samchain/econo-pairs-v1 huggingface dataset:
At the individual depositor level, additional safeguards such as a deposit insurance scheme (which we already have in place in Singapore) and local incorporation will provide better protection for depositors from problems emanating from other parts of the banking group. Local incorporation can also bring benefits to a bank, especially where it has a significant retail presence. Liquidity rules under Basel III will require long-term stable sources of funding to comprise a larger share of a bank’s total funding. Competition for deposits is expected to intensify, and banks that can attract stable funding will gain an advantage. Local incorporation can therefore demonstrate a bank’s long-term commitment to depositors and other stakeholders in a world of possibly permanent heightened volatility and uncertainty. Beyond local incorporation, encouraging strong international banks to sink deeper roots in a domestic economy will allow them to play a greater role in contributing to financial resilience. Let me elaborate on this important objective of encouraging strong international banks to sink deeper roots in a national economy. One of the key features of our banking liberalisation has been the Qualifying Full Bank (“QFB”) privileges that have been granted to foreign banks. The number of QFBs has increased from the initial four in 1999 to six in 2001 and eight today. QFBs have also been allowed more places of business from 10 in 1999 to 25 today. MAS will continue to liberalise the domestic banking sector in a progressive and calibrated manner.

Together, these developments bode well for the macroeconomy, suggesting that U.S. households can return to more normal patterns of borrowing to smooth consumption and to invest in autos and houses. Still, despite the return to more normal patterns of borrowing, it is worth pondering the significance of the recent change in the composition of household debt as student loans have grown to be the second-largest category of household debt after mortgages. While these loans provide critical access to schooling, they may constrain the consumption choices of young people, especially those who graduate in periods of poor employment prospects. BIS central bankers’ speeches  7  8  BIS central bankers’ speeches  BIS central bankers’ speeches  9  10  BIS central bankers’ speeches  BIS central bankers’ speeches  11  12  BIS central bankers’ speeches  BIS central bankers’ speeches  13  14  BIS central bankers’ speeches  BIS central bankers’ speeches  15  16  BIS central bankers’ speeches  BIS central bankers’ speeches  17
Repairing the single market for capital is a collective endeavour in which the ECB has a role to play – but to be fully effective that role needs to be coordinated with the European Commission, European Supervisory Authorities and market participants themselves. Breaking the feedback loop between bank and sovereign credit should also be a priority. To this effect, steps should be taken towards a unified regime for bank resolution and beyond that, towards establishing a single European banking resolution authority. Finally, the “Financial Compact” should also include the completion of the single euro payment area. Payments are at the very heart of a corporate’s activity and I am not sure that they always get the attention they deserve. Nowadays, more than 50% of the trade of the 27 EU countries takes place within the EU – and that trade is mainly based on cashless payments. With the introduction of the single currency there could no longer be any differentiation between national and cross-border euro payments: they should all be “domestic”. The Single Euro Payments Area project, in short “SEPA”, came to fill this void; its aim is to establish a single market for retail cashless euro payments by overcoming technical, legal and market barriers, so that people can make euro payments throughout Europe as easily, securely and efficiently as within their own countries. Using the SEPA payment instruments, companies can make all euro-denominated payments centrally, from a single account, using the same format.

This development is rather unfortunate given the change in cycle facing the Spanish economy, as it may ultimately have an adverse effect on firms’ hiring decisions, accentuating the employment adjustment in a setting of macroeconomic uncertainty. But it is also inappropriate from the standpoint of its impact on inflation, at a time when this variable, as  2  BIS Review 44/2008  you know, is deteriorating sharply. In recent months, the growth rate of the consumer price index has exceeded 4.5%. Undeniably, the rising course of inflation, driven by the substantial increases in oil and agricultural commodity prices on international markets, is a phenomenon common to most economies. But in Spain these pressures are compounding a situation in which upward biases in cost and price formation persist, accentuating the risk of the deterioration in inflation spreading to the rest of the economy. With a view to the immediate future, the macroeconomic projections recently published by the Banco de España suggest national demand will continue to lose steam, in both its consumption and capital investment components. This is expected, however, to be partly offset by the improved contribution of the net external balance. In this setting, GDP growth is projected to stand at around 2.4% in 2008. As to the inflation outlook, the private consumption deflator will foreseeably increase to an average rate of 3.6%, albeit on a slowing path during the year. On numerous occasions the Banco de España has indicated that the Spanish economy has undergone far-reaching changes in recent years.
Ladies and Gentlemen, letters such as these give us a picture of the key issues of the day for people in Switzerland, and how their lives are affected by specific economic circumstances. We always find this informative. However, the SNB’s monetary policy can never be focused solely on individual needs and concerns. Instead it must serve the interests of the country as a whole. And unfortunately, you can’t have your cake and eat it, as the saying goes. Or in the case of the two letters I quoted, you can’t have higher interest rates and a weaker Swiss franc at the same time. The SNB bases its monetary policy on careful consideration of its impact on the overall economy. For some four years now, we have centred on two key elements: the negative interest rate and our willingness to intervene in the foreign exchange market as necessary. The first of these in particular is a very unusual concept for many of our fellow citizens, and this is also reflected in the correspondence we receive. Some say that it runs contrary to economic logic, and creates major problems for savers and pension funds. Against the current backdrop, both the negative interest rate and our willingness to intervene in the foreign exchange market as necessary remain essential, however. This is the only way we can maintain the interest rate and exchange rate conditions in Switzerland that are necessary for us to perform our task of ensuring price stability while taking due account of economic developments.

Broad impact on the economy All in all, the Swiss economy got off relatively lightly compared with other countries in the difficult years following the global financial crisis – and this despite the fact that, as a small open economy with a large financial sector, we were hit hard by the shocks. This can be mainly attributed to two factors. First of these was the remarkable flexibility of Swiss companies and workers, which made it possible to increase efficiency, develop new products, and tap into new markets. Coupled with this, the SNB’s unconventional monetary policy substantially cushioned the blow of external shocks. The real trade-weighted exchange rate of  Page 4/8  the Swiss franc has thus remained fairly stable since September 2011. Were it not for the negative interest rate and the extensive interventions by the SNB, Switzerland would today be facing a different economic reality. The franc would have become much stronger, inflation would have fallen well below zero, growth would have slowed abruptly and unemployment would have risen markedly. For us there is thus no question that the negative interest rate was significant in helping Switzerland emerge from a difficult period in good shape. And it is still making an essential contribution to ensuring that our economy continues to fare well today, despite the array of uncertainties worldwide. But how exactly does negative interest work? Negative interest rates take effect on an economy in a very similar way to a monetary policy with positive rates.
The statement therefore indicates that it is therefore sensible for business and the country to plan on the basis that, in this Parliament, the government does not propose to enter a single currency. However, the government has said that if a single currency works and is successful, Britain should join it. The BIS Review 110/1997  -3-  government believes that we should therefore begin now to prepare ourselves so that, should the economic tests be met, a decision to join a successful single currency can be made early in the next Parliament. To help with the essential preparations, the Chancellor has invited the Governor of the Bank of England and the heads of the two main bodies representing industry and commerce, and two other Ministers, to join him on a Standing Committee to lead the preparations for EMU. 12. In the UK wholesale financial markets, practical preparations are accordingly proceeding apace. 13. We at the Bank of England have been taking an active role in helping the UK financial markets to prepare for the euro. We do this because, even though the UK will not be in at the start, it is plain that banks and financial institutions in the UK, in their wholesale business for their corporate and institutional customers, in the UK and overseas, will want to be able to offer the full range of financial facilities in the euro from the outset.

Against that background, our assessment was that UND1X inflation would rise from the current low levels and be close to the target a couple of years ahead,” observed Mr Heikensten. ”Experiences show that the situation in the financial markets is often slightly uneasy during phases when interest rates are adjusting upwards. This has also been the case over the past year. There appears to have been unusually clear focus on differences in short-term rates between different  1/2  countries, which has had repercussions for the krona. Let me therefore underline that it is not at all strange that Swedish short-term rates have been lower than those in many other countries. For various different reasons, some of which I have mentioned earlier, inflation has been much lower in Sweden than in other countries. Compared with the United States and the euro area, the difference is between 0.5 and 1 percentage point on average for the past three years, depending on which inflation measure is used. In 2004, the difference was as much as 2 percentage points. When one looks ahead, which is important in this context, according to Consensus Forecast, forecasters are expecting higher inflation in the euro area and the United States than in Sweden,” continued Mr Heikensten. ”It is clear that the krona has developed more weakly since the spring than the Riksbank expected. As you know, we do not have a target for the exchange rate. However, it is an important factor when we assess future inflation.
Norges Bank therefore attaches substantial importance to what seems to have become a fairly broad consensus on a long-term anchor for fiscal policy that takes into account possible fluctuations in oil prices from one year to the next. The rule would appear to be credible as well since it is robust in relation to various scenarios for oil prices and oil production. The Government was of the view that a clearer anchor was required to reinforce monetary policy’s role in underpinning stable economic developments. This is why Norges Bank was given a new operational mandate for monetary policy. Norges Bank shall set the key rate with a view to maintaining low and stable inflation. The inflation target is set at 2½ per cent. The new mandate for monetary policy is in line with international practice. Sweden and the UK have an inflation target. These countries generally have a positive track record, but this may also be ascribable to a situation that was conducive to low inflation after the downturn in many countries in the early 1990s. In our view, there has been a reasonable degree of confidence in monetary policy over the past decade. Inflation has been low and stable. By quantifying an inflation target, the Government may nevertheless have made it easier to understand Norwegian monetary policy. With the revision of monetary policy, the Government has also, in our view, recognised low inflation as a benefit in itself.

But, funding is only one aspect of a micro-business. Prior to as well as subsequent to funding, there are a large number of other requirements that have to be satisfied. First and foremost, anyone desirous of starting a micro-business should have a good knowledge of the market in which he would sell his products. A feature of the market is that it is driven by the consumer who is considered the sovereign. If the consumer does not need a product, no one could force him to buy it, even when it is supplied free of charge. Hence, the goods and services that are produced by micro-businesses should always meet the requirements of the consumers. How can a micro-entrepreneur identify the market requirements? What proxies can he use for that, if he does not have direct information on the same? A problem which he would face in this respect is that he has to produce for the future. Hence, any information relating to the past may be a poor guide for that. This is not a problem unique only to micro-businesses. It is equally relevant to big producers as well. But the advantage for such big business firms is that they have the benefit of the results of consumer preference surveys conducted by various institutions. Such survey results are expensive and beyond the financial capacity of micro-businesses. Yet, without the benefit of such results, it would be a pure gambling for a micro-business to get into the production of these goods and services.
Yves Mersch: Interview in La Vanguardia Interview with Mr Yves Mersch, Member of the Executive Board of the European Central Bank, in La Vanguardia, conducted by Ms Beatriz Navarro and published on 7 May 2015. *  *  *  Tsipras’ reluctance to sign has surprised many. Is an agreement with Greece possible? Few times have I seen Europe so united, with the exception of one country, on the necessity to abide by the rules. Those countries would not like to see all the achievements of the past, the efforts made, come to nought now that they are beginning to see the benefits. Isn’t Tsipras right in calling for a change in policy? EU and IMF reports concede that the impact of the bailout on unemployment, GDP, etc. was greater than expected. In some sectors of the Greek economy the magnitude of the effort seems larger than elsewhere. However, in the Baltic States the adjustment has been, at the very least, the same as in Greece. But the more you stray from the correct path (and this country strayed the furthest), the harder it is to return. If the pressure had not come from the institutions, markets would have asserted even more pressure on countries to adjust. And if you can’t get financing yourself and you rely on the money of taxpayers in other countries, you need to show that your citizens are also playing their part. That reality has been easier to accept in some countries than in others.

But in certain cases I believe that some tax claims can be of a higher value and more liquid than in others. In other countries, doubts about the situation in the public sector may be greater and the question arises as to whether or not tax claims are actually liquid or have the capacity to absorb losses in real time. Because if you want them to be accepted as liquid assets, they must be immediately available. And call me old-fashioned, but I think that hard cash is the best form of capital. Where does Spain sit on the spectrum that you have described? The European Commission will comment on that from the perspective of public aid in its evaluation. In our Comprehensive Assessment last year we were not very enthusiastic about it (DTAs) but in the end we accepted it on legal grounds. But the most important thing for me is to have a level playing field and, as such, any legal clarification that arises as a result of the European Commission’s assessment will be welcome. The Spanish government states that this was designed in collaboration with the EU institutions, given that we were under the financial assistance programme for banks, and it appears to be rather calm. That’s what I said, we have to look at how things were done, under what circumstances and what its real liquidity is; it will depend on government liquidity, tax revenue etc… And there are very different tax arrangements involved.
A full blown banking crisis started in 1990, peaking with the nationalisation of the three main Norwegian banks in 1992. Unemployment in Norway rose rapidly and reached unprecedented levels. The last two decades have been a golden era in the Norwegian economy. Partly thanks to sound macroeconomic policy and growth-stimulating structural reforms, we have experienced a strong growth record, after many years of meager performance. Due to good luck, we have also experienced very positive terms of trade developments. Increasing prices for our exports, such as petroleum, fish and aluminium, and decreasing prices for important import products like clothing and consumer electronics have made the average Norwegian much better off than he or she was twenty years ago. Norway’s income has nearly tripled over the past 20 years. It is often politically easier to introduce structural reforms during crises. When bad news fills newspapers and television programmes, the electorate is more likely to accept necessary measures. In the long run, reforms prove to be very profitable even though they are painful in the short run. Among the changes in the Norwegian economy from the 1990s on were the removal of subsidies, closing down of government-owned enterprises, deregulation in important markets like housing and electricity, tax reform which increased incentives to work and closed tax evasion loopholes, and the reform of parliamentary budget procedures. Finally, a fiscal rule was put in place, providing a sustainable relationship between the Government Pension Fund and the government budget.

This also has the potential of reducing delivery cost for the banks; hence the potential to increase profit maximization for both banks and their clients. Finally, let me thank the Board of Directors and Management of ProCredit Bank for inviting me to this occasion. I wish you every success in your operations as you compete to make your presence felt in the industry. I would also like to covey appreciation from the Governor, who is unavoidable absent on this occasion. I thank you all for your attention. 2  BIS Review 33/2008
ECONOMIC PERSPECTIVES Annual address by Governor Øystein Olsen to the Supervisory Council of Norges Bank on Thursday, 18 February 2021  THURSDAY 18 FEBRUARY 2021  Economic perspectives 2021  NORGES BANK ECONOMIC PERSPECTIVES 18 FEBRUARY 2021  INTRODUCTION  Illustration: Theodor Kittelsen, Photo: National Museum / Ivarsøy, Dag Arne  One year ago, I stood here and delivered the annual address to 300 guests. This year is different. This evening there are no guests physically present at the central bank. The contrast with last year could hardly be greater. The same also goes for the theme running through this evening’s speech – the Covid-19 pandemic. Not a trace of it can be found in last year’s speech. Yet contagion was lurking right outside our borders. We sensed that something was brewing. Norges Bank was in the process of revising down its economic forecasts. The employees at our Shanghai office had been sent home, yet we did not foresee how far-reaching the outbreak in Wuhan would be. Two weeks after delivering last year’s speech the first case was recorded in Norway – soon thereafter, Norway went into lockdown. Since then, we have done what people do during serious epidemics – we engage in social distancing. We can still meet – in a way. Technological innovation has provided us with new possibilities. During the Black Death, wealthy farmers from the western fjords of Norway isolated themselves in Jostedal, a remote valley that reaches into the mountains. They had to find new ways to communicate.

Jean-Pierre Roth: 2003 – a year of renewal Speech by Mr Jean-Pierre Roth, Chairman of the Governing Board of the Swiss National Bank, at the Bank’s Annual General Meeting, Bern, 30 April 2004. *  *  *  2003: a year of renewal As I told you a year ago, 2002 was a year of disappointments. But today I am glad to report that in 2003 the outlook brightened steadily. 2003 got off to an inauspicious start, however. The prospect of war in Iraq gave rise to uncertainty and apprehension, gravely undermining confidence among both households and companies. Then investors’ confidence was shaken by a number of financial scandals, triggering a sharp fall in the stock markets in the third quarter. Even the rapid military outcome to the conflict in Iraq did not resolve the situation. In addition to this, the threat of a SARS epidemic exacerbated the problems already being experienced by greatly weakened sectors such as transport and tourism. Only in the summer did a measure of calm start to return as the international business cycle gradually picked up. Not only did economic growth in the United States steadily gain momentum, but the Japanese economy experienced an almost unhoped-for rebound while the emerging economies of Asia - led by China - cast off their SARS fears and resumed their dynamic growth. This contributed in no small part to the upswing in the world economy. Closer to home, the European economies slowly emerged from their lethargic state.