samchain/econo-pairs-v1 huggingface dataset:
It has proved to be well functioning, inflation is being taken care of, Baht exchange rate has been more stable and provided a better working environment for real sector, and international reserves have not reduced in spite of regular repayments to the IMF. And the framework has up to now been well accepted by the Thai public. But a good and credible policy still has its obstacles and challenges. Let me now turn to discuss the obstacles and challenges. The biggest, the most important, and the most worrisome challenge that we face right now is the world economy. A month ago, the world economy was already weak, with the United States uncertain about the timing of a recovery, Japan still having to undergo numerous reforms, and Europe not yet acting the role of the engine of locomotive for the resumption of world growth. A month ago, East Asian countries were already seeing their exports fast softening, especially in electronic and communication products. These countries were only on the verge of emerging from the depth of the biggest crisis in recent memory. And then disaster struck! The abominable terrorist attacks in the US would affect some businesses more that others. It will certainly affect some business sectors very hard - airline and hotel industry, insurance, some area of financial services. The American consumer confidence index by the University of Michigan during the past 4-5 years was always above the 100 point level. It dropped to 91.5 in August.

How can the Joint Member Staffs and private stakeholders best collaborate to ensure stability in the Treasury market as the market structure evolves and new technologies are applied? How should practices and culture evolve accordingly? Will new technology and automation in the marketplace introduce unexpected challenges or risks to Treasury market participants? Are there opportunities to improve market transparency in a way that sheds light on risk issues that emerge as the market continues to evolve? Are the regulatory requirements imposed upon the Treasury market appropriate in the current environment? Has a competitive level playing field 2/3  BIS central bankers' speeches  been maintained given the evolving structure? And, are there any changes that could improve the functioning, efficiency and/or integrity of the Treasury market? As I highlighted before, answering such questions well could require greater transparency. It is important for officials and market participants to fully understand the range of market elements. These include the relative size of transaction volumes by various players, the breadth and resiliency of platforms used to facilitate risk transfer, and the robustness of market infrastructure under contingent circumstances. More broadly, interagency efforts and collaboration with the public to shed light on the evolving structure and its risks are critical to protecting Treasury market function and supporting investor confidence. Because we benefit from the Treasury market being the deepest and most liquid market for government securities, complacency should not be an option.
BIS central bankers’ speeches  Chart 5:  Chart 6:  Gross and net global flows  US external balance sheet  Sources: Bank for International Settlements, IMF World Economic Outlook (September 2011) and Bank calculations. Source: Federal Reserve, US Bureau of Economic Analysis. (a) Sum of global current account surpluses. (b) Sum of global current account deficits. (c) Sum of global net purchases of foreign assets by residents. (d) Sum of global net purchases of domestic assets by foreigners. Chart 7: UK credit spreads  Source: Merill Lynch. BIS central bankers’ speeches  13  Chart 8: Figure 3 from Reinhart and Rogoff  Sources: Bordo et al. (2001), Caprio et al. (2005), Kaminsky and Reinhart (1999), Obstfeld and Taylor (2004), and Reinhart and Rogoff. Notes: As with external debt crises, sample size includes all countries, out of a total of sixty six listed in Table 1 that were independent states in the given year. On the right scale, we updated our favourite index of capital mobility, admittedly arbitrary, but a concise summary of complicated forces. The smooth red line shows the judgmental index of the extent of capital mobility given by Obstfeld and Taylor (2003), backcast from 1800 to 1859 using their same design principle.

At the same time, the standards will also require banks to significantly strengthen their liquidity and funding positions in order to support orderly credit intermediation processes. Concerns have however been raised about the unintended consequences that may arise from the implementation of these standards – including potential ramifications on the real economy – and therefore the need for the reforms to be  2  BIS central bankers’ speeches  implemented cautiously. This underscores the importance of conducting impact and behavioural studies during the transition period, and the need to consider how the national implementation of the global standards should reflect domestic experiences and circumstances. Third is the high priority placed on the pursuit of a balanced and equitable growth through the financial inclusion agenda as a key component of Asia’s overall strategy for sustaining medium and long-term economic progress. At its core, the financial inclusion agenda seeks to empower all individuals, irrespective of income level, economic activity or geography, to have the means and opportunity to undertake financial transactions, generate income, accumulate assets and to financially protect themselves against unexpected adverse events. Countries in this region have been active in pioneering sustainable financial inclusion tools and models. Due in large part to a strong public policy focus on promoting an inclusive financial sector, the financial industry in Asia is also more attuned to financial inclusion objectives in their business outlook.
In Thailand, Q1 growth has similarly been subdued, expanding 5.3 percent as both private consumption and investment moderated. Part of this pullback may have been a natural reversion to a lower pace of growth after an unusually strong expansion last year. Lingering uncertainty about global demand  BIS central bankers’ speeches  1  may have also caused some export firms to delay planned investment. Consumption may have been held back by farm income in the midst of low global commodity prices, and an accumulation of household debt, which is now at 78 percent of GDP. Set against this weaker-than-expected domestic demand, is relatively resilient exports which expanded more than 8 percent. Given the still weak global demand on the one hand, and already easy financial conditions on the other, monetary policy must carefully weigh the merits of providing growth support against financial stability concerns. Policy interest rate is not the only available tool to address these multiple objectives. Macroprudential measures, in particular, are also part of the policy tool kit. The MPC will continue to exercise its best collective judgement as to what course of action and policy mix are deemed most appropriate to ensure maximum sustainable growth for the Thai economy. Challenges from capital flows and exchange rate volatility Let me now turn my discussion to a topic that has attracted a lot of attention recently, namely the issue of capital flows and exchange rate. The appreciation of the Thai baht this year up to late April has raised some concerns.

Conversely, a peg that would leave the franc undervalued would lead to a monetary policy that is too lax. Third, as a rapid appreciation of the Swiss franc would most likely be the result of problems in the EMU, it would be illogical to link our currency to an anchor currency whose stability is doubtful and questioned by the markets. We would give up our record of stability in favor of a yet unproven monetary policy. A temporary peg would alleviate some of the problems associated with a permanent fixing of exchange rates. Monetary autonomy would be further restricted, but not completely lost. Interest rates would thus most probably not rise to the same level as in the case of a permanent peg. However, by placing a temporary ceiling on the exchange rate of the Swiss franc, the SNB would lose -- albeit temporarily -- control over the money supply. It would thus run the risk of triggering a subsequent rise in inflation. I would regard a temporary peg only as a measure of last resort in the event of extreme exchange rate disturbances. It is sometimes argued that impediments to inflows of foreign capital might be helpful in fighting an appreciation of the Swiss franc. Historic evidence, however, lends little support to this view. In the second half of the 1970s, Switzerland was confronted with a strong appreciation of the Swiss franc. To curb this appreciation, our authorities, among other things, tightened existing and introduced additional controls on inflows of foreign capital.
The supporting financial infrastructure includes a robust regulatory and supervisory framework reinforced by the legal and Shariah framework, the payment and settlement systems, the development of the pool of expertise and talent to support the industry. The sukuk market that is, the Islamic bond market is fast emerging as the most significant form of financing that continues to receive strong interest as a means for raising funds and for investment. The global sukuk market has been increasing at an average annual rate of 40 percent, with 90 percent of the issuances by the corporate sector. In Malaysia, the issuance of sukuk has now surpassed the issuance of conventional bonds. Strong demand for sukuks have also come from the high savings economies including from Asia and the Middle East. As a new asset class, it has generated demand from both conventional as well as Islamic financial investors. The sukuk is therefore not only an attractive instrument for investment but it is also a competitive means for raising long term funding needs. Strengthening synergies between financial centres Two important trends have increased the integration of Islamic finance into the international financial system – the accelerated development of the Islamic financial markets and increased liberalisation. The development in the Islamic financial markets has contributed to the availability of a wide spectrum of Islamic financial instruments that has ranged from instruments to manage liquidity, to structures for financing of mega investments.

The establishment of talent development and research institutions in Islamic finance are now increasingly wide spread in several jurisdictions with several strategic alliances across borders being entered into. The International Centre for Education in Islamic Finance (INCEIF) in Malaysia was set up by the Central Bank with programmes for practitioners and post-graduate studies to ensure the continuous supply of talent in Islamic finance. The current enrollment in INCEIF are from more than 60 countries attracting students including from the UK, Canada, France and Japan and Korea and the Middle East. Equally important to innovative development is a deeper understanding of Shariah and knowledge of Islamic finance and for a greater convergence in the theoretical understanding and practical considerations in resolving the contemporary issues faced by Islamic financial  BIS Review 141/2009  3  industry players. In this regard, a platform has been established for active engagement and intellectual dialogue among global Shariah scholars, practitioners, regulators and academicians. As the global economy becomes a more interconnected and interdependent, the process of greater convergence of financial standards and mutual recognition of products is also facilitating the international integration of Islamic finance across different jurisdictions. Concluding remarks Let me conclude my remarks. While the inherent strengths of Islamic finance have contributed to its viability and resilience, going forward the foundations for its sustainability as a competitive form of financial intermediation continues to be strengthened.
The high degree of independence granted to the ECB and the national central banks of the euro area countries by the political authorities of the European Union is the outcome of past experience and their assessment that the autonomy of the central bank as an institution is essential for the effective achievement of its primary objective. Moreover, the ECB as an independent institution embodies the value which the people of Europe attach to price stability. And, if you allow me, with all due modesty I would like to point to the Eurosystem’s successful performance over the past eight years in maintaining price stability and delivering a stable currency that can be trusted by 318 million Europeans. Moreover, the track-record of preserving price stability and the credibility of the ECB’s monetary policy have contributed to fostering long-term growth and job creation in the euro area  6  See for example, Alesina and Summers (1993), Fischer (1994), Eijffinger and De Haan (1996), Blinder (1998) and, more recently, Arnone et al., (2007) and Moutot et al (2007). 8  BIS Review 43/2007  through various channels, including the solid anchoring of long-term inflation expectations to price stability. Similarly, the history and experience – not least in this country – of persistent public sector deficits, and the resulting accumulation of crippling mountains of government debt led to the recognition that the “economic constitution” of Europe had to provide appropriate safeguards.

The asset-backed nature of Islamic finance makes sukuk ideal for financing of infrastructure projects and would complement ongoing work by Singapore to enhance the bankability of infrastructure projects in the region and involve more capital market participants. 13. In the meantime, it will be important to continue to strengthen key foundations such as global regulatory standards and best practices for Islamic finance, and capacity building and talent development. To facilitate further growth of Islamic finance in Singapore, MAS is working with the industry and other government agencies to provide clarity and certainty in the regulatory and tax treatment for sukuk. For example, some industry players have suggested that pre-approved standardised templates for common sukuk structures could be introduced to expedite issuance. 14. Building Islamic finance expertise has also been highlighted as crucial to supporting the continued growth of the industry. The Singapore Management University’s (SMU) International Islamic Law and Finance Initiative is now in its 6th year, and seeks to carry out research and develop thought leadership in Islamic law and finance, in collaboration with institutions in UK, Malaysia and Indonesia. SMU also offers a Masters in Islamic Law and Finance, and will be graduating its third cohort of students this year. In addition, Islamic finance has also been included as an eligible subject area under MAS’ Finance Scholarship Programme, and industry players could look to tap on this scheme to groom promising talent. Conclusion 15. To conclude, the deepening linkages between Asia and Middle East will continue to present significant opportunities for Islamic finance.
Philipp M Hildebrand: Economic outlook and monetary policy Speech by Mr Philipp M Hildebrand, Member of the Governing Board of the Swiss National Bank, Apéritif Marché monétaire, Geneva, 17 November 2005. The complete speech can be found in French on the Swiss National Bank’s website (www.snb.ch). *  *  *  The Swiss economy has benefited from a favourable international environment. Activity has remained strong in the US, whereas it has improved in Japan and, more recently, in Europe. In Switzerland also, the latest indicators point towards stronger growth. Exports remain the engine of the recovery but private consumption has also picked up. However, consumer confidence remains fragile in the context of only modestly improving labour market conditions. The SNB expects the economic recovery to continue. A sudden adjustment of the US current account imbalance or a further increase of energy prices are predominant risks. From a monetary point of view, the current situation is characterised by different counteracting forces. On the one hand, the economic outlook is positive. On the other hand, some risks put this favourable picture into perspective. Furthermore, the increase of energy prices might endanger medium term price stability at a time when monetary conditions remain expansive. Last but not least, globalisation continues to hold down the prices of many goods. In this complex environment, it is important that central banks succeed in preserving their most important monetary asset, namely well anchored inflation expectations.

As I said earlier, MA portfolios already include many types of debt instrument, and where assets are not MA eligible firms may consider – if appropriate – holding them outside the MA portfolio to back other liabilities. And the PRA has taken, as far as possible, a pragmatic approach to fixity – for example for floating rate bonds and for assets with inadequate modified Spens clauses. Over 2020, we saw very few applications for asset classes not already held in peer MA portfolios, instead seeing firms applying to invest in less liquid asset classes such as ground rents and ERMs. While the asset classes may not be new to us, firms can expect to be challenged when investing in asset classes that are new to them. We have published supervisory expectations in Supervisory Statement 1/20 “Solvency II: Prudent Person Principle”5 and Supervisory Statement 8/18: “Solvency II: Internal models – modelling of the matching adjustment”6. These cover risk management aspects including the consistency of investments with the prudent person principle, the ability to manage the assets – including in stress or in default – and the ability to model the solvency capital requirement appropriately. Next I would like to touch on the future direction for new asset classes in MA portfolios. As Sam Woods, the Deputy Governor for Prudential Regulation, and PRA’s Chief Executive said in his March speech7 at the ABI, we are wary of calls to encourage specific forms of investment with prudential regulatory incentives.
These range from the “Maglev” train in Shanghai to the supercomputer “Tianhe-2” which is ranked as the world’s fastest computing system in 2014. Thailand, on the other hand, is currently facing technology bottleneck which has taken a toll on Thailand’s competitiveness and growth. According to the UNESCO, Thailand’s combined public and private investment in research and development (R&D) is around 0.25 percent of GDP which falls behind China’s 1.7 percent. 12. Arrays of China development plans are coincided with Thailand’s research interest. According to China’s Medium to Long-Term Plan for Development of Science and Technology (2006 – 2020), China’s topics of strategic research include (1) agriculture science (2) green technology and (3) public health. These topics are in line with the agendas of Thailand’s National Science, Technology and Innovation (STI) Master Plan. This provides opportunities for joint scientific works based on common interests and medium-term visions. Thailand could leverage on China experiences and knowhow through technology transfer. In this light, Thailand could step ahead at the faster pace to achieve her goals. This is yet another great complement to tap. 13. Lastly, Thailand as gateway to ASEAN. Thailand is strategically positioned at the heart of the ASEAN region with relatively well-developed infrastructure as reflected in the World Bank’s latest Logistics Performance Index. Thailand has, therefore, been a natural gateway that links extra-regional economies to ASEAN markets.

We would also like to reaffirm our unwavering commitment to the financial inclusion cause and look forward to deepening our cooperation with all stakeholders to fulfil the promise of greater financial inclusion, thereby bringing hope and better opportunities to our communities. Thank you. BIS central bankers’ speeches  3
A platform has also been established for the greater  4  BIS central bankers’ speeches  coordination among policy makers within the country, among the regulators and the public sector. Conclusion Let me now conclude my remarks. While many lessons can be drawn from the various episodes of financial crisis experienced by the world economy, there is no one approach to the liberalization and internationalization of financial systems. Its success depends on the prevailing circumstances and the state of readiness of financial systems and the economy and its capacity to manage its associated risks. Premature internationalization can result in highly destabilizing conditions. The liberalization process also needs to be pragmatic, taking into consideration the different objectives that need to be achieved. With sufficient development of the financial infrastructure, the safeguards and the buffers, emerging economies have every potential to participate in a more internationally integrated financial system that will facilitate mutually reinforcing global growth and development. BIS central bankers’ speeches  5

Nina Stoyanova: Forthcoming new developments in the area of payment services and digitalisation Publication by Ms Nina Stoyanova, Deputy Governor and Head of the Banking Department of the Bulgarian National Bank, in the Quarterly Bulletin of the Association of Banks in Bulgaria, issue 65, January 2021. Digital technologies have changed the financial services provision business, and the payment sector is the leader in this trend. The speed of development of innovations and the scale of technological changes in it require concrete and targeted effort. The pending strategic projects and directions of development of the European payment infrastructure in the short term, as presented in the digital finance package of the European Commission of November 20201, are related to the development of instant payments, digitalisation of financial services and support of secure, profitable and interoperable payment solutions within the single market. 1. Forthcoming review of the Second Payment Services Directive In 2021, there will be a review of the Second Payment Services Directive2 (PSD2) adopted in 2015 and transposed in the national legislation at the beginning of 2018 with the new Law on Payment Services and Payment Systems. An analysis of the results of the directive’s implementation is expected to cover the following areas: - Updating the requirements to technical solutions used by payment services providers for strong customer authentication, which are to ensure high level of security to customers, while being convenient and user-friendly. Emphasis will be placed on the so-called ‘nontransmittable’ elements, such as biometrics.