Franey and Company. 5  S.J. Price (1958), “Building Societies: Their Origin and History”, Franey and Company. 2  BIS Review 108/2009  The words “credit crunch” contain the seeds of an explanation. In Latin, credit means trust. So credit crunch is, in essence, a breakdown in trust. Between different parties at different times, that loss of trust has been the root cause of the devastating impact felt globally since the credit crunch began. It also explains why the road to recovery in credit, and thus in the real economy, may be long and winding.

The mutual or building society sector’s roots in Yorkshire are just as deep.4 Although the first societies appeared in the Midlands in around 1775, within a decade Yorkshire had established its first society, the Hill House Bank Building Club in 1785. By the end of the century, numbers had swelled to around 50, mostly in the Midlands, Lancashire and Yorkshire. The early mutuals pooled savings to buy property for members and terminated once all members’ housing needs were satisfied – so-called “terminating societies”. In 1844, “permanent societies” were permitted, which allowed for a revolving set of both savers and borrowers. But the mutuality principle remained – “to enable a working man to secure himself in the course of a few years a dwelling-house as his own freehold property, as a home for himself and family.”5 Numbers of mutuals grew rapidly during the 19th century, reaching around 850 by 1850 and over 1500 by 1875, with almost 100 in Yorkshire alone. Here in Leeds, the Leeds and Holbeck Permanent Building Society was founded in 1875 and, having been renamed Leeds Building Society in 2005, it remains in the top 10 building societies by size nationally. Consolidation and, latterly, demutualization have reduced numbers over the past few decades. Today, there are only a handful of independent, indigenous mutuals in the region. But they remain some of the strongest in the country. The success of Yorkshire’s financial sector over this lengthy period is no fluke. A reading of history reveals the same successful recipe being repeated.
Our challenge, therefore, is to evolve successfully in the face of this shift and it is a philosophy that the HKMA has been actively pursuing in the past few years – exploring new policy headroom, improving our financial infrastructure, promoting Hong Kong’s offshore renminbi business in overseas markets in collaboration with the financial industry, and co-operating with other places, such as London, Paris, Australia, Malaysia and Thailand in developing renminbi business. A competition of soft power among international financial centres 11. As I have emphasised on many occasions, the competition among international financial centres is essentially a battle of soft power. That is not to say hard power is not important. Quite the opposite, the building of hard infrastructure such as airports, transportation system, telecommunications, and efficient offices, is a prerequisite for entering the race. Yet it can only go so far. Funds, especially at the wholesale level, tend to flow to and aggregate in the more efficient and safe financial centres. Therefore, the race ultimately depends on soft power, which is made up of a wide range of qualities and strengths that are difficult to quantify. They include, the most important of all, the rule of law, protection of property rights and intellectual property, the taxation regime, the soundness of financial institutions, the robustness of supervisory frameworks, the competency and integrity of professionals, such as financial practitioners, accountants and lawyers, the free flow of information, the free and convenient movement of people, and a favourable business environment.

Given the undeveloped nature of Zambia’s financial system, it is evident that the diversification and strengthening of financial institutions, instruments and markets must be regarded as a prerequisite to further economic development. In this regard, the  10  BIS Review 99/2008  Government approved the Financial Sector Development Plan provides a framework for focused development of the financial system. Bearing the foregoing, the BoZ continue to closely monitor the financial condition and performance of the financial sector. References 1. FinMark Trust (2005). Measuring Financial Access in Zambia: Summary of Topline Findings, FinScope™(2005) Survey. 2. GRZ (2004). Financial Sector Development Plan for Zambia. 3. Honohan P., and T. Beck (20070. Making Finance Work for Africa. World Bank, Washington DC. 4. Jefferies. K. Enhancing Access to Banking and Financial Services in Botswana. Appendix I containing contact details of banking and other institutions in Zambia can be found on Bank of Zambia’s website www.boz.zm. BIS Review 99/2008  11
We are well aware that crises that incorporate a significant financial downturn are usually deeper and longerlasting. The health crisis will directly affect the profitability of the European banking sector. Such profitability was already low before the crisis broke, and events have highlighted the need to tackle even more urgently certain challenges, such as those associated with digitalisation, the management of cybersecurity risks, reputational risks and those relating to climate change. This underscores the importance of making further headway in improving banking efficiency. Given the extraordinarily prevalent role played by this sector in the Spanish and European economy, how successfully these challenges are resolved will notably influence the intensity and sustainability of economic growth in the coming years. The importance of an extension and selective adaptation of national stimulus measures In the national economic policy arena, achieving the dual aim of supporting the recovery and smoothing the adjustment of the economy to the post-pandemic scenario calls for two actions. First, the authorities must extend and regularly recalibrate some of the 6  measures already applied, which will have to be more closely focused now on the groups of firms, sectors and individuals most affected. And further, their design should enable the structural adjustments needed ahead of the new post-pandemic environment to be brought about. Allow me to illustrate this idea in relation to two measures that have been particularly important in recent months: the policies on guarantees and on ERTEs.

The economic policy response in this second phase of the crisis Naturally, the economic policy response to this crisis should adapt to how the pandemic unfolds healthwise. At this second phase of the crisis, with the characteristics I mentioned, the economic policy response must combine two objectives: to support the recovery - which advises avoiding a premature withdrawal of the support measures that would raise the risk of economic growth undergoing more lasting damage - and to smooth the adjustment of the economy to the post-pandemic scenario. 3  The importance of European support To achieve these objectives, the economic policy response in this second phase of the crisis should have the firmly resolute backing of the European Union (EU). Indeed, given the enormous economic and financial interactions across the area’s various economies, joint action is the most effective means of ensuring that the economic effects of the pandemic will be overcome in a shorter time and at a lower cost to each and every country. This is particularly important in the current situation, where we face a global crisis, but which is exerting asymmetrical economic effects on the different countries. European action is particularly important so as to avoid an uneven exit from the crisis that bears down on overall economic growth for a longer period. These arguments, beyond those relating to necessary European solidarity, highlight the importance of the agreement reached by the European Council last Tuesday with the approval of the European recovery fund.
[9] On this basis, the inflationary impact of a deterioration in the terms of trade could be seen as selfcorrecting, since it will generate weaker domestic demand that eases the inflationary dynamics that higher energy prices trigger. Since an adverse terms of trade shock can create self-sustaining inflationary dynamics in the economy, it can be understood as raising at least temporarily the level of unemployment that is required for inflation to be at target – the so-called NAIRU. But how much the NAIRU will rise (and for how long) depends on how actively and persistently domestic firms and workers seek to sustain their own real incomes in the face of that shock. In coming to a view on how much monetary policy needs to respond to these inflationary pressures, the MPC will need to assess how much the NAIRU has risen and how much of a rise in unemployment will anyway follow from the weakening of demand owing to squeezed household incomes. Recent MPC communication In December, the majority of the MPC stated that, should the data largely follow the outturns foreseen in our November forecast, further increases in Bank Rate may be required for a sustainable return of inflation to target. Moreover, the Committee as a whole repeated that, if the outlook suggests more persistent inflationary pressures, it will respond forcefully, as necessary. This communication rightly places the persistence of inflation at centre-stage.

Being the first winners of this competition also carries with it the responsibility for you to implement your business plan successfully and set a high standard for subsequent winners in the years to come. I thank you for your attention! BIS Review 103/2010  3
In this situation, the capital controls gave monetary policy more scope to focus on the domestic economy, as is demonstrated in Figure 4, which compares developments in short-term real interest rates during and after the currency and banking crises in Korea in 1997 and Iceland in 2008. In Korea there is a clear spike in real rates at the time of the crisis, as interest rates were used to stabilise the exchange rate whereas this spike is missing in the case of Iceland. The economic programme with the IMF included a medium-term fiscal consolidation plan. Automatic stabilisers were allowed to work fully during the contraction of 2009, however, resulting in a significant public sector deficit, as can been seen from Figure 4. The fiscal consolidation that commenced in 2010 arrested the rise in the headline deficit relative to GDP and then reduced it once the economy began to recover. In international comparison, the fiscal effort was sizeable, as can be seen on Figure 5. But it did not derail the recovery that began around mid-2010 and was key to restoring confidence and paving the way for Iceland´s renewed market access. It helped that monetary policy could be relaxed over the course of 2010, as the closure of loopholes in the capital controls in late 2009 helped stabilise the exchange rate. The recession was driven partly by the unavoidable adjustment of imbalances that required a lower level of domestic demand and a shift in its composition, and partly by the negative shocks that deepened the recession further.

Both countries have been doing better than average during the recovery, especially lately and in the forecasts. By this measure, Iceland seems to have levelled with the UK in terms of the level of GDP compared to before the crisis, and Ireland is surpassing both. But developments in employment are significantly more favourable both in Iceland and the UK. The flexible exchange rate probably plays a role here, but the price is weak productivity growth. Iceland has now been recovering for about six years and has now surpassed its pre-crisis peak output level and has more than absorbed the slack in the economy, as can be seen in the unemployment rate, which has fallen to just over 3½% in seasonally adjusted terms. Unlike the pre-crisis peak, however, the current level of output is associated with a relatively wellbalanced economy, both internally and externally, although there concerns about tensions in the labour market and a growing positive output gap. Inflation has now been below the 2½% target for almost two years despite strong wage increases, as international developments and the appreciation of the króna have so far counterbalanced those. The current account surplus has remained sizeable. So is Iceland out of the woods? Not quite. The financial crisis casts a long shadow. Both household and corporate debt levels have declined significantly relative to income, through debt restructuring and income growth. The household debt-to-income ratio is back to around the 2005 level, and the corporate debt-to-GDP ratio is at its lowest since mid-2004.
The purpose is to detect changes and vulnerabilities that can lead to a serious crisis and in various ways to prevent such a situation from arising. We also maintain a good level of crisis preparedness and carry out different types of crisis exercise. This means that we are well prepared to act if a situation arises whereby stability is threatened. When shocks occur in the financial system we have different tools for managing the situation. An important part of this is providing information, highlighting risks and conducting a dialogue with financial market participants. The Riksbank also has the possibility to supply the system with liquidity or to provide liquidity to financial companies under the supervision of Finansinspektionen, the Swedish Financial Supervisory Authority, that are solvent but lack sufficient liquidity to manage their payments. This gives the Riksbank a central role in a financial crisis situation which is often connected with this type of problem. It is usually said that the Riksbank can in such cases act as lender of last resort. Other authorities working with these issues in different ways are Finansinspektionen and the Swedish National Debt Office. As those of you here are well aware, the Riksdag and the Government also contribute. This can be by formulating legislation and regulatory frameworks, or by intervening with measures in those cases where those of the authorities do not suffice. One example is the stability plan for the financial system decided by the Riksdag just over two weeks ago. This was a measure that the Riksbank welcomes.

Cecilia Skingsley: Changing payments market Speech by Ms Cecilia Skingsley, Deputy Governor of the Sveriges Riksbank, at the Royal Institute of Technology, Stockholm, 24 November 2014. *  *  *  I would like to express my warm thanks to Björn Segendorff for his help with this speech. The market for payments is changing rapidly. Sweden is in the forefront with regard to the development and use of electronic payments. Cash has therefore met with tough competition from new, innovative methods of payment. This development is positive in many ways, but changes also entail challenges. The Riksbank is taking an active part in the work on managing these challenges to make things easier for economic agents. Why is it important that our payments function? We rarely think about it when we are paying for a product or service. Often we pay in the same way as we have always done and we assume that this will work. It is rather like walking or cycling – we can think about something else while we are doing it. Nevertheless, all of the day-to-day payments are very important to us – they give us access to the goods and services we need in our daily lives. But all payments mean that we are using highly-specialised services. Behind every non-cash payment we make there are intermediaries mediating the payment from payer to payee. This is done within an infrastructure of various technical systems that are necessary to make the payment.
As the use of digital solutions increases, attack surfaces expand. Cyber attacks have increased during the pandemic. A successful attack can result in users being unable to make payments, heavy financial losses and 5/6  BIS central bankers' speeches  sensitive information falling into the wrong hands. The entire financial system can be affected. Norges Bank will, in cooperation with Finanstilsynet (Financial Supervisory Authority of Norway), draw up a proposal for a framework for testing the cyber resilience of the banking and payment system in Norway. This will build on the TIBER-EU framework, which has been developed by the ECB. The aim is to enhance the cyber resilience of the financial sector and promote financial stability. The national framework will be designed in cooperation with the industry and relevant authorities. Conclusion Let me conclude. Private individuals, firms and the economy as a whole depend on an efficient, reliable and secure payment system, which Norway largely has today. But there is more to be done. We must constantly be on the lookout for ways to make improvements. Many of you participating in this conference are likely already working on this. Norges Bank is particularly focused on improving the common infrastructure for payment services, which will provide a solid foundation for competition, innovation and security in the payments market. Our ambition is to contribute in making a sound Norwegian payment system even better, in dialogue and collaboration with the industry. 6/6  BIS central bankers' speeches

The uncertainty interval does not take into account the zero bound. BIS Review 56/2009  11  12  Source: The Riksbank  9