samchain/econo-pairs-v1 huggingface dataset:
We hope that you would have a better appreciation of why the Bank of Thailand needs to call for even more on your directorship role. But before I dwell into the topic of the duties of directors, let me take this occasion to extend to you my deepest appreciation and thanks for the tremendous efforts and cooperation you have given the Bank of Thailand in the course of the year. Your institutions have continued to lend strong and valuable support to the recovery programme for the businesses affected by the Tsunami disaster, and those affected by the violence and unrest in the three southern provinces, by extending the concessional lending programme for another year. To support the reform in the banknote management system, you have made substantial changes to your operation nationwide to take on the additional role of handling and moving banknotes. This cooperative spirit truly demonstrates a shared understanding of the benefits of reform, despite the adjustments required on your part. Last year we also had a cause for celebration with the progress made in the Data Management System which helped improve efficiency of the reporting system for financial institutions, customers, and foreign exchange transactions data. Going forward, we continue to receive full cooperation from banks in building the country’s economic database. The project is expected to be completed this year. Turning to the payments system, the ITMX project designed as infrastructure for a modern payment system, has also made tremendous stride with the full cooperation of all Thai banks.

It is also a good opportunity to bring to your attention the role that the Board can play in risk management, pointing out the way in which your responsibility can be carried out which need not be unnecessarily complex yet effective, and which should allow you to fulfil your role with greater confidence. The directors who are already meeting or exceeding these principles and standards should take today’s talk as confirmation of your framework, while others may find some of the points useful addition to your own practice. The direct result of such principles is the strength and soundness of your banks, and ultimately the integrity of our financial system, allowing it to better absorb shocks, both domestic and abroad. Thank you. BIS Review 25/2006  5
The fundamental goals of the program are: •  to eliminate inflation,  •  to achieve a sustainable fiscal position,  •  to establish a more equitable and efficient distribution of resources,  •  and to increase the growth potential of the economy. 1  BIS Review 9/2000  The program will accomplish these goals through a number of policy reorientations. The primary fiscal balance will shift, in the first year, from deficit to a surplus position consistent with long-term fiscal sustainability, and will remain high until the price stability has been established in the economy. To reinforce program credibility and support the fiscal stabilisation, the program’s design is front loaded, with most of the required structural measures being taken at the outset. A first priority will be to diversify the financing of the deficit. Net external financing for the public sector will increase, and this, together with the primary surplus and other measures, will make it possible to lower the level of real domestic interest rates. A strong and credible exchange rate policy, established at the beginning of the program, will break the cycle of the public’s inflationary expectations based on past experience. Both monetary policy and public sector wage policy are being subordinated to the exchange rate target. Now let me go into some details of this strategy. Action to eliminate, quickly and permanently, the high public sector deficit is among the priorities of the program.

This in turn will increase the demand for Turkish Lira, while decreasing the demand for foreign exchange. Provided there are no major exogenous shocks to the system during the program period, we expect the Central Bank’s net international reserves to remain at comfortable levels. The floors established for net international reserves for the four quarters of 2000 are $ 12 billion, $ 12.5 billion, $ 12.5 billion and $ 13 billion respectively. If for any reason net international reserves threaten to fall below these levels, the Central Bank will take measures needed to counter these trends. The exchange rate band mechanism will provide greater flexibility for net domestic assets after the second half of 2001. And as a result of this greater flexibility, the contribution of monetary policy to the attainment of the inflation target will grow as the influence of monetary policy on interest rates increases. Finally, I should explain the changes we are making in the reserve requirement system. We are beginning to implement reserve requirements more flexibly in order to make it easier to meet banks’ temporary liquidity needs and enable them to manage their liquidity more efficiently in the course of their operations. 3  BIS Review 9/2000  A sound banking system is an essential prerequisite for the efficient implementation of monetary policy. This is all the more true under a rule-based monetary policy regime. We announce the rules of the game clearly to the players in the expectation that they will follow them efficiently and fairly.
As an example, in the FX market, concerns were raised about the integrity of FX rate benchmarks, particularly around incentives for potential market malpractice linked to the structure of trading around the benchmark fixings, such as the WM/Reuters 4pm London fix. The WM/Reuters fix is one of the long-standing and dominant benchmarks used in the market. It was structured in a way that created an incentive for dealers to “trade ahead” of clients at the fix and also an opportunity for them to influence exchange rates. The FSB’s FX benchmark working group produced recommendations that called for a change in methodology around the structure of the fix and changes in firms’ trading behavior at the fix. Guidance suggested that firms establish and enforce internal guidelines and procedures for collecting and executing fixing orders, such as separate processes for handling such orders. In addition, the group recommended that transactions conducted at to-be-determined levels be priced in a manner consistent with the risk borne in accepting such transactions through such methods as applying a bid-offer spread or a direct fee. The Global Preamble, published by the FXC in coordination with other FX committees, supported and reinforced the FSB’s FX benchmark recommendations. 15, 16 Since the release of the recommendations, a number of changes have been made. For example, there is a new structure for certain FX benchmark rates, including the WM/Reuters fix. Many dealers have changed how they provide FX benchmark execution, with a growing emphasis on the use of algorithmic execution and a more transparent pricing structure.

In turn, the budgetary consolidation measures and the cyclical improvement in the economy have brought about a decline in the public spending/GDP ratio, largely owing to the improvement in spending once interest on debt is discounted. Interest payments as a proportion of GDP held at a similar level to 2013, despite the significant decline in the Treasury’s financing costs, owing to the increase in public debt. The public debt/GDP ratio rose in 2014 to 97.7%, thereby meeting forecasts. The latest Updated Stability Programme (which confirms the deficit targets to 2017) presages a continuing increase in debt this year to 98.9% of GDP, with a reduction commencing in 2016, although the better growth now projected for 2015 may improve these projections. 2  BIS central bankers’ speeches  Private-sector deleveraging Secondly, there has been headway in correcting private-sector indebtedness. Spanish household debt stood at end-2014 at 71% of GDP, 10 pp above the euro area average, when in 2010 we were 20 pp above it; non-financial corporations’ debt stood at the end of last year at 92% of GDP, 8 pp above the euro area average, when in 2010 the gap was 35 pp. In the coming years, the nominal growth of the economy will make for a readier adjustment and will ease the pressure still exerted by past debts on new financing flows. Indeed, new lending was seen to expand in 2014, and this has continued into the opening months of 2015.
We also would like to see a more determined effort to provide more transparency and clarity in these systems’ procedures and settlement activity, so that participants and members have a heightened understanding of their obligations and exposures in a situation that would test a system’s risk controls. The safety and soundness standards for payments and settlement infrastructure have been complemented by sound practices for operational resilience. During the past three years, core clearing and settlement organizations in the U.S. have come a long way toward meeting more demanding objectives for recovery and resumption. Going forward, it is important that the major firms maintain a level of resilience that is commensurate with their essential positions in the financial system. Over time, we expect firms will take advantage of cost-effective improvements in technology and business processes to increase, where needed, the geographic diversification of their back-up sites. We also expect senior management at each firm to assure itself through rigorous testing that their firms can, in fact, rapidly recover or resume their important settlement activity. We also need to continue to pay more attention to how to reduce the threat of cyber-attacks. Beyond the direct financial  2  BIS Review 59/2004  losses from criminal activity, these threats pose a broader risk to confidence in the integrity of financial institutions, payments systems, and ultimately, the global payments network. This is a growing challenge, and it will require a major ongoing commitment of resources.

Participant or member discipline should complement the work of payments system overseers, in a role analogous to the market discipline applied by counterparties to financial institutions. Clearing and settlement arrangements for OTC derivatives As we look at the evolution of the global payments system, one critical area that deserves further attention by market participants and central banks is the clearing and settlement arrangements for the over-the-counter derivatives market. This is an area where the innovation that has driven rapid growth has not been matched by a comparable investment in the infrastructure for post-trade processing. Because of the relatively slow development of clearing and settlement services for the OTC derivatives market, dealers and their counterparties have been forced to assume and manage risks that are largely avoidable. Unexecuted confirmations create unnecessary legal risk for counterparties and can add to replacement cost risk. Delays and errors in settlement add cost and liquidity risk. There are a number of important efforts by the private and official sectors that offer the promise of progress. The effort underway by the industry to standardize documentation, automate confirmation  BIS Review 59/2004  3  procedures, and match and reconcile payment flows is very important. The Fed has played a role in shaping recommendations for close-out netting on a cross-product basis, and has been strongly supportive of efforts to put these provisions into U. S. law.
The second emerging trend that I highlighted earlier relates to technological advancement in recent years, which has drastically transformed the ways in which banking and finance can and should be conducted in the real world. Technology has provided many new and very convenient means to conduct financial transactions, ranging from the basic payment and banking services to the more sophisticated trading and investment activities. While very few people would dispute the convenience and speed in which new technology can offer in financial services, there is an important catch that no regulators should and could overlook. The issue is whether the new technology is safe enough for the consumers and investors. 11. There are two aspects of safety: the operational dimension and the investor protection dimension. Just like the physical world, the digital space is full of risks. There is no lack of hackers and fraudsters who spare no time in stealing money  2  BIS central bankers’ speeches  from the innocent people. More fundamentally, the use of new technology does not in any way alter the nature of financial transactions. For example, the marketing and selling of financial or wealth management products through the internet or mobile devices carry the same, if not higher, risks as those sold through face-to-face channels. Does the public accept less or no consumer or investor protection, such as suitability test and product due diligence, simply because new digital technology is being used?

8 See ‘Fair and Effective Markets Review – Implementation Report’, July 2016, available at www.bankofengland.co.uk/markets/Documents/femr/implementationreport.pdf 7  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  7  It is why alongside the necessary development of ‘hard law’ to enforce minimum standards of conduct and accountability, such as the Senior Managers Regime, the Bank is using its influence to bring together market participants to solve collective action problems, for example, through the FICC Market Standards Board, to set expectations on behalf of broader society about expected behaviours and to encourage adherence to voluntary market standards. Addressing ethical drift – and persuading broader society that it has been addressed and that markets work for the benefit of society – is a huge challenge for financial markets and the financial centres in which they are concentrated. I do not want to go into detail tonight – though I would encourage you to read Minouche’s excellent speech on the subject. I would just want to emphasise one crucial point – industry leadership is and will remain vital if this challenge is to be met. Resilience and regulation  Restoring public support also requires authorities and the financial sector to demonstrate that the risks that are posed by large, very complex and highly interconnected financial markets can be effectively managed. I am not sure whether my namesake in 1914 would have recognised the term ‘financial stability’ let alone ‘macroprudential’ policy. There certainly was no Deputy Governor for financial stability in those days.
While this has positive spillovers for financial inclusion, more can and must be done to ensure that consumer protection policies are designed to adequately protect vulnerable groups, and ensure that financial innovation is pursued in a responsible manner. To address these issues, we are delighted this year to have the participation of the global standard setting bodies together with members of the AFI at this Forum. We share a common interest in seeking to lower the barriers to financial inclusion and to create a larger positive impact of policy measures on financial inclusion. An important starting point is for the global standards to reflect financial inclusion perspectives. The standards setters have pointed out that this is supported by the concept of proportionality which underpins the global standards. Of great importance is how this is going to be translated into practice. By drawing on the diverse experience of AFI members present at this Forum, it is hoped that we can start to build a common understanding of “proportionality in practice”. This is important not only to support the financial inclusion agenda, but also achieve the outcomes of financial stability and consumer protection that were intended by the global standards. This would also promote the wider adoption of these global standards. Increasing risks of financial exclusion Financial inclusion has now progressed from access to financial services, to also being concerned with whether the financial services are appropriate to individual circumstances, and are being used effectively to improve individual welfare.

The theme of the AFI Forum this year, “Driving Policies for Optimal Impact”, underlines the need for us to have a better understanding of the interactions between the objectives and effects of financial inclusion, financial stability and integrity, and consumer protection policies. This need has become more pronounced with the recent global developments. Global prudential standards have been significantly strengthened and are increasingly applied to financial institutions in developing countries. This has heightened the practical challenges faced in implementing these standards in a socio-economic setting where promoting inclusive opportunity is an important objective. The same is also true with stronger standards to combat money laundering to safeguard the integrity of the financial system. In building a  BIS central bankers’ speeches  1  financial system that is resilient against crises and abuse, we cannot neglect the socioeconomic impact of policies pursued. Our efforts to build a stronger and more stable financial system would also work to strengthen linkages between finance and development and not to weaken it. Consumer protection regulation is also being significantly strengthened in many countries following the global financial crisis. This has been driven in large part by the recognition that an effective consumer protection framework serves not only to protect individuals from excessive risk; it also has an important role in protecting the financial system from systemic risk.
There is also a risk that large imbalances in world trade and low employment in Europe will trigger protectionism, which could reduce growth capacity even further. A pronounced slowdown in growth in the entire OECD area is also likely to lead to markedly slower growth in China and emerging economies in Asia because exports are an important driving force behind growth in the region. This could lead to an appreciable fall in prices for oil and other commodities and slackening activity in the shipping industry. In the same way that Norway has benefited strongly from the sharp international upswing in recent years, the Norwegian economy could be relatively hard-hit by such a downturn. For example, activity in the petroleum industry might decline considerably. The change in China’s exchange rate regime and the revaluation of the Chinese currency by 2 per cent will probably not cause substantial changes in the imbalances in world trade. However, the gradual occurrence of major changes in the same direction cannot be ruled out. This would reduce  demand for the US dollar. Subsequent developments will depend in part on whether the fall in demand for the US dollar is abrupt or gradual. Structural changes in world trade have been important for the Norwegian economy, not least for the rise in prices for imported goods and services. The shift in imports towards low-cost countries has come gradually since 2001. In the Inflation Report projections, we assume that the import pattern will gradually become more stable.

Jarle Bergo: The outlook for the Norwegian economy and the challenges ahead Speech by Mr Jarle Bergo, Deputy Governor of Norges Bank (Central Bank of Norway), at Norges Bank, Bodø, 25 August 2005. Please note that the text below may differ slightly from the actual presentation. The address is based on the assessments presented at Norges Bank’s press conference following the Executive Board’s monetary policy meeting on 11 August, Inflation Report 2/05 and on previous speeches. The references and the  Charts in pdf-format can also be found on the website of the Norges Bank. *  *  *  The economic situation The Norwegian economy is in an upturn and is now expanding at a brisk pace. Inflation remains low, but has edged up since last year. The risk of a fall in the level of prices and markedly lower inflation expectations has diminished. At the same time, there appears to be little risk that inflation will rapidly move up to a level that is too high. The reduction in the interest rate through 2003 and into 2004 has resulted in low real interest rates. For a period, the real interest rate has been considerably lower than normal. The low level of interest rates is supporting the high activity level in the Norwegian economy. The economic upturn is broad-based. At the beginning of the recovery, activity was primarily fuelled by private consumption, traditional exports and petroleum investment. In addition, growth in mainland fixed investment has gradually gained considerable momentum.
Of course, considerations of market sensitivity, commercial confidentiality, and statutory restrictions on disclosure of confidential information place some limits on the amount of material we can make public. Given the increasing transparency and the extremely limited discretion over the currency board arrangements, which draws its credibility from a strict rule-based system, a certain constructive ambiguity is also necessary if we are to have the flexibility to deal decisively with sudden crises. Within these limits, we are committed to developing our policy of transparency, and to increasing the quality and comprehensibility, and not just the quantity, of the materials we put out for public consumption. The challenges of this year We see it as one of our challenges to seek to maintain public interest in our work, even though it is possible that some of the controversies and concerns that sustained that interest in 1998 will fade away as economic recovery moves closer. This brings me to the prospects for the remainder of this year and beyond. I leave the predictions and forecasts to others in the Government entrusted with this task. But I think it appropriate to say something here about the monetary environment. Recent months have witnessed the return to a more stable monetary environment in Hong Kong. Speculative pressures on our currency have moderated sharply, allowing a significant decline in interest rates from the peaks last year. As you know, under the linked exchange rate system, our interest rates are closely tied to those in the United States in normal circumstances.

According to our estimates, annual inflation is expected to be higher than we forecast in April but lower than its current level. Due to the high base effect in the first half of this year annual inflation will return to the target only in the second half next year. Third. Monetary conditions remain accommodative. Interest rates on loans and deposits are low as compared to current and expected inflation. Our decisions to raise the key rate in March and April have not yet been fully reflected in banks’ interest rates. Banks’ lending and deposit rates are closely connected with yields on government bonds, OFZs. OFZs are risk-free ruble assets for banks and the pricing of all other ruble products of banks is pegged to them. OFZ yields with various maturities change together with the key rate, though to a different extent. The key rate impacts to the most extent the yields on short-term OFZs, with maturities of up to two-three years. These yields have increased significantly over the past two months. They will impact the cost of short-term loans and also deposit rates, which have already started rising. Meanwhile, yields on long-term OFZs are largely determined by long-term inflation expectations, the assessment of the macroeconomic policy stability, and external environment. The cost of long-term financing of investment projects as well as mortgage loan rates depend precisely on the yields on long-term OFZs.