samchain/econo-pairs-v1 huggingface dataset:
In the case of Malaysia, the High Court of Malaysia has dedicated high court judges to preside over litigation on matters relating to Islamic banking and finance. To undertake a holistic legal review, the Central Bank of Malaysia has set up a Law Review Committee to review the common law-based domestic legislations to assimilate the Shariah principles. The aim is to remove any legal impediments and ensure the unhindered and efficient functioning of the Islamic banking and  BIS Review 49/2005  5  financial system. The Central Bank Act has also been amended to provide for the establishment of a Shariah Advisory Council at the Central Bank as the sole authority and reference on all Shariah matters pertaining to Islamic banking and finance. The Islamic financial system today has emerged as an important component of the overall Malaysian financial system that contributes to the growth and development of the Malaysian economy. Since 2000, the domestic Islamic banking industry has been growing at an average rate of 18% per annum in terms of assets. As at end-2004, total assets of the Islamic banking sector increased to RM94.6 billion, accounting for 10.5% of the total assets in the banking system. The market share of Islamic deposits and financing also increased to 11.2% and 11.3% respectively. As the domestic Islamic banking industry progresses into a more advanced stage of development, significant developments are shaping the industry's financial regulatory infrastructure.

4  BIS Review 113/2010  Change in interest rate forecast over time  The interest rate forecast is an expression of a balance between various monetary policy considerations and a response pattern that households, firms and financial institutions can build on. The interest rate forecast is based on our understanding of the functioning of the economy. The uncertainty surrounding the interest rate forecast is highlighted in our fan charts with uncertainty intervals around the interest rate forecasts. The forecasts have shifted considerably over time. This reflects that the interest rate is an instrument that should react to all news that may influence the inflation outlook. Publication of interest rate forecasts – how does the market react? When we started forecasting the interest rate in 2005, we could refer to the experience of New Zealand 2, which had just experienced pronounced shifts in the interest rate and interest  2  The chart is from Archer, D. (2005): “Central-bank communication and the publication of interest rate projections”, presented at Sveriges Riksbank’s conference: “Inflation targeting: implementation, communication and effectiveness”: http://www.riksbank.com/templates/Page.aspx?id=15814. BIS Review 113/2010  5  rate forecasts. The chart illustrates that we were not able to anticipate the financial crisis in autumn 2008, but have otherwise been on track. Our latest interest rate forecast suggests that the interest rate will remain low for a long period. But we also note that market participants believe it will take even longer for the interest rate to move up to a more normal level.
Besides, slowdown in the Chinese economy may contribute to higher volatility of the Chinese Yuan; the movements of which can influence movements of the Baht and other currencies in the region. Against this backdrop, short-term slowdown in the Chinese economy needs to be closely monitored. (3) Geopolitical risks in many parts of the world remain elevated. These include long-standing issues such as the US-North Korea relations, Middle East conflicts, and development on Brexit. In addition, new sources of fragilities continue to emerge, such as the recent disputes between India and Pakistan and Venezuelan political tensions. While some of these conflicts may not be directly related to the Thai economy, the presence of geopolitical risks could introduce bouts of uncertainties and impair sentiments, leading to capital flow volatility in Thailand and other emerging market economies. (4) Lastly, on the domestic political front, given the unofficial result of our general election over the weekend, uncertainties remain on how a new coalition government is to be formed. The result of which will play a big part in determining major government policies going forward. Ladies and gentlemen, Talking only about short-term risk factors may curb the appetite of many in audience tonight. So, let me now turn to the long-term perspective on the Thai economy. Despite the risk issues highlighted, I am confident that the Thai economy possesses the resilience to support long-term growth and cushion against these risk factors.

We have moved away from an economy marked by detailed regulations, devaluation cycles and national perspectives, to an economy with well-developed credit markets, deregulation and greater international openness. The total of all these changes should contribute, with some time lag, to what has now happened, that is, that growth and productivity are developing more strongly. My point is thus that we should not overestimate the significance of information technology on what has happened so far in the Swedish economy. The fact that things are now going well is probably more due to stability policies, structural reforms and international influences and less due to new technology. There are some people who claim that the vigorous Swedish IT sectors is a sign that no further structural reforms are needed in Sweden. Things are fine as they are. This is a rather dubious conclusion. The Swedish IT miracle is largely the result of three deregulation processes in Sweden. The deregulation of the domestic credit market, the abolition of foreign exchange controls and the deregulation of the telecom sector. This opened the way for the growth of the Swedish IT sector. Risk capital flowed in to new companies from Sweden and abroad. This is not a new economy - it happens every time that strictly regulated markets are opened up to competition. To be fair, however, it should be mentioned that there is a two-way relation between the new technology and the deregulation processes.
Islamic finance is predicated on Shariah, the Islamic law which requires that an Islamic financial transaction be supported by an underlying economic activity, thus ensuring that there is a close link between financial and productive flows. This fundamental principle is all about the basic banking function of providing financial services that adds value to the real economy. Financial flows in Islamic finance are therefore accompanied by the expansion of genuine productive activity. Under this arrangement it also avoids over-exposure to risks associated with excessive leverage. Secondly, Islamic finance is based on profit-sharing and therefore risk sharing. Islamic financial transactions, clearly defines the arrangements at the onset, and provides the incentive for the Islamic financial institutions to undertake appropriate due diligence to ensure that the profits are commensurate with the risks being assumed. Aspects of governance and risk management are therefore strongly emphasised in the arrangements. In particular, such contracts demand higher standards of disclosure and transparency to be observed which, in turn, act to strengthen market discipline and minimise informational asymmetries. There are also clear value propositions in Islamic finance for both investors and issuers. For investors, Islamic financial products offer portfolio diversification and new investment opportunities as they avail themselves to this new asset class. For  issuers, Islamic finance allows access to a new source of funds and liquidity in addition to providing new risk management options.

The more we thought about it, the more we were adamant to take this ‘road less travelled’, premised on a very clear objective which was to test how digitalisation and technology could be leveraged as a driver for inclusive financial services. Our work under Project Greenback 2.0 were not limited to the city of Kota Kinabalu alone. We covered Keningau, Inanam, Tenom, Kunak, Tawau. Some of these areas are remote, and admittedly, only a few of these I have visited myself. Our work also brings us to this beautiful city of Sandakan, where we gather this evening. It is my great pleasure to extend a warm welcome to all of you to the Closing Ceremony of the Project Greenback 2.0 Kota Kinabalu. Our utmost appreciation goes to our guest of honor, Yang Berhormat Dato’ Wira Haji Amiruddin bin Haji Hamzah, Deputy Minister of Finance, for gracing this special event. Yang Berhormat Datuk Zakaria bin Mohd. Edris, Member of Parliament for Libaran, Dr. Firas Raad, Country Manager for Malaysia, the World Bank Group, Ms. Irina Astrakhan, Practice Manager, Finance, Competitiveness, and Innovation Global Practice, The World Bank Group, I would like to begin my remarks with two stories recounted to me by my Project Team, to remind us why the work that we have been doing for the past four years under the banner of Project Greenback, is important and meaningful. First, let me share a simple story that tells us about the true reality behind migration. This was during one of the events in Johor Bahru.
1/7  The new target for monetary policy, to aim for a low and stable inflation rate, was announced in January 1993 and applied in terms of the consumer price index (CPI) with effect from 1995. The fact that there was some delay was partly due to the economy having just been exposed to strong inflation impulses, mainly due to the weakening of the krona after the fixed exchange rate was abandoned. The target for monetary policy, which was further manifested by being written into the Sveriges Riksbank Act in 1999, is to “maintain price stability” and the Riksbank’s interpretation of this is that inflation should be retained around 2 per cent a year, measured as the annual change in the consumer price index (CPI). There is also a tolerance interval of plus/minus 1 percentage point around this target. Maintaining inflation at exactly 2 per cent all of the time would hardly be possible and constantly fine-tuning the rate for this purpose would probably risk reinforcing fluctuations in the economy rather than having a stabilising effect. When the Riksbank adjusts the key rate, its repo rate, this affects total demand and ultimately also inflation through various “channels” in the economy – the cost of borrowing, incentives to save and exports and imports, via exchange rate changes. It takes time for an interest rate change to have full effect via these channels; one usually estimates that it takes around 1-2 years. Monetary policy is therefore conducted on the basis of this time horizon.

Our forecast is that economic activity will strengthen in the near future, a development which is supported by the fact that economic policy remains expansionary. There are some causes for concern; primarily the high oil price and global imbalances, which contribute to the uncertainty over international economic developments. Our assessment in the October Inflation Report was that the risks for inflation were balanced, that is, the risks of weaker price development were balanced by the risks of higher inflation. As before, there is also reason to take into account the fact that household borrowing and house prices are continuing to rise at a rapid rate. I agree with the analysis in the Inflation Report and with the decision to hold the repo rate unchanged. At the same time, in my opinion there is reason for some concern with regard to the sustainability of the current economic trend. There are already signs of a slowdown in the United States, which are probably linked to the severe storms the country has suffered, as well as to the fact that inflation appears to be accelerating and to the Federal Reserve’s interest rate increases. It has long been clear that a slowdown in domestic demand is necessary in the United States in order to correct global imbalances. However, there is a risk that the adjustment of the imbalances will occur too rapidly and will be combined with a rapid fall in property prices. This type of development could in turn lead to a rapid braking of consumption.
There are several arguments for conducting financial stability work in the central bank such as: –  There is a clear link to monetary policy;  –  Central banks usually run the large value payment system which is an important nexus in the financial system;  –  Central banks may provide exceptional liquidity assistance – ELA – to problem banks, but must then understand the implications for the system as such;  Much of the stability work is crisis-oriented – both the precautionary work and that dealing with actual crisis situations. The Riksbank participates in many international fora that promote stronger frameworks to prevent or at least to manage crises. The recent global crisis led to a number of conclusions showing that we need a broader framework in which to analyse financial stability and deal with problem situations. For instance: –  Not only banks will destabilise the system;  –  Systemically-important institutions pose even greater challenges than we thought;  –  Liquidity developments must be closely monitored;  There are clear linkages between submarkets and also between jurisdictions. The experience gained during the crisis leads to some specific challenges for central banks: –  Central banks must maintain a sufficient capacity to provide liquidity to meet sudden needs, but at the same time we must maintain strong incentives to avoid the banks and markets relying on central bank funding rather than approaching their normal channels.

Regulations will affect the interest rates that firms and households meet and this is something that the central bank needs to take into consideration when setting the policy rate – in much the same way as monetary policy has to take into account changes in interest-rate spreads due to changes in financial conditions. Regulation vs. policy rate Even if regulation and supervision are the first lines of defence, I do believe that the policy rate can also be used to counteract the build-up of imbalances in financial markets. When  BIS central bankers’ speeches  3  facing an excessive and rapid increase in property prices and credit volumes, central banks should “lean against the wind”, that is keep interest rates higher than would otherwise be the case. This is by no means in contradiction with monetary policy’s goal of stabilising inflation and the real economy. The reason is that by “leaning against the wind”, the development in property prices and credit volumes becomes more balanced, and then the real economy and inflation become more stable as well. However, there are complications involved when trying to integrate this thinking into the conventional forecasting framework. It is, for example, not entirely easy to incorporate the risks that may be associated with the rapid increase of property prices and credit volumes into the normal work of forecasting and analysis. At present, efforts are being made to better include financial variables in the central banks’ forecasting models.
William C Dudley: The evolving structure of the US treasury market Remarks by Mr William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, at The Evolving Structure of the U.S. Treasury Market: Second Annual Conference, Federal Reserve Bank of New York, New York City, 24 October 2016. * * * On behalf of the New York Fed and our co-sponsors, it is my pleasure to welcome you to this second annual conference on the evolving structure of the U.S. Treasury market. We have the opportunity today to continue the dialogue around the changing nature of the Treasury market, a discussion that grew more urgent following the events of October 15, 2014.1 We have made significant progress since last year’s conference in improving our collective understanding of the Treasury market, and I believe it is important to continue official and private sector collaboration on this topic. Indeed, there is much left to do to ensure the continued integrity and effectiveness of this market, and I look forward to the further progress we will make today. As always, what I have to say today reflects my own views and not necessarily those of the Federal Open Market Committee or the Federal Reserve System.2 Over the past year, the Joint Member Agencies 3 have engaged with market participants and other members of the public to gain more information on the changing structure of the Treasury market.

12  By contrast, net profit at the six listed banks fell by 29% in 2022 Q1 compared with a year earlier, but this was due to the almost € billion recorded in extraordinary gains in March 2021 as a result of the merger at CaixaBank. 8  Fourth, the cost-to-income ratio13 worsened slightly in 2021, affected by the extraordinary restructuring costs recorded at several significant banks, although it remains lower (better) than that of the European peers. In recent years the Spanish banking industry’s operating capacity has converged towards average European values, against a backdrop of branch closures and staff reductions in the main European countries. Thus, at December 2020, the number of branches per 100,000 inhabitants in Spain was 47, a figure similar to that of the French banking system and close to that of the Italian one,14 although Spain’s population density is lower. Between 2008 and 2020 the number of branches was cut by more than 50%, while staff reductions, albeit lower, were also significant (close to 40%). In both cases, these are the second highest cuts among the main European countries.15 Branch closures have been comparatively higher in urban areas with higher population growth.16  13  The cost-to-income ratio is defined as the ratio of operating expenses to gross income, such that higher (lower) values denote lower (higher) efficiency.
This includes to avoid creating new vulnerabilities, especially from foreign currency debt and financial imbalances, as well as hedging their risks appropriately. Businesses and investors that benefit from a ringgit depreciation should also take advantage of the weaker ringgit. For example, for those in tourism and exports to increase production and capitalise on this opportunity, and for those with a global presence, to reinvest back home. 21. On a broader note, as an open economy, the policy priority for Malaysia is to sustain economic growth within an environment of price stability and to further strengthen economic fundamentals through the necessary reforms. This will provide more enduring support for the ringgit rather than resorting to capital controls or re-pegging as some have suggested, which would create more harm to the economy. Reforms to secure our future Ladies and gentlemen,  22. This brings me to the second half of my speech today, where I will touch on how Malaysia can secure a more sustainable and prosperous future in the face of future challenges and uncertainties. Malaysia has gone through challenging periods in the past and history has shown that we can rise to the occasion when we need to. Let us rewind back some history. 23. Less than 50 years ago, Malaysia was primarily an agriculture- and commodities-based economy – think of tin and rubber. When commodity prices for tin and rubber slumped in the early 1970s, our economy was badly affected. Unemployment skyrocketed to close to double digits.

[1] Based on the DXY, which is measured by the US dollar against a basket of major currencies.
In the absence of negative shocks, that normally tends to  3  BIS Review 108/1999  generate GDP growth above the rate that is sustainable in the longer run. If such a situation is left to continue for too long, various bottleneck problems arise that may push inflation up. Such a course of events has to be prevented by the Riksbank, which the Riksdag (Sweden’s parliament) has made accountable for maintaining price stability. So in order to counter an acceleration of inflation in an upward cyclical phase, sooner or later the level of the repo rate has to be normalised. It is generally true to say that a repo rate increase should not be postponed unduly. If a central bank waits too long, the increase has to be larger in order to arrest the overheating and inflationary tendencies. That would run the risk of the next slowdown being deeper and more severe than otherwise. A higher repo rate does not necessarily impede the continuation of a favourable economic trend; it may even be required for a good and sustained development of employment and growth, as is illustrated by how the Federal Reserve has acted in the United States. This shows what a forward-looking monetary policy can do for sustained growth. The formulation of monetary policy in the United States, with timely restrictive measures, has contributed to the American economy now being in its longest post-war period of growth.

The fact that so far, at least, the strong growth has not generated an acceleration of inflation that is comparable to what happened in earlier upward phases has started a discussion of whether the trade-off between growth and inflation has changed in the 1990s. Judging from historical patterns, inflation ought not to have remained as low as it has. The relationship between growth and inflation is,  BIS Review 108/1999  2  of course, crucial in the assessment of future price trends and thereby for the formulation of monetary policy. It is not possible to arrive at definite assessments in this field. The analysis is complicated by, for example, the combination of decreased inflation expectations, uncertainty about the rate of potential growth and the size of the output gap, and how the labour market is functioning. The Riksbank has to be alert to every sign that may support or contradict the hypothesis of a lower trade-off between growth and inflation. We have revised our opinion about this on several occasions in recent years and have done so again in the present Report. In this we are not alone. Various international observers have changed their appraisal of the corresponding trade-off in the OECD area as a whole. In Sweden’s case it is judged that the low and stable inflation expectations, increased competition and EU membership are among the factors behind a better trade-off. In the Inflation Report, the Riksbank’s main scenario is accompanied by an analysis of likely risks.