samchain/econo-pairs-v1 huggingface dataset:
The five core areas are: – Minds Matter Solutions Matter Regulators Matter Talent Matters And Momentum Matters 36. Let me briefly talk about how each of these areas really matters in achieving our overall goal 37. First of all, “Minds Matter” refers to the importance of awareness. High awareness is essential for gaining buy-in across an organisation, and securing the appropriate resources to implement solutions. A fundamental step in promoting Regtech adoption is therefore to boost awareness of the benefits of Regtech adoption across a wide group of stakeholders, and to highlight the available use cases in the market. 38. One of our recommendations is to establish a “Regtech Knowledge Hub”. This is a centralised knowledge platform for sharing information on Regtech experience and potential usages. 39. There are also opportunities to expand the scope of Regtech events to reach different stakeholder groups. Therefore another recommendation is for a series of targeted Regtech events to be hosted to raise the industry’s awareness of this subject. 40. On our part as regulator, another way of boosting awareness is by issuing practical guidance to help the industry better understand how Regtech can be applied in Hong Kong. 41. Next, “Solutions Matter”. It refers to the importance of developing solutions that are specifically tailored to the banking industry in Hong Kong. So our second area of focus is to promote Regtech solution innovation. 42. We believe that competition is a key catalyst for innovation.

Tarisa Watanagase: Strengthening the banking and financial sector – what needs to be done? Speech by Dr Tarisa Watanagase, Governor of the Bank of Thailand, at Finance Thailand, a seminar organised by The Banker Magazine and Financial Times Business, Bangkok, 22 February 2010. *  *  *  Ladies and gentlemen, First of all, I would like to thank The Banker Magazine and The Financial Times for the invitation. It is an honour, and indeed an opportunity, to join all of you here at this conference, and to share with you my thoughts at this very challenging juncture, not only for the global economy and financial system, but also at an important stage for development of Thailand’s economic and financial sector. The past three years have been one of the most turbulent periods in global economic development. On the global economy front, despite the signs of green shoots in the global economy, we are constantly reminded of the remaining fragility and vulnerability of such recovery in various hot spots around the world, with emerging new paradigm of risk, namely sovereign risk. For the global financial system, risk and challenges remain abound. The key challenge strikes at the heart of the global financial system – regaining trust. Trust in market mechanism, as well as its regulator, has been severely tested.
It is not unusual for one to be turned away at customers counters on account of the lack of basic facilities due to for instance power failure or link failure when these can be mitigated where there are proper contingency plans in  2  BIS Review 111/2009  place. The Bank of Zambia will therefore ensure that sound business continuity plans are in place when evaluating new applications. Ladies and Gentlemen, as we develop these well meaning products, I wish to appeal to the service providers to ensure that investment in such infrastructure is complemented by investment in financial literacy. We need to ensure that we are providing individuals and communities with the level of financial education needed to grasp both the benefits and pitfalls of their easier access to financial services. This will in part minimize the risks associated with such innovative products as people will only make better judgments about their financial affairs if they understand the risks and returns associated with the product and services at their disposal. It is also apparent that financial illiteracy is more costly as people who make poor financial decisions will inevitably end up with a far lower standard of living than was otherwise achievable. Mr. Chairman, I wish to conclude by applauding Celpay’s initiative to host the first ever mobile conference in Zambia. The deliberations and recommendations of this conference will be keenly followed as the need to leverage access to financial services through the mobile phone is of paramount importance.

It is worth reminding that this initiative has led to a considerable drop in charges for cross-border transfers in the euro under correspondent banking, although for the time being the drop is of benefit mainly to banks, and hardly at all to clients. SEPA consists of the following elements: the single currency, a single set of euro payment instruments – credit transfers, direct debits and card payments, efficient processing infrastructures for euro payments, common technical standards, common business practices, a harmonised legal basis, and ongoing development of new customer-oriented services. I am sure than many of you are wondering "Why SEPA?". To answer this question we have to think like Europeans. Currently, the euro area economy is unable to fully exploit all the benefits of the Monetary Union. Customers face difficulties when making euro retail payments to other euro area countries, as these payments often turn out to be more time-consuming. As long as this is the case, the euro cannot be viewed as a fully implemented single currency. Despite the introduction of the euro in 1999 and the development of TARGET, the common largevalue payment system for euro, low-value electronic payments (i.e. retail payments) continue to be processed differently throughout the euro area. Overall, the number and variety of payment instruments, standards and processing infrastructures for retail payments has not really changed since the introduction of the euro.
A quarter century ago, a typical estimate of the neutral rate in the United States was 2 or 2½ percent—consistent with historical averages over the preceding half century. Since then, however, there has been a clear downward trend in neutral interest rates in the United States and other advanced economies, with current estimates ranging from 0 to 1½ percent.2 Three main global trends appear to account for the bulk of the decline in the neutral rate over the past quarter century. 3 One is demographics: populations are aging as people live longer and birth rates have fallen. The second is productivity growth, which has slowed around the world. 1/3  BIS central bankers' speeches  The third is the heightened demand for safe and liquid assets, which has led to a wider wedge between yields on safe government securities or central bank reserves and yields on riskier assets such as corporate bonds. Importantly, the onset of these trends preceded the global financial crisis and they have continued even as countries have recovered. Although there is a great deal of uncertainty about the neutral rate, and conditions may change, a reasonable assumption is that it will remain low— not far from current levels—for the foreseeable future.4 What does a low neutral rate mean for monetary policy and the anchoring of inflation expectations? When a recession hits, central banks may not be able to reduce interest rates well below their neutral level to stimulate the economy as warranted because of the effective lower bound on nominal interest rates.

Now that I am already way out on a limb, I should emphasize that my remarks reflect my own views and not necessarily those of the Federal Open Market Committee or anyone else in the Federal Reserve System. As a starting point, it’s useful to travel back in time to the 1980s and 1990s, when inflation targeting was introduced. The problem at the time was high and variable inflation that contributed to macroeconomic instability and unmoored inflation expectations, which in turn fueled high and variable inflation. To break this vicious cycle, numerous central banks instituted inflation targeting, or variants thereof, with a focus on bringing inflation down to a low level and fostering the establishment of stable, well-anchored inflation expectations. This strategy worked extraordinarily well in the decade preceding the global financial crisis, as central banks were able to achieve remarkably low and stable inflation, leading to a positive feedback loop between low inflation and well-anchored inflation expectations. Today, we face an altogether different set of problems stemming from a very low neutral interest rate—that is, the short-term real interest rate consistent with an economy operating at its potential alongside low and stable inflation. Ironically, the problem we need to solve these days is the risk of inflation that is persistently too low, rather than too high. Today’s low neutral interest rates reflect the culmination of trends extending back 25 years.
If developments move in line with our projections, the key interest rate may be reduced to 1 per cent in the latter half of this year. However, the projections are uncertain. An economic turnaround may occur faster than expected. The low interest rate level may lead to a situation where saving in Norway does not pick up as expected or that the krone depreciates markedly. In that case, the key rate may be set higher than projected at this time. On the other hand, there is a risk that the downturn in Norway will be more pronounced and longer, or that krone appreciates markedly. In that case, a stronger use of instruments may be appropriate. The downturn abroad and the unusual conditions in the credit market will mark the Norwegian economy for a period ahead. Mainland GDP is projected to decline by 1 per cent between 2008 ad 2009. Unemployment has increased since autumn 2008, but is still low. Unemployment is projected to continue to rise to the end of the year and into next year. Pay increases are moderate as a result of weaker corporate profitability, rising unemployment and lower inflation. Wage growth will show a considerable decline between 2008 and 2009. BIS Review 60/2009  3  Households have a dimmer view of the future than earlier, but the pessimism is no longer intensifying. This influences private consumption. Housing investment has also declined over a period, but house prices now seem to have stabilised, and perhaps started to rise again.

Banks must not be able to reduce capital below a minimum level even if they extend loans that, according to the models, seemingly involve low risk. Second, regulation must to a lesser extent contribute to amplifying cyclical fluctuations. With losses now rising, as a result of the abrupt and pronounced turnaround, banks must increase equity capital. Consequently, the rules governing capital requirements amplify cyclical fluctuations. The rules must therefore require banks to build up strong capital buffers over and above the minimum requirement in normal times. Then the banks would not have to  4  BIS Review 60/2009  increase capital when a turnaround occurs, but on the contrary be able to absorb losses. This will counteract the need for banks to ration credit in adverse periods. Many Norwegian banks do not have sufficient buffers today to safeguard their own, their shareholders’ or the economy’s best interests. Third, banks’ funding methods make them vulnerable. Earlier, the two main sources of bank funding in Norway were retail and wholesale deposits. In recent years, banks have borrowed heavily in both domestic and foreign markets. During the crisis, this proved to involve high liquidity risk for banks. In the future, in regulations and in practice, deposits must again take precedence as the largest funding source for banks. We also anticipate that bonds collateralised by high quality mortgages will become important. The credit swap arrangements can be seen as building a bridge to such a market.
In parallel, the microprudential authority (i.e. Banking Supervision of the European Central Bank for significant institutions) has allowed banks to operate temporarily below the levels set for some structural requirements such as the capital conservation buffer, the Pillar 2 guidance (P2G) and the liquidity coverage ratio (LCR). Also, the possibility of covering part of the Pillar 2 requirements (P2R) with non-CET1 capital was envisaged. The purpose of these decisions has been precisely to help banks continue to provide the necessary financing to households and firms in such an adverse environment. 2  From a theoretical point of view, the easing of prudential bank capital requirements during a crisis gives rise to a dilemma. On the one hand, this easing may, as I have said, boost the provision of financing to the economy, but, on the other hand, it may, in certain circumstances, reduce the loss absorption capacity. According to our empirical analysis, the use of these buffers would allow banks to provide more financing to the real economy, which in turn has a positive effect on economic growth, boosting its recovery or moderating its downturn. And this positive impact on economic growth is of such a magnitude that it leads, in turn, to higher demand for credit and higher bank revenues, which ultimately translate into higher solvency levels too.

In this connection, it should be noted that a large part of the adjustment in banks’ earnings in the first half of this year is due to the provisions made in advance for credit impairment  6  that has still not materialised, but will do so in the coming quarters. Specifically, Spanish banks have set aside almost double the amount of provisions they recorded in the same period of last year. This has significantly reduced their profitability, but it has also raised their capacity to absorb credit impairment, something that is particularly highly valued by investors in these circumstances. The message I wish to convey is that banks should persist with this early recognition policy, as it will subsequently facilitate their ability to continue to perform their function of providing financing to the economy. In short, especially if the crisis proves to be prolonged, banks must ensure proper and timely recognition of effective impairment of the quality of their credit exposures through compliance with supervisory guidelines. Global banking regulation  Fourth, I would like to reflect on global banking regulation. As I mentioned earlier, the Basel reforms phased in over the last decade have attempted to incorporate into regulation the lessons learned during the global financial crisis. The first phase of the Basel reforms began in 2010 and was completed through a second wave of changes published in 2017. The initial phase was aimed at raising the level and improving the quality of banks’ microprudential regulatory capital.
This would increase the potential for a more diverse range of products and services to meet the changing requirements in corporate, retail and investment activities. Given the universal nature of the Islamic banking licence, the attention given to the capacity for innovation will become an important defining factor in the progress of Islamic finance. With the rapid progress on the issuance of prudential and supervisory standards by the Islamic Financial Services Board (IFSB), Islamic finance is now governed by its own international best practices. The establishment of the Islamic Financial Services Board in 2002 was part of the efforts to strengthen the international Islamic financial architecture. Thus far, two standards have been issued, namely the standards for Capital Adequacy and the Guiding Principles for Risk Management for Islamic financial institutions. Bank Negara Malaysia will be implementing these IFSB standards for adoption by Malaysian Islamic banking institutions. The harmonisation of the prudential standards across borders will also enhance the process of global financial integration in Islamic finance. The Islamic financial institutions are also able to benefit from maximising their balance sheet structure, by leveraging on the Profit Sharing Investment Accounts in addition to their own capital. Under the IFSB Capital Adequacy Standard, the total risk weighted assets funded by the Profit Sharing Investment Accounts will be deducted in the determination of the overall Risk Weighted Capital Ratio of the institutions.

With greater awareness and adoption in more financial centres, Islamic finance is poised to play a bigger and more central role in global finance. We look forward to WIBC Asia as a key platform that will buttress the development of Islamic finance as it takes root in the region. The industry, which is open to all participants, can only reach greater heights with your commitment and support. I therefore wish you a productive conference as you seek exciting new horizons for Islamic finance. 4  BIS Review 84/2010
These principles on corporate governance are largely part of those adopted in 1999 and subsequently revised by the OECD in 2004. They include equal rights and a level-playing field for shareholders, the role of stakeholders, disclosure and transparency, and board accountability. Corporate governance has direct implications on the behaviour of the organisation towards its employees, shareholders, customers, partners, banks included. Poor governance reduces the potential and, worse though, can lead to financial distress and even fraud, while well-governed companies will usually be more competitive than their rivals and will be able to bring in investors who will invest their money in the companies’ future growth. I will also add that no matter how relevant formal rules are to the proper functioning of an economy, it is essential to trust in business partners’ word given and their honesty. Whenever this is missing, not only dealings in goods and services, but also financial transactions are hit hard. Given that integrity, confidence and reputation weigh heavily on the economy, everyone pins his hopes on the business sector. Future wealth depends now more than ever on how this issue is dealt with. This is why we can assert that, in extenso, good corporate governance underpins the integrity and efficiency of financial markets. Moreover, for the banking field, in light of recent developments, I truly believe that increased ethics is to be welcomed. Thus, good practices in corporate governance are an essential ingredient of wealth and sustainable growth.

Gathering market intelligence in a more complex and transparent world  Given its responsibilities for monetary policy, macro-prudential regulation and microprudential supervision, it is quite rightly expected that the Bank’s policy decisions are taken with a detailed understanding of the financial market context in which the Bank operates. Since its inception, the Bank’s market operations have long provided a key input to this understanding, by providing first-hand information from financial institutions. Between the years 1786 and 1989, this was epitomised by the “Senior Broker to the Commissioners for the Reduction of the National Debt.” Clad in a top hat, and invariably with a tightly rolled umbrella (see Figure 4 for an example), the holder of that position was responsible for announcing (in person) changes in the Bank’s minimum lending rate, and at the same time gathering opinion on the state of the gilt market. He was expected to report to the Gilt Edged Division three times a day, providing information about market activity, the quantity of buying and selling, and the gilt maturities and coupons that were in particular demand. He was also responsible for reporting on the mood of investors and advised the Bank on the appetite for stock, institutional cash positions and expectations. 9, 10 Even if top hats are a thing of the past, the essence of Market Intelligence (MI) gathering remains the same today: our staff maintain a regular dialogue with financial market participants to draw on their expert knowledge and perspective of the markets in which they operate.
The Great Recession and sluggish recovery that has followed has made it difficult for people to find jobs, and I’m sure you may be wondering about whether going to college will turn out to be a good investment, especially if faced with the burden of student debt, something we track quite closely. Let me reassure you, the benefits of a college degree remain significant. Research we have undertaken at the New York Fed shows that young people with a college degree are more likely to have a job and they tend to earn considerably higher wages than those without degrees – and this is true even for those who may be underemployed initially when they first enter the labor market after graduation. Although the labor market has been challenging for college graduates in recent years, I am confident that most will find work and transition into higher-skilled jobs as they gain experience and as the labor market improves. Now, I’d like to turn my attention to recent developments in the national economy. National economic conditions Let me begin by taking stock of where we are at the moment. Then I will address my expectations for the performance of the economy in 2014 and 2015. 2  BIS central bankers’ speeches  Since the end of what is now called the Great Recession in mid-2009, the U.S. economy has experienced 17 consecutive calendar quarters of positive growth of real GDP.

Earlier today, I met with a number of Queens business leaders, and the leadership of HANAC, the Hellenic American Action Committee. Following this visit to Queens College, I’m headed to the Queens Chamber of Commerce to meet with others in the business community. Subsequently, I’ll tour the manufacturing floor of Steinway & Sons piano factory. The agenda for these visits is always packed, but that’s part of the point – to meet with a diverse array of people in order to get a comprehensive picture of economic conditions and issues in the regions we serve and a fuller understanding of the major concerns. This is our second trip to the Borough of Queens in the past few years and recent trips have also taken us throughout our District, to Upstate New York, Northern New Jersey, Long Island, Fairfield County, Staten Island, Brooklyn and the Bronx. These outreach trips complement the ongoing efforts of the New York Fed to assess conditions in our region, which I will discuss shortly.