samchain/econo-pairs-v1 huggingface dataset:
This includes the increased pressure on financial institutions  BIS central bankers’ speeches  3  and regulators to have incentive systems, governance, accountability and controls to address the issues of over-emphasis on short term performance, reckless risk-taking and the pervasive conflict of interests. In tandem with this, is the stronger focus to spur consumer activism as a means to encourage more responsible and sustainable business practices. It is in this area that financial institutions can have an important role in creating positive conduct and behaviours among financial participants in the industry, as well as contributing towards uplifting the state of financial education and consumer awareness. Third, is the strengthening of boards’ effectiveness and accountability, and sound governance of financial institutions. Following the crisis, i.e. the global financial crisis, corporate governance practices in the financial industry have come under significant scrutiny. There have been increased expectations on the management, boards of financial institutions and on regulators to significantly improve governance practices, particularly in the area of risk management policies and procedures. At the international level, substantial enhancements have been made to standards on corporate governance. The growing expansion of ASEAN banks in the region, must therefore be accompanied by an increased emphasis for the boards and senior management of financial institutions to provide the leadership and oversight of group-wide risks arising from cross-border operations. Greater diversity of boards to appreciate cultural nuances and competitive dynamics in different markets will hence be key to support sustainable cross-border operations of the institutions.

I was struck by a trivial example of where a bad equilibrium path can lead on a recent visit to the US. I opened the mini bar in my hotel room to find it empty save for a small slip of paper. Here is what it said: “A personal note to you.... We have made a renewing change to our heavenly guest rooms. Our refreshment centers will no longer be pre-stocked. Please be aware the refreshment center cooler is not intended as a refrigeration device” The empty-mini-bar equilibrium is not a good one. How do you get there? I think the story is this: mini-bar prices are high; they are high because some people conveniently tend to forget how much they may have used their mini-bar when they come to pay the bill and that forgetfulness gets worse the higher are prices; but then the mini bar prices need to be even higher as the forgetfulness seems to get worse. This vicious cycle ends up with mini bars that are empty save for a “personal note to you”. Good economic policies can help prevent bad equilibria and reduce the chances of vicious circles. For banks, I believe the most direct way to do this is to prevent an initial (limited) fall in the value of assets triggering sharply higher concerns about their solvency.
In the long run the changes brought about by globalization and by the correction of the economy’s structural imbalances should enhance growth prospects, but the coincidence of the same two events has made for a difficult transition. It is also true that the economy could have been better prepared to cope with such shocks. That, however, would have required a greater degree of foresight and a timely reordering of priorities in the allocation of scarce resources. Regrettably, our national governance system is not conducive to the achievement of consensual solutions to issues having longterm implications. This explains why the process of reform tends to be rather slow and the outcome often less than ideal. The persistence of rigidities in product and labour markets, a partial wage indexation system, failure to anticipate the consequences of demographic trends and insufficient investment in physical infrastructure and in human resources in earlier years are some of the reasons why the economy lacks the flexibility to react to external developments as successfully as some of its competitors. This does not mean that the economy is not headed in the right direction. Appropriate policies are indeed in place in several key areas, policy coherence is improving and financing is available to implement the national reform programme. This much has been acknowledged by the EU Commission and the IMF.

The argument would be that the apparent change in ability of markets to digest news is a mirage: the statistical analysis would prove to have captured a transient trend, and that intermediaries were never prepared to stand in the way of large market moves, during good times or bad. On this view, the reduction in balance sheet and the move towards electronic structures have been correlated with, but are not a cause of, the events we have seen. And the fact that the spikes in volatility have been visible in equity as well as bond markets, where market structure has not undergone as profound change as FICC markets, would be taken as supporting evidence. This view would caution against over-interpreting a few isolated case studies, where excessive market conviction – that the next move in US rates would  BIS central bankers’ speeches  3  definitely be up; and the Swiss peg was immutable – led to highly crowded trades accentuating the price moves and the impact on volatility. But this is not the interpretation I lean towards. Not least because we hear from market participants that, far from biting in extreme circumstances, these are issues that FICC businesses are grappling with on a daily basis. An eight standard deviation move in US Treasuries, on weaker-than expected US retail data, lies outside the bounds of what could be considered a transient trend. Consolidation and electronification have plausibly combined to accentuate the sharp moves seen last autumn and this January.
Therefore, although it may seem obvious, when we talk about default rates, we are not referring to household mortgages, but primarily to real estate development exposures and to financing for land purchases and other real estate business activities. To use an English expression, we are referring to what is known as “pipeline risk”. However, despite the relatively favourable behaviour of residential mortgages, the financial crisis has clearly exposed certain weaknesses in the mortgage market which need to be addressed and which have had a painful social impact and financial consequences that still linger on. We must also recognise that there were highly questionable banking practices before and during the crisis. In many cases, bank managers introduced perverse incentives for mortgage sales, which led to the outcome that is all too familiar. 4/15  In recent years, in addition to the dramatic social and economic situation, we have witnessed a period of unprecedented litigiousness and legal uncertainty. Much of this litigiousness has notably centred on the mortgage market, according to the complaints data of the Banco de España. A case in point here are floor clauses. The number of complaints filed through the ad hoc system established by RDL 1/2017 has come to almost 1.2 million, with refunds amounting to more than € million to date. This high level of litigiousness is also apparent in the courts of justice. 5/15  It is worth remembering that litigiousness and the attendant uncertainty is not only very detrimental to banks, but also negative for the customer.

•  Our banks, overall, remain profitable: over EUR 7 billion in the first half of the year. We ensure, contrary to certain rumours, that these earnings are reported using the strictest standards. In all probability, this trend – of lower but positive profits – should continue for the rest of this year. •  One reason for this profitability is that our banks have regular sources of income. They are universal banks. This sets them apart from banks in some other countries that depend exclusively, or for the most part, on financial markets. Our banks have a sound and recurrent source of future profits. This is a vital asset in periods when it is impossible to raise capital by issuing shares on the market. •  Lastly, the “manoeuvrability” of our banks remains excellent, as the recent takeover of Fortis’ assets by BNP Paribas shows. •  It should be recalled that almost all money-market mutual funds (SICAV de trésorerie) are offered by major banks. Everything that the President of the Republic has said and everything that I have just said about the soundness of our banks also applies to these funds. Credit developments are the subject of much focus in the current period. A cautious and balanced approach is required in their analysis and excessive optimism or pessimism should be avoided. The main facts can be resumed as follows: •  As a snapshot, credit growth remains strong (over 10% per year for companies and 9% for households).
On the basis of the deviation between actual price inflation and Norges Bank's projections over the last few years, an uncertainty interval for price inflation can be calculated. How can monetary policy be credible when it is so difficult to control price inflation? The answer is to be found in two factors. First, economic agents base their decisions on the probable inflation outcome. Although there is considerable uncertainty, monetary policy will be credible if the outcome they consider most probable, and thus base their decisions on, is consistent with the nominal anchor. Second, confidence is linked to the response pattern. If price inflation in Norway is higher than that aimed at by the ECB as a result of shocks, there must be confidence that monetary policy instruments are oriented towards bringing price inflation down towards the level implied by the nominal anchor. Thus temporary deviations do not necessarily lead to a loss of credibility. Confidence in low and stable inflation contributes to greater stability in the krone exchange rate than would otherwise be the case. However, this cannot prevent changes in the krone exchange rate if the  BIS Review 7/2001  3  Norwegian economy is subjected to substantial disturbances in the real economy other than those in the euro area and such disturbances are not countered by fiscal or incomes policy. Monetary policy cannot function effectively without good interplay with fiscal policy.

However, the euro area equity market has been growing progressively at an average rate of 10% per year, since 1999. The share of equities in European investment funds has increased by 3 points since 2002 and amounted to 27% in 2006, while the proportion remained stable in the United States at 45%. As regards asset management, we observe that since the launch of the euro in 1999, Europe has caught up the United States in terms of the world-wide distribution of investment fund assets. The United States and Europe hold the largest market shares in the world, at 50% and 33% respectively. 2. In this context, what are the key advantages offered by the Paris financial center as a market and a services provider ? The recent launch of the euro has given a big boost to our financial center and leveraged our structural strengths: concentration of headquarters of big companies, innovative entrepreneurial development in fund management (fixed-income and sophisticated guarantee funds) and strong knowledge of mathematical finance, that is the base for French leadership in derivatives and riskbased models. Innovation and expertise had and still have for the future a very positive impact on both the bond and equity markets. Consequently French investment banks are very well ranked in European activities.
Ardian Fullani: Recent financial and economic developments in Albania Speech by Mr Ardian Fullani, Governor of the Bank of Albania, while presenting the 2004 Annual Report to the Albanian Parliament Audience, Tirana, 9 April 2005. *  *  *  Honored deputies, I am here with you presenting my first address as Governor of the Bank of Albania, to share with you the Bank of Albania estimations on the economic developments of year 2004, to present our viewpoints on the Albanian economy perspective for the years to come, and to present some other important aspects of the Bank of Albania activity during this period. Bank of Albania is an institution that plays a crucial role in the decision-making of economic and financial policies and for establishing and maintaining the financial stability of the country. For this purpose, on behalf of the institution I govern, I would welcome any opinion, comment or suggestion relating to the past, the present and the future of the institutional development, of monetary policy and banking supervision. Albanian economy during 2004 According to the Bank of Albania estimates, the development of the Albanian economy over 2004 was in line with the objectives of the strategy on the economic development of the country. Based on the latest estimates, it results that Albanian economy grew by 6.0 percent in real terms, keeping the average development rate of the last five years.

Central Bank of Chile July 2020  “The Chilean Peso as an Eligible CLS Currency: Second Workshop CLS-CBC” Opening remarks by Mario Marcel, Governor of the Central Bank of Chile July 21st, 2020 – Santiago, Chile (via WebEx) I.  Welcoming remarks  Good morning everybody and welcome to the second joint workshop between CLS and the Central Bank of Chile (CBC) dedicated to the “Nostro” service, a fundamental business in the CLS payment system operation. This event is part of the process of incorporating a new currency into the CLS System. This belongs to the due diligence and analysis phase that CLS and the CBC are respectively finalizing. Then we should move to the implementation phase. This workshop complements the provision of information on CLS and the bilateral meetings that bankers have been holding with CLS and the CBC for some time, to assist banks in assessing the benefits, prospects and opportunities in participating in the system, either as a Settlement Member or Nostro. I am looking forward to the banking sector’s active participation in this workshop that features representatives of the Nostro banks and CLS experts. II. The Chilean Peso incorporation process  •  The process of incorporating the Chilean Peso in CLS, started last year when we sent the Letter of Intention to CLS to demonstrate our commitment to the process and initiate the engagement stage.
Recent wage settlements have been relatively moderate, public finances have improved, deregulation and liberalisation are under way in a number of sectors, and there are signs that labour markets are gradually becoming less rigid. However, while it is acknowledged that progress is being made, it is also clear that there is still quite some way to go. Further efforts are required in all these policy areas in order to create the best conditions for the current upswing in economic activity to be turned into a period of sustained strong growth in an environment of price stability. For fiscal policies the challenge and opportunity is to use the current economic expansion to intensify the necessary further consolidation of public finances. In a number of Member States the budgetary situation is still too far from reaching the targets specified in the Stability and Growth Pact, namely that budgets are to be in surplus or at least close to balance. Moreover, the recent reduction in deficits has been greatly helped by the relatively low levels of interest rates and by improving economic conditions. According to most forecasts, fiscal trends over this year and the next even point to a procyclical stance rather than to prudent anticyclical policies. The overriding goal for fiscal policy should be to shelter governments’ budgets from normal cyclical fluctuations, but also from unexpected shortfalls in revenues and interest rate increases. In addition, governments’ budgetary policies also need to urgently address longer-term issues in the context of the imminent problem of ageing populations.

The responsibilities of individual policy areas in ensuring sustained non-inflationary growth This brings me to a crucial issue: the single currency is the joint responsibility of all policymakers and Member States. Monetary policy is strictly geared towards the maintenance of price stability and thus also makes an important contribution to strong growth in output and employment. However, monetary policy needs the support of other policy areas. This is best achieved by having specific roles, clear mandates and agreed responsibilities for the individual policy areas. Let me go into these in a little more detail. The best contribution which monetary policy can make to sustainable growth is to achieve price stability. Indeed, inflation entails numerous costs and creates an uncertain economic environment. This is harmful to an optimal allocation of resources and thus hampers economic growth. Some costs of inflation are quite tangible, as is the case with those induced by the periodic revision of prices and indices or the increasing cost and time spent in cash transactions. More generally, increased inflation is accompanied by increased volatility of inflation. Stable high inflation has almost never been observed, and is seemingly a contradiction in terms. This volatility of inflation creates uncertainty which affects economic and social decisions.
In contrast to the United States, slower growth of external demand was not sufficiently offset by stronger domestic demand growth in the Eurozone, so that, instead of the expected pick-up in overall output growth, activity in fact increased progressively more slowly. Largely as a result, the euro has depreciated in the foreign exchange market and economic performance in individual participating countries has diverged more than might have been expected. This has been a disappointment to some proponents of the euro and has been seized upon by eurosceptics as evidence of its risks. We need to be cautious, in my view, in interpreting this initial experience in the present unusually difficult global economic environment. As demand strengthens in the Eurozone – and the latest indicators from Germany are more encouraging – the likelihood is that the euro will recover and some of the present tensions ease. It has always been clear that there are potential risks of economic divergence within the Euro area to be weighed against the more obvious potential economic benefits of the single currency. The question has been just how significant are those risks likely to be. That will, ultimately, always be a matter of judgement. But it would be premature, in my view, to reach that judgement based on today’s abnormal circumstances. Now we, in this country, have of course been battered about, like everyone else, by the global turbulence. There is no way that we could have avoided its impact – either through fiscal or monetary policy.

But we can, and do, aim to offset the impact of persistent external influences on the prospect for inflation so that inflation in the economy as a whole stays on track to meet the inflation target given to us by the Chancellor. That is what we have been doing – and is the context of our further move today. No-one, my Lord Mayor, is more conscious than I am of the limits to what we can hope to achieve through monetary policy. But by operating within those limits we have been able to achieve greater macro-economic stability, and consistently lower inflation, than we’ve seen for a generation. And that stability, together with the improved supply-side flexibility of the economy, has delivered our highest ever level of employment, and a rate of unemployment in the economy as a whole that is still close to its lowest for almost 20 years. 3  BIS Review 68/1999
The Governing Council did, however, make it clear that the ECB remains supportive of the objectives of EMIR II and is fully committed to contributing to its implementation where legally possible and in line with its mandate. The ECB looks forward to fruitful cooperation with ESMA and other authorities in taking this forward.4 In times of upheaval in global payment markets, it is all the more important for Europe to close ranks. In the United States we have already seen two mergers of two significant payment service providers this year. Both mega-mergers had a market value of $ billion and more could follow. In such dynamic markets, in which economies of scale play a pivotal role, we should not get lost in national details but should self-confidently enhance the conditions of the European single market and the competitiveness of its participants, without, however, putting up protectionist barriers. Conclusions Allow me to conclude. As central banks, we must remain true to our core mandate. Through change or crisis, we must retain the capacity to adapt to evolving needs and do what needs to be done. But that should not come at the expense of independence or accountability. Ultimately, we will be judged on how we deliver price stability. Trust is the central bank’s most valuable asset.5 1 European Central Bank (2011), The monetary policy of the ECB. 2 Eurobarometer, European Commission. 3 Mersch, Y. (2018), “ Virtual currencies ante portas”, speech at the 39th meeting of the Governor’s Club Bodrum,  Turkey, 14 May. 4 Mersch, Y.

The world needs transition finance – to provide the funding support for businesses and sectors that are not so green, to adopt cleaner technologies, increase energy efficiency, and become greener over time. Inclusive transition is about decarbonising without compromising social and economic development. Hundreds of millions of people across Asia, Africa, and Latin America still do not have access to electricity, modern sanitation, and drinking water. Economic development will drive demand for fossil fuels, which is still the cheapest way to generate electricity and power mobility in many parts of the world. The switch to cleaner energy cannot be made in one leap. We need to shift the energy mix progressively, first to relatively less emissions-intensive fuels like natural gas, and then to renewables. Finance can be a powerful enabler for such a transition. Second, Asia – this is where the battle against climate change will be won or lost. Asia accounts for half of the world's greenhouse gas emissions and is home to about 60% of the global population. The issues of transition are most acute in Asia, with growing affluence and rapid urbanisation alongside the urgent needs of poverty alleviation. About 85% of the energy consumed in Asia comes from fossil fuels and Asia's demand for energy is projected to double in 2030. Asia is also most vulnerable to climate change, with large populations living close to locations prone to drought, floods, and rising sea levels.