samchain/econo-pairs-v1 huggingface dataset:
The development of a highly integrated euro area financial market and the ultimate establishment of a pan-European banking industry will raise the issue of the optimal organisation of supervision of the European financial sector. Today supervision is organised on a national level; financial markets are not yet fully integrated and we do not as yet have a genuinely pan-European banking industry. However, the situation is clearly dynamic. While it remains to be seen how quickly the situation will change, this example highlights the fact that the euro area is not yet an entity itself and not yet perceived as such in some respects. Looking back on the first few months of the existence of the euro, we have witnessed that singular and isolated news and data releases from individual economies within the euro area have sometimes inappropriately been interpreted as indicators for the entire currency zone. Such inadequate analysis can produce real difficulties, especially when the markets magnify and exaggerate the effects of these misconceptions. This phenomenon may possibly be explained by insufficient information about the new European framework. However, another reason might lie in the conduct and presentation of Member States’ economic policies. It appears that Member States are still learning to communicate adequately that, in economic terms, they also consider themselves constituent parts of a larger entity and thus also regard their domestic economic policy decisions “as a matter of common concern”.

The significance of the complete and voluntary transfer of a core competency of the modern state, namely monetary policy, from the Member States to a truly European and independent institution such as the European Central Bank, can hardly be overestimated. While the years of technical preparation certainly required great efforts on the part of all involved, it is the longer-term impact of EMU which holds the prospect of the most momentous change. The first few months of the existence of the euro have set the scene for a positive outlook. Even though external developments such as the depreciation of the euro against the dollar have attracted rather pessimistic headlines, there are, in fact, several reasons for some satisfaction. The changeover to the single currency ran smoothly, largely thanks to the diligent preparation of all involved. The European Central Bank and the Eurosystem have assumed their new responsibilities, and the monetary policy instruments and decision-making procedures are functioning well. A unified euro area financial market is developing as operators re-orient their activities beyond the borders of their previous domestic markets. However, it is altogether natural that not all facets of the complex EMU project are as yet complete. Setting up the technical and operational framework for EMU – even if it is proving to function to full satisfaction – is not sufficient. Economic and Monetary Union cannot simply be reduced to the mechanics of a functioning single monetary policy – however important this may be.
2  BIS Review 14/2003  I particularly welcome the efforts of Sir David Tweedie and his colleagues at IASB in addressing so openly the hugely difficult task of getting the right balance and right principles into place. Many of us can see I think that the financial instruments standards IAS 32 and 39 have provoked significant and strong views. Wisdom, foresight and a certain forbearance will be needed if we are to achieve a good solution. So we should all welcome the present initiative of the IASB in holding a series of roundtables with respondents to their exposure drafts on revisions to IAS 32 and 39. Debate and efforts in relation to these particular standards seem to me to be vital. They get to the heart of the dilemmas and challenges presented by new financial techniques and often complex instruments. It has after all been shown, in the Enron case if no others, that detailed and prescriptive accounting standards, in the wrong hands, can engender a moral hazard in the search for ways round them which investment bankers and lawyers may well be expected to find. A similar logic applies in the prolonged debate between historic and mark-to-market accounting principles. Once again, whichever approach is used, neither of them will tell the whole story in terms of the underlying economic realities of a bank's risk and return, nor how the risks are managed. But forms of disclosure may help.

Some in the private sector complain that there might be a lack of regulatory level playing field. But my own experience leads me to believe that supervisors themselves are just as aware of this. So I would encourage those in the private sector to work with supervisors in different countries to ensure the delivery of fair supervision across frontiers. If we can achieve confidence in that, then the intention of pillar two acting as a mitigant against greater prescription will I believe be realised in practice. That said, I recognise that in some jurisdictions the thinking behind pillar two represents a new departure in the philosophy, and perhaps legal basis, behind banking supervision. And in that way it represents a considerable challenge. BIS Review 14/2003  1  Maintaining the link with market practice Basel II has been a long process. But it is not an end in itself. Indeed if it were we would never achieve it. The markets, and the risks they give rise to, are not static. It is instructive, for instance, to reflect on just how much risk management theory and practice has advanced in the five years since negotiations on the Accord began. I have long felt that you need some mechanism to ensure that prudential standards remain appropriate as the state of the art moves on. That does not mean that the standards should be in a state of continuous flux. There is a good case for stability in the initial period while the Accord is being adopted.
In order to formulate monetary policy, the Riksbank needs an approximate assessment of how rapidly the economy can expand without causing inflation to take off; in other words, an assessment of the long-term growth trend. This trend is affected by population changes, growth of the capital stock, technical advances and the efficiency with which the economic resources are utilised in production. These are not factors the Riksbank can control directly. So monetary policy has to use the repo rate to keep demand in line with the growth path the factors make feasible. That leads to stable, low inflation. If demand deviates from the growth path, inflation may be higher or lower. 1  BIS Review 118/1999  A problem here is that the long-term growth path is not something that can be measured. In day-to-day monetary policy we therefore have to rely on various indicators and adjust the repo rate successively. It is consequently instructive to pause from time to time and study factors that contribute to growth’s long-term path. That is what I shall be doing this evening. Internet’s 30th anniversary While many of us have woken up to the Internet only recently, it is now actually thirty years, almost to the day, since the Internet was born by linking up two computers, one at the University of California and the other at Stanford University. The project, designated Arpa (Advanced Research Projects Agency), was a part of the cold war strategy of creating alternative communications facilities.

Firms countered the pressure on profits by rationalising in an attempt to cut production costs rather than by investing in new products. The diminishing profits simply did not provide the stimulus that was needed for a prompt renewal of the capital stock in response to the pressure for change. A process of change involves shedding, but development is equally important. Most things still looked good to begin with. The 1960s was a fantastic decade for growth. But the strategy proved to be defensive and stagnation set in during the 1970s. Rationalisation has its limits as a means for growth. Without renewal, growth normally slows sooner or later. Measures are called for in periods of growth but it is easy to be deceived and lean back to enjoy the fruits. The long-term growth trend did indeed begin to turn downwards more markedly than in other countries. Economic policy responded with a series of devaluations in an attempt to maintain growth in the traditional industries. The latest devaluation was invariably described as the last, but the cycle of rising wage costs and a devaluation was repeated time and again. The endeavour to compensate for the lack  BIS Review 118/1999  4  of change in Sweden’s corporate sector, which had its roots in the 1960s, simply did not work. If anything, the devaluations meant that the problems persisted and were accentuated.
SOA is an architecture that provides IT infrastructure which allows different applications to exchange databases and participate in business processes that are loosely coupled from the operating systems and programming languages underlying those applications. 5.2.2 SOA is a design for linking business and computational resources that are available on demand to achieve the desired results to service consumers. Under SOA models, different applications/services can communicate with each other by passing data from one application/service to another, or by coordinating an activity between two or more applications/services. Further, the financial institutions with IT infrastructure based on stand alone systems acquired over time to meet different business goals can benefit from an integrated service-oriented architecture. Web services can be considered to implement a service-oriented architecture where certain functions/services can be accessible over standard Internet protocols that are independent from other IT systems in the institution. The Central Bank of Sri Lanka is now using a web-based application to gather regulatory compliance reports from financial institutions. Although it is still at a preliminary stage, it is certainly a step towards improving the quality of the GRC in banks. 6. Conclusion  6.1 Now is the time to change. There should be a multifaceted approach to face the GRC challenges. GRC should be treated as one package or a set. This approach includes governance, built on Principles and Rules, Integrated Risk Management Mechanisms to identify, assess and mitigate risks and a defined compliance mechanism that deals with internal and external compliance requirements.

Ranee Jayamaha: Governance, risk management and compliance Keynote address by Dr Ranee Jayamaha, Deputy Governor of the Central Bank of Sri Lanka, at the Seminar on “Governance, Risk Management and Compliance and the Roadmap for Financial Services Industry”, Colombo, 7 February 2008. *  *  *  The Chairman and the Organizing Committee; I would like to begin by expressing my gratitude for being given the opportunity to address a gathering that includes impressive groups of representatives from the financial services industry, risk management professionals, regulators and businesses. As you are aware, the year 2008 has started off with the continuation of some of the challenges that resulted in significant disturbances in world financial markets: the impact of the sub prime market turmoil which originated in the US is still spreading across Europe and other financial markets; the Northern Rock crisis in the U.K. has raised serious regulatory issues; and the large frauds in global banks have highlighted the repercussions of the lack of internal controls and accountability in financial institutions. As in the past, many of these have been due to lapses in governance and risk management practices. Although Sri Lanka’s financial markets have been insulated from these disturbances, they underscore the need for good corporate governance, better risk management and compliance in our financial industry.
As it happened, the epidemic also clearly showed us that it is an unwillingness to completely move to remote identification that has become the main barrier to fully transitioning all services to a digital mode. You will remember that we made temporary decisions to ease identification requirements. But the systematic solution, in our opinion, is the development of biometrics. We hope that all necessary changes to the legislation will be adopted. On the one hand, it will allow citizens to make greater use of biometrics, and on the other hand, increase banks’ interest in using this tool. On the other hand — and this is certainly the main trend in the Russian market and, in my opinion, the main challenge — is that equal access to infrastructure, even the equal access we are developing, does not mean equal access to customers. Both globally and in the Russian market powerful ecosystems are being formed that unite both financial and non-financial services. For example, according to McKinsey experts, by 2025 — and this is just round the corner — ecosystems may account for about 30% of world GDP (60 trillion US dollars). While ecosystems worldwide are predominantly formed around technology companies, in Russia their core is the major financial players. Competing for a customer who is already inside such an ecosystem is very difficult, which you know very well from your experience.

The interest rate decline can be ascribed to a number of factors. In late autumn 2002, inflation started to fall. The inflation projections were also revised down. New information gradually emerged about the outlook for other countries and the Norwegian economy, indicating that inflation might be very low. Short-term real interest rates have fallen by close to 4 percentage points. It would seem that it is not only changes in the real interest rate that have an influence, but also its level. Between December 2002 and March 2004, the interest rate has moved from a high to a low level. The real interest rate is now lower than a neutral real interest rate. A real interest rate that is lower than the neutral rate will stimulate activity even after the effects of the interest rate fall itself have been exhausted. Calculations seem to indicate that the neutral real interest rate for Norway is between 2½ and 3½ per cent, and it has probably fallen somewhat in recent years. It takes time for an interest rate reduction to have an impact on inflation. We are now seeing the effects of previous monetary policy decisions, some of which were taken two years ago. The interest rate has affected inflation via the krone exchange rate and via demand for goods and services. In particular, the rise in prices for domestically produced goods and services has picked up.
Employment differs according to the responses of a country’s labor market, the financial structure of its firms and its institutional structure in the changing economic conditions. This diversity causes different rates of natural unemployment in countries with the same potential growth rates. Sustainable employment requires sustainable growth along with the adaptation of an institutional structure and labor market to match international standards of competition. In Turkey, there has been an increase in the labor flow from the agriculture sector to the industrial and services sectors. Hence, the solution to the employment problem is becoming more complex considering the amount of growth in Turkey, which leads to a failure to create employment in the medium term. Migration from village to city raises the unemployed and unskilled labor supply in the industrial and services sectors. Meanwhile, the current production processes in our country are insufficient to switch to high value added products, which can compete in the international market. The high rate of unemployed skilled labor in Turkey underlines the need for a production process, which focuses on high value added products. In line with this aim, strategic plans should be made in order to mobilize investor potential, carry out labor planning and conduct labor education in chosen sectors within the framework of an encouragement model. Feasible finance and marketing techniques should be adopted in order to achieve effectiveness in these strategic plans and encouragement mechanisms.

At this point, it is important to underline once more the damage caused by high inflation in order to remind us why should do everything in our power to stick to the price stability objective. This is especially important in an environment where the benefits of overcoming inflation are not yet fully understood. The consequences of failure to maintain price stability, in other words, the damage caused by inflation, can be clearly seen in our country both in society and in the economy, as is the case in all countries that have experienced high and chronic inflation. High inflation, one of the main reasons for poverty, depravation, unfair distribution of income, and the economic instability environment it creates has been one of the most influential impacts of inflation on society. The legacy of inflation on poverty, depravation and the unfair distribution of income have been clearly felt by society. Another effect of high inflation, which manifested itself in the short-term in society, is that of immoral behavior. High inflation led to moral corruption in our country. While Turkey ranked low in fields such as infrastructure, education, health and the fair distribution of income in international development indicators, it ranked high in indices of corruption. Another factor worth mentioning in this context is the relationship between high inflation and political instability. Shortsighted policies by political instability and the resulting inflation as a result have  BIS Review 36/2005  1  featured several times in economic literature.
Three, in 2019 the Bank will prepare its first Social and Environmental Sustainability Report, examining how it complies with obligations of every entity forming part of a broader community. This Report will also give an account of the CBC’s progress and challenges in terms of gender equality. Lastly, notwithstanding the aforementioned initiatives, the Board of the CBC will hire an independent assessment of its performance in compliance with the two mandates of its Organic Act, that is, price stability and financial stability. For this purpose, a panel composed of four world-renowned experts in central banking will be convened. This panel will accumulate the relevant background in the course of the next few months and will issue a report with its assessments and recommendations in time to be presented in this same instance next year. This will be a concrete form of accountability for the way the CBC and its Board have complied with its legally-mandated obligations and responsibilities to society, which will acquire special connotation at the end of 30 years of autonomy of our institution. This recount that I have presented before the Honorable Senate of the Republic, without being exhaustive, gives us a broad and general approach to the steps we are taking. It also expresses our ability to adapt to more uncertain and challenging scenarios, as well as the commitment we have to relieve the meaning and purpose of the CBC. In short, it is about fully assuming the responsibility with which we honor our constitutional mandate in the eyes of our country.

MONETARY POLICY REPORT PRESENTATION BEFORE THE HONORABLE SENATE OF THE REPUBLIC  Mario Marcel Governor Central Bank of Chile 5 September 2018    The September 2018 Monetary Policy Report can be downloaded at http://www.bcentral.cl. The Spanish original prevails. Introduction Mr. President of the Senate, senator Carlos Montes, honorable senators, ladies, gentlemen, On behalf of the Board of the Central Bank of Chile (CBC), I am grateful for your invitation to present the Monetary Policy Report (IPoM). As usually in September of each year, this coincides with the report that, according to the Organic Law of the CBC, we must submit annually to the Senate. In compliance with this obligation, the Monetary Policy Report that I will be summarizing in a moment contains our view of the recent macroeconomic and financial developments in the Chilean and international economy, as well as their prospects and implications for the conduct of monetary policy. It also includes the Bank’s financial results of the first half of 2018, the results of the management of international reserves and a summary of the main decisions adopted by the Board this year to date. The Monetary Policy Report Incoming data this year has been showing greater than expected economic growth, and inflation consolidating its prospects of convergence to the target, in a context of positive surprises in several areas, an upward revision of potential growth and a faster closing of the activity gap.
That is less true for groups for which MPE is the preferred resolution strategy. Summing up, from a resolution perspective, the distribution of loss-absorbing capacity (the sum of going-concern and gone-concern loss absorbency) is crucial. Yet, from a regulatory and supervisory perspective, there is as yet no international standard that requires a banking group to ensure a sensible distribution of equity (and debt) within the group. The international standards on banking will need to catch up. The calibration of capital requirements: stress testing But how much capital (equity and gone-concern loss-absorbing capacity) should a bank have, and how should regulators decide? I will conclude by saying something about how stress testing can help. The minimum standard set in the Basel Capital Accord is just that: a minimum standard. There has to be provision for add-ons for individual banks’ particular circumstances; and also for temporary across-the-board increases when the environment has become more threatening than anything envisaged when the Accord was calibrated, ie when the world has become extraordinarily risky. In the United Kingdom, the Financial Policy Committee (FPC) has the power to recommend, or direct, the micro-supervisors to vary capital requirements temporarily in order to protect against just such unusual threats to stability. But in order to use those degrees of freedom, policymakers need a good framework for assessing banks’ capital adequacy in different circumstances, both at the level of the system a whole and for individual firms.

The Swiss franc temporarily appreciated immediately following the outbreak of the war in Ukraine. The trade-weighted Swiss franc exchange rate, however, was recently below its level at the beginning of the year (cf. chart 4). Adjustment of the threshold factor I would now like to discuss the lowering of the threshold factor from 30 to 28 as mentioned earlier by Thomas Jordan. With this technical adjustment, which will take effect from 1 July 2022, we will ensure that sufficient amounts of sight deposits are subject to negative interest, and that the latter is being passed on to the money market as intended. From March 2022, upward pressure built up on the short-term rates on the secured money market. This stemmed from the fact that the exemption thresholds had risen over time due to the dynamic calculation model, which meant that there were no longer sufficient amounts of sight deposits subject to negative interest. To keep the secured short-term money market rates close to the SNB policy rate, the SNB provided additional liquidity to the money market via repo transactions as a temporary measure. However, given that the increase in exemption thresholds is structural in nature, it is appropriate that we lower the threshold factor. This will result in the secured short-term money market rates being close to the SNB policy rate again without the SNB having to regularly provide larger amounts of liquidity. The SNB will continue to regularly review the basis for calculating the exemption threshold and adjust it as necessary.