samchain/econo-pairs-v1 huggingface dataset:
To accommodate this, I understand that Deutsche Bank's trading floor in this building is one of the largest in Singapore. Singapore's economic growth for 2006 continues to stay strong at 7.7%, with almost 170,000 jobs created last year. Our market indices have breached the 3,000 point mark and our GDP per capita has exceeded $ We are also witnessing the strong growth of Asia propelled primarily by the two economic powerhouses of India and China. The economies in South East Asian have seen a resurgence with countries like Vietnam rushing forth and is one of the fastest growing economies in the region. Trade and investments among Asian countries, and between regions including the Middle East and Asia, have increased substantially. We have also seen substantial wealth creation in the Middle East and Asia. Asia is estimated to have about 2.4 million High Net Worth Individuals with assets over $ trillion and comprise almost 20% of global High New Worth wealth. This is projected to grow annually by about 6.5% to about $ trillion by 2010. All these represent substantial financial sector opportunities for Deutsche Bank in Asia, including trade & infrastructure financing and wealth management. Singapore, being at the heart of Asia, provides global financial institutions a unique location to harness the growth opportunities from this region. Singapore offers a stable and trusted environment for investments and businesses in the region. Companies in Singapore are supported by a robust network of infrastructure as well as an educated workforce, and coupled with open and consistent Government policies.

Hard work, clear objectives and a predilection for one's profession are necessary but not always sufficient conditions for success; being in the right place at the right time is likely to provide momentous opportunities that may contribute to making anyone's career more challenging. However, in my reply to Klaus Liebscher's laudation, I should like to leave the past at rest and focus on the future, just as Klaus has done in the second part of his speech. I should particularly like to make a link between Klaus's comments about the importance of stability-oriented macroeconomic policies - to which I fully subscribe - and one of the key challenges the European Union is facing, enlargement, most likely involving ten new member countries. The enlargement of the European Union is a subject that has received much interest in this country in particular, given its proximity to central and eastern Europe. Indeed, the accession of ten new countries will now place Austria in the geographical heart of the European Union, although Austria has already been at the heart of the European integration process as such since its own accession to the European Union in 1995. In my speech today, I should like to address the importance of stability-oriented and sound macroeconomic policies for the accession countries, particularly now in the run-up to full EU membership.
Consequently – with an incipient threat of deflation – the SNB adopted unconventional measures to loosen the monetary conditions further. By carrying out long-term repo transactions and foreign exchange swaps, acquiring Swiss franc bonds issued by private sector borrowers and purchasing foreign currency, the banking system was supplied with large amounts of liquidity. In the past few months, foreign exchange purchases, in particular, have been an effective instrument for averting deflationary risks. While the liquidity created by purchasing foreign exchange and Swiss franc bonds is of a permanent nature, liquidity resulting from repos and currency swaps is temporary. It flows back automatically when transactions are not renewed. This has occurred to a large extent in the meantime. The considerable expansion in the SNB’s balance sheet is therefore primarily attributable to the increase in foreign exchange reserves. These have more than quadrupled to just over CHF 230 billion as a result of the interventions since the beginning of the financial crisis. From today, the SNB will also be publishing information on current foreign exchange reserves on its website (www.snb.ch) at the beginning of each month. The high level of foreign exchange reserves will inevitably increase currency risk and mean that debtors are concentrated in a few major countries. These risks ultimately represent the burden the SNB has assumed in order to protect the Swiss economy from the threat of deflation, in line with its mandate. Balance sheet risks have risen overall.

The most recent example was ordering the more detailed material for assessing monetary policy which the Riksbank published about a week ago. I shall return to this assessment later. But first I would like to say a few words about current monetary policy. Our most recent assessment Our most recent interest rate decision was not an easy one. There is considerable uncertainty, for instance, on which direction international economic activity will take. And, as you are aware, we also had slightly differing opinions within the Executive Board. However, we must nevertheless make a decision and the majority of us reached the assessment that the repo rate should be raised to 4.25 per cent. We are forecasting that the repo rate will remain around this level over the coming year. This type of interest rate development will contribute to inflation falling back and being around the 2 per cent target a couple of years ahead, at the same time as production and employment develop in a balanced manner. Different forces are pulling in different directions In our decision we weighed together many different factors. A lot has happened; both events that could push up inflation and events that could hold it back. On the one side were conditions implying a higher interest rate. Inflation rose rapidly in 2007 and we are expecting it to remain high over the coming year. Expected inflation has also risen and cost pressures are high. Economic activity in Sweden remains good and the labour market is strong.
Our goal is to take a more holistic view on the implementation process by focusing not only on the existence of a regulatory framework but also on its functioning. The implementation process is also envisaged to be closely linked to the ongoing policy development process, creating a positive feedback loop that can help strengthen the regulatory regime. There is no doubt that this new monitoring and assessment initiative has already had a positive impact. As a result of the regular monitoring of how countries are tracking against agreed deadlines, as well as the forthcoming country assessments, member jurisdictions regularly approach the Committee about specific aspects of the Basel framework, actively seeking to ensure that their local adoption of the Basel rules would not be inadvertently out of line with the spirit of the agreement. Jurisdictions have also brought forward the release of their rules to ensure that their progress was captured in the periodic updates that the Committee has provided to the G20 and made public. The self-assessment responses undertaken for the assessment process are also benefiting the implementation process. In addition, the assessments of drivers that lead to variation of banking and trading book riskweighted assets are continuing and are to likely lead to both more consistent implementation of existing rules, and the development of policy options to address identified areas of weakness.

Nevertheless, this is not a case of “set and forget”. The Committee is mindful of two potential consequences from the programme of reforms. While a degree of deleveraging and increased risk premia are intended consequences of the reforms, there is always a danger that some unintended consequences may arise. The Committee needs to continue to undertake monitoring exercises to ensure that it responds when truly unintended consequences materialise; we understand fully that, if left unattended, they will serve to undermine support for the reform agenda. However, we also need to avoid using this as an excuse to delay necessary reforms; to the extent there are unintended consequences, we need to see how they can be addressed without losing the reform benefits. A second potential consequence relates to the incentives that may arise as the banking sector adapts to the reforms by moving into those businesses where risk-adjusted (regulatory) returns are greatest. This reshaping of banking (either within bank balance sheets or outside the regulated banking system) needs to be monitored on an ongoing basis for the Committee to maintain a robust regulatory framework in light of the evolving nature of the banking industry. That does not mean that the regulatory framework should be in a constant state of flux, as there are considerable benefits for financial firms being able to plan in a stable environment. But, equally, we cannot have a regulatory regime that is set in stone, and completely unresponsive to changes in the environment that it is tasked with regulating.
In any case, this indicator tends to overstate the deterioration in firms’ solvency since, in most cases, the level of earnings in 2020 will not be representative of future earnings. Higher debt and lower earnings impair the ability of some firms to repay their debts. However, the longer term to maturity and the lower interest rates on new loans granted during the crisis, compared to pre-existing debt, are significant mitigating factors as they 5  Net debt is financial debt (i.e. interest-bearing borrowing) minus liquid assets. Liquid assets are the sum of cash and other equivalent liquid assets, short-term financial investments in shares (not including shares of group companies), short-term financial investments in securities and other short-term financial investments other than credits. Net assets are assets net of non-interest-bearing borrowing. 11  contribute to reducing firms’ debt burden. Also, many of the new loans, in particular among those arranged under the loan guarantee programme, include a grace period of one year, a feature which contributes additionally to reducing the burden of debt in the short term. In the future, firms’ debt burden will mainly depend on the extent of the economic recovery. This deterioration in corporate credit quality has been reflected in rating downgrades. The downgrades have affected to 13% of outstanding volume of fixed income debt issued by Spanish corporates.

Covered bonds are secured primarily by a preferential claim on a pool of residential or commercial mortgage loans. They are protected from potential bail-in under the new crisis resolution regime and are subject to special supervisory monitoring. The European Commission has determined that covered bonds may be included as level 1 qualifying assets in fulfilling banks’ liquidity coverage ratio requirements. Covered bonds also receive favourable treatment both under Solvency 2 and in the regulation of large exposures. In addition, the European Central Bank’s Asset purchase programmes have supported market liquidity. Covered bonds have a long history of strong performance in general and they have survived and developed during shifting market conditions. The safety of covered bonds supports high and stable ratings. It also drives demand and market depth, confirming their position as liquid assets. Large falls in house prices may present a key risk for the covered bonds market, given the dominance of residential mortgages as collateral. At Norges Bank, we have looked at this risk and we have so far concluded that Norwegian covered bonds are quite robust against a potential decline in house prices. In the 2015 Financial Stability Report, Norges Bank estimated that a 40% fall in house prices would reduce the eligible cover pool by around 20%. In such an extreme scenario, refinancing costs may rise for covered bonds. However, the rise in costs would probably be somewhat limited compared with the rise in refinancing costs for unsecured funding.
The Bank’s relationship with G&D developed further as the company was awarded a contract to print the K10,000 denomination in the 2007–2009 currency supply contract. Currently, G&D are the printers of all banknotes under the 2010–2012 currency supply contracts. Further, G&D are the suppliers of the Bank’s current banknote processing equipment, the BPS 1000 machines integrated destruction system and the off-line BDS 400 destruction system. Distinguished participants, The Bank of Zambia, under the Bank of Zambia Act (1996), is empowered to “issue notes and coins to be legal tender in the Republic and regulate all matters relating to the currency of the Republic”. In line with this function, the Bank pursues a clean note policy which entails effective and efficient management of banknotes. We therefore, welcome this initiative by G&D to conduct this Workshop, which is aimed at empowering the cash handlers from both the Bank of Zambia and the Commercial Banks with knowledge needed for effective and efficient cash management. I have noted that the programme covers topical issues such as Banknote processing, Banknote security features, counterfeit notes, just to mention but a few, which are all relevant to both the Central Bank and Commercial Banks being the main cash handlers. Ladies and Gentlemen, Let me briefly touch on one of the issues that will be addressed at this workshop, that of counterfeit notes. The Bank of Zambia faces challenges in this area, especially with regard to the highest value denomination, the K50,000. However, the volumes are not alarming as evidenced by the prevailing statistics.

Some have seen a challenge to Hong Kong’s future in the turbulence we have faced. But I would argue that successfully weathering another storm has only reinforced Hong Kong’s unique value – to China and to the rest of the world. 16. Another key feature of Hong Kong’s ecosystem is our broad-based financial leadership. This city is strong not only in one or two areas but across the full spectrum of products: commercial banking, investment banking, equities, fixed income, asset and wealth management, foreign exchange and more. This is important because it means we can provide holistic solutions to the specific financial needs of firms and individuals. 17. This array of financial services is supported by world-class professional services. Hong Kong has top-notch capabilities in law, accountancy, tax, risk management and compliance. 18. And we have an outstanding talent pool. Hong Kong has a well-educated local workforce. But we are also a welcoming city that attracts top professionals from around the world, creating a deep and diversified bench of talent. 19. And let’s not forget the legal system and regulatory environment. Hong Kong is renowned for its unique bilingual common law system. We have a highly-regarded, independent judiciary – as well as an internationally-recognised, forward-looking regulatory environment. That means we offer a fair and predictable marketplace in which all financial institutions can operate and prosper. 20. Each of the above is a great asset in its own right.
The explanation for the increasing level of sick leave is probably both complex and difficult to get a grip of. The rise is probably due to both cyclical and structural reasons, with several different types of structural explanations. The government’s opinion is, for example, that the working environment has great significance. If a large percentage of the sick leave is due to structural reasons, this is obviously a more fundamental problem for the Swedish labour market, which may entail an increased risk of a labour shortage in the future, with subsequent negative effects on potential growth. Yet another factor that has made a negative contribution to the growth in hours worked in recent years is average working hours. Average working hours declined by 1.4 per cent in 2001 and continued to decline during the first quarter (see diagram 3). Variations in this can be explained by the occurrence of “labour hoarding”. This entails companies choosing to retain the labour force in the initial phase of a downturn in economic activity and regulating working hours instead, for instance, by reducing overtime - a development we have seen recently. It is only at a later stage that companies start to make cuts in personnel. One of the reasons for this behaviour is that the labour force is not an entirely mobile production factor. Companies’ labour costs consist not merely of wages, but also of costs for recruiting and training new personnel.

A central factor in determining aggregate growth in the economy is the labour supply. The growth rate in the number of hours worked slackened from 2.5 per cent in 1999 to approximately 0.5 per cent in 2001, while employment rose by approximately 2 per cent each year. The weak development in the number of hours worked during the period 1999 to 2001 is mainly connected to an increase in absence due to illness and a decline in the average working hours. The growth in sick leave has brought down the number of hours worked over several years. The number of persons absent due to their own illness increased by an average of 13.6 per cent per year during the period 1999 to 2001. There has also been an increase at the beginning of this year. During the first quarter, the number of persons absent due to illness rose by an average of 2.8 per cent. The rate of increase has thus declined. The question is whether the increase in sick leave is due to cyclical or structural factors. Historically, sick leave has increased, with some time lag, when the Swedish economy has been operating at high pressure (see diagram 1). If the upswing in the number of absences is due to economic reasons, it is possible that the current high level is a repercussion of the economic boom during 1999-2000. In other words, we could expect the absences due to illness to fall when the economic slowdown makes its mark on the labour market.
The announcements following the recent G20 Summit and the associated announcements of the Financial Stability Board reflect the international economic regulatory cooperation that will set the agenda for the conventional standard setting bodies to put in place a framework to strengthen the international regulatory standards. It will also form the basis by which assessments will be made by multilateral agencies such as the IMF. It is therefore important for there to be engagement with the prudential standard setting entities for Islamic finance, not only to raise awareness of whether the new standards being introduced can be applied to Islamic finance and whether modifications need to be made but there could also be possible consequences that are unintended. Equally important is for there to be recognition of the standards that have been issued for Islamic finance specifically by the Islamic Financial Services Board. As a growing component of the international financial system, it becomes important for the interface and engagement with the international standard setting entities to take place given the common interest of global financial stability. Let me conclude my remarks. While the inherent strengths of Islamic finance have contributed to its viability and resilience, going forward into the future, the foundations for its sustainability as a competitive form of financial intermediation will continue to be strengthened.

While the basic legal, regulatory and supervisory framework that takes into account the distinctive features of Islamic finance are already in place, there is a need to have a more comprehensive infrastructure to meet the present challenges. Looking beyond the current crisis, there needs to be an integrated crisis management framework as part of this  BIS Review 123/2009  3  infrastructure to ensure that any emerging crisis in the Islamic financial system will be promptly and efficiently managed. More facilitative and modernised legal framework is also required to make business more conducive for Islamic finance. In addition, the boundaries of the regulatory framework for Islamic finance would also have to be regularly adapted to keep pace with the evolution and transformation of the financial system. In the case of Malaysia, the comprehensive legal, regulatory and supervisory framework for Islamic finance is further supported by a financial safety net framework that encompasses the lender of last resort facility and a deposit insurance system. Moving forward, in the aftermath of this global financial crisis there is also a need to have in place the institutional arrangements for resolution of troubled international Islamic financial institutions. In Malaysia, we have also in place a mandated resolution mechanism to provide for expedient, effective and cost efficient resolution of Islamic financial institutions. The current crisis, however, has highlighted the need to have in place a mechanism for cooperation between regulators across jurisdictions for resolution and for containing potential systemic risks beyond the national boundaries.
In parallel, ASEAN is working on a Comprehensive Economic Partnership arrangement with Japan. The US, too, has announced the Enterprise ASEAN Initiative, under which it will pursue agreements with individual ASEAN countries, taking into account their respective progress in economic liberalization. Southeast Asia’s adherence to economic liberalisation and freer trade has helped the region to stay on investors? radar screen. Most of its economies have recovered from the Crisis. Confidence has returned and the economies are growing again. Stock markets have rallied as capital flowed back into the region. The countries have made progress remedying the structural weaknesses that contributed to the crisis. Their finances are now much sounder - with balance of payments in surplus, and foreign reserves accumulating. Thailand is doing particularly well as the fastest growing economy in Southeast Asia. Malaysia, has maintained satisfactory growth rates, as has Indonesia despite the political and security issues. Vietnam escaped the Asian Financial Crisis and is now opening up and taking off. Singapore’s fortune has been more mixed. It weathered the initial storm well, but then got hit hard first by the global electronics downturn and then by SARS. After all these tribulations the Singapore economy is now at last picking up and on a growth path again. Over the longer term, Southeast Asia remains a region of promise, with strong fundamentals. It is outward oriented, with a large and young population, strong emphasis on education, a positive work ethic, good infrastructure, and abundant natural resources.

First, the SNB must try – despite volatile risk premiums and interest rate expectations – to keep the targeted three-month Libor as close as possible to the desired goal. Second, with its operations and its choice of instruments, it must contribute to a well-functioning money market. Even though there have been several innovations in the area of monetary policy instruments, the SNB’s options in this complex environment are limited, however. In particular, there is no magic bullet with which central banks could restore the lost confidence among market participants. In dealing with the financial market crisis, therefore, banks and other financial market participants must also try to help restore the proper functioning of markets by implementing measures to shore up confidence. BIS Review 34/2008  1