samchain/econo-pairs-v1 huggingface dataset:
Indeed there will be inevitable calls by some vested interests to turn back. To give in, to drop out, would be a tragedy. The prize for running the longer race is great. By fixing the fault lines that caused the last crisis we have created strong foundations for a truly global financial system that can benefit us all. Now we must have the courage to seize that opportunity and build on those foundations. Today I will refresh the case for financial reform and set out what I believe should be the drivers of the future reform agenda. But before turning to that next stage, allow me to take stock of the immense amount that has been accomplished since the crisis.1 Completing the job of fixing the fault lines A safer financial system Banks are now much more resilient. They have more capital, more liquidity and are less susceptible to procyclical spirals. Capital requirements for banks are much higher, as are risk weights and the quality of bank capital. In all, new capital requirements are at least seven times the pre-crisis standards for most banks. For globally systemic banks, they are more than ten times.2 Large internationally active banks are on course to meet the new requirements 4 years ahead of the 2019 deadline. Despite the scale of the changes, the aggregate shortfall of those banks that still have shortfalls was € at end 2013, having been € two years ago. It is just as clear that banks’ liquidity positions before the crisis were precarious.

BIS central bankers’ speeches  The benefits of reform Having argued for the extension of the reform race, I am conscious of the risk of fatigue. But as Ravi Menon argued more than a year ago: “it is imperative that we press on with the reform agenda and do not succumb to reform fatigue.”27 Already we can hear some of the runners, particularly those at the back, making world-weary arguments that more reform will hurt jobs and growth, and even that financial crises are just something that happens every five to seven years. If that were true, we are due for another crisis about now. Does anyone find that acceptable? As the memory of the crisis fades, it will be ever more important to explain the benefits of reform to counter the fatalism. So let me take this opportunity to take stock of the benefits of reforms, both of those already agreed and of the next phase of reform I have outlined. While we all recognise that future crises can never be ruled out, the steps taken to make banks safer and simpler have certainly reduced the likely frequency and severity of future financial crises. In doing so, they have reduced the exorbitant costs of instability. The Basel Committee assessed in 2010 that the economic cost of the median financial crisis amounted, over time, to 60% of national income. With a 5% probability of a crisis each year, that is equivalent to annual costs of 3% of GDP.
8  BIS Review 132/2007

Technology-driven innovation in the financial sector has a long history ranging from the development of double-entry book keeping, to the establishment of modern payment systems, and the more recent introduction of complex asset markets and retail financial products. Thus it seems that the emergence of fintech is only the latest wave of innovation to affect the financial industry. Then, why is fintech getting increased focus nowadays? In fact, in the last decade, a radical change has occurred in the way in which technology is used leading to proliferation of new financial products offered outside the banking system, which has brought significant competitive pressure on banks as traditional players, and created environment in which disruption can happen extremely quickly, thus urging traditional players to adjust faster to maintain market share. There are a couple of other factors that have contributed to proliferation of financial innovation besides the advancement in technology itself. Changing consumer behaviour, especially by trendy millennials, is by far the biggest driver, on the demand side. They want to engage in their own way with financial services providers, who must respond to changing demands, or risk being disrupted by entrepreneurial innovators. In a recent global study, the World Bank reported that COVID-19 is accelerating change across the board on how people interact with financial services.
But with the aim of avoiding international fragmentation, we have to pay special attention and dedicate sufficient efforts then to cross-border interoperability, and hence to wholesale CBDC as a way to ensure it. The second paramount course of action is to reposition the IMF as a pivotal stakeholder, at the very heart of the global financial safety net (GFSN). Today,  Page 9 sur 10 IMF resources account for a smaller share of GFSN resources, but there has already been significant progress: the last general allocation that was carried out in August 2021 amounted to USD 650 billion and was, to quote Kristalina Georgieva, “a shot in the arm for the global economy at a time of unprecedented crisis.” However, developing economies are the primary users of SDRs and yet they have benefited much less from the general allocation: about two-thirds were directed at developed economies, as a result of existing rules. Reallocating SDRs is crucial in these current tense circumstances. The G7 commitment, taken up by the G20, to bring reallocations to USD 100 billion must be kept and implemented efficiently. We are not yet there. Part of these allocations have been allocated to the PRGT Fund to finance low-income countries, including an eventual Food Shock Window. Still, we have to find additional resources to finance the subsidy account of the PRGT.

Michel Camdessus Central Banking Lecture – Washington, 14 September 2022 Ethics of currency: a possible guide for central bankers? Speech by François Villeroy de Galhau, Governor of the Banque de France  Press contact: Mark Deen (mark.deen@banque-france.fr), Déborah Guedj (deborah.guedj@banquefrance.fr)  Page 1 sur 10 Ladies and Gentlemen, It is my great pleasure to be in Washington with you today, and to deliver this speech in honour of Michel Camdessus. I would like to take this opportunity to pay a special tribute to him, and express my personal gratitude. Michel is not only one of my predecessors as a Governor of the Banque de France, but also a friend of mine and – yes – a master. My speech was prepared with his precious help, so today you can almost enjoy a “Camdessus Lecture by Michel Camdessus himself”. The theme we chose together, the “ethics of currency”, has guided him throughout his career. In the murky waters that we central bankers are navigating, it should more than ever serve as a golden thread. I will briefly discuss the reasons why I dare to talk about the ethics of currency (I), then elaborate on the golden triangle of trust today (II) and finally raise the question as to whether the international dimension of trust can still inspire us (III). I. Why I dare to talk about the ethics of currency Before going any further, we must find a common definition of “ethics”. Is it possible to take this word as a synonym for “morality”?
For example, the FOMC has indicated that it will continue reinvestment of principal payments on its portfolio until normalization of the fed funds rate is well underway. As can be seen in Figure 7, market estimates of when the SOMA portfolio will start to normalize have moved out from the end 2015 to the middle of 2018 or even later. Ulrich expresses a strong preference for a balance sheet which is short or lean, i.e. closer in size to the amount of currency outstanding. 20 The argument for such a lean balance sheet in normal times is strong and is encapsulated in the Federal Reserve’s 2014 Policy Normalization Principles and Plans. That said, if asset purchases work through stock effects and, thus, require a long holding period, how exactly do we get to a lean balance sheet or, as we call it, balance sheet normalization? 21 One possibility is that the time between visits to the zero bound will be sufficiently long relative to the duration of assets added to the balance sheet that, in practice, this will not be a problem. I am sure everyone in the audience would be happy if this were the reality; I certainly would be. Another possibility is that balance sheet normalization could be accelerated by asset sales. However, we only have experience with selling shorter-duration assets; sales of longer-duration assets, which carry some uncertainty, would be necessary to speed the path to a leaner balance sheet.

21 Second, MAS is studying whether existing incentives for funds and fund managers, which have been successful in attracting traditional asset managers to set up in Singapore and to grow over time, are suitable to anchor VC funds and VC fund managers here too. We recognise that VC funds and fund managers are typically smaller in size and headcount than traditional asset managers. But they contribute in a different way, by supporting entrepreneurship and innovation in Singapore and the region. We will take this into account in assessing the requirements for VC funds and fund managers to qualify for our incentives. Conclusion 22 Innovation will drive Singapore’s economic future. It will disrupt existing business models, but it is how consumers get better value, how new firms can scale up and grow internationally, and how we create quality jobs for our people. 23 This innovation village is part of this ongoing journey. It will, I am sure, nurture a new generation of technology entrepreneurs in the FinTech space. I congratulate Marvelstone once again for the successful launch of LATTICE80. 3/3  BIS central bankers' speeches
Raising living standards could be achieved by simply keeping the printing presses running. Countries that have done so have found this tends to end, not in triumph, but disaster. Monetary policy is also unable to influence the distribution of outcomes across the economy over medium-term horizons. The reason is that central banks cannot set different interest rates for different sectors or regions, for different households or companies, or for borrowers and lenders. 15  Monetary  policymakers are, at least in normal times, one club golfers. None of this is to suggest that monetary policy is entirely unimportant in its impact on the size of the economic pie, and its distribution, over shorter-run horizons. As our two-car economy example illustrated, it is perfectly possible for monetary policy to influence both aggregate income, and its distribution, in the shorter run. That being the case, it is worth assessing the evidence on that over recent years. (a) Aggregate Impact  Starting with the impact of monetary policy on aggregate activity, since the dawn of the global financial crisis monetary policy has been loosened significantly in a large number of countries around the world, using a combination of lower official interest rates and, in some cases, asset purchases or QE. These measures have aimed to cushion the impact of the financial crisis on the economy and on jobs. 14 15  Not all economists agree on this, for example see Aghion and Howitt (1998).

The projections for inflation were the highest ever published by the Bank, while the forecasts for output growth were the lowest ever published. In other words, these projections highlighted the difficult trade-off facing the MPC in keeping inflation close to target, while supporting output and jobs growth in the economy. In the MPC’s judgement in November, managing this trade-off was best achieved by maintaining the current monetary policy stance, with a neutral bias on the direction of the next move in interest rates. Consistent with this neutral bias, the MPC judged the risks to inflation and output to be broadly symmetric and, given heightened uncertainty since the referendum, larger than usual. My own personal judgement on the appropriate monetary policy stance is close to the MPC consensus. In August, I believed the risks to inflation and output lay to the downside, even after the stimulus measures. 20  See http://www.bankofengland.co.uk/research/Pages/onebank/decisionmakerpanel.aspx. 12  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  12  That is why I supported forward guidance on a further lowering of interest rates in the run-up to the end of the year, provided the economy evolved in line with the MPC’s projections for inflation and output at the time. In the event, output has out-performed those expectations, while expectations of inflation have picked up, largely as a result of sterling’s depreciation. That configuration now leaves me comfortable with the current stance of monetary policy, with no bias on the direction of the next move in interest rates.
It has taken Hong Kong many decades of untiring efforts to accomplish what we have today. There is a lot more that we need to do in order to maintain our niche when so many competing centres are trying very hard to catch up. To differentiate Hong Kong from its peers, we must maintain those qualities that are hard to copy and yet appeal to users and customers who can freely choose where to conduct their financial businesses. So what should we do? There are three layers of parameters that help shape behaviour and values. The first layer is what is prescribed in the statutes, regulations and rules, and with which compliance is compulsory. The second layer is set out normally in codes of conduct issued by the various professional or industry bodies. For example, the banking industry has, under the auspices of the HKAB and with the endorsement of the HKMA, promulgated a comprehensive code of banking conduct. Similarly, the TMA has also issued a code of conduct for its members. The third layer encompasses everything from what the society does in its civic education for children to what individual firms do in managing their business and the behaviour of their employees. Very often we see firms become overly aggressive in chasing profits by taking excessive risks or mistreating their customers.

However, I must mention here that, most banks in Zambia have concentrated their branches expansion programmes in the already banked districts of our country. We still have a number of districts with a lot of economic potential but without financial service providers. This entails that civil servants and other citizens in formal employment have to travel long distances and in some instances for a number of days before they can access their salaries. BIS Review 19/2010  1  Furthermore, income earning citizens in the informal sector like fishermen and farmers cannot deposit their earnings in a safe savings account due to the absence of bank branches. Most of our people cannot borrow loans to further create wealth by growing their projects. A number of them end up losing their hard earned income in fires, theft and other calamities. It is also very common for hard working women to lose their little incomes to their beer drinking husbands who know where their wives keep their little savings. I therefore, wish to challenge Access Bank through the Group Deputy Managing Director as well as the Managing Director of Access Bank in Zambia to consider opening branches in areas like Chavuma, Chiengi, Gwembe, Chilubi, Lufwanyama, Mufumbwe and several others to tap into the vast potential these places possess. This will not only improve financial inclusion but will also provide you with new customers and thus a higher deposit base.
Although I see why it is difficult to define inflation targeting, I consider the definition given by Ben Bernanke as being the appropriate one. Accordingly, inflation targeting is “a framework for monetary policy characterised by the public announcement of official quantitative targets […] for the inflation rate over one or more time horizons, and by explicit acknowledgement that low, stable inflation is monetary policy’s primary long-run goal. Among other important features of inflation targeting are vigorous efforts to communicate with the public about the plans and objectives of the monetary authorities, and, in many cases, mechanisms that strengthen the central bank’s accountability for attaining these objectives.” The definition can be wrapped up by adding instrument independence for the Central Bank and the lack of an explicit intermediate target, as all factors affecting inflation are taken into consideration. An important feature of inflation targeting is the need for accountability of the central bank. Within the inflation targeting framework, this is enhanced by the public announcement and commitment to attain an inflation target. The explicit target and the public and transparent nature of inflation targeting also enable the central bank to withstand political pressures more easily and to overcome the so-called time inconsistency problem. In this sense, as Frederic Mishkin1 argues, central bank independence and inflation targeting are mutually reinforcing. Adopting inflation targeting is not just a matter of choice, but also of fulfilling a number of key requirements.

Mugur Isărescu: Inflation targeting - international experience and Romania’s prospects Speech by Mr Mugur Isărescu, Governor of the National Bank of Romania, at the Conference on Inflation Targeting, Bucharest, 30 March 2005. *  *  *  Ladies and gentlemen, I would like to begin by extending a very warm welcome to you to the National Bank of Romania. It is a great honor for me to open the conference “Inflation Targeting: International Experience and Romania’s Prospects”. I would like to add that I am particularly pleased that such distinguished guests agreed to join us today and share some of their insights regarding inflation targeting. This spring marks an important moment in our history: in April 1880, the National Bank of Romania was established, and became the 19th central bank in the world; now, 125 years later, our central bank is getting ready to become the 19th (plus 3) inflation targeter. For a few years now, the National Bank of Romania considered inflation targeting to be the monetary policy framework suitable for the timeframe between achieving single digit inflation and joining the ERM II. My confidence in inflation targeting stems from my belief that price stability should be the primary goal of monetary policy and that there is full long run compatibility between this objective and economic growth. This has been proved by successful inflation targeting experiences of numerous countries, regardless of the level of economic development.
The session will also discuss how to improve the fiscal governance framework to support the achievement of fiscal objectives in the medium term, both at the national and European  3/9  Union levels. These are crucial issues, and their discussion in this Conference is fully warranted. Let me briefly share with you some thoughts on how we see at the Banco de España the key challenges for the Spanish economy that arise from the domain of public finances. The economic and social impact of the recent crisis has been deep and painful in many aspects, including in the case of public finances. During the past decade, public authorities in Spain had to deal with the challenge of keeping welfare state services functioning, while, at the same time, delivering the necessary fiscal adjustment that could ensure the long-term sustainability of public finances. Between 2011 and 2017, the public deficit-to-GDP ratio was significantly cut, from a peak of 9% in 2011, excluding financial sector assistance, to 3.1% last year. In that process, public expenditure was reduced, as a proportion of output, by more than 3.5 percentage points (pp). Notwithstanding this effort, the historically very high debt-to-GDP ratio of the Spanish General Government sector, currently around 98% of GDP, poses specific risks for economic growth. Economic literature finds evidence that maintaining a very high public debt-to-GDP ratio over a prolonged period tends to hamper economic growth, becoming a source of economic vulnerability, which, in addition, reduces the stabilising capacity of the public budget.

Much is at stake, most notably keeping our achievements alive, preserving our political, economic and social model, and ensuring a pivotal role for a united Europe in an increasingly globalised world. 9/9
(2017), “Hitting Stride - The 2nd Americas Alternative Finance Industry Report,” Cambridge Centre for Alternative Finance, June 2017. [SLIDE 19] This coexists with a rather large, diversified and deep market for conventional financial services. Under this framework firms can get financing from several sources including banks and bond market among others. In recent years, an increase of external financing is consistent with lower cost and the size of the operations of those sources. Firms used those external resources mainly for two purposes: (i) financing operations in the country or abroad and (ii) refinancing other 5  According to the Report “Breaking New Grounds” by the Cambridge Centre for Alternative Finance, Chile accounts for half of Latin America’s alternative financing industry. 15  Central Bank of Chile 29 June, 2017  debts. [SLIDE 20] Further, granular data confirm that currency risks are relative low from a historical perspective, which is possible due to availability of FX derivatives and flows from investments abroad. It should be noted that about a third of the total debt of the corporate sector is holding by firms which get financing only with local sources and do not report to local supervisor (SVS). Most of that local financing is provided by commercial banks which cover those loans with collaterals and provisions.

At its inception, the Bank started with 57 people with four departments. The Bank has grown in strength to more than 2,600 staff to accommodate our expanded roles. The modernisation of the Bank has involved change to the legal framework, our organisational and governance structure, and the nature of human capital, to enable the Bank to become more effective in the changed environment. As we advance forward into the future, the Bank will be confronted with increased challenges, and with many of the building blocks in place, the next phase of development of the Malaysia's financial sector will involve greater market liberalisation and internationalisation. These developments will intensify the demand for greater readiness, capacity and capability from the Bank to best serve the nation moving forward. This year, the Bank is in the process of submitting to Parliament a new Central Banking Act. As the economic and financial landscape, both domestic and international, is now significantly different from 50 years ago, the proposed Act involves a holistic review of the Bank's mandate, governance, accountability and the present legislative framework to ensure that the Bank remains effective in performing its functions. The institutionalisation of the objectives and mandates of the Bank aims to provide greater clarity to the existing roles and functions of the Bank. The proposed Act will also provide the Bank with the necessary powers and instruments to perform the Bank's roles and functions effectively.