samchain/econo-pairs-v1 huggingface dataset:
The journey to best in class payments Speech given by David Bailey, Executive Director for Financial Market Infrastructure, Bank of England  At the Westminster Business Forum Keynote Seminar: The future for payments regulation in the UK – competition, innovation and end-user priorities 28 June 2018  I would like to thank Rachel James, Joanna Bibby-Scullion and Philippa Cohen for their contributions. 1  All speeches are available online at www.bankofengland.co.uk/speeches  Good morning. I would first like to thank the Westminster Business Forum for inviting me to speak at today’s seminar on the future for payments regulation in the UK. When I first spoke at the Forum, three years ago, I highlighted the potential for considerable change in the payments industry in the UK. There was a sense that payments, a sometimes overlooked but vital sector of financial market infrastructure, was no longer going to be so quiet, and an unprecedented amount of innovation and change was on the horizon. Consumer expectations around payments were evolving in response to the proliferation of mobile devices, smart phone technology and the ever-expanding range of services available through ‘apps’. Contactless payment, using a card or mobile device, was becoming a daily reality for many. The term ‘FinTech’ was entering the mainstream. Regulatory change was also underway. The Payment Systems Regulator was gearing up for launch with a mandate to promote innovation, competition and the interests of service-users.

The consolidated entity is expected to deliver a range of benefits, including:      Strategic leadership that is forward looking and proactive, with an enhanced ability to identify the challenges and risks of tomorrow and prepare for them today; Higher standards of governance and risk management, with an improved ability to leverage best practices across the schemes. As an example, a variety of access models have evolved in schemes over the years, and the NPSO is now in a great position to look across the schemes and consider which models deliver the best outcomes and risk management; and The development and delivery of a best in class New Payments Architecture. The NPSO is also set up to be a leader in the field of retail payments. And the Bank is now their counterpart in the UK wholesale payments space, following the move to direct delivery of CHAPS, the UK’s high value 3  payment system (HVPS) in November of last year. Collectively, these developments should lead to a considerable step change in risk management expertise, standards, and capabilities across the entirety of UK payments. As an example of the two organisations working together to bring such change to the payments industry across wholesale and retail, the NPSO and the Bank recently launched a joint consultation on ISO 20022. 4  This move towards harmonised messaging standards will enable the transportation of richer payments data, improved compatibility and therefore redirection across payment schemes, and new opportunities for collaboration and product development.
He argued that debt forgiveness would shake the foundations of the Roman Republic and destroy one of its most important values: fides. Fides is trust, confidence, good faith. 8 In modern terms, Cicero was hinting at the moral hazard that can – but need not – be created by intervention in a crisis. The “lender of last resort” responsibility of central banks –  6  Data taken from the Annual Report of the Federal Deposit Insurance Corporation (1940). 7  See Wesley Lindow, “Bank Capital and Risk Assets”, The National Banking Review, Comptroller of the Currency, US Treasury Department, September 1963, pp. 29–46. 8  Cicero, De Officiis II, 73 ff. BIS Review 29/2010  7  that Walter Bagehot advocated 1800 years after Cicero and Tacitus – should always be a dual responsibility. It should be crisis management and future crisis prevention at the same time. When these go hand in hand, the result is confidence in the medium and long term (fides) which, ultimately, helps getting out of the short term crisis as well as contributes significantly to long-term growth and prosperity. Thank you very much for your attention. 8  BIS Review 29/2010

We need to establish whether or not there are actions that central banks can and should take to minimise the likelihood of macroeconomic instability arising from extreme fluctuations in asset prices. Second, how should monetary policy react to structural changes in the economy? 3  BIS Review 65/2000  Monetary policy and asset prices Let me start with the question of monetary policy’s response to movements in asset prices. This depends in turn on how the central bank chooses to use the information contained in asset prices. In a regime that explicitly targets inflation, asset prices are taken into account via the effects on aggregate demand. Rising share prices increase household wealth and that would raise consumption for a given level of income if these increments to wealth are considered to be of a permanent nature. At the same time, consumer confidence boosted by higher share prices could potentially make individuals more prone to spend their increased wealth. An increase in share prices also makes investment more attractive to firms since it increases collateral values and lowers the cost of new capital relative to existing capital. If share prices predict higher expected output growth, this could also lead to more investment. If the asset prices on which households and firms base their consumption and investment decisions prove to be too optimistic, this would create inflationary pressure in the short term. An important question in this context is how sensitive households’ and firms’ consumption and investment responses are to changes in asset prices.
Innovation has sharply reduced the costs of telecommunications as well as the costs of IT equipment. As a consequence, the costs of trading financial services and financial assets have decreased enormously. Additionally, not only has innovation brought down costs, but it has also increased the scale and scope as well as the quality of services. Innovation made markets expand to a hitherto unknown degree. Indeed, the value of traded financial services and assets has gone up almost explosively. These developments have required the construction of an adequate trading, clearing and settlement infrastructure. A good example is the market for foreign exchange (FX). Today, FX is one of the few truly global markets. It is open 24 hours a day and participants from all over the globe are connected through electronic networks. Here, the birth of Continuous Linked Settlement (CLS) is of utmost importance. Since September 9 of this year the settlement of FX transactions in the largest seven currencies can take place on a Payment versus Payment basis. CLS has only been possible thanks to technological progress, the decrease in communication costs, and large trading volumes. The benefit is not only higher efficiency but also reduced risk. BIS Review 55/2002  1  Let me sum up this first section on value as follows: There is no doubt that market integration and technological progress have been the driving forces. They have led to sizeable reductions in transaction costs.

Ladies and gentlemen, As the Thai economy gradually recovers and inflationary pressure remains subdued, monetary policy will ensure that monetary conditions are adequately supportive to growth. At the same time, we must not forget to chart a course towards the country’s long-term economic development. As the Thai economy is in need to upgrade growth potentials and increase competitiveness, the Bank of Thailand will contribute to this process of economic transformation by taking a proactive role in the financial sector development policy. Ongoing in this sphere, there are at least three development plans under implementation, namely, the Financial Sector Master Plan, the Payment Systems Roadmap, and the Capital Account Liberalization Master Plan. Although the three plans have different objectives, they complement each other and together form a strong foundation for the country’s financial sector development. I will highlight a few key elements we hope to get out of these plans. The first one is the Financial Sector Master Plan (FSMP) Phase III. Approved by the Cabinet in March this year to set out strategic directions for the next five years (2016 – 2020), FSMP III is aimed to promote a competitive Thai financial sector, to support more diverse needs at fair and undistorted prices, as well as promote regional trades and investments, with proper supervision to ensure macroeconomic and financial stability. In short, this plan’s motto is to promote a “competitive, inclusive, connected, and sustainable” financial system.
When it comes to mutual insurance against asymmetric shocks, it is clear that fiscal risks do not always stem from fiscal action, but from unsustainable economic and financial policies elsewhere. Therefore, any move in this direction should be accompanied by a new convergence process towards more resilient economic structures. Such a process would allow us to advance together towards a better-equipped EMU, outlining a clear path of reform and a commitment to a fiscal capacity. Political convergence is needed to kick off such a process, as any new convergence process can only be as effective as the legitimacy underpinning it. Conclusion Let me conclude by saying that protection against moral hazard is of course very important. At the same time, it should not be used as a strategy to relegate the move towards a fiscal capacity for the euro area to never-never land. The move towards a fiscal capacity could take the form of a gradual and conditional process that allows us to move in parallel towards restored fiscal buffers at the national level, convergence in the capacity to absorb shocks at the national level and a strengthening of institutions at the euro area level, while moving, equally gradually, towards more central fiscal stabilisation. 3  See Cœuré, B.: “Drawing lessons from the crisis for the future of the euro area” speech at “Ambassadors Week”, Paris, 27 August 2015. BIS central bankers’ speeches  3  I think we should be more ambitious in that respect.

And that is why adherence to, and the full and consistent implementation of, the Stability and Growth Pact and Fiscal Compact is so important. As I have said before, this is not a matter of theology; it is a political and economic imperative. Markets need to trust the capability of our governance framework to effectively coordinate fiscal policies in EMU, and citizens need to be confident that common rules are being respected. Let me add that any common fiscal capacity will be financed by current or future taxes on the same taxpayers and companies which already fund their national budgets. We cannot add to this edifice if its foundations are shaky, that is, if national budgets are not clearly sustainable. In concrete terms, this means that Member States should rebuild fiscal buffers into their national budgets to be able to weather future economic shocks, while at the same time adjusting the composition of their fiscal policies to optimally support the recovery. Once these buffers are available, the Stability and Growth Pact provides ample flexibility to adjust fiscal requirements to enable the functioning of automatic stabilisers on a national level and to react to a severe downturn in the euro area as a whole if need be. Whether the Stability and Growth Pact should be further reviewed or complemented with new features, such as sovereign debt restructuring mechanisms, to improve ownership and set the right incentives is an open question, with ramifications which go far beyond our discussion today.
In Singapore, the supervisors of banks, insurance companies and securities houses are housed under one roof in MAS. This has given us a head-start in dealing with current industry trends, with financial product boundaries blurring and insurance companies crossing over into banking and capital market territory. The pressure is on to bring integrated supervision to an even deeper level. BIS Review 44/2002  1  Singapore’s response In today's new risk landscape, MAS aims to develop sound and efficient markets where risk can be effectively spread and mitigated. We need to make sure that best practices prevail in the management as well as regulation of insurance companies. Strong players will make for a resilient industry. Two years ago, Singapore opened up completely the direct life and general insurance market. The earlier closed-door policy had insulated both local and foreign incumbents from competition and engendered complacency. Creating an open and competitive environment was the first step to raising standards and strengthening resilience. Since we opened up the industry, insurers in Singapore have taken various measures to enhance their competitiveness. They have sharpened their business focus, moved into higher-value added and higher-growth areas and improved professional standards. This will stand our insurers in good stead to meet new challenges and opportunities. Meeting new challenges and opportunities Entering new growth areas Globalisation of markets, advances in technology, changing demographics and socio-economic patterns are some trends that will result in new or changing needs for insurance protection and financial planning.

This is no easy task considering that the stakeholders often pursue differing interests. In addition, there are various potential conflicts, for example between the objective of exploiting economies of scale as much as possible – which might only be possible through cross-border cooperation – and the objective of maintaining independence. BIS Review 123/2006  3
Significant progress been achieved in particular in the Islamic capital market where the outstanding amount of Islamic private securities amounted to USD79 billion or 54.3% of the total outstanding private securities in the market. The number of Shariah-based unit trust funds have also increased to 136 with a net asset value of over USD5.2 billion while 85% of the listed Malaysian stocks are Shariah-approved counters. The second strategy is to accord greater emphasis on the enabling environment for increased innovation in the Islamic financial industry. The product range in Islamic finance has now expanded into a broad spectrum of innovative instruments, including investment and equity linked products based on musyarakah, mudarabah and ijarah. These products are competitive both in terms of product structure and pricing. The enhanced depth of the Islamic financial markets, in particular, the sukuk market, has increased the attractiveness of the Islamic financial instruments as an asset class for investment. The drive for innovation has been supported by the investment in human capital development. A sufficient pool of the talent and expertise has been key to the development of the Islamic financial hub in Malaysia. The International Centre for Education in Islamic Finance (INCEIF) was established in 2006. INCEIF which has an international faculty and students from more than 40 countries is focused on programmes for Islamic finance professionals and specialists in Islamic finance.

François Villeroy de Galhau: Card payments in Europe – latest trends and challenges Speech by Mr François Villeroy de Galhau, Governor of the Bank of France, at the Bank of France conference “Card payments in Europe – latest trends and challenges”, Paris, 18 January 2016. *  *  *  Ladies and gentlemen, Dear Yves Mersch, Dear Mario Nava, First and foremost, on behalf of Banque de France, I would like to warmly welcome you all in Paris. I am delighted to open this conference dedicated to card payments in Europe. A large number of European actors involved in the card payments market are represented today, including regulatory authorities and market players, and I have no doubt that the debates that are going to take place will give us a valuable insight on the latest trends and the challenges they bring with them. Before leaving the floor to our speakers and panelists, I would simply like to share with you a few thoughts on two of those challenges, one addressed to the supply side of the card payments market and one to the regulatory community. I. First challenge: the sustainability of the dominance gained by cards as payment instruments. Will the most used payment instrument in Europe continue to rise or will it fall? Over the last decade, payment cards have steadily consolidated their dominance as the most used non-cash payment instruments in France and Europe.
in  ad Abro  Sources : Statistics Norway and the Norwegian Central Securities Deposit SG Kommunalbanken, 30.august 2002  The largest holders of Norwegian bonds are insurance companies, but the government, private companies and foreign investors also account for a large share of bond holdings. The largest issuers are the government and financial institutions. Kommunalbanken is also a fairly large issuer in the Norwegian bond market. At the end of 2001, the Bank’s total bond and commercial paper debt came to about NOK 26 billion. This accounted for a good 6 per cent of total outstanding bond and short-term debt issues in Norway at the end of last year. There are historical reasons for the thin securities market in Norway. From the post-war period and up to the beginning of the 1980s, the Norwegian bond market was subject to direct regulation. It was only in the late 1980s that the market for bonds and short-term debt was liberalised and it is now part of the international market. BIS Review 48/2002  5  Outstanding holdings of domestic debt securities issued by non-financial enterprises.

Caleb M Fundanga: Bringing new levels of efficiency to the Zambian banking sector through technological innovation Speech by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the launch of the Zanaco bill muster, Lusaka, 27 June 2006. *  *  *  •  Managing Director – Zambia National Commercial Bank Plc  •  Senior management staff from Zanaco present  •  Members of the press  •  Invited guests  •  Ladies and gentlemen  It is my honour and privilege to be invited to officiate at this breakfast press briefing on the launch of the Zanaco bill muster product. I am informed that the Zanaco bill muster is Zanaco’s latest product innovation. The product will enable the bank’s customers to pay their utility bills at any Zanaco branch and utility companies will receive their collection details electronically online in real time. I am further informed that the new product will make it possible for the bank’s customers to pay for their utility bills by filling in a form instructing the bank through internet banking. The product we are launching today is indeed a positive development as it should bring new levels of efficiency to the banking sector and set a precedence for other players on the market to emulate. At Bank of Zambia, we sincerely support this type of innovation, especially if such a product helps in reducing the cumbersome use of paper and tedious work of manual transmission of payment instructions.
In other words, for a central bank, being independent means being more transparent in the eyes of the public. This is the other side of the coin and is called “accountability”. Accountability is an asset that makes the central bank answerable to all sections of the public for the policies it implements and their consequences. BIS Review 36/2005  21  This responsibility can only be fulfilled by central banks when transparency is completely achieved. Therefore, in time, central bank independence brought with it increased accountability, transparency and the employment of more efficient communication policies. Generally, central banks exercise transparency by sharing their knowledge and opinions with the public about their final goals, current and future policies and the general outlook of the economy using various communication tools. Within this framework, the most significant contribution increased transparency and effective communication could make to the economy and monetary policy is the reduction of uncertainty. Furthermore, a more transparent central bank that attaches more importance to communication policies helps economic units shape their expectations in line with central bank targets as the predictability of monetary policy is increased. As is very well known, the Central Bank has been pursuing an “implicit inflation targeting strategy” since 2002. In our announcement regarding the monetary and exchange rate policy for 2002, it was announced that explicit inflation targeting strategy would be adopted when the necessary conditions were in place. Today, we see that much has been achieved in creating the necessary conditions for the transition to explicit inflation targeting.

1  Relevant documents are published on our website: https://www.snb.ch/en/ifor/finmkt/fnmkt_benchm/id/finmkt_reformrates  Page 3/5  Berne, 13 December 2018 Andréa M. Maechler  News conference  Charts  Page 4/5  Berne, 13 December 2018 Andréa M. Maechler  News conference  Page 5/5
How the high oil price will affect the world economy and price levels at different stages of production is hard to judge. The effects that can be expected to arise will depend, among other things, on whether the high price first and foremost reflects rising demand or whether it is due to supply shocks. The upturn in the oil price in recent years has been accompanied by an increase in oil production, which indicates that the price increase was mainly due to high demand. Mounting demand from countries with rapidly increasing industrial production, such as China and India, has probably played a part. At the same time, it is evident that there have been supply shocks. The conflict in Iraq and the recent storms in the Gulf of Mexico and the southern United States are just a few examples. What is worth observing is that the rise in the oil price, of almost 40 dollars per barrel, since 2002 does not appear to have dampened global growth to any appreciable extent. This can probably be explained in some measure by the fact that the upswing thus partly seems to be a result of the sharp  1/4  expansion in Asia and by the fact that economic policy has become more expansionary. That the industrialised countries in particular are not as dependent on oil as before should also have contributed to the effects so far being less than in previous oil crises.

It is up to policy-makers to draft policy measures during such an episode in order to influence both the level where a U-turn occurs and the slopes following the end of an episode of sizeable capital inflows. I will show in the following section that the policies envisaged by the arrangement Romania signed with the EU and the IMF are aimed at smoothing out the slope of the trends of the abovementioned indicators so that the necessary adjustments unwind at a reasonable pace, without destabilising the economy. BIS Review 5/2010  5  3. Case study – Romania  3.1. The period of massive capital inflows  Foreign capital inflows in Romania have picked up since 2004. The current account deficit widened from 8.4 percent of GDP in 2004 to 13.5 percent of GDP in 2007 and to 12.3 percent of GDP in 2008. The medium- and long-term external debt of the private sector posted an almost twofold increase (Chart 1), from 12.9 percent of GDP in 2004 to 25.6 percent of GDP in 2008.