samchain/econo-pairs-v1 huggingface dataset:
In particular, from a U.S. perspective, the access of U.S. firms to some foreign markets and the protection of intellectual property rights are issues that deserve close attention. But, in addressing these issues, we should take care to preserve the vital benefits of trade to higher standards of living in both advanced and emerging market economies. Our focus should be on further strengthening an open trade regime, and, as appropriate, amending and improving these agreements. 1/6  BIS central bankers' speeches  The Pace of Globalization To begin, let me briefly describe the pace of globalization as a reminder of what is at stake. Global economic integration has increased dramatically in recent decades. Trade, for example, has grown from nearly 40 percent of global GDP in 1990 to 57 percent in 2015. Over the same period, the stock of foreign direct investment has increased from roughly 10 percent of global GDP to 34 percent. Ultimately, economies have become more integrated and interdependent.2 This rapid growth in trade reflects falling trade barriers, declining transport costs, and improved information and communication technology. These trends have enabled the development of complex global supply chains that allow companies to manage their production more efficiently. Emerging market economies now make up a much larger share of global trade, the global economy and global growth.

Ravi Menon: Singapore’s financial centre – resilience, dynamism, trust Speech by Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore, to the Foreign Correspondents Association of Singapore, Singapore, 6 September 2016. *  *  *  Good afternoon. I accepted your invitation to speak not without some trepidation. •  The Foreign Correspondents Association in any country makes for a formidable audience. •  But I figured that if you were going to write about Singapore’s financial sector or economy, it might as well be with at least some residue at the back of your minds of what MAS has to say. •  In any case, having partaken of your generous luncheon meal, it is too late to escape now. Before I go any further, some disclosures: •  If you came for this luncheon expecting to hear about 1MDB, I am sorry I will not be mentioning that word or anything associated with it for the rest of my remarks. •  I am also sorry I have no juicy announcements to make. For central bankers and regulators, no news is generally good news. •  So, if you want to slip away quietly, now would be a good time to do so. I will pretend I did not notice. This afternoon, I want to share my thoughts with you on how the MAS sees the financial sector. Many of you, especially from abroad, are sometimes intrigued by MAS’ role as both regulator and developer of the financial sector.
This reduction in minimum CAR does not necessarily translate into a full 2% lowering of the total CAR requirements because in parallel with this, MAS will amend the rules for computing CAR, which is the second component of the package of CAR revisions. (ii)  Changes in CAR computation rules  One noteworthy revision to the computation rules will be a requirement for banks to set aside more capital for significant investments, commensurate with the risks associated with such investments. We had stated in August last year that this would be done, when we extended by two years the grace period for Singapore banks to divest non-financial businesses.2 Another significant revision is to allow banks to include 45% of the revaluation surpluses from banks’ holdings of property assets as well as portfolio equity investments as Upper Tier 2 capital. This will raise the capital available to banks, but it is unlikely to offset the higher capital that they will have to set aside for significant investments. In line with the policy of setting more transparent requirements, MAS will publish these CAR requirements and computation rules. Local banks will report their CAR based on the revised rules starting from their second quarter financial results. 1  MAS lowered the Tier 1 component from 12% to 10% in November 1998, and again from 10% to 8% in September 2000. 2  “Extension of grace period for banks divestment of non-financial businesses”, MAS Press Release, 22 August 2003.

But we still need to press on with further reforms and policy adjustments, because the international financial landscape continues to evolve. In this regard, let me highlight two things that MAS is doing. Revisions to capital adequacy requirements of locally incorporated banks First, MAS will be revising the capital adequacy requirements of locally incorporated banks. Singapore banks have since 1992 been required to meet a minimum Capital Adequacy Ratio, or CAR, requirement of 12%. MAS has progressively adjusted this requirement.1 However, the current MAS requirement of 12% Total CAR of which 8% must be Tier 1 capital still exceeds those in other major financial centres. As part of MAS’ efforts to keep our regulatory framework up-to-date with international best practices, we started to review the CAR requirements in March last year. I am sure the industry will be pleased to know that MAS has completed the review. MAS will announce the details at a press conference tomorrow evening. I will touch briefly on the three components of the revisions. (i)  Minimum CAR  The first change is in the minimum CAR requirements of local banks. MAS will lower this minimum CAR to 10%, of which at least 7% should comprise Tier 1 capital. This is competitive, taking into account our small and open economy, and the systemic importance of the three local banks. Some other countries, including Switzerland, similarly have a higher requirement than other developed jurisdictions.
12  Figure 2  Real exchange rate (RER) (1)(2) (average, 1986 average=100) RER 15-year average 122  250  115  200  108  Commodity prices (3) (index, 2010-2023 average=100) Metal index (5) Wheat (6) Oil (4) Copper  150  101  100  94  50  87 80 10  12  14  16  18  20  0  22  Transportation costs and supply chains  20  21  22  23  Cyclical component of aggregate margins  (st. deviation of historical average, monthly; percent of GDP, (percent, moving 3-month average) quarterly) Global supply chain pressure index (8) 4 Transportation cost (7)  0  4 2 0 3 -2 2 -4 1 -6  -2  0 -8  6 4 2  18  19  20  21  22  23  11 12 13 14 15 16 17 18 19 20 21 22  (1) March 2023 data is preliminary average of the month. (2) Average of the last 15 years. Corresponds to the period Mar.08-Feb.23 (3) Dashed vertical line marks statistical cutoff of December 2022 MP Report. (4) WTI-Brent average. (5) S&P GSCI industrial metals. (6) One-month futures price. (7) Calculated as difference between CIF and FOB imports. (8) For details, see Global Supply Chain Pressure Index by Fed NY. Sources: Central Bank of Chile, Barrero et al. (2023), Acevedo et al. (2023), and New York Federal Reserve.

The truth is that after several quarters have passed since these shocks occurred and the Central Bank has made a very significant adjustment in monetary policy, high inflation continues. Moreover, core inflation, the part that best reflects local trends and pressures, has stabilized at high levels and, I must say, bringing important surprises into our projections. The natural question that arises is why is this happening? and why is inflation taking so long to come down? 58. On the one hand, it is very clear that the string of shocks we faced was very unusual. They were very big in magnitude and had a concatenation that exacerbated their effects. On 9  the other hand, there were the accumulated cost pressures on companies, the volatility of different macroeconomic variables, such as the exchange rate, and a scenario where uncertainty was high for a long period of time. To these elements must be added indexation and other second-round factors that add persistence to the inflationary effects of the mentioned shocks, as has been highlighted in previous reports. This confirms that a very important element behind this stubborn inflation is that the economy has failed to reverse the impact of the spending excesses that accumulated in earlier years. As I said a while ago, the data for the end of 2022 and the beginning of 2023 show that private consumption is receding, but at a slower pace than expected.
Regarding transparency, I would signal the initiatives taken by the Banco de España, which have been favourably viewed by the European and international authorities and by the markets, on relevant exposures and refinanced loans. And mention should be made of the guidelines on accounting practices in respect of refinanced loans. Finally, I wish to underscore the approval of Law 9/2012 of 14/2012 on the restructuring and resolution of credit institutions. To a most significant extent, this legislation stole a march on the future Directive that will regulate these processes in Europe. Spanish banks’ solvency position has improved clearly in 2013. The average core capital in our banking system will stand at around 10.5% as at December 2013, more than 1 pp above the related figure a year earlier. And, at the same time, exposure to the real estate sector has diminished drastically. Our banks may face the asset quality analyses and stress tests to be conducted by the ECB before the effective implementation of the Single Supervisory Mechanism in November 2014 from a sound position. Conclusions Allow me to conclude. With all due caution, the data available allow us to think that we may be at the start of an economic recovery in the EU and in Spain. This will never be  4  BIS central bankers’ speeches  something mechanical, but rather the result of a major effort to correct the serious imbalances that our economy built up in the period to 2008.

As to the most discussed and absolutely essential correction, that of the budget deficit, I will simply say that progress has been made under very difficult conditions, amid a recession: this year, 2013, we will run a surplus on the structural primary balance which will be maintained and widened, we believe, in 2014. But as well as budget deficit achievements, we should highlight the correction of the external deficit, the adjustment of competitiveness, the reallocation of resources from construction to other industries, and headway in deleveraging. The buoyancy of exports, along with the sluggishness of purchases from the rest of the world, in line with the fall-off in national demand, has allowed the contribution of the external sector to activity to reach an unprecedented scale. In 2013, Spanish export penetration in foreign markets increased notably in all geographical areas, markedly so in the emerging and developing economies. At the end of 2013 the Spanish economy will have a net external financing position of over 2% of GDP, above the related 1986 figure, which was the peak recorded to date in our external sector statistics. As to our main customers and suppliers, namely the euro area members, the recovery in competitiveness has been achieved through the direct containment of costs and margins, and not, evidently, through the nominal depreciation mechanism. This route is more difficult and slower, but the gains in competitiveness thus obtained are more structural, i.e. more durable. Wage moderation has played a very important role here.
Even with microeconomic restructuring going on, unemployment is not expected to exceed a 4 % level in the near future. Monetary policy tools In a command type economy, monetary policy reflected state plans expressed mainly in physical terms. Planned direct credit allocation was linked to the planned growth of national income. Credits to enterprises were directly allocated, with little attention paid to the creditworthiness of the borrowing enterprise. Risk was socialised due to the existence of a unitary banking system. The introduction of a new Central Bank Act and a new banking law in late 1989 marked the beginning of the development of a market-oriented banking system. The Act laid the basis for establishing a two-tier banking system through the separation of the central bank and commercial banking functions and provided the central bank with the means for conducting monetary policy and with regulatory authority over banks. The latter established the legal basis for a universal banking system. The separation of central banking from commercial banking was put into effect on January 1, 1990. The dissolution of the Czechoslovak Federation into two independent republics on January 1, 1993, meant the creation of the Czech National Bank (CNB). According to the Act, the CNB is independent of any instructions given by the government. The CNB is obliged to submit to the Parliament a report on monetary development at least two times a year and to inform the general public on monetary development at least once every three months.

As a life-long central banker, I’m sure Governor Glenn Stevens can give us the broader perspective on this issue. 4. I sincerely hope that the common lessons learned from our experiences within the region will help us, and indeed other central banks, better manage the complexities of the global economy. 5. Before we hear from Governor Stevens, I wish to take this opportunity to thank all guests for joining us at this Policy Forum to mark the 70th anniversary of the Bank of Thailand. Many of you here have been an integral part of our policy progress over the past many years. On this note, may I propose a toast of appreciation to all of you and of hope that many of you will continue to support a common vision toward building further policy progress for the well-being of all Thais in years to come. 6. Thank you. BIS central bankers’ speeches  1
Another potential for the transition to an innovation-based economy is “The green economy”, where the convergence capacity of the existing producing processes in other processes releasing less carbon may be considered as an opportunity for the further development of our region. Regarding the future, the report assesses positively the reforms undertaken by the Albanian authorities. The macroeconomic environment is assessed as stable and prospects show the positive growth pace will be maintained. Trade, construction, transport and industry, as well as the narrowing of the deficit in the external sector of economy contributed most to the economic growth in 2017. At the same time, the financial system activity continued to reflect considerable improvement and showed good resilience to operational risks. The indicators of financial result, capitalisation and liquidity evidence the considerable improvement of credit quality and show the importance to continue the implementation of the measures undertaken by the Bank of Albania. 2/3  BIS central bankers' speeches  Also, the Report evidences that the projects and investments in infrastructure have contributed to economic integration of Albania with regional countries, providing a positive effect on higher productivity and more opportunities. We assess that TAP investment will provide positive effects on the energy infrastructure and will contribute to higher productivity through lower costs and covering the needs for energy capacities, thus reducing one of the structural weaknesses of the Albanian economy (the reliable supply with energy).

Concluding, I would like to highlight the suggestions found in the report that it is now the time for the financial sector to focus on firms, as the basis for employment, innovation, productivity and economic growth. Thus, the development policies should focus on the firms and their future, as a source of convergence growth. The economic development policies and priorities, at micro and macro level, should focus on: the improvement of the institutional and financial infrastructure; the development of the capital market; the investments in infrastructure; and, the regional integration. * * * Dear participants, The EBRD Transition Report 2017–18 is an important document to all of us. Irrespective of our status as decision-makers, policy-makers, researchers, academics or journalists, the Report provides ample information to further corroborate our analyses and conclusions. I invite you to further read the Report and materialise its conclusions rationally and responsibly in your analyses for the present and the outlook of our economy, and beyond. Thank You! 3/3  BIS central bankers' speeches
With greater transparency, a customer can decide if he is getting his money’s worth for the service and advice provided by his FA representative. Benefit illustrations also do not include a detailed breakdown of the split between the protection and investment components in an investment-linked insurance product. Customers often assume that the insurance policy they bought covers only insurance to their dependants, when in fact the product may contain a substantial savings element. Insurers should strive to provide greater disclosure on how the premium is split between protection and investment on bundled insurance products to enable customers to better understand what they are buying. 6  BIS central bankers’ speeches  Promoting a culture of fair dealing The fifth thrust in our approach to instilling customer trust in life insurance and financial advisory services is through promoting a culture of fair dealing by financial institutions. Dealing fairly with customers goes beyond mere compliance with regulatory requirements. It is an attitude that springs from the ethos and values of the institution. It is about a culture that places the consumer first, that is focused on doing what is right for the consumer, and that places a premium on integrity. It is the responsibility of the Board and Senior Management to forge this culture of fair dealing throughout the organisation. The Board and Senior Management must set a clear strategy to achieve the fair dealing outcomes, monitor its implementation, and train their staff and representatives to treat customers fairly.

This was why MAS introduced the Financial Advisers Act, or FAA, ten years ago. The FAA was a landmark regulatory reform, providing for consistency in the regulation of persons engaged in advisory activities:   across sectors: in insurance companies, banks, stockbrokers, and financial advisory firms; and    across products: life insurance, securities, futures, and unit trusts. Two years before the FA Act, an industry-led committee, the Committee for the Efficient Distribution of Life Insurance, or CEDLI, made far-reaching recommendations on minimum standards for the advisory process, and the competency of insurance agents. The FAA and CEDLI together helped transform the landscape for financial advisory services in Singapore. They have contributed to greater consistency and better quality in the advisory services provided on both life insurance and investment products. Disclosure practices have also improved. Life insurance coverage and financial investments among Singaporeans have grown over the last decade.   Life insurance as a percentage of the total assets of Singaporeans has nearly doubled from about 4% in 2000 to 7% in 2011.   Financial investments as a percentage of the total assets of Singaporeans has increased from about 14% in 2000 to 17% in 2011. But there are important gaps to fill. BIS central bankers’ speeches  1  We need to do better We have a large protection gap. The average Singaporean is still grossly underinsured.
The vetting should ensure that divergences from the fiscal rules can be identified and corrected at a very early stage. Moreover, earlier this year, 25 out of 27 EU Member States signed the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, more generally known as the Fiscal Compact. The Compact further improves the EMU framework by introducing a cyclically adjusted balanced-budget rule which the participating countries need to transpose into national legislation. Finally, a temporary crisis resolution mechanism was created, the European Financial Stability Facility (EFSF), which will remain active until July 2013 despite being replaced by a permanent organisation this autumn, the European Stability Mechanism (ESM). With a combined maximum firepower of € billion, these two mechanisms will help to build effective firewalls to stem contagion from the crisis. What has been achieved so far is impressive. Prior to the crisis, very few would have expected that Member States would reach a consensus on such fundamental changes in the way EMU works. But these changes are not enough. EMU now needs a longer-term vision to confront its challenges. BIS central bankers’ speeches  5  3.3. The way ahead – deeper integration  In order to restore confidence, policy-makers in the euro area need to resolutely push ahead with fiscal consolidation, structural reforms to enhance competitiveness and European institution-building. Recently, the President of the European Council, in close cooperation with the Presidents of the Eurogroup, the European Commission and the European Central Bank, put forward proposals for a genuine EMU.

The four Presidents are proposing that a genuine EMU should be built on integrated frameworks for budgetary policies, economic policies and financial market policies, which in turn must be underpinned by greater democratic legitimacy and accountability. When we look at the options to establish budgetary policies in a monetary union, and exclude any uncoordinated conduct of fiscal policy by Member States, three possible models come to mind. First, there could be a fully-fledged fiscal union, with a central budget and federal debt issuance. It is not on the cards in the short run as important steps would need to be taken to establish the necessary euro area-wide political legitimacy and governance. The second model would involve sharing sovereignty on national fiscal policies, with reciprocal control of public expenditures serving as a basis for common debt issuance by governments. Such reciprocal control would also require strong democratic legitimacy, involving national parliaments. The third model would only rely on unqualified adherence to fiscal discipline by Member States, without risk-sharing. None of these three models alone is possible in the short run. There will be a combination of the three. The desirable mix has to be decided upon by the people of Europe with the appropriate democratic checks. EMU is a unique construct, tailored to European specificities, and it need not resemble any existing federation. Let me give some examples.