samchain/econo-pairs-v1 huggingface dataset:
The activities will be largely focused on drafting of the new law and the new bylaws on payment services and payment systems – in cooperation with the Ministry of Finance. The new regulation will entail transposing the latest European legislation in this area and setting grounds for significant changes to our payment landscape. Opening the door to fintech companies will provide opportunities to strengthen competition in the payment services market, and thus to enrich the offer of new, innovative and easily accessible products at a competitive price. Reflecting on the scope of this project, we have had in mind that, inter alia, the recent global economic crisis has clearly demonstrated that macroeconomic stability does not necessarily 1/2  BIS central bankers' speeches  ensure financial stability. It acknowledged though that financial instability has long-term adverse effects on economic growth and macroeconomic stability. This explains the large step taken by the EU - a banking union set up on two pillars: the single supervisory mechanism and the single resolution mechanism. Undeniably, countries heading towards the EU and the European Monetary Union will have to work hard to harmonize the supervisory setup as well as other institutional and structural elements relevant for the smooth financial sector functioning. Therefore, the second component addresses the banking regulation and supervision and aims to improve our supervisory capacities.

It is thus no exaggeration to say that those present at a similar dinner six years ago felt quite optimistic about the prospects for the European economy, within Monetary Union, although the Union had only just taken its very first steps and euro banknotes and coins had not even begun to circulate. We now have the benefit of the experience built up in the intervening period. The euro has meant tangible benefits in terms of savings on transaction costs for citizens, eliminating exchange rate risks within the area, facilitating market integration and it has provided an environment of economic and monetary stability. The ECB has attained high credibility in a short period of time which is undoubtedly a result of the clarity of its objectives, the effectiveness of its strategy and the soundness of its decisions. Nevertheless, it is a fact that the European economy has not managed to repeat growth figures close to those seen in 2000. It has been prone to bouts of notable sluggishness, highlighting - in addition to the effect of an unusual series of adverse shocks - the structural shortcomings holding back activity and employment. We have therefore seen that, despite the favourable effects a monetary policy unequivocally geared to price stability has on economic prosperity, the full effectiveness of its contribution requires an ambitious reform agenda in other economic policy spheres.
It is possible, however, that the risk comes mainly from the borrowers’ balance sheets, that they may continue to repay lenders but reduce other spending in the economy making the downturn and the eventual losses in the financial system worse. In that case, action to reinforce lender resilience will not address the risk or only do so ineffectively and inefficiently. 4  All speeches are available online at www.bankofengland.co.uk/news/speeches  4  Borrower-based tools Against that background, let me say a little more about the FPC’s housing tools and how they have operated in practice. The FPC’s housing tools  In the five years after the financial crisis, housing market activity and house price growth was very subdued. But by 2013 both price growth and mortgage transactions began to pick up rapidly. In 2014 in the UK, house prices grew by 9% in the year to Q1 – twice as fast as incomes.5 Mortgage approvals had risen from around 50,000 per month in June 2012 to over 70,000 in January 2014. And, very importantly, the share of those mortgages at high loan-to-income (LTI) ratios was rising. The aggregate debt to income ratio for UK households had fallen from its crisis peak but remained high relative to historical averages and international comparators. To be sure, we had not reached the rate of increases in house prices relative to earnings and in mortgage debt that we had seen before the crisis and in other episodes in the UK.

As you know, the Governing Board adopted the expert group's conclusions and indicated to the Federal Council that, based on the profit figure following revaluation, an amount corresponding to half the gold holdings could be earmarked for purposes other than monetary policy. The possible uses for the sales proceeds have been the subject of much political debate. None of the proposed solutions have succeeded in attracting a consensus among the population or in the Federal Parliament. On 16 December, the parliamentary debate was concluded without an agreement being reached. Thus, a sum of CHF 21.1 billion, corresponding to the proceeds of the gold sales, has been included in the usual profit distribution procedure. Some people fear that, following this transfer, the National Bank will no longer have sufficient currency reserves. I have a word of reassurance for them. This issue has been examined in depth and has been discussed by our Bank Council. Our currency reserves total CHF 60 billion – an amount which may be considered appropriate by comparison with other industrialised countries. BIS Review 30/2005  3  But nor are these reserves excessive. Furthermore, it is important that the currency reserves evolve over time, in tandem with the size of our economy. This is why, in accordance with Article 99 of the Constitution and Article 30 of the National Bank Act, the SNB has adopted a provisioning policy that provides for gradual growth in its currency reserves.
In part, this is out of simple self-interest, since the international effects of Fed policies can spill back onto the U.S. economy and financial markets. In part, too, it reflects a sense of special responsibility we have given the dollar’s role as the international reserve currency. We are and will remain attentive to the risk that the onset of Fed policy normalization could bring a new round of market pressures on EMEs. Yet I think there are good reasons to think that this adjustment will prove manageable and not be very disruptive. First, many EMEs appear to be better equipped today to handle the Fed’s prospective exit from its exceptional policy accommodation than they were during past tightening cycles. This reflects the fundamental reforms that EMEs have put in place over the past 15 years, as well as the hard lessons learned from past periods of market stress. Among the positives are: •  The absence of pegged exchange rate regimes that often came undone violently during periods of acute stress;  •  Improved debt service ratios and generally moderate external debt levels;  •  Larger foreign exchange reserve cushions;  •  Clearer and more coherent monetary policy frameworks, supporting what are now generally low to moderate inflation rates;  •  Generally improved fiscal discipline; and  4  BIS central bankers’ speeches  •  Better capitalized banking systems, supported by strengthened regulatory and supervisory frameworks.

For example, the preparation of the draft law “On bankruptcy”, a commendable effort by the Ministry of Justice represents a significant development and unique opportunity to render the resolution of a financial obligation as an enforceable, predictable, and efficient process. Concluding, I would like to underline that reducing the level of non-performing loans is closely related to the magnitude of financial intermediation by the banking sector. The need to redirect private investments towards new sectors in the economy, the small market size, problems related to the low quality of financial reporting by private entities, and slowdown of economic growth rates in Albania have dictated an unstable private demand for loans . Therefore, it is important to find, in addition to macroeconomic policies, new alternatives to boost domestic demand, promote optimism in the economy and contribute positively to businesses and consumer expectations. The acceleration of economic growth would provide the conditions for faster and steadier improvement in the level of non-performing loans. Thank you! 2  BIS central bankers’ speeches
The pace of the further steps will take into account actual activity and inflation data with some optionality and gradualism, but we should at least move towards the neutral rate ii. And let me stress this: we will carefully monitor developments in the effective exchange rate, as a significant driver of imported inflation. A euro that is too weak would go against our price stability objective. More structurally, a key question is whether we are heading towards a fragmented International Financial System, at the expense of smooth trade and financial transactions? Despite the challenges, (I) we shouldn’t abandon, as a “creative frontier” on the horizon, the idea of cooperative multilateral International Financial System and (II) we should definitely develop the international role of the euro as a realistic step forward. **  Page 2 sur 7 I. We shouldn’t abandon, as a “creative frontier”, the idea of a cooperative multilateral International Financial System 1. The reasons why the topic of a renewed IFS has progressively faded to the background Since the 1970s, not much has happened to the international financial system. While the Bretton Woods system with fixed exchange rates and a gold anchor disappeared when the convertibility of the USD into gold came to end, the new international monetary system remained based on the USD. This dollar-based system gradually incorporated greater exchange rate flexibility. It allowed for a boom in trade and capital flows.

This new technology has not only created a demand for new or improved payment services, it has also provided payment service providers with new channels through which their services can be supplied. The growing number of mobile payment services is an example of this. A number of challenges for the banks Banks have dominated the retail payments market for a long time and they still have a strong position. They are the “factories” of the retail payments market. They are usually BIS central bankers’ speeches  1  large scale and sell standardized payment services. However, they have to meet a number of challenges. One challenge relates to the fact that banks operate on a vast scale providing payment services that can be used in a broad variety of situations. In an environment that quickly changes and where tailor-made payment solutions are increasingly demanded, it is a tall order to meet such a variety in demand. We should also remember that the core business of banks is financial services including payment intermediation. They are not technology firms even though they are heavy users of technology. Innovation in payment services is usually not a question of inventing a wholly new payment process from account to account. Rather it is taking some service that is already out there and offering a new way of accessing that service. As an example, many mobile payment services and electronic wallets are just new ways of initiating card payments. A recent example is Apple Pay.
Secondly, how do we at the Bank of England fulfil our role to maintain the stability of the financial system? And finally, highlighting some of the key areas that are currently active on our agenda. As you see, we have to extract from the global canvas the issues that pose the greatest threats and to then focus on them. International cooperation is the key to this, and events such as today’s conference with its range of distinguished speakers and attendees from across the globe can only help this process. 4  BIS Review 49/2003

Even though, there were recent indications of a possible slowdown of momentum, the risk remains of a further build-up of imbalances followed by a significant price correction in the residential real estate market 5. Against this backdrop, it is important that banks use prudent credit standards to limit potential default risks and are well-capitalised so they can withstand such potential losses should they arise 6. The third challenge is specific to Switzerland’s systemically important global banks. Like their peers abroad, they will have to adapt to new supervisory requirements that address “too big to fail” issues and the resulting moral hazard. In the past, systemically important banks enjoyed an implicit bailout guarantee by their governments. Not only did this lower their refinancing costs, but it also led to various distortions in the areas of leverage, excessive risk taking and compensation. A wide range of measures will address problems caused by institutions that are too big to fail. These include a systemic risk capital surcharge, recovery plans and organisational measures. The systemically important banks will have to adjust to these measures. This process will take time and will not occur overnight. Implications for the Swiss National Bank I have discussed the challenges that arise for Switzerland as a financial centre from the SNB’s perspective. Our mandate is to maintain price stability, while taking due account of the development of the economy. To ensure that we can always conform to this mandate, we need a stable banking system.
Achieving such goals would imply a very complex and politically sensitive process. This is why, as a first and more realistic step, we suggest starting by a stock-taking exercise whereby investors would have a clearer view of divergences and potential discrepancies between the various EU legislations. It is also worth noting that in the field of financial market infrastructures, Eurosystem initiatives have turned out to be powerful catalysts for harmonization. For instance, significant progress has been made in the standardization of corporate actions through the Target2-Securities project without having to adjust the respective legal frameworks. Finally, and I know this is a topic where Olivier will be happy to pick up, more regulatory convergence can be achieved without changing the current institutional architecture but via increased cooperation between European Supervisory Authorities (ESAs) and national authorities. I thank you for your attention. BIS central bankers’ speeches  3

‘Too large’, and central banks may find themselves accused of usurping the role of financial markets, harming innovation and inducing imprudent behaviour; fuzzying the boundary between monetary and fiscal policy, providing a ‘dangerous temptation for … the political class’1; or giving unmerited financial rewards to reserves holders.2 ‘Too small’, and central banks may be criticised for being asleep at the wheel3 at times of crisis; failing to play their part in ensuring an adequate supply of risk-free assets in the economy to maintain financial stability during peacetime4; or hampering the effectiveness of monetary policy transmission.5  Chart 1: Central bank balance sheets compared  Source: Individual central banks’ published data, IMF  The Bank of England has found itself on both ends of this debate in the past 10-15 years. Before the financial crisis, our balance sheet was modest, at 4% of GDP. Since then, and in direct response to the crisis, that figure has risen to around 30%: a more than seven-fold increase. Other regions have seen similar, or in some cases much larger, expansions (Chart 1). But by the UK’s own standards this is truly exceptional. You have to go back to the end of World War 2 or the early 18th century to find anything even approaching the same highs (Chart 2).
Workplaces are being relocated in search for employees – outsourcing and off-shoring For the purpose of this speech, a simplified definition may be adopted, under which outsourcing means relocating orders, services, production, employment or, in broader terms, a business process to another company (irrespective of its location), whereas off-shoring means relocating a business process abroad (irrespective whether to another company, or within the same enterprise). 9 There are, however, not too many hard data which would allow for an assessment of the scale of outsourcing/off-shoring. Until now, there have been only estimates and fragmentary research results available on this subject, limited to some countries only. However, the data on global trade in goods and services and foreign investment proves the growing scale of this phenomenon. Over the past 15 years, there were significant changes in the share of particular regions in the global trade, with the decline of the UE share accompanied by increasing shares of the developing countries, including Asian countries. In global terms, foreign trade as percentage of the GDP increased from the average 19% of the GDP in the period from 1980 to 1989, to 25% between 2000 and 2004. 9  6  Where off-shoring takes place within the same company, the English name captive o ff -s h o ri ng is used. BIS Review 64/2006  Table 3. Shares of individual regions in global trade.

The BNB complies with the guidelines and requests issued by the ECB and pursues the necessary measures for the implementation of the ECB’s legal acts under Regulation (EU) №1024/2013, including by issuing the necessary administrative acts. In this relation, the ECB exercises control over the implementation of all SSM guidelines and standards in the BNB’s work, including with regard to the supervisory review and evaluation process and on-site supervisions. The ECB is conferred specific direct powers towards less significant institutions, in relation to the process of license issuance and revocation, approvals of acquisition and disposal of classified holdings in credit institutions, the issuance of general recommendations, guidelines and instructions, planning and carrying out of on-site inspections, including assuming at any given point in time of direct supervision over less significant institutions. For the purposes of supervision of less significant banks, a structure has been set up with the ECB’s SSM, in which the BNB participates. Within this structure, the issues of supervision over less significant institutions of the SSM participating Member States are discussed. The participation in the Single Supervisory Mechanism also includes providing the ECB with all the information needed for the performance of the ECB’s tasks, including information subject to banking and professional secrecy. The ECB collects fees for conducting its supervisory activities and this principle will accordingly apply to the banks in Bulgaria. 2. Participation in the Single Resolution Mechanism The participation in the SRM follows from the participation in the SSM.
iZettle, another Swedish company, has a service that converts your smartphone into a card terminal. There are several other innovative payment services on the market and under development. 9 There is a growing interest in this issue in the central bank world. For instance, the Bank of England has begun to study this question, as has the Bank of Canada, see http://www.bankofengland.co.uk/publications/Pages/speeches/2016/886.aspx and http://www.bankofcanada.ca/2016/06/fintech-financial-ecosystemevolution-revolution/  7 [10]  In the first case, with accounts in the Riksbank, the e-krona would be fairly similar to the central bank money that we currently have in our payment system. These e-krona would not be lost if, for instance, the consumer lost his or her telephone, if that is where they are stored. The amount of central bank money can also change rapidly and at the pace determined by the demand from the general public. It is possible, although it does not need to be the case, that this would make it more difficult for the Riksbank to carry out the fine-tuning operations that we use to steer the short-term rate, that is, the starting point for interest-rate setting in Sweden. If we instead have a digital unit that can be transferred decentralised between two people, other complications will arise. Could such a solution be compatible with the regulations on counteracting money laundering and terrorist financing? How would we prevent digital units of value being copied, that is, counterfeited? Convey e-krona directly to the general public or through the banks?

As you may know, after a while Stockholms Banco began issuing more banknotes than they had cover for in precious metals. After a while, distrust of Stockholms Banco began to spread and people wanted to redeem their banknotes for precious metals. We now had Sweden's first bank run, which one might say was Sweden's first financial crisis. Stockholms Banco was taken over by the Riksdag (Swedish parliament) and later became the Riksbank. It must be said that the banknotes were very popular and highly-valued as long as people trusted in their worth. Compared with coins, they weighed very little and could easily be carried around. They were also considered to be worth more than the corresponding amount in coins. It was not until 1904 that the Riksbank was given a monopoly on issuing banknotes. Prior to this some commercial banks issued their own banknotes. The banknote monopoly meant two things. Firstly, it resolved the trust problem. Unlike commercial banks, a central bank like the Riksbank cannot normally go bankrupt. The holder of a banknote issued by the Riksbank can always be certain that it has a worth corresponding to its nominal value. Secondly, the banknote monopoly established a unique payment standard that is set by the state; in Sweden the legal tender is banknotes and coins issued by the Riksbank. The use of having a uniform standard for payments, and having this standard accepted by all, saves time and energy for individuals to expend on other things.