samchain/econo-pairs-v1 huggingface dataset:
Last autumn, we took a step in the direction of becoming clearer in our communication by making direct recommendations in the Financial Stability Report to participants in the financial system. It remains to be seen whether this will lead to better results. Three possible changes After my nearly six years at the Riksbank, I think that there is reason for Sweden to think through three changes that may increase the possibilities of preventing and managing financial crises. Ahead of the investigations and deliberations regarding amendments to the Swedish regulations that have just started, I shall here present my opinions on these three points. At the same time, I would like to repeat that these are just my personal opinions and are not necessarily shared by my colleagues on the Executive Board. These three points are the ones I mentioned in my introduction:   The Riksbank and Finansinspektionen should be merged    The Governor’s role should be strengthened    The Riksbank should have a sufficient foreign currency reserve. The Riksbank and Finansinspektionen should be merged One of the issues we highlighted in our communication to the Riksdag was the allocation of roles between the bodies sharing responsibility for financial stability: the government,  BIS central bankers’ speeches  9  Finansinspektionen, the Riksbank and the Swedish National Debt Office.

That would replace what to my mind is the fuzzy distinction between what are termed “Common equity tier 1”, “Additional tier 1” and “Tier 2” capital – not all of which is capital in the ordinary sense of the term that it can absorb losses outside of liquidation.2 The other element of this policy – which, again, the FSB will be addressing – is where in a group GCLAC should be issued from, ie whether from the group holding company, from intermediate regional or national holding companies, or from operating banks and dealers. This turns on the type of resolution strategy most appropriate for a particular group; ie topdown or Single Point of Entry (SPE) where a whole-group resolution is executed from the topco, or Multiple Point of Entry (MPE) where a group is split into parts which, as necessary, are resolved separately. Of course, it is in operating companies – banks and dealers – that life-threatening losses are generated. Where those losses exceed the equity base of an operating subsidiary, they need either to be absorbed by debt issued into the external market or to be passed up the group structure via intra-group debt or guarantees. The first – GCLAC, ie term debt, issued to the market – is associated with Multiple-Point-of-Entry resolutions.
In terms of monetary policy, it is understandable and will continue to be the case that the Federal Reserve will focus on its own mandate in setting policy. But as the US dollar is used heavily abroad, the effective US dollar currency area extends well beyond US  2  BIS central bankers’ speeches  borders. The Federal Reserve sets policy for this wider currency area, not just the 50 US states. There have been a lot of discussions about how policy cooperation and coordination may offer scope for improvement. But a practical solution still seems elusive. Ladies and Gentlemen, In closing, let me offer my special thanks to the distinguished speakers for taking part in this important endeavor and for sharing with us your expertise. All of us here very much look forward to your contributions throughout today and tomorrow. I would also like to thank the IMF – in particular, the Regional Office for Asia and the Pacific – for kindly co-hosting this event. To all conference participants, I welcome your spirited discussions as I have already noticed there are many experts present among us. Thank you for being here. I wish you a fruitful conference and a pleasant stay in Thailand. BIS central bankers’ speeches  3

As we already know, the payment and settlement systems are the backbone of the modern economy. In this regard, the Bank of Thailand has laid down financial market infrastructure to facilitate business operations. This year the Imaged Cheque Clearing and Archive System (ICAS) coverage will be expanded across the country to speed up the provincial cheque collection and clearing. This will help promote a more efficient payment system, enabling fast, safe, and secure financial transactions. The Bank of Thailand also encourages the use of electronic payment by coordinating with relevant parties to build infrastructure to facilitate this process. Concluding remarks Ladies and gentlemen, Despite many roles that the Bank of Thailand plays in ensuring economic and financial stability, I would like to say that the Bank of Thailand’s policy alone cannot ensure sustainable economic growth. Given Thailand’s structural shortcomings, there is the need to improve Thailand’s infrastructure and productivity, by improving technology and innovation. The well-being workforce and quality of education and training are also crucial to increasing competitiveness. For this, long-term coherent vision and concerted efforts among all stakeholders, both public and private, are needed. Let me close by leaving you with some final thoughts. Thailand is now challenged by both external and internal risks. These are not necessary unfavorable, as they also come with opportunities to urge us to prepare ourselves collectively to cope with uncertainty in the global economy. In an increasingly volatile world, we must do more.
HFT would be constrained in its offering to the liquidity feast. That is of course only one side of the coin. Setting a minimum T would also tend to reduce the risk of liquidity drought. While raising the average bid-ask spread, it might also lower its variability at times of stress. Liquidity would on average be more expensive but also more resilient. So in determining whether there is a role for minimum resting periods, this trade-off between market efficiency and stability is key. In calibrating this trade-off, a judgement would need to be made on the social value of splitsecond trading and liquidity provision and whether this more than counterbalances the greater market uncertainty it potentially engenders. At times, the efficiency of financial markets and their systemic resilience need to be traded off. This may be one such moment. Historically, the regulatory skew has been heavily towards the efficiency objective. Given today’s trading topology, it may be time for that to change. 5. Conclusion  The Flash Crash was a near miss. It taught us something important, if uncomfortable, about our state of knowledge of modern financial markets. Not just that it was imperfect, but that these imperfections may magnify, sending systemic shockwaves. Technology allows us to thin-slice time. But thinner technological slices may make for fatter market tails. Flash Crashes, like car crashes, may be more severe the greater the velocity. Physical catastrophes alert us to the costs of ignoring these events, of normalising deviance. There is nothing normal about recent deviations in financial markets.

The opportunity, primarily for banks and other financial institutions, is to find ways to leverage Zambians in the diaspora to use remittance services that will both be profitable for the banks and will also provide them and their families with greater financial access. I thank you for your attention. 2  BIS Review 2/2010
Zeti Akhtar Aziz: Towards a more efficient payment system – electronic payments Keynote address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the Mobile Digital Signature Symposium 2008 – "Towards a More Efficient Payment System: Electronic Payments", Cyberjaya, 3 June 2008. *  *  *  It is my honour and pleasure to be here today at this Mobile Digital Signature Symposium 2008 to deliver an address at this important forum. This forum takes place at a time when developments taking place in the global economy are resulting in fundamental changes to our lives. While the global economy has benefited from an extended period of high performance and strong growth, it now requires greater agility to adapt to the rapid changes that has occurred. A major emerging international phenomenon is the rising inflationary pressures. We are now living in an environment characterised by rising prices, with energy and commodity prices prevailing at record highs. Energy and commodity prices which have risen steeply have been driven by demand and supply factors and reinforced by market conditions. Clearly, the global factors that have influenced these international prices are beyond our control. Individually and collectively, we therefore need to adjust and adapt to these new conditions. Increasing efficiency and adopting new business processes needs to be explored to reduce costs.

Philip H Penn: Enhancing and strengthening banking supervisory capabilities in Pacific countries Opening remarks by Mr Philip H Penn, Acting Governor of the Central Bank of Samoa, at the Pacific Regional Banking Supervision Seminar, Apia, Samoa, 23-25 October 2007. *  *  *  Mr Andrew Milford, Banking Supervision Advisor from the Pacific Financial Technical Assistance Centre; Distinguished Resource Persons; Ms Elizabeth Roberts, Director of the Financial Stability Institute (FSI); Messrs Graham Johnson and Chris Gaskell from the Australian Prudential Regulatory Authority (APRA); Mr Kim Norris, Director, International Advisory Group, OSFI, Canada; Deputy Governors; Participants; Ladies and Gentlemen. As the host for this year’s Regional Seminar and the Annual Meeting of the Association of Financial Supervisors of Pacific Countries (AFSPC), I am very pleased and honored, on behalf of the Governor and Staff of the Central Bank of Samoa, to extend to you all a very warm welcome. We are very happy to see and meet again some familiar faces. And for those of you who are here on your first visit, a special warm welcome to Samoa and we hope you have time to spare to enjoy the Paradise of the Pacific. You have certainly arrived at the time when the streets of Apia are back to normal as compared to a few weeks ago when we experienced unusual busy traffic due to the influx of tourists and overseas sports people, who came to enjoy and participate at the 10th South Pacific Games which we hosted last month.
This dynamic will test the ability of governments to sustain commitment to an open multilateral trading system, and the manner in which this plays out will have an important impact on future productivity gains. A fourth challenge involves prospective changes in the global exchange rate regime. The international monetary system now incorporates an uncomfortable disparity in the extent to which real effective exchange rates vary across regions. The monetary authorities of the United States and Europe allow considerable variability in their real exchange rates, though they are not indifferent to movements in exchange rates. Japan has somewhat less enthusiasm for flexibility and runs a regime in which it seeks to avoid large swings in the value of their currency. Emerging market economies run a mix of regimes from those that permit significant flexibility to those that run essentially fixed pegs or regimes that seek to contain variations to relatively small degrees around implicit targets for their currencies against the dollar or a basket of the currencies of their major trading partners. The world has lived with this system for some time. But this is not an ideal mix, either for the monetary system as a whole, or for those countries which permit very little variability in their real effective exchange rates, and it’s probably not sustainable over time. It also is not ideal because it limits the extent to which markets work to facilitate adjustment. It creates the risk of larger moves in the major currencies than might otherwise be the case.

What’s new is that we are significantly more dependent today on the confidence of the rest of the world in U.S. economic policy and the safety and stability of our financial markets. This gives us, along with the rest of the world, a compelling interest in sustaining credibility and confidence in U.S. financial management and the strength of our financial system. Thank you. 4  BIS Review 2/2005
If we instead look at use, Sweden has a relatively large share of IT capital in the total capital stock, compared with other countries. The use of IT means that one can simplify and automate the work so that those who work can carry out more tasks in a shorter time, that is, productivity increases. Cyclical factors have also contributed But the economic cycle has also played a role in productivity developments over the past fifteen years. At the beginning of the 1990s Sweden underwent the deepest crisis since the Depression of the 1930s. After the crisis, companies had unusually large scope to increase production using the existing resources. In addition, the substantial weakening of the krona contributed in autumn 1992 to a rapid increase in exports. When production and resource utilisation rose, this led to an upswing in productivity. The fact that productivity has increased so rapidly in recent years is therefore partly due to the economic cycle. This is because the beginning of an economic upturn is normally associated with high productivity growth. The explanation for this is that, at the beginning of an upturn, companies have the capacity to increase their production using existing resources. With time, in response to the increasing need for more resources, companies start hiring staff. This implies a decline in the rate of increase in productivity. When the economic cycle enters a downturn phase, productivity develops even more slowly. Growth accounting provides a systematic description I am sure you recognise the explanations I have mentioned.

I am pleased to see that the objective of a return to fiscal equilibrium within five years is one of the new government’s priorities. The President of the Republic has undertaken to achieve balanced public accounts by the end of his mandate. This is a necessary target. So far, the tax increases have allowed the financing of additional spending and the reduction of the deficit. I am waiting to see the 2013 budget proposal to measure exactly by how much the State’s spending will be reduced. In concrete terms, what exactly would you like to see? The Cour des comptes (court of auditors) has compiled a list of the different potential savings that the government should examine. I agree with its analysis. It is indeed a colossal and ambitious project. Alongside the reduction of public expenditure, we must also encourage investment, entrepreneurship and restore confidence for those who wish to start a business. We therefore need structural reforms and a reform of our labour laws to allow greater flexibility with the objective of restoring and improving the competitiveness of our economy. We must change our social model because it is no longer coherent with global competition. BIS central bankers’ speeches  3
As a crucial counterpart, policy-makers are in the process of establishing the Single Resolution Mechanism, which should enable quick and efficient resolution of ailing banks without permanent recourse to taxpayer funds. Together, these new institutions will fundamentally strengthen transparency, stability and incentive-compatibility in the financial sector. In a primarily bank-based financial system like the euro area’s, these features are crucial, not only for the functioning of the financial system per se, but also for the conduct of monetary policy. This is because, with an impaired bank lending channel, monetary policy may lose its handle on the real economy and ultimately inflation. At the same time, given the persistent downside risks to price stability, monetary accommodation was a necessary ingredient in the crisis response. How has monetary policy contributed? Accordingly, since I last spoke at this venue, the ECB’s Governing Council has taken further decisive steps to engineer a monetary policy stance that is commensurate with the subdued medium-term inflation outlook. These steps included a sequence of further rate cuts, accompanied since July 2013 by explicit communication that we expect the key ECB interest rates to remain at current or lower levels for an extended period of time. But standard monetary policy in the form of rate cuts and the accompanying communication were not enough to ensure an appropriate monetary policy stance. In fact, given unwarranted fears of a euro area break-up, monetary policy transmission became severely impaired – to the extent that the financial market dislocations jeopardised our ability to deliver on our price stability mandate.

One possible solution I think is that of making all contracts on AFET U.S. dollar denominated. This way, the arbitrageurs are not exposed to any foreign exchange risk and they can manage their positions across markets with ease. Of all the commodities listed on SICOM, only one contract namely ribbed smoked rubber sheet no. 1 is Singapore dollar-denominated and coincidentally, it is also the least liquid contract on the SICOM. All other contracts are denominated in U.S. dollar. Moreover, commodity prices in the world are generally quoted in U.S. dollar, therefore, corporate buyers and sellers are already aware of their costs and revenues in terms of U.S. dollar. If we aim to establish futures price of, for instance, white rice on the AFET as a benchmark, it is logical for this reference price to be denominated in an international currency such as the U.S. dollar. That way, the price quotations would purely reflect all relevant information relating to demand and supply conditions of the products and are not influenced by exchange rate fluctuations. Some may express concern, however, that by eliminating foreign exchange risk for foreign arbitrageurs, we in turn, expose our local producers and end-users to the very same risk. I feel, on the contrary, that local buyers and sellers are already accustomed to commodity prices being quoted in U.S. dollar in the world market and manage the risk in a proficient manner.
7  The figures are based on calculations using data from WFE, IMF, Datastream and Eurostat. 8  Financial Stability Board (2011), “Shadow Banking: Strengthening Oversight and Regulation”, October 2011. 9  See, e.g., Arcand, J.-L., Berkes, E. and Panizza, U. (2011), “Too much finance?”, on www.voxeu.org. BIS central bankers’ speeches  5  This applies in particular to our assessment of the years before the crisis. Beyond merely stating – somewhat bluntly – that “the financial sector had become too big”, I think that we can draw the more specific conclusion: “The financial sector had stepped out of its role of serving the real economy.” Let me explain in more detail what I mean by this. It has long been recognized that the financial sector does not exist in the economy “for its own sake”, but its role is one of servicing the real economy.

Jean-Pierre Roth: Real estate crisis in the United States – similar risks in Switzerland? Summary of a speech by Mr Jean-Pierre Roth, Chairman of the Governing Board of the Swiss National Bank and Chairman of the Board of Directors of the Bank for International Settlements, at the Banque Cantonale Vaudoise, Lausanne, 9 June 2008. The complete speech can be found in French on the Swiss National Bank’s website (www.snb.ch). *  *  *  In the past few months, developments in the mortgage and real estate markets have attracted increasing attention. Europe, and Switzerland in particular, have been indirectly affected as a result of commercial bank activities in US mortgage markets. Over the past few quarters, the European real estate market has also been affected, with a number of countries experiencing a downturn in prices similar to that in the United States. By contrast, other countries, such as Switzerland, have seen real estate prices rising at a steady pace. In some respects, what the United States went through is a classical property crisis of the type that Switzerland experienced in the early 1990s. However, the US real estate crisis spilled over to encompass the international financial markets, endangering their stability and prompting the intervention of several central banks. These events confirm the importance of sound real estate market developments for the economy. It is important to recognise that the Swiss mortgage and real estate markets are very different from their US counterparts.
Maja Kadievska-Vojnovik: Current trends and future of the financial system in the region Address by Ms Maja Kadievska-Vojnovik, Vice-Governor of the National Bank of the Republic of Macedonia, at the regional summit of governors, bankers and businessmen “Financial systems in the region”, Belgrade, 8 November 2013. *  *  *  Dear Mrs. Jorgovanka Tabakovic Dear Governors Dear guests, First of all, I on behalf of the governor of the NBRM, Mr. Bogov, I would like to apologize for his non attendance today, on this very important event. He was unable to joint this event due to objective reasons, but, let me express my truthfully pleasure that I have opportunity to express my views and the views of the governor regarding to the latest development and future challenges for our country and our banking system. After the double-dip recession, in the first half of 2013 SEE are on the way of recovery. The GDP growth in the RM in the first half of the year is 3.4% and is highly influenced by the positive contribution of reforms’ agenda. The improved business environment (RM is at the list of 10 best reformers according to the Doing Business for 2013), the entrance of FDI's that have lead to export diversification alongside with the positive developments at the labor market, are key growth drivers.

Nonperforming loans rose moderately in the second quarter of this year (to 11.9% of total private sector credits), but the growth is continuously slowing, and they are fully covered by loan loss provisions (RM is within the group of countries with largest LL provision coverage ratio). Profitability is lower but positive, and profits are being used largely to strengthen capital buffers. The euroization of deposits continues to decrease gradually to below pre-crisis levels (44% of total deposit are FX deposits or with FX clause). Even though the banking sector is in overall sound shape, the credits developments are not favorable and supportive to companies. The reasons for deceleration of the credits growth are on both sides, but mostly relay on supply side. Banks are likely to remain risk averse in an environment of low interest rate margin and the group strategies limit the credits’ growth potential. Thus, although the banking system mainly relies on domestic sources of funding, the consolidation of the Euro zone banking system and the EC pressure on troubled European banks that have received international bailout to sell their subsidiaries in the region, are the potential source of risks. The slow realization of this process could cause confidence shocks in our economies, thus endangering financial stability. The latest Deleveraging and Credit Monitor well notes this process, it says -while past efforts were focused on raising capital on the market, future efforts are expected to emphasize the sales of assets and affiliates.