samchain/econo-pairs-v1 huggingface dataset:
Tony Latter: Just another financial centre – or is Hong Kong special? Address by Mr Tony Latter, Deputy Chief Executive of the Hong Kong Monetary Authority, at the Foreign Correspondents Club, Hong Kong, 25 April 2001. *  *  *  A quarter of a century ago many people in Hong Kong were seriously worried about the shrinkage of our manufacturing industry. Other locations in the region were showing signs of becoming increasingly competitive, and there was the emerging prospect of activity migrating across the Mainland border. In retrospect, should we have been worried at all? Hong Kong's economy was performing well enough overall, and the service sector was growing at the expense of manufacturing as part of what proved to be a progressive and relatively painless process. Today people express concern about loss of competitiveness in those very services which have been ensuring our continuing prosperity in the intervening years. Back-office functions, which first migrated from Central to Quarry Bay or Kowloon, are now moving to Guangdong - or maybe India or wherever. Should we worry? What will fill the gap? Is Hong Kong so expensive a place that it has priced itself out of range of any prospective business growth? At the microeconomic level there will always be understandable and, especially in the social context, justifiable concern for the individuals who face uncertainties or job losses as a result of restructuring within the economy. But at the macro level this is part of evolution. The economy cannot progress without it.

In autumn 1997 the Riksbank accordingly presented its first more cohesive public analysis of financial stability. The new report was intended to signal the importance the Riksbank attached to work on stability and it also helped to focus and develop the internal efforts. The experience of work on the Inflation Report had been encouraging, so it seemed natural to build up the work on and communication about issues to do with stability in the same way. By launching the Financial Stability Report or, as it was called initially, the Financial Market Report, the Riksbank was the first central bank to issue a public account of its appraisal of financial system stability. Its example has been followed to date by about thirty other countries. Recurrent financial crises have made it clear that there will always be problems which the authorities are obliged to address in some way and it may therefore be of some assistance to have a clear, structured presentation of the approach to financial stability. This has led the International Monetary Fund, for example, to pay growing attention to these issues. Since 1999 the IMF and the World Bank are engaged in joint evaluations of national financial systems in what is called a Financial Sector Assessment Program. Matters to do with stability are also on the agenda almost every time I meet my colleagues from other countries. BIS Review 53/2003  1  Principles for financial system oversight First I should perhaps reiterate what we mean by the financial system.
• And beyond MyInfo, we have to think of more advanced forms of KYC for more sophisticated use cases. A Blockchain Infrastructure for Cross-Border Interbank Payments Another big pain point is cross-border interbank payments. Today, banks have to go through correspondent banks to intermediate these payments. It takes time and adds to cost. MAS, the Singapore Exchange, and eight banks have embarked on a proof-of-concept project to use blockchain technology for inter-bank payments, including cross-border transactions in foreign currency. This effort is supported by the R3 blockchain research lab and BCS Information Systems Under the pilot system, banks will deposit cash as collateral with the MAS in exchange for MASissued digital currency. The banks can later redeem the digital currency for cash. Participating banks can pay each other directly with this digital currency instead of first sending payment instructions through MAS. This is an improvement over current large-value payment systems that are centrally operated. It strengthens resilience and lowers cost. The banks also have the option of using the existing common payments gateway provided by BCS Information Systems to transact on the blockchain. The banks need not rewrite their back-end systems. This practical capability rides on the advances made by OCBC Bank in its recently announced inter-bank payments pilot. This project marks the first step in MAS’ exploration of ways to harness the potential of central bank issued digital currency. The next phase of the project will involve transactions in foreign currency, possibly with the support of another central bank.

IT systems and websites are vulnerable to attack by criminals. Attacks can put services out of order and reduce confidence in the systems. Attacks take ever newer forms. This requires that system owners keep updated on the various kinds of attack. The establishment of FinansCERT by Finance Norway is a sound measure in this regard. In addition, participants must ensure robust defences against attack. This will not be any easier in the period ahead. Nevertheless: if we are to reap the benefits of IT and online services, a substantial use of resources on monitoring and security is a price we must pay. Banks and Norges Bank must in the worst case deal with situations where all or part of the payment system has been put out of action. New technology may in the longer term usher in new contingency arrangements. Even so, to date no sufficiently adequate alternatives have been documented to allow cash to be written off as a part of the overall solution. 8  Appendix F in the CPMI-IOSCO principles. BIS central bankers’ speeches  5  Finanstilsynet and Norges Bank are now examining closely contingency preparedness for both electronic payment and banks’ contingency arrangements for cash distribution. Norges Bank shall ensure that society has access to cash as a means of payment. Banks can make cash withdrawals based on deposits in Norges Bank. The general public go to their banks to withdraw cash. The Government presented a bill for a new Financial Institutions Act before summer.
1 There are lessons to be learnt from past crises as we build stronger central counterparties. The Basel Committee on Payment and Settlement Systems (CPSS) and IOSCO are working on this. But we need to go further than that. We need to think – and we are thinking carefully – about how to put more of the OTC market either on to exchanges or through trading platforms with greater transparency. In this particular area the United States is acting ahead of Europe. That doesn’t matter. It is not a race and there is co-operation going on through IOSCO, with central bank support, that should reach fruition over the next few months in a report to the FSB. Large exposures Central counterparties are one way to mitigate the interconnectedness. Another, complementary route would be regimes that are more attentive to the network of large exposures that exists between our banks and dealers etc. The EU has been taking a step forward internationally in applying large exposure restrictions to interbank exposures for the first time. This is a big step; one that is welcome to the Bank of England. The question I would like to pose is whether, globally, we should go even further in respect of large exposures amongst the largest institutions in the world. One of the greatest worries under stress is the size of the exposures amongst the biggest and most complex firms. BCBS are contemplating it.

The debate about putting more activity through central counterparties is an example. Frankly, it could have taken place a decade ago, and it is a crying shame that it didn’t. The reason it didn’t was that no one came into work thinking that it was their job to think about that and that they had a responsibility for taking a system wide perspective and actually doing something. 2  See Tucker, P M W (2010), “Shadow Banking, Financing Markets and Financial Stability” at BGC Partners Seminar, London, January 2010. 4  BIS Review 145/2010  Institutions are now being created around the world – the Financial Stability Oversight Council in the US, the Systemic Risk Board in the EU, the Financial Policy Committee in the UK – which I earnestly hope will bring that kind of perspective to our work. And the final area is leaning against the credit cycle when it threatens stability. The zeitgeist embraced the seductive idea that either there wasn’t a bubble or if there was a bubble that there was nothing you could do about it. Which was dangerous nonsense, as events have proved. This is not about fine tuning the credit cycle. But we do need to be prepared to take the punchbowl away before the party gets completely out of control. That was the view 50 years ago. Forward to the past.
In this, central banks of the time viewed acting through foreign central bank correspondent accounts as preferable to acting through private intermediaries. Central banks’ mutual need for safe, confidential, and reliable account services The need for reciprocal relationships continues to resonate with central banks today even following the demise of the international gold standard and major changes in the international monetary system over the past one hundred years. Why do central banks value these relationships so highly? 2/8  BIS central bankers' speeches  Safety, confidentiality, and reliability are strong motivations for the reciprocal provision of banking and custody services among the world’s central banks. In particular, central banks around the world have a mutual need for correspondent banking12 and custody services to execute on core central banking functions in which the safety, confidentiality, and reliability of service provision is essential. This befits the character and role of central banks as highly risk-averse stewards of national wealth. It reflects the imperative for central banks to maintain untarnished credibility in the formulation and implementation of monetary policy, and an unblemished reputation in the operation and oversight of domestic and cross-border payment systems. And it is driven by central banks’ responsibility to safeguard financial stability. This results in central banks often preferring, and sometimes requiring, foreign reserve managers to use the account services of fellow central banks.

Whether for time-sensitive transactions as part of the often intricate choreography of global financial stability operations or for more routine official payments, the insights developed and experiences with the policies, environments, and constraints of other central banks provide the Federal Reserve with enhanced capabilities to formulate and execute policies. The dedication, skill, and expertise of this staff transform on a daily basis the abstract principle of safe, confidential, and reliable service provision into an operational reality. So, to the current and former staff here today, I pay tribute to your service to the global official community, to the Federal Reserve, and to the U.S. You are worthy heirs to the legacy of Benjamin Strong, Montagu Norman, and other early giants of central bank cooperation. The evolving risk environment in cross-border payment operations Even as we hold this commemoration and celebrate the legacy of central bank cooperation in this most tangible of forms, the evolving risk environment in cross-border payment operations requires us as central bankers to continually rededicate ourselves, in word and deed, to the mission of providing safe, confidential, and reliable services to each other. As we are all no doubt aware, risks in cross-border payment operations have undergone major shifts in recent years, with cyber threats in particular emerging as one of the most critical security issues facing our community.
Overall, the picture is of a much larger, much more diverse and potentially considerably more complex set of channels of intermediation than in the past. Of course, this stylised map offers only the most cursory of indications of the true degree of complexity in individual interactions within and between sectors. (d)  Complexity of global macro-financial interactions  A final dimension to network complexity is the global one. There has been a dramatic rise in the scale of global trade and, in particular, capital market integration over the past few decades. Both are now at their highest levels for several centuries and, most probably, ever (Chart 10). 8  BIS central bankers’ speeches  For global trade, Chart 11 compares trade flows across 70 countries constituting around 80% of world exports at two dates – 1995 and 2013. The size of the nodes reflects the importance of a country to world trade and the thickness of the links the size of trade flows. It is clear that the wiring of the international trading systems has become considerably more dense and complex over this period, reflecting the deepening and lengthening of global value chains (OECD (2013), de Backer and Miroudet (2014)). This highly interconnected and complex set of global supply chains has the potential to propagate disturbances much more virulently than in the past, as two recent events illustrate. The first was the correlated collapse of world trade during the financial crisis. Between 2008Q1 and 2009Q1, real world trade fell by almost 15%.

For example, the CRISIS (Complexity Research Initiative for Systemic Instabilities) project is a consortium of EU universities, private firms and policymaking institutions which is building large-scale calibrated models to capture sectoral behaviour, including between the economy and the financial system. 12 At national level, promising progress has also been made in developing ABM models of the housing market. For example, Geanakoplos et al (2012) develop a regional model of the US housing market, which does a much better job than aggregate macro-economic models in matching housing market patterns, both in in the run-up to, and following, the financial crisis. As part of its new research agenda, the Bank of England is working currently with the Institute for New Economic Thinking (INET) at Oxford to try and develop an ABM model of the UK housing market. 13 As with Geanakoplos et al (2012), the aim is to provide a calibrated, granular model which better captures the dynamics of the housing market. It could also, potentially, be used to help evaluate the efficacy of macro-prudential interventions in that market – for example, policies which alter mortgage loan-to-income or loan-to-value limits. A third promising area of research concerns the interaction the macro-prudential and macroeconomic layers of the system – that is, the interplay between macro-prudential and monetary policy tools. This is another priority area for the Bank’s new research agenda. Although these policies have distinct primary objectives, their transmission channels are likely to be closely interwoven, with both affecting risk-taking and economic activity.
Given the rapid growth of the hedge fund industry, a natural focal point is the nature of the relationship between record industry inflows, diminishing returns and the potential use of excessive leverage. Again, the basic argument is a simple one: Elevated hedge fund investment returns in the past have tended to attract a large number of new entrants into the hedge fund industry. Increasingly, these new entrants and their activities tend to eliminate market inefficiencies which had, to a large extent, accounted for the past high returns. With diminished returns, hedge funds are finding it difficult to justify their elevated fee structure. In an attempt to preserve returns commensurate with their fees, hedge fund managers might be driven to resort to increasingly elevated levels of leverage. The data on flows and returns suggest that at least some components of such a dynamic are currently at work. Record inflows to the hedge fund industry during the first quarter of 2004 have indeed been followed by unsatisfactory performances throughout most of the hedge fund industry during the second quarter of 2004. Leverage figures are much harder to assemble and to interpret than flow and performance data. The Bank of England recently concluded that overall leverage in the hedge fund industry had not markedly increased and remained moderate compared with the 1997-1998 period. On balance, however, it is not particularly useful to put too much stock in such cursory assessments of industry leverage. First, the data aggregation problem is significant.

From that time, daily and monthly variations in the krone exchange rate show that the krone is floating. Our analyses suggest that oil price fluctuations are just one of several contributory factors behind the variation in the krone exchange rate in recent years.4 In the short term the krone exchange rate is also affected by uncertainty in the global economy and turbulence in international financial markets. The Exchange Rate Regulation - which is the mandate assigned to Norges Bank by the political authorities - states that monetary policy shall be aimed at maintaining a stable krone exchange rate  4  See Bernhardsen and Røisland (2000). 7  BIS Review 105/2000  against European currencies. Since 1 January 1999, Norges Bank has defined European currencies as the euro. The Exchange Rate Regulation takes into account that the krone exchange rate may remain outside its normal range. In the event of significant changes in the exchange rate, Norges Bank shall orient instruments with a view to returning the exchange rate over time to its initial range. The concept “significant changes” is not quantified. The term must be given an economic content. Norges Bank considers an exchange rate change to be significant if it influences expectations concerning price and cost inflation to the extent that the change in the exchange rate may become self-reinforcing.
As primary dealers, you play an important role in implementing best practices internally and supporting the integrity and efficiency of markets. The TMPG’s and the FXC’s best practices are intended not only for dealers or market makers, but for all participants active in the relevant market. Your firms are important first adopters of best practices given your positions as central nodes. We also expect you to be engaged in a process to proactively identify emerging risks and vulnerabilities, and to suggest improvements to best practices as market structure evolves. We highly value your role as responsible counterparties and market participants, and expect your continued engagement and support in maintaining fair and effective markets. Thank you. 22  For instance, FINRA recently amended its Margin Requirement rule to establish margin requirements for forward-settling TBA transactions and noted that its proposal was “informed by the set of best practices adopted by the Treasury Market Practices Group.”  BIS central bankers’ speeches  7

Mario Draghi: Opening statement at Deutscher Bundestag Speech by Mr Mario Draghi, President of the European Central Bank, at the discussion on ECB policies with Members of Parliament, Berlin, 24 October 2012. *  *  *  Dear President Lammert, Honourable Committee Chairs, Honourable Members of the Bundestag, I am deeply honoured to be here today. As President of the European Central Bank (ECB), it is a privilege for me to come to the heart of German democracy to present our policy responses to the challenges facing the euro area economy. I know that central bank actions are often a topic of debate among politicians, the media and the general public in Germany. So I would like to thank President Lammert and all Committee Chairs most warmly for this kind invitation – and the opportunity it gives me to participate in that discussion. It is rare for the ECB President to speak in a national parliament. The ECB is accountable to the European Parliament, where we have scheduled hearings every three months and occasional hearings on topical matters. We take these duties of accountability to the citizens of Europe and their elected representatives very seriously. But I am here today not only to explain the ECB’s policies. I am also here to listen. I am here to listen to your views on the ECB, on the euro area economy and on the longer-term vision for Europe.
Caleb Fundanga: The cost of capital – wither the Zambian financial markets? Keynote address by Dr Caleb Fundanga, Governor of the Bank of Zambia, at the Zambia Institute of Chartered Accountants Annual Business Conference on “Change and the Paradigm Shift in the Accounting Profession”, Livingstone, 6 August 2010. *  *  *  The President of the Zambia Institute of Chartered Accountants; Mr Chintu Mulendema The Chief Executive of the Zambia Institute of Chartered Accountants; Mr Hapenga Kabeta Distinguished members of the Eastern, Central and Southern African Federation of Accountants Members of the Zambia Institute of Chartered Accountants Members of the Press Distinguished Guests Ladies and Gentlemen The theme for this symposium portends an important aspect of our daily lives, either at individual or corporate level. We are all, one way or the other, affected by developments in our financial markets. The role that finance plays in an economy is certainly an important one and you do not need to go far back in history for you to appreciate that role. You only need to make reference to the recent financial crises to appreciate the potency that finance has on economic activities. Chairperson, your choice of this topic therefore could not have been more appropriate. This topic is also timely given the current challenges that face many countries in the aftermath of the recent financial crisis, some of which seem to be just unfolding in some European countries.

In the non-bank financial subsector, growth of nonbank financial institutions offering bank-like products has also tremendously increased. As at end June 2010 there were 24 registered microfinance institutions while the number of leasing firms also increased to 12 over the years. Ladies and Gentlemen, apart from increasing the number of financial service providers, we have also scored some successes in the availability of credit to Zambians. In the period prior  BIS Review 105/2010  1  to the 2008 global financial crisis, the economy was experiencing not only phenomenal growth in credit availability but also a changing pattern in the distribution of credit. Annual growth in credit peaked and averaged 131% between 2000 and 2008 before succumbing to the adverse effects of the global economic crisis. With regard to the direction of credit, it is heartening to note that bank loans, which have been largely a preserve of corporate businesses for a long time, are finally within reach of our many working Zambian individuals. Ladies and Gentlemen, the flow of credit to individual workers has literally exploded in recent years. You may wish to know that personal loans, which stood at a paltry 6% of total bank loans at the turn of this decade now account for 26%. You may also remember the aggressive manner in which commercial banks rolled out their loan products in the period prior to the 2008 global financial crisis.