samchain/econo-pairs-v1 huggingface dataset:
To the extent, however, that a rise in inflation is associated with developments that are putting pressure on the exchange rate in the shape of a persistent loss of external reserves, such as a surge in consumer imports financed by credit creation, then a higher interest rate could have a cooling effect. In Malta’s open trading environment, one would expect prices to respond more effectively to market forces than seems to be the case. The relatively small number of importers of essential commodities and of providers of some services that have a significant weight in the retail price index is a disadvantage in this respect. There are governmental agencies whose responsibility it is to ensure that competition and price transparency prevail. Containing local costs, including government-induced costs, should also be a priority in this crucial ERM II phase. In its capacity as advisor to the government, the Bank takes every opportunity to express any concerns that it may have in this regard. 8. In addition to the short-term pressure of the Maastricht criteria, there is the longterm reality of the welfare gap. Are you frustrated with the pace of pension reform? A sense of disappointment best sums up my feelings. I am all for consultation and consensus building, but the time comes when decisions need to be taken if further damage is to be avoided. This applies equally to the social welfare and health systems as it does to pensions. Last year the first cohorts of the baby-boom generation reached retirement age.

In the area of foreign exchange, there would no longer be a need to provide marketmaking facilities once the euro becomes our domestic currency, or to retain the current foreign exchange facilities offered to government at their existing level. Our reserve management role, however, would remain; not only to manage our own reserves, but also to manage part of the ECB’s portfolio. Likewise, the Bank would retain its function as issuer of notes and coins and would thus have to meet the local demand for euro. It would also need to analyse suspected counterfeit euro notes and coins. Particularly important will be the Bank’s role in providing a channel for both domestic and cross border, high value payments by linking our payment system with the Eurosystem’s TARGET, as well as in operating a mechanism for the cross border delivery of assets for collateralisation purposes. The adoption of the euro will also integrate further Malta’s financial system with that of the euro area, so that the Bank’s financial stability and internal audit responsibilities will assume a cross border dimension because weaknesses in any one Member State could impact directly on the stability of the entire system. For example, we will have to cooperate closely with other central banks and the ECB to prevent the emergence of systemic crises. This will involve strengthening our institutional and analytical capacities to detect potential vulnerabilities in our own financial system.
The emergence of mobile telephony, the ubiquity of the internet, availability of high-speed computing, advances in cryptography, and innovations in machine learning could all combine to enable rapid changes in finance – just as they are in other areas of the economy. FinTech’s true promise springs from its potential to unbundle banking into its core functions of: settling payments, performing maturity transformation, sharing risk and allocating capital. This possibility is being driven by new entrants – payment service providers, aggregators and robo advisors, peer-to-peer lenders, and innovative trading platforms. And it is being influenced by incumbents who are adopting new technologies in an effort to reinforce the economies of scale and scope of their business models. In this process, systemic risks will evolve. Changes to customer loyalties could influence the stability of bank funding. New underwriting models could impact credit quality and even macroeconomic dynamics. New investing and risk management paradigms could affect market functioning. A host of applications and new infrastructure could reduce costs, probably improve capital efficiency and possibly create new critical economic functions. The challenge for policymakers is to ensure that FinTech develops in a way that maximises the opportunities and minimises the risks for society. After all, the history of financial innovation is littered with examples that led to early booms, growing unintended consequences, and eventual busts.

And I learned with time that the former got more from the bank because I and it knew more about them and what they needed – whether a savings product or a loan. The bank got more from them in terms of revenue and reliability (helpful given that two small banks had recently failed). Indeed, as my province was in a deep recession at the time, loyalty and understanding mattered. It could mean the difference between a restructured loan that could be repaid and a foreclosure that would bring liquidation. In short, I was at the front line of a banking value chain – one that is now being impacted across its components by FinTech. Traditional universal banks combine the customer relationship, retail and commercial deposits and lending, and a wide range of activities in wholesale money and capital markets. 2  The FSB defines FinTech as technologically-enabled financial innovation that could result in new business models, applications, processes or products with an associated material effect on financial markets and institutions and the provision of financial services. 4  All speeches are available online at www.bankofengland.co.uk/speeches  4  Diagram A: Financial Services Value Chain  Payment services traditionally relied on cash, debit and credit cards, and wire transfers. Now FinTech companies are providing domestic and cross-border payment services on significant scale through “digital wallets” or pre-funded “eMoney”. Tech firms take a slice of payment revenues and, in many cases, the totality of customer transaction data.
We met in the wake of the Fed’s move to cut interest rates which was widely welcomed as timely and appropriate, demonstrating sensitivity to the possibility of a spiralling decline in financial market and business and consumer confidence. We noted, too, that in announcing its move the Fed had made a point of emphasising its expectation of continuing relatively strong productivity growth, giving it more room for manoeuvre than it would otherwise have. Against that  background, the view was that, while the US economy might be in for a bumpy ride over the next few months, associated for example with inventory adjustment in the motor industry, the likely outcome for this year as a whole is that the US economy will continue to grow, by perhaps 2-3%, and that the overall world economy – helped by steady growth in the Eurozone – would again this year grow probably at somewhat above its longer-term average rate. That, certainly, is a slowdown in the recent rate of growth – and a downward revision of earlier expectations of growth for the current year; but it is not a downturn in the sense of contracting activity.

In some cases, new guidelines are altogether needed for regulating new products and innovations such as mobile banking, internet banking and Islamic banking. The need for quick and appropriate responses to market developments and innovations while important also need to be balanced by a well designed regulatory framework that ensures the maintenance of a stable and sound financial system. Chairperson, the stability and soundness of the financial system is in turn, heavily dependent on the adequacy of capital. It is essential for the right balance to be struck between the need for banks to hold adequate capital to absorb losses and the need to ensure that capital requirements do not unduly constrain from lending to the real economy. It is also important that banks are not so highly leveraged relative to common equity as to create incentives for excessive risk taking. The required capital ratios should therefore be viewed in the context of the high quality capital – Core Tier 1 and Tier II definitions and should exclude subordinated debt as providing relevant support. Distinguished delegates, Basel II provides a pragmatic approach to determining overall capital levels. It introduced a new approach to the definition of relative capital requirements to be held against specific asset categories. The challenge in this approach is in deciding what an optimal level of capital is especially in light of massive scale of economic losses now being suffered as a result of the banking system collapse.
Emissions need to fall at a much faster pace than seen so far if we want to avert irreversible damage. I am hopeful that the lessons we draw from the COVID-19 crisis may end up helping to tackle climate risks, not least by showing us that when faced with global challenges, we need to – and indeed can – respond with joint solutions. To reduce carbon emissions all the way to zero by 2050, joint action at the global level is just as vital. Today I have listed some of the ways in which, through our supervisory action and as part of international networks, the ECB is compelling banks to account for climate change – when managing risks, selecting their board members and devising stress scenarios. Climate-related risks show up in the already existing risk categories – as such, we will treat them with the same rigour, toughness and importance as we treat other material risks. And we expect banks to do the same. Urgent action is not an option; it is an imperative. 1 OECD (2017), Investing in Climate, Investing in Growth, May. 2 International Energy Agency (2021), Global Energy Review, April. 3 See the Bulletin of the American Meteorological Society entitled “Explaining Extreme Events from a Climate  Perspective”; and the Climate Signals database. 4 ECB (2020), Financial Stability Review, May. 5 De Guindos, L. (2021), “Shining a light on climate risks: the ECB’s economy-wide climate stress test”, The ECB  Blog, 18 March. 6 Available on the ECB Banking Supervision website.

And climate-related risks being adequately represented on banks’ balance sheets will contribute to these risks being appropriately priced. So if ECB Banking Supervision recognises the financial risks emanating from climate change, this will have a dual effect – it will compel banks to take these risks into account, which in turn will induce companies and households to factor them in as well. This alone will not fully internalise the damage caused by greenhouse gas emissions; other institutions are in charge of making sure of that. But it is an important piece of the puzzle. The urgency to act – climate change is irreversible The EU has committed to becoming carbon-neutral by 2050. The change that our economies need to undertake must be structural. We must reduce the use of fossil fuels as quickly as possible and move towards greener infrastructure that can support the global economy in a way that is sustainable and that protects our planet’s ecosystems and biodiversity. 1/5  BIS central bankers' speeches  Much has been made of the dip in carbon emissions that resulted from the economic shutdown in 2020 in many countries. But to reach the Paris target, every single year we need reductions in emissions that are greater than last year’s, and we need to bring about these reductions by ramping up the use of clean technologies, not by shutting down our economies. Unfortunately, even the too-small drop in emissions we saw last year seems set to be all but reversed in 2021.
In addition, the UK Commissioner for Public Appointments, who is responsible for reviewing the appointments of senior officials of more than 300 public agencies, approves the other appointments on the central bank’s Court of Directors. 7  According to Issues in the Governance of Central Banks, a study published by the Bank for International Settlements (BIS) in 2009, the power to appoint the Governor of most central banks lies with the Head of State or the Prime Minister (60% of the 47 institutions surveyed), while in 23% it lies with the Government or the Minister for the Economy and in just 11% with Parliament. In turn, according to the OECD (2016), “Being an independent regulator”, in most cases (more than 60%) it is the executive that nominates and appoints the members of senior management of regulators in the countries analysed. 7  I believe it would also be desirable to unify to some extent procedures for appointment of the senior officials of the various independent agencies existing in Spain. These procedures are currently highly disparate. The possible introduction of improvements in the appointment of institutions’ senior officials could also be accompanied by a reflection on their terms of office. Terms that extend beyond the electoral cycle are crucial to reinforcing the independence of individuals and, ultimately, of the institutions themselves.

First, we will put together programmes which will not only develop depth in core competencies but also breadth across related functional capabilities. A successful career in finance today requires versatility across different areas, be it to offer comprehensive solutions to customers or manage risks holistically across multiple business lines. 2  BIS central bankers’ speeches  Second, we will build expertise and capabilities to serve and operate not just in Singapore but in a pan-Asian financial market. With the surge of opportunities in Asia, those with the knowledge and skills to operate across regional markets will be in high demand. These are capabilities that we must consciously seek to build amongst our professionals. IBF does not operate in a vacuum but in the larger context of what it takes to develop and grow the financial sector – to create meaningful jobs for Singaporeans, support the needs of the economy, and serve the larger region. It is now my pleasure to welcome our Guest-of-Honour, Deputy Prime Minister and Minister for Finance, Tharman Shanmugaratnam, to talk to us about this larger context. It is especially appropriate that DPM Tharman is doing this as he is himself an IBF Pioneer who, as IBF Chairman some 14 years ago, transformed IBF to set competency standards for the industry. DPM Tharman, please. BIS central bankers’ speeches  3
Taking advantage of this opportunity wisely can benefit exporters immensely. The second source of opportunities is the upcoming regional economic integration. With the advent of the ASEAN Economic Community (AEC), intra-regional trade volume will grow given that more trade barriers are removed. With its geographical advantage, especially its proximity to the vibrant CLMV countries, Thailand gets a head start in positioning itself as an investment and production hub for the AEC, although this requires continued efforts on minimizing regulatory burdens for businesses and increasing regional connectivity by strategic investment in logistics and transportation systems. After all, combining the capital and the technology of more advanced members with the cost advantage of newer members will result in a synergy that benefits the region as a whole. It should be noted, also, that the rising significance of intra-regional trade will serve the region well as an additional buffer against weak global environments. 4  BIS central bankers’ speeches  To support Thai businesses to seek investment opportunities abroad, the Bank of Thailand continues to gradually relax capital flow regulations, initially on outward direct investment and more recently on portfolio investment for Accredited Investors. On a related note, to facilitate banking integration, ASEAN central banks are also in the process of negotiating the common standard of Qualified ASEAN Banks (QABs), which will allow qualified banks to expand into other ASEAN countries with greater ease.

I enjoy interacting with people whom I have a common interest and even those who have different views on several issues. In closing, let me reiterate that I have no doubt that the Alumniportal Deuschland will enable alumni to tap into an invaluable source of skills, vast experience and necessary expertise in many areas of development. It will link people beyond professional and cultural boundaries and organisational sectors meaning that it will act as a catalyst for rapid and continuous success. In a global world, success can only be guaranteed from long term cooperation and constant interactions with business partners and friends. Let us build our potential through the Alumniportal and in effect add to our own successes. I thank you. 2  BIS Review 150/2008
Chart 7: Canadian and Australian banks better  Chart 8: Real short-term interest rates were  capitalised than UK’s in 2005  generally lower in Canada and Australia Per cent 7 Australia  6  Canada  5  UK  4 3 2 1 0 -1 Sources: Bush, Guimaraes and Stremmel (2015). Tangible common equity as a share of total unweighted assets. 2005 and 2006 average. 10  1998  2000  2002  2004  Sources: Thompson Reuters Datastream and Bank calculations. See also Ferrero et al. (forthcoming). 8  All speeches are available online at www.bankofengland.co.uk/speeches  8  II: Some simple mitigants If this is right then the gains from formal co-ordination might not be that significant. Even a single, “joined-up” committee would generally find itself reaching for macro-prudential tools to control financial risk and using interest rates to moderate cyclical swings in demand and inflation. Shortly, in the next section, I’ll offer a more positive reason to keep some distance between the two policies. Before that, I should point out that, even in instances where there may be gains from policy co-ordination, there are things you can do within the existing framework. One involves the appropriate choice of secondary objectives. As I’ve tried to explain, the case for cooperation is stronger the more severe and frequent any conflicts between the respective objectives. There’s a very general result that puts the same point the other way around: if you give the two committees exactly the same objectives there is no co-ordination problem.

On 5 November, the Monetary Policy Committee (MPC) announced its decision to lower the Bank’s interest rates by 0.25 percentage points. This was done in view of the rise in the Bank’s real rate caused by the past few months’ decline in inflation and inflation expectations, which has been more pronounced than previously anticipated. The rise in the real rate was greater than is warranted by the business cycle position and the near-term outlook. In other respects, for the rationale behind the decision, I refer you to the MPC statement and the speech I gave at the Iceland Chamber of Commerce’s monetary policy meeting the following day. Naturally, we are also ready and willing to answer your questions about both this decision and the interest rate outlook. BIS central bankers’ speeches  1  Finally, I would like to mention that the MPC has been examining its monetary policy instruments in the recent term and, although certain changes have been made, this review is still underway. According to the statement from its March meeting, the aim of this review is primarily to ensure that monetary policy instruments are optimally suited to the achievement of monetary policy objectives, given that it is also desirable that monetary policy implementation be as effective, comprehensible, and economical as possible in terms of the Central Bank’s balance sheet. We are ready and willing to answer any questions that you have on this topic. 2  BIS central bankers’ speeches
Provisions of the new Act are being implemented through the newly established Department of Foreign Exchange in the Central Bank focusing on reducing restrictions, excluding ambiguities, simplifying processes and enhancing efficiency associated with foreign exchange transactions while striving for clarity and convenience. A significant amount of work needs to be done to improve Sri Lanka’s global ranking in the implementation of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulations. The Financial Intelligence Unit of the Central Bank is taking several measures to address this with the assistance of key government Ministries and Departments as well as stakeholders such as Licensed Banks, Licensed Finance Companies, Regulators, Stock Brokers and Insurance Companies, and continued to enter into new MOUs with other country FIUs. The Central Bank has already initiated several measures to enhance the economic stability of the country and it will continue with this endeavor in the future as well. Given improved economic fundamentals and stability, it is expected that the government will implement the  6  necessary policy reforms to uplift the economy from the prevailing low growth trajectory to reach its potential level. The government’s Vision 2025 unveils the future policy direction of the country. The Vision envisages transforming Sri Lanka into a hub of the Indian Ocean, with a knowledge-based, highly competitive, social-market economy. Accordingly, considering the limited scope of the domestic market, sustained future economic growth would have to be generated from external demand.

Actions will be taken to amend/repeal Financial  23  Transactions Reporting Act No 6 of 2006 (FTRA) and Prevention of Money Laundering Act, No. 05 of 2006 (PMLA) in line with international recommendations. We will also facilitate and coordinate with stakeholders to amend the Mutual Assistance in Criminal Matters Act (MACMA), NGO Act and Trust Ordinance. In 2014, an AML/CFT National Risk Assessment (NRA) was conducted by the Central Bank with the support of more than 70 professionals representing key stakeholders. In 2018, we will take actions to update this NRA report. We will also coordinate with the Information and Communication Technology Agency of Sri Lanka (ICTA) to assist stakeholders to develop individual databases to maintain statistics in relation to AML/CFT. Moreover, we will coordinate with the Ministry of Foreign Affairs (MOFA) and other stakeholders to implement UN Resolutions on proliferation financing (UNSCR 1718 and UNSCR 2231). Further, we will continue to coordinate with the international community, including the Egmont Group, to fulfil our international obligations and to strengthen cooperation. During the year 2017, the Central Bank continued to strengthen the regulatory framework for the microfinance sector by issuing directions to licensed microfinance companies and principles, standards and guidelines to the Registrar of Voluntary Social Service Organisations, for the regulation and supervision of Microfinance NGOs.