samchain/econo-pairs-v1 huggingface dataset:
Available at: https://www.bankofengland.co.uk/paper/2017/a-blueprint-for-a-new-rtgs-service-for-the-uk 3  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  3  Resilience Resilience in its many forms is vital to meeting the Mission of the Bank of England – to promote the good of the people of the United Kingdom by maintaining monetary and financial stability. Resilience permeates the work of the Bank’s policy committees and how they go about meeting the remits they have been given. It’s the resilience of the financial system, and major banks and insurers who operate in the UK, where post-trade is most relevant. Most recently, a major focus of the Bank’s Financial Policy Committee has been resilience to the risks associated with a disorderly no deal Brexit8. This has also been a consistent focus of the recent work of AFME under Simon’s leadership. We have a responsibility to ensure the consistent supply of the vital services that the real economy demands from the financial system – things like paying for goods, services and assets; intermediating between savers and borrowers, and channelling savings into investment; and insuring against and dispersing risk. We have evaluated what effect of a worst case disorderly scenario would be on the core of the banking system, and concluded that it would be resilient to such an event9.

The work will stocktake current and emerging post-trade technology solutions, identify key pinch points and barriers to adoption across markets and products, and look at the cost and benefits of different solutions to address these barriers. Conclusion  The post-trade system is a key component of a bigger effective, efficient, and resilient financial system; one much reformed since the financial crisis of eleven years ago. A key feature of the financial system is it is one of multiple interdependencies, and it is this interdependent nature which is why I chose to focus on resilience and innovation today On the face of it, these two concepts are quite different – one referring to the ability to return to a previous state, the other referring to making change. But in practise they are irrevocably linked. An environment that prioritises resilience and innovation is one that ensures post-trade continues to thrive and adapt to technology, finance, and wider changes in the economy, whilst avoiding costly fragmentation. The Bank is playing its part here, with strategic goals on the one hand focussing on the need to innovate and drive change (Fintech; RTGS), but on the other on maintaining resilience (operational resilience; RTGS) – demonstrates that well. That’s why we’re focussing on providing a platform, via the right hard and soft infrastructure, for innovation to flourish. And why we will never slacken our focus on the criticality of resilience. 7  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  7
Many will probably expect the central government to pick up the bill when labour costs rise sharply. The central government budget for 2002 adhered closely to the fiscal guideline. Growth in public spending from last year to this year is estimated at 7 per cent. This is considerably higher than the growth in value-added in the private sector of the mainland economy, which is estimated at around 4 per cent. Real growth in public consumption is estimated at 1½ per cent. In other words, there will only be moderate growth in the production of public services even if there is a sharp increase in central government allocations. This is because the cost of producing public services is rising substantially, to some extent reflecting high wage growth in the public sector. There have also been substantial increases in transfers to the household sector through our social security system. BIS Review 65/2002  5  In the National Budget for 2003, the government estimates spending to increase by 4.6 per cent in relation to 2002. At the same time, real growth in public consumption is estimated at ½ per cent. The room for public consumption is influenced by the outcome of wage settlements. If wage growth in the general government sector is 1 percentage point higher than assumed, labour costs will increase by a little more than NOK 2 billion. This is equivalent to the increase in the use of petroleum revenues in the central government budget for 2003.

This is anything but a typical recession, and it has called for a new set of measures to address the economic consequences of the virus. Amid all the change we’re experiencing, you can be assured of one thing: our unwavering commitment to limit the economic damage from the pandemic and foster conditions for a strong and sustained recovery. 1 See Board of Governors of the Federal Reserve System, Federal Reserve Issues FOMC Statement, March 3,  2020; and Board of Governors of the Federal Reserve System, Federal Reserve Issues FOMC Statement, March 15, 2020. 2 See Board of Governors of the Federal Reserve System, Federal Reserve Issues FOMC Statement, April 29,  2020. 3 See Board of Governors of the Federal Reserve System, Federal Reserve Announces Extensive New Measures  to Support the Economy, March 23, 2020.
By April 2008, the FSF had reached consensus on a set of 67 policy recommendations aimed at addressing the vulnerabilities identified in the global financial system. Some of these recommendations concern structural changes and thus can only be implemented over the medium term. However, a number of priority areas calling for immediate action were identified and the relevant recommendations are already being implemented by the competent authorities and the industry. In this respect, a major priority area involves the disclosure of financial institutions’ structured finance-related exposures and their valuation practices. Many large global banks have already applied the methodology set out in the FSF report to their holdings of complex and illiquid instruments in their mid-year financial reports. By doing so, they have demonstrated the willingness of the private sector to contribute to strengthening market confidence by increasing transparency. I strongly support this development and believe that the example set by these banks should be followed by a wider range of institutions. Furthermore, guidance on transparency has been provided and is being further developed by the Basel Committee on Banking Supervision and public sector initiatives, such as the European and the American Securitisation Fora. In the same vein, the International Accounting Standards Board is intensifying its work to enhance the accounting and disclosure standards for off-balance sheet entities and to develop guidance for valuation in illiquid markets.

But in absolute terms, the cost of risks amounts to EUR 63 bn for the top 4 US banks, as opposed to only EUR 58 bn for the 11 largest European banks. –  •  Solvency ratios have significantly improved in Europe, banks have retained earnings and increased capital through various ways (new equity issues, dividends paid in new shares);  •  With Tier 1 ratios comprised between 10% and almost 18% for the main European banks, they are equivalent to the range of 11%–16% of American banks. •  Regarding now the core Tier 1 ratios, which is the measure displayed by banks for the markets, they are also pretty equivalent. Again, with ratios ranging between 8.5% and 15.3%, the main European banks are as solid as US banks (with ratios between 8.4% and 13.3%). Secondly, the differences in the leverage ratios levels mainly result from accounting discrepancies that can lead to particularly misleading comparisons: •  If we observe the leverage multiples, it is true that the figures displayed by US banks (between 10% and 14%) are lower than those of most of European banks. For the latter, the range is much wider (between 15% and 25%). •  But we all know that the measurement of the leverage ratios is significantly impacted by different accounting treatments, the main differences between IFRS and US GAAP arising from the netting of derivatives and repos. •  The example of Deutsche Bank is a case in point to illustrate this impact.
One important piece of context is that, viewed over the long arc of history, humans have never had it so good. Stephen Pinker and Hans Rosling have recently brought home this crucial point in clear, statistical terms. Just consider the last two hundred years.16 Over that period, each generation has a bit less than 50% better off financially than its predecessor. You are almost 50% better-off than your parents and more than twice as well-off as your grandparents. Your living standards today are around 16 times higher than your Glaswegian ancestors in the mid-18th century and 11 times better-off than when the GSA was founded. That is mass financial flourishing by anyone’s reckoning. 12  Murphy (2018). http://www.firefighterfoundation.org.uk/history/ 14 Phelps (2013). 15 Gordon (2012). 16 Pinker (2018), Rosling (2018). 13  8  All speeches are available online at www.bankofengland.co.uk/speeches  8  This flourishing was physiological as well as financial. Over the same period, rates of infant mortality have fallen 40 percentage points. Lifespans have doubled. Although the average age of the population has never been higher, their average remaining life has also never been longer. Levels of global poverty have fallen from over 90% to single figures today. Societal progress has become an entrenched social norm. What explains these great leaps forward in economies and societies? As with any reading of history, there is no universally-agreed account. My reading of economic and social history suggests the secret sauce of economic and social progress has two essential ingredients – ideas and institutions.

Exter argued that that should be the case because of the inflationary or deflationary effects which the payment or the non-payment of profits can have on an economy. For instance, when the profits are transferred to the government, the reserve money will increase, raising both money supply and creating inflationary pressures. Exter argued that such an expansion that would have arisen from the Central Bank’s own contribution to inflation by raising its domestic assets should be prevented. Domestic assets of the Bank could go up due to the Bank’s lending to the Government or the commercial banks. If these assets have increased too rapidly, the result would be inflation through a similarly rapid increase in money supply. Exter’s prioritization of the appropriation of profits intended to prevent the Bank from paying to the government such profits earned by inflating the economy. But, he did not have any objection to the transfer of profits to the government, if such profits have been earned on the Bank’s investment of its foreign assets. Since the foreign assets are maintained by the Bank on behalf of the government, the latter have a right to receive its due rate of return. So, Exter concluded that if the domestic assets have not expanded (in other words, if the Central Bank has not inflated the economy), “there should be no ill-effects from paying out the Central Bank’s profits to the Government, especially since in this case the Government could not have been obtaining excessive accommodation from the Central Bank”.
This increase in the Spanish dependency ratio amply exceeds that projected for the European Union as a whole, where it will rise by a factor of 1.6 in the same period, according to Eurostat. This change in the age composition of the Spanish population will affect a very wide range of economic factors. The most obvious is perhaps the challenge it represents to Spain’s welfare state. The increasingly higher proportion of older people puts upward pressure on the expenditure of the pension, health and dependency system, which poses a challenge to its financial sustainability that must be faced soon. 14  See the 2014 report entitled ERAC Peer Review of the Spanish Research and Innovation System, commissioned by the European Commission. 16/18  But the issues associated with population ageing are not limited just to the public expenditure of the welfare state. Their implications encompass many more facets of the economic arena and range from the potential growth of the economy to the management of economic policy. Firstly, I would like to point out the close connection between population ageing and the long-term growth of the economy. As we have seen, the latter is affected by changes in employment and in productivity, which in turn is inextricably linked to technical progress. Thus, it is important to extend people’s working life to stop the employment rate from falling and thus sustain Spain’s capacity for long-term growth.

Monetary policy measures have contributed to the increase in activity and in inflation  Economic research shows that these measures have been effective in the recent past, in terms of easing financial conditions and encouraging lending. Bearing this in mind, the new package of measures will boost economic activity in the euro area against a background of high uncertainty and will help to bring about the convergence of inflation to levels in line with the ECB's mandate. As regards negative interest rates, although there is no conclusive evidence to date that they have adversely affected the supply of bank credit, we cannot rule out that maintaining 5/18  rates at very low levels for an additional, potentially extended, period of time, could ultimately have some negative consequences for the bank-based transmission of monetary policy. In this regard, the mitigating measures adopted by the ECB, consisting of a tiered system for remunerating excess liquidity holdings, are intended to soften the negative impact on bank profitability of the new reduction in reserve remuneration, and thus ensure the expansionary effect on activity and inflation of the interest rate cuts in the current setting. Prolongation of the current expansionary cycle, albeit at a more moderate rate than in previous years  In relation to the Spanish economy, the latest economic data point to a gradual weakening of activity. First, the indicators that measure agents’ confidence have tended to gradually deteriorate since the beginning of 2018, albeit less so than in the euro area as a whole.
The willingness of savers to entrust their money to a bank presupposes that those savers have confidence in the financial integrity of the institution - in other words, that their savings will be BIS Review 27/2000  2  available when they need or want access to them. If that confidence is undermined, society’s ability to collect and deploy its savings will be impaired, and the principal means to economic growth and rising living standards - intermediation by banks - will be short-circuited. With this reality in mind, it must be acknowledged that, in the final analysis, commercial banks have only one asset that really matters public confidence. Sound lending - the key to preserving public confidence The key to maintaining the financial integrity of any banking company - and, therefore, to preserving the all-important asset of public confidence - is the credit process. If credit is extended carelessly, banks are likely to incur losses, which in turn will undermine their ability to honor deposit obligations. And if banks’ ability to honor deposit obligations falls into question, if the public’s confidence is undermined, households and businesses will likely rush to redeploy their savings, raising the specter of a flight to cash and real assets with all the associated implications for inflation and destabilizing runs on banks. The best defense against this serious and very real threat is for banks to extend credit wisely, objectively and impartially.

The other project consists in assessing the compliance with the criteria set out in the framework of the “Payment aspects of financial inclusion”. By complying with the criteria from the involved stakeholders, it aims to increase the number of households and enterprises (mainly the small ones) that have a bank account or a payments account to conduct various transactions. In addition to the above, for a broader review of the remittances across all its dimensions, the Bank of Albania commits today in the framework of this meeting to produce a dedicated publication, which will be presented every June, a period which coincides with the International Day of Family Remittances, 16 June. Last but not least, considering the coordination among state authorities as very important, as well as the constant communication with the private sector, we are signing today the Memorandum of Understanding. It is aimed at raising the awareness, facilitating dialogue and fostering effective cooperation between the parties on issues related to remittances from the Albanian diaspora, contributing to economic development. The joint engagement we are initiating today is the first necessary step of a development platform for the empowerment and effective use of remittances. In conclusion, I would like to underline once again that it is time that we show more care, appreciation and gratitude to tens of thousands of Albanians abroad, who, through sacrifice, continue to contribute to the welfare of our nation, sending a part of their savings to their families back home.
It also calls for the consideration that such policy responses may have implications that extend beyond the domestic borders, Benefits may also be derived from cross border coordination of policy responses to increase the prospects of achieving the desired outcomes. Our conference today focuses on the impact of economic and financial globalisation on the role of central banks, as well as to assess how central banks can effectively contribute to promote stability in this environment. In particular, the conference will be looking at the implications and challenges that globalisation brings to the mandate of the central banks in preserving monetary and financial stability. The pace and nature of globalisation has also  BIS Review 20/2009  1  brought significant stress to the international financial architecture. The current financial crisis has highlighted the vulnerabilities in the international financial architecture, leading to renewed thinking about the reform of the global financial system. Tonight, Joseph Stiglitz will be speaking on "Strong Institutions for Growth and Crisis Management". Tomorrow, we will address some of the specific management challenges central banks face in a globalised environment. We will discuss some recent developments of central banks' cooperation and the areas for reform of the international financial architecture. Ladies and gentlemen, The crisis presents an opportunity for us to re-evaluate, promote and embrace sustainable long terms solutions. Our focus is for the discussion to contribute to the means through which central banks can contribute more effectively in promoting stability and economic growth.

This conference will provide an opportunity to reassess our traditional views on many of the issues before us. On this note, I wish you a very engaging and substantive conference. 2  BIS Review 20/2009
Jean-Claude Trichet: First of all, we are on the record as having always asked for full and decisive implementation of the governance measures that already exist. We combated very fiercely the position of the heads of government of the three major countries in the euro area when they wanted to weaken formidably the stability and growth pact, back in 2004 and 2005. It was a very, very fierce battle. They wanted to really unravel the pact. What I would sum up as our position today is very simple. We call for “a quantum leap” in the reinforcement of fiscal surveillance, with, in particular, what I would call the reversal of the  2  BIS Review 115/2010  burden of the proof. We have called for the “quasi-automaticity” of procedures and sanctions. We have called for a reinforced independent way of assessing the fiscal situation and we have also called for a quantum leap as regard the surveillance of competitiveness and imbalances in euro area member countries. And, finally, we have called for decisive measures to enhance the quality of statistics. As regards the methodology, we consider that a change of the treaty would be appropriate, but we accept that this would involve a long or very long procedure at the level of 27 EU countries. That’s why we have called for the maximum use of secondary legislation as a first step, to exploit all the possibilities that secondary legislation can offer to go in the direction of the necessary goals. That’s the idea.

What do you think are the qualities that a central banker needs today? Jean-Claude Trichet: It seems to me that in periods that are marked by turbulence, unexpected events, a high level of uncertainty – and I’m afraid that a large part of the reasons for this are structural – central banks are the institutions that have a mandate for price stability, a sense of direction, a stake in overall stability in a medium and long term perspective. They are independent. They can be precisely those anchors of stability that I would say an economy and society need even more in times that are very demanding and very turbulent. That would perhaps be the best way to sum up the responsibility of central banks. Financial Times: Are you concerned, in the wake of this crisis that there’s been any weakening of support for the concept of central bank independence? Jean-Claude Trichet: If I take a global perspective, it seems to me that one of the lessons that has been drawn from the crisis, or taken into account, is that the concept of independent central banks having a stake in stability, and a medium to long term perspective, has been recognised as the right concept. Financial Times: Very soon, you’re going to be chairing the new European Systemic Risk Board, which will take an EU view, so you will actually be including the United Kingdom in your work, your daily outlook, I suppose. To what extent do you think the UK should fear or embrace this process?