samchain/econo-pairs-v1 huggingface dataset:
This is, in my view, the best way to allow banks to play their full role in the economy and ensure a fair deal for businesses and consumers. Recently, we have signed an MOU with the Competition and Consumer Protection Commission aimed at enhancing the competition arrangements in the banking sector. We hope to strengthen capacity to tackle anti-competitive behaviour in the sector. I would therefore, like to encourage you to start viewing these areas as an intricate part of your overall business strategies in order to enable us as an industry to consolidate the gains so far achieved. Ladies and gentlemen, let me acknowledge the commitments that the Bankers Association has made in the revised Code of Banking Practice relating to the provision of “No Frills Account” to certain segments of our population. As the central bank we will be interested to receive information on how you are performing in this important area for financial inclusion. On our part, we have issued a “Practice Note” to assist commercial banks overcome some of the Know Your Customer challenges faced with when dealing with some segments of our society. Chairperson, let me conclude by reiterating the important role that a healthy and stable financial system plays in an economy. This objective cannot be achieved by the Bank of Zambia alone but through collective efforts including the Government and yourselves. My expectations are that although the role of Chairperson has changed, the Association will remain true and steadfast to its values and objectives.

Given the improved economic performance, it has become necessary to re-align and configure our currency in line with macroeconomic fundamentals. The currency rebasing exercise will have implications on businesses in the economy including changes to accounting software, tax aspects, ATMs, cash registers, etc. The success of the currency rebasing exercise will largely depend on our partnership with the commercial banks. Ladies and gentlemen, as you will note all these measures are aimed at improving efficiency conduct of business in our economy and commercial banks have a very crucial role to play in all these. The expectation is that all of you represented here will support the central bank to ensure that collectively, we build a financial sector that is modern and responsive to the needs of our economy. Chairperson, as a central bank, we will continue to foster an environment where dialogue between all key stakeholders can be promoted both at individual bank level as well as at Industry level. Despite the policy changes embarked on, there remains a lot to be done in the areas of financial inclusion, financial education and consumer protection in the banking  2  BIS central bankers’ speeches  industry. In this regard, the Bank of Zambia has developed branchless banking frameworks and a national strategy for financial education in partnership with other stakeholders. As a regulator, we are committed to ensure an open and competitive banking environment.
On the contrary, our responsibility, after the crisis we have experienced, is to better protect the rights of policyholders, and by that I mean all policyholders. The sole purpose of this measure is to enable us to protect French savers in the event of serious and exceptional threats to financial stability. If ever it were needed, we would be sure to use it appropriately and in the collective interest. II. Second major challenge for the insurance sector: the complete overhaul of the regulatory framework  The Solvency 2 Directive came into force in the European Union on 1 January this year after 10 years of difficult negotiations. Despite what critics say, this overhaul of the regulatory framework was necessary. The previous framework, which dated back to the 1970s, was no longer adequate. It did not take into account the true nature of risks: capital requirements, for example, were independent of asset allocation. The new supervisory framework now includes requirements  relating  to  governance,  cooperation  between  European  supervisors in the same group, reporting and transparency vis-à-vis the market. The principles of Solvency 2 are not perfect but they do represent genuine progress: investment freedom in return for compliance with the "prudent person" principle, joint valuation of insurance assets and liabilities, and the taking into account of "long-term guarantees" to mitigate the effects of financial market volatility on capital. That said, there are a number of developments that would be desirable.

Page 1 sur 7  8th International Insurance Conference: “Towards the insurance of tomorrow” – Paris, 14 October 2016 Speech by François Villeroy de Galhau, Chairman of the Autorité de Contrôle Prudentiel et de Résolution and Governor of the Banque de France  Ladies and gentlemen,  I am very happy to be here today for this 8th International Insurance Conference - the first to be organised under the aegis of the French Insurance Federation - and I would particularly like to extend my regards to the federation’s Chairman, Bernard Spitz, as well as to its vice-chairmen. Although I have met you all several times in the past year, this is the first time I have participated in an event in my capacity as Chairman of the ACPR, the Autorité de Contrôle Prudentiel et de Résolution. Rest assured that at the ACPR, I indeed we - regard the insurance sector as every bit as important as the banking sector. With a total of 826 licensed firms in France in 2015, oversight of the insurance sector is a vital part of our mission to safeguard financial stability – which, alongside monetary strategy and the provision of services to the economy, forms part of my threefold mandate as Governor of the Banque de France. Page 2 sur 7  As supervisors, we are concerned on a daily basis with the theme of this conference: the insurance industry of tomorrow. Indeed, given the speed at which things are evolving, tomorrow’s insurance landscape is already very much present today.
With that said, here in the U.S., the Enhanced Prudential Standards (EPS) are at the core of strengthening both U.S. firms and the U.S. operations of foreign firms and ensure a level playing field for all firms doing business in the U.S. With the final rules published earlier this year, firms have begun the work necessary to implement changes to meet the expectations set out in the new rules. Not surprisingly, we are seeing a number of challenges faced by FBOs (foreign banking organizations) in meeting the expectations of the EPS, among these challenges are: 1. Head Office Engagement: While U.S. management is clearly on the hook to develop and implement necessary changes, some firms are struggling to get the appropriate level of engagement with head office, including getting sufficient recognition of the breadth and scope of the changes necessary to meet the new standards. Importantly, the impact goes both ways: there are also implications for head office in the new standards, including requirements to demonstrate firm-wide capital and liquidity stress testing capabilities. Further, the governance requirements, including for many firms the requirement to form a U.S. risk committee, have implications for firm-wide governance that need to be assessed and understood at the group level. Beyond these requirements, the U.S. operations will – in all cases – require additional budget and resources to meet the expectations, as well as the timeline for implementation. All of the necessary changes for FBOs require close coordination between head office and the U.S. operations.

We have been hearing some of this, but more specific examples and solid data is needed to be in a position to address the issues. Remaining issues on my insomnia list Turning now to the issues that still keep me awake at night, I will highlight three of these today: (1) AML/BSA (yet again); (2) information technology; and (3) communication and coordination. 4  BIS central bankers’ speeches  1. AML/BSA  The world of AML/BSA keeps growing. What started out decades ago as a US-centric emphasis on hindering drug trafficking has transformed into a global framework that addresses a range of criminal activity, anti-terrorism, arms proliferation, and tax avoidance. As I know you are aware, the bar keeps rising, as well as the stakes. This past year has seen – again – significant public enforcement actions, some together with huge fines.
In 1970, a German mark cost about 2 kroner. In 1986/87, it cost about 4 kroner. The exchange rate remained relatively stable in the following years. On the other hand, prices rose twice as quickly in as in Germany from 1970 to 1986. However, prices and the exchange rate were stable in relation to Germany from the end of the 1980s until the German mark ceased to be a currency. A measure of the real exchange rate is the trade-weighted exchange rate index (TWI) in relation to price developments in Norway relative to trading partners. The real krone exchange rate has fluctuated around a long-term average level over the past 30 years. When the krone deviates from the average long-term level, it tends to return to it relatively quickly. Inflation differentials between Norway and other countries have gradually been offset by changes in the krone exchange rate. This relationship has been robust even in the face of significant changes in economic policy. However, the economic policy reform in spring 2001, with the introduction of a new fiscal rule and inflation target, may still have an impact on how quickly prices stabilise in the years ahead. Increased spending of petroleum revenues or expectations of increased use of petroleum revenues can lead to an appreciation of the krone. Increased use of petroleum revenues over the central government budget implies higher demand.

We would then have had to reduce the interest rate sharply this summer. This would have amplified the pressures in the Norwegian economy, which are so clearly reflected in wage developments and household credit demand. It is more than likely that this would have required substantial increases in the interest rate in a year to eighteen months. Strict inflation targeting of this type would thus have resulted in more pronounced fluctuations in the interest rate and in aggregate demand and production. Information obtained via the regional network established last autumn was used when preparing the October Inflation Report. We will have six rounds of talks each year with business and community representatives concerning financial developments in their enterprises and industries. There will be a total of about 200 visits in each round. We have divided the country into 7 regions and established links with regional research institutions in six of them. These institutions will hold meetings with the representatives on behalf of Norges Bank. The private service sector is by far the largest in the Central Norway region, accounting for over 40 percent of total employment in the region. The private service and retail sales sectors together account for over half of the number employed, while a good tenth are employed in manufacturing. The share of manufacturing industry that is exposed to international competition in Trøndelag is relatively limited. Companies in the Central Norway region report small changes in prices and costs, except for export companies.
Hanson, Samuel G., Anil K. Kashyap, and Jeremy C. Stein. 2011. “A Macroprudential Approach to Financial Regulation.” Journal of Economic Perspectives, 25(1): 3–28. IMF (2013), “Key aspects of macroprudential policy”. King, M. A. (2013), “A Governor looks back – and forward”: http://www.bankofengland.co.uk/publications/Documents/speeches/2013/speech670.pdf. Kydland and Prescott (1977), “Rules rather than discretion: the inconsistency of optimal plans”, Journal of Political Economy, 85 (3) pages 473–492. Minsky, H (1986): “Stabilising an Unstable Economy”, Yale University Press. Morris S and Shin, H-S (2008) “Financial regulation in a system context”, Brookings Papers on Economic Activity. Reinhart, C and Rogoff, K (2008): “This Time is Different: A Panoramic View of Eight Centuries of Financial Crises”, NBER Working Paper 13882. Stein (2013), “Overheating in Credit Markets: Origins, Measurement, and Policy Responses” http://www.federalreserve.gov/newsevents/speech/stein20130207a.htm. Taylor, J (1993): “Discretion versus policy rules in practice”, Carnegie-Rochester Conference Series on Public Policy, no 39, pp 195–214. Tinbergen, J (1952): “On the Theory of Economic Policy”, North-Holland Pub Co, 2nd edition. BIS central bankers’ speeches  9

But, notwithstanding the current difficulties, I am convinced that the best prospect for a relatively happy ending is for all of us to persist in our attempts to achieve the macroeconomic stability and supply-side flexibility which I identified as our common goal at the outset of my remarks. I am very happy now to take your questions. 4  BIS Review 47/2001
For that, structural reforms are necessary – at national and European level. At the same time, structural problems are making monetary policy less effective in the euro area. In this context, it seems very odd to me that politicians are now criticising the European Central Bank. This endangers our independence and undermines trust. I would like to see a political class that has the courage to lead public opinion. Politicians who have the confidence to explain to voters that a fully fledged European monetary union is not without an alternative, but that it is worthwhile – even if it’s proving difficult to get there. But once the idea and the reality of the euro are back in harmony, then Eurosceptic voices will not find many listeners. I am convinced of this. BIS central bankers’ speeches  5

In many respects, the financial sector in Malaysia has progressed ahead of current developments. A set of governance principles and rules were introduced in the early part of this recent decade. This included the parameters for sound practices with respect to risk-aligned compensations – an issue that has been a focus of the current global regulatory reforms. This was followed closely by the implementation of an improved risk-based supervisory approach which places board and senior management oversight at the centre of an effective control environment within financial institutions. A more rigorous process for assessing individuals nominated to assume the roles of director, chairman and chief executive of financial institutions have also been introduced. As part of the efforts to bring about behavioural and cultural changes to strengthen the governance practices in the financial industry, FIDE was developed and introduced in 2008. We have been encouraged by the resulting improvements observed in governance and risk management practices among financial institutions in Malaysia. Our supervisory oversight has shown that directors have exercised a more active role in ensuring effective alignment and implementation of risk policies, business strategy and capital management. The quality of engagement between boards and management has also improved substantially in particular, on major strategic decisions and risk developments. Our supervisory engagements with boards have also benefited from the issues raised on areas of concern and material developments. There has also been increased efforts to strengthen the mix of skills, experience and expertise of the Board composition to improve the overall effectiveness of boards.
But it is a vital part of that transformation, and I am pleased that this conference is giving it the consideration it deserves. Thank you for your attention. 1  4  P. Asdrubali, B. E. Sorensen and O. Yosha, “Channels of interstate risk sharing: United States 1963–1990”, Quarterly Journal of Economics, vol. 111, 1996, Oxford University Press. BIS central bankers’ speeches

When debt approaches an unsustainable level, investors will demand higher compensation for new loans and interest rates on loans will rise, hence the snowball effect. (See Chart: Fiscal deficit and Public debt.) Large deficits have a direct impact on sovereign debt. From 2007 to 2010, fiscal deficits in euro area countries rose from 0.6 per cent of GDP to 6.6 per cent. In the same period, public debt rose from 66 per cent of GDP to 85 per cent, and there are prospects that debt will approach 100 per cent of GDP in the next few years. Fiscal deficits in the UK and the US will reach 11–12 per cent this year and public debt is rising rapidly to high levels. In order to rein in this development, fiscal tightening must be implemented and government budgets must be brought into surplus. This can be particularly costly in downturns. Several European countries have recently announced tax increases and cuts in expenditure. This typically involves raising the retirement age, broad-based wage reductions and lower welfare spending. These sharp measures may well boost growth capacity in these countries in the long term, but in the short run they will result in lower demand for goods and services and probably lower activity. Since several countries are tightening fiscal policy at the same time, export markets may also shrink. However, reduced fiscal deficits will hopefully restore confidence in economic policy so that growth in household and corporate consumption and investment resumes. (See Chart: Sweden and Finland in the 1990s.)
4  BIS Review 27/2004  ESAF/SADC Bank Supervision Application project •  The implementation of the BSA project has reached an advanced stage. It is expected that the implementation will be completed by end of April. The consultants are finalising the returns that will be used for submission of data. The finalised returns, in the form of a workbook will be circulated to all the banks. In the meantime, the BoZ would like to thank the five banks (Barclays Bank, Stanbic Bank, Cavmont Capital Bank, Investrust Bank and African Banking Corporation) that submitted test data for finalising the returns. The BoZ will be calling on the banks to take part in the testing of the electronic submission of data. Non-bank financial institutions sector •  The performance of the non-bank financial institutions sector was generally satisfactory although some institutions were still faced with financial distress. The Bank of Zambia is addressing the problems of distressed financial institutions within the framework of the Financial Sector Development Plan. 3. Announcements and areas of concern  Update on the Financial Sector Development Plan (FSDP) •  The BoZ is seeking comments from the public and other stakeholders on the FSDP which was placed on the BoZ website on 6 February 2004. The last day for submission of comments is 31 March 2004. A National Forum to discuss the FSDP is scheduled for April 2004. Further details on the Forum will be advised in due course.

The annual overall inflation at 16.8% was also 6.1 percentage points below the end-February 2003 inflation outturn of 22.9%. Broad money •  Preliminary data indicate that broad money (M3)1 growth slowed down to 1.4% (8.4% in December 2003) to K4,530.7 billion in January 2004 from K4,467.9 billion in December 2003. This growth was 1.0 percentage points lower than the 2.4% recorded during the corresponding period in 2003, but was 0.4 percentage points above the programmed money supply growth of 1.0% for the month. •  The growth in broad money during the period under review was largely on account of the increase in net foreign assets of the banking system, which increased by 2.9% to K2,364.9 billion. •  Year-on-year broad money growth on the other hand declined by 1.2 percentage points to 22.2% in January 2004 from 23.4% in December 2003. Domestic credit •  1  Preliminary data show that growth in domestic credit slowed down to 2.3% (3.1% in December 2003) to K4,310.9 billion in January 2004 from K4,215.1 billion in December  Broad money is here defined to include currency outside banks, demand deposits at Bank of Zambia and commercial banks, local currency savings and time deposits, and foreign currency deposits. BIS Review 27/2004  1  2003. This was mainly attributed to the decline in borrowing by the public sector to negative 4.0% from 22.5%.
This brings me to some broader issues and the progress made in restoring the euro area's robustness and integrity. Nine months ago we had reached a degree of market fragmentation that was threatening the integrity of the euro area. Spreads on peripheral sovereigns were at an all-time high; private capital flows from core to periphery countries had all dried up, financial conditions were increasingly diverging. The same borrower was faced with very different conditions across countries. As everybody knows, the introduction of the OMT, following President Draghi's remarks in July 2012, marked a major change. The measures taken have restored confidence,  BIS central bankers’ speeches  1  eliminated the tail risks of convertibility and reversed the dynamics of market fragmentation. The process of repair of financial intermediation is making significant progress. In recent weeks, non-euro area investors have returned to debt and equity markets in stressed countries. Deposits flows have also reversed from core to periphery where repatriation by domestic households has been significant. Target 2 balances, which measure the degree to which financial intermediation compensates for insufficient private capital flows, have receded by 20% since last summer. The second transformational change has been the Banking Union. Never in its history, has the EU been able to agree upon and implement a major reform so quickly. A year ago, the issue was not even on the table. Then, last June, leaders made a decisive step. Through days and night of hard work and negotiations, a detailed agreement was finally reached in December.

Therefore, their actions are focused, in all advanced economies, on making sure that the impact of their decisions is felt in all parts of the  2  BIS central bankers’ speeches  economy. In other words, they aim to ensure that the monetary policy transmission mechanism is working. Let us now turn to fiscal policy. In all advanced countries, and primarily in the US, the fiscal stance is being hotly debated. As we all know since Musgrave has introduced his famous distinction, fiscal policy has three dimensions: stabilization, allocation and distribution. In a post crisis environment, governments are struggling to find the right mix. Today, what constitutes a “growth-friendly” fiscal policy? Discussion has sometimes focused on the stabilization aspect, and more specifically, on one important, but limited feature: the so-called “fiscal multipliers” which are set out to measure the impact of a change in the fiscal balance on GDP. This narrow standpoint focuses on the negative impacts of fiscal consolidation, especially when the output gap is significantly negative, as is now the case. However, we need to take a broader perspective and take into account the effects of fiscal policy on consumer and investment confidence as well as on the efficient allocation of resources. Where could the gains come from? To answer this question, it is important to consider the interactions between the fiscal stance and debt markets.