samchain/econo-pairs-v1 huggingface dataset:
Andres Lipstok: The Estonian economy Speech by Mr Andres Lipstok, Governor of Bank of Estonia, at a lunch for the EU Deputies, organised by the Ambassador of the Czech Republic, Mr A Langer, Tallinn, 28 May 2009. *  *  *  Excellencies, Ladies and gentlemen, I am genuinely pleased for the invitation of Ambassador Langer to join you here at the working lunch. First of all, I would like to provide a short overview of Estonia's current economic situation and the plans related to the adoption of the euro. Afterwards I would be glad to discuss these issues with you. The global crisis has had a strong impact on Estonia's small and open economy via trade channel. Collapse of world trade and decreasing demand in Estonia's main trading partners has decreased considerably also Estonia's exports. Although financial channel is also somewhat strained, we have not witnessed particularly excessive tightening of credit inside the banking groups that operate in Estonia. Estonian banking market is fully integrated into Scandinavian groups, which has provided stability. Estonia's banking sector has enough capital and liquidity to support restructuring in the real economy. The global turmoil is clearly not over yet, though there have been some signs of stabilisation over the past months. Estonia, too, is showing some signs of stabilisation and confidence indicators have also slightly improved. However, it has to be stressed that outlooks for this and next year are highly uncertain everywhere in the world.

This is also reflected by the growth figures of the EU and single Member States. According to Eesti Pank's spring forecast, this year's economic downturn in Estonia will be around 12%. Estonian economy may start to recover towards the end of 2009, albeit the resumption of growth is very much dependent on the state of economies of our main trading partners. In 2011, Estonia's economic growth should recover to almost 5%. I would like to stress that Estonia has undergone considerable economic adjustment, which started already at the end of 2007 and several risk factors are withdrawing rapidly. Estonia's current account – the spread between savings and investment – is practically in balance. Thus, the financing of the economy's current expenditure is ensured by current income. Any external current financing needs will be covered by official EU funds. The correction of labour market and the rapid decline in inflation are just as important. The sharp increase in prices and wages following Estonia's accession to the EU is over. Price level in Estonia will decrease moderately both this and next year. This is an important factor supporting productivity growth in the economy. Let me now turn to euro adoption. The clear perspective of joining the euro area increases markedly Estonia's credibility and serves as the main factor supporting our economy in the near future.
Nevertheless, new technologies are gaining traction, by capitalizing on devices such as smartphones and tablets and allowing to get rid of “plastic” payment cards through virtual wallets. These general changes, which are already affecting traditional actors, are reinforced by the introduction of new players, either the much talked about “GAFA” (Google, Apple, Facebook and Amazon) or the smaller actors concentrating on niche payment services, that capitalize on these new technologies to enter the payment cards market. To be fair, this move “out of plastic” is a bit slower than forecasted some years ago: but it shall probably accelerate. Lastly, in Europe, the third trend that is also deeply influencing the payment cards market is the current regulatory renovation that is taking place, notably through the implementation of the new Interchange fees regulation for card based-transactions, which was passed in April 2015. This new regulation sets, amongst other measures, maximum caps for interchange fees, 0.2% for debit card and 0.3% for credit card transactions, and the obligation to separate payment card schemes and processing entities. In doing so, this new regulation might stand as an additional game changer for traditional actors. Such a context will no doubt incentivize traditional suppliers of payment cards solutions to find new sources of revenue, building on added-value services on top of sole payments, and possibly revising the way payments are made and processed to keep their lead in the retail payments market. II.

In 2014, payment cards were used for more than 47 billion transactions in the European Union, that is to say a level almost identical to the overall combined number of transactions involving credit transfers and direct debits, respectively the second and third most used payment instruments. In France, payment cards were used in more than 50% of all non-cash payments transactions, amounting to nearly 9.5 billion operations in 2014, compared to only 3 billion transactions in 2001. The specificity of card payments is that they occur for transactions of a relatively small amount € in average in France), making it the strongest alternative to cash for proximity payments. This situation is the result of years of efforts made by market stakeholders to build a secure, efficient and convenient payment instrument. The French community was at the forefront of such evolution with the early adoption in 1992 of chip for payment cards, which has been followed by the introduction and the subsequent widespread adoption of the EMV standard. This latter evolution has been the cornerstone of the uptake of payment cards by allowing fast and secure transactions through Europe. This predominance of payment cards may nonetheless be at stake nowadays, with the conjunction of three main trends that have a disruptive effect on the market: new solutions, new behaviors and players, new regulations. First, innovative payment solutions based on SEPA schemes are very likely to emerge.
Real GDP has still not returned to its pre-crisis level. As for real per capita GDP, it is lower now than it was in 2007. This weak growth is one of the main factors behind the high public debt ratio, which has been rising since 2008. Another consequence of feeble growth is the high unemployment rate, particularly among the young (32% in September 2018 for 15–24 year-olds). The tragedy of the scoraggiati, especially in the south, should be seen as our tragedy too. It is with this image in mind that I want to shed some light now, here in Rome, on the economic prospects for the euro area. I would like to share with you two firm beliefs: with regard to the challenges we face, the euro is one of the solutions, not one of the problems; but in order to build a more solidarity-based euro area, we need to have an Italy that is 1/5  BIS central bankers' speeches  committed. ** I. The euro is one of the solutions, not one of the problems. There is still a temptation to blame the euro for this weak rate of growth. Proponents of this idea see the single currency as a German-imposed straitjacket, managed by “Frankfurt” strictly for Germany’s benefit. It is always legitimate to have a debate, and we should not shy away from this one. But in reality the euro is one of the solutions, for four reasons.

Discussions over the ESM have raised another issue, which I know is a sensitive topic in Italy: the restructuring of sovereign debt. France also believes that we need to tread carefully here. We should avoid adopting a mechanical approach, because when rules are automatic, market expectations can trigger sudden chain reactions and pose a threat to financial stability. On the other hand, it might be useful to hold technical discussions on ways of implementing collective action clauses (CAC). ** I would like to conclude by quoting President Luigi Einaudi, who wrote this in 1954: “In the life of nations, the mistake of not seizing the moment is usually irreparable. The need to unify Europe is evident. [...] This is not a problem of choice between independence or union, but of choice between existing in unity or disappearing.”5 In a world marked by growing uncertainties – many of 4/5  BIS central bankers' speeches  which, unfortunately, also stem from the United States – the need to preserve and reinforce the unity of Europe is stronger than ever. This does not mean ignoring the problems, but rather working together, as French and Italians, to achieve what we want: a more efficient and solidarity-based Europe. Thank you for your attention. 1 See Bugamelli et al. 2017, “Back on track? A macro-micro narrative of Italian exports", Banca d’Italia Working  Paper No. 399. 2 Standard Eurobarometer 89, Spring 2018. 3 Banca d’Italia, Financial Stability Report No. 2 – 2018. 4 Results of the OECD’s PIAAC survey.
With a humble beginning of establishing the first Islamic bank in 1983, Islamic finance in Malaysia has evolved to become a comprehensive domestic Islamic financial system, comprising the Islamic banking institutions, the takaful industry, the Islamic money and capital markets. Malaysia’s Islamic banking sector grew 20% annually since 2001 in terms of assets and as at the end of June 2010, the share of Islamic banking assets in the total banking sector has expanded to reach 20.9 percent as compared to 6.9 percent a decade ago. Malaysia also remains the world’s largest sukuk market, accounting for more than 60 percent of global sukuk issuances. Islamic finance prospers in Malaysia because it is competitive, innovative and in sync with what the market want. Recent developments of Islamic finance that strengthen its resilience Significant milestones achieved in the recent decade in the area of international financial infrastructure provides further support for sustainable and orderly development and continued growth of Islamic finance. In 2002, the Islamic financial Services Board or IFSB was established with the role as an international prudential standard setting body for Islamic finance. The IFSB has been instrumental in developing and issuing global prudential standards and guiding principles for the industry. Further efforts to ensure sustainability of Islamic finance in this new and more challenging environment include the formation of a Task Force on Islamic Finance and Global Financial Stability by the Islamic Development Bank and IFSB.

Embedded in this arrangement are also good governance and ethics, together with the upholding of the universal values of justice and fairness provide implicit checks and balances in the system. These very elements of Islamic finance, which are essential features as required by the principles of Shariah, provide an in-built mechanism that enhances the prospects for its soundness and stability. These explicit elements address several of the issues that have surfaced in the conventional financial system during the current crisis, including in particular the breakdown in governance that led to indiscriminate lending, excessive risk taking and irresponsible financial innovations that were motivated by greed and short-term gains. In Islamic finance, the process of innovation and formulation of Islamic financial products and services must also be done carefully and in accordance with Shariah. As it is recognised that unfettered financial innovation can become a major source of instability in the financial system, financial innovation in Islamic finance must have the primary objective of realising benefits to its users, thus incorporating ethical value propositions. The explicit risk sharing element between the financier and customer further ensures that these mutual benefits are well-supported through requirements for necessary information to be provided to the market on the risks borne by Islamic financial institutions. There is also the governance structure in  2  BIS Review 129/2010  place, for example, the need for the establishment of Shariah committees at Islamic financial institutions and Shariah audit.
BIS Review 46/2005  3  Concluding remarks The introduction of the euro and the conduct of the single monetary policy have established an environment of price stability in the euro area. The ECB’s monetary policy has acquired credibility and has succeeded in anchoring long-term inflation expectations to price stability, thereby exerting a moderating influence on price and wage-setting behaviour. Both short-term interest rates and long-term bond yields are at historically low levels in nominal and real terms. But, as we know, price stability and favourable financing conditions establish necessary but not sufficient conditions for sustainable growth. There is still some way to go in terms of the implementation of the necessary structural reforms that will result in faster and durable growth in the euro area, through higher productivity growth, increased labour utilisation, and improved competitiveness in the global economy. Which brings me to a final reflection, opening up a broader perspective. The issues to be discussed in this workshop should also be seen against the background of globalisation. The forces and dynamics of globalisation influence economic developments in the euro area (for instance through pressures on firms’ cost structures) and also have an impact on the integration process that has been triggered by the euro. Of course, it is not easy to disentangle the effects of globalisation on the European integration process from those which stem from the creation of the single currency.

I am positive that, like in the banking sector, the society will benefit from this. It will result in more efficient production, lower prices, better service quality and curb the power of the monopolistic producers. To date, as in the early 1990s, we again face the question of what is the right fiscal policy. Of course, today this problem is raised in a slightly different way. But, in essence, it is the same question - what fiscal policy shall ensure the stable development of the Estonian economy within the fixed exchange rate regime and as part of the euro area. I shall return to this question towards the end of my presentation. Thus the economic policy key issues we are facing in the beginning of the 21st century resemble in many aspects the problems we tried to resolve in the beginning of 1990s. We have achieved progress in finding solutions to some of the problems, others have remained unresolved. One thing is clear - undue postponement of tough issues is no good to anybody. If we want to be treated as equal partners in the European Union, if we want to sustain the rapid growth rate and  2  BIS Review 51/2002  growing income level, we must tackle these problems with similar resolution and energy we did 10 years ago. B. Challenges facing Estonian economy on its way to the European Union - internal policy  So - what are today’s and tomorrow’s challenges facing Estonian economy?
Entering into strategic alliances with other entities would create greater synergy, which may bring about new approaches, new technologies and new areas of specialization. Collaborative efforts amongst Islamic financial institutions in particular, would strengthen the ability to leverage on the industry’s expertise. The introduction of innovative Islamic financial products in a specific jurisdiction can be expanded to other jurisdictions, which in turn, will contribute to broaden and deepen Islamic financial markets and thus strengthen the overall development of the Islamic financial industry. In addition, active collaboration between academic researchers and the practitioners will enable the practical application of research findings. In Malaysia, an industry-owned research and training institute in Islamic banking and finance, the Islamic Banking and Finance Institute Malaysia (IBFIM) has been established to spearhead greater collaborative efforts with universities to undertake research in areas that are key for the progressive development of the Islamic financial industry. 2  BIS Review 47/2005  A highly qualified and skilled pool of talent The fast pace of innovation in global financial services in general and for the Islamic financial services sector in particular, will demand a rapid and continuous infusion and upgrading of skills. Developing a substantial pool of talent and expertise is indispensable for strengthening research capabilities. In this regard, there has to be a strong focus on human capital development through training and education. In today’s competitive environment, intellectual capital is the major factor in determining the level of innovation and competitiveness of an institution or corporation.

Zeti Akhtar Aziz: Asia’s role as an important growth centre in the global economy Opening address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the First Asian Central Banks’ Watchers Conference, organised by the Official Monetary and Financial Institutions Forum (OMFIF) and the Lafferty Group, Kuala Lumpur, 1 November 2011. *  *  *  It is with great pleasure that I welcome you to the first Asian Central Banks’ Watchers Conference organised by the Official Monetary and Financial Institutions Forum (OMFIF) and the Lafferty Group. Bank Negara Malaysia is very pleased to host this event here in Kuala Lumpur. Central banks have generally been the most watched organisations given the significance and far reaching implications of their actions on financial systems, the economy and the economic well being of the public at large. This is even more so during periods of financial stress and economic distress. During such periods, central banks have generally been at the forefront in managing such crisis and its consequences. Indeed, this current global crisis has prompted central banks in the United States and Europe to be closely watched given the impact of their actions on not only their own national economies but also on the rest of the world. With the growing significance of the emerging economies in the world economy, our policy actions have increasingly drawn significant interest.
Regulators are one of the stakeholders in this process. In order to fulfil our objectives and functions, we need information from the entities and markets that we supervise. But financial institutions are faced with requirements from other sources too. They have to produce information for a whole range of other purposes, for example to fulfil mercantile, fiscal and statistical requirements, as well as to run their own business, of course. On top of this, changes in the financial markets themselves are having a major impact on information flows. Increases in the complexity and volume of financial transactions are contributing to an increase in the complexity and volume of information that entities need to produce and manage, even if only for their own internal purposes. And if we add in the ever more prevalent international dimension, the situation becomes even more complicated. In the face of these developments, it seems important to me that we find new ways to manage the information process. So what can we do, as regulators, to promote the most effective and efficient processes for the generation, transmission and use of financial information, and therefore the most efficient markets? I  BIS Review 47/2006  1  believe there are five key elements in this process, and it is on these elements that I will focus in the remainder of my intervention. 1  Convergence of regulatory requirements  The first of these involves starting at the beginning of the value chain of information requirements.

Three matters concern us: the elements of the new Basel III capital accord that have not yet been fully finalised; the Financial Stability Board’s work on the regulatory framework for the treatment of systemically important institutions; and the new powers of the Banco de España under the draft bill on the supervision of credit institutions, which will foreseeably be approved in the first quarter of next year. I shall begin with Basel III. The new capital accord improves the comparability and, thereby, the credibility of capital ratios. Basel III increases capital requirements with better-quality instruments, and it seeks consistency and a uniform application across banks and countries. It also adds two new prudential tools: one in the area of liquidity, and the other in that of leverage. First, the inclusion of the leverage ratio, the relationship between Tier 1 capital and exposure both on and off the balance sheet, i.e. the total banking book, without taking into account risk weights. Calculations are made at the consolidated level and, in principle, the level is set at a minimum of 3%. It is scheduled to come into force in 2018, although an earlier date will probably be set for the required disclosure of this figure. This new tool has been designed as a straightforward measure that complements and acts as a floor to the minimum risk-based capital ratio. It aims to provide additional protection against what is known as “model risk”, i.e.
To foster transparency, the resulting assessments are made public, together with an overall review of compliance with the Basel standards. Some comment that this effort, well intended as it is, will ultimately be fairly limited in its impact because the Committee has no enforcement power and cannot override the sovereign regulatory power of national authorities. It is true that the Committee does not have this power, and nor should it. But that does not mean that the peer reviews and the RCAP process as a whole lack impact. We have thus far published five monitoring reports, and completed assessments on the final Basel III rules in Japan, Singapore, Switzerland and China. In all cases, the implementation of Basel III was deemed compliant with the international standards. But importantly, in all cases the assessment process also generated a number of changes to the domestic regulatory framework to fill gaps and improve the alignment with the international standards. This shows that a peer review programme, coupled with transparency, can make an impact even without a suite of legal powers to back it up.

Building upon these initial studies, the Committee has started extending its analysis to establish a comprehensive picture: for the trading book, the initial analysis has been extended to more complex portfolios, with results expected in the next few months. In parallel, the work on the banking book will extend to the other remaining core asset classes, especially retail portfolios, SMEs and so-called “partial use” exposures (ie exposures that  4  BIS central bankers’ speeches  have not been migrated to the internal models). The Committee also foresees extending its work to operational risk, the third core risk type. And once the Committee has done an initial round of assessment, we will need to repeat the exercise periodically to see whether the policy measures that I will discuss shortly are having the desired impact. Further analysis to establish a comprehensive picture will take us into 2015, but this does not, of course, prevent us from taking action in the meantime. It is clear that a problem exists and the Committee is considering a range of supervisory and policy responses – without, I must add, settling on anything definitive just yet. Given the multi-faceted nature of the problem, it is also clear that we will need a multi-faceted response. As there is no silver bullet, we will likely end up with a series of incremental policy and supervisory changes, drawing from the following list:   Most immediately, we will see supervisory action.