samchain/econo-pairs-v1 huggingface dataset:
In 1986, the General Banking Law introduced limitations on currency mismatch, constraints on related party lending, and restrictions for banks to be paid in kind instead of liquid resources. All of these elements were common practice before the 1982 crisis. Paradoxically, what could be considered harsher regulation did not hamper financial deepening. Instead, it fostered a systematic buildup of solvency and credibility of the banking system and allowed its healthy development in the ensuing decades. Yet the 1986 Banking Law was hardly the only piece of the financial architecture that changed significantly. Notably, the creation of a funded pension system, and subsequent capital market reforms, together with capital market openness, dramatically changed the size, composition, depth, and strength of the financial sector in Chile. Page 4 of 20  Central Bank of Chile September 2019  By funneling household savings into capital markets, Pension Funds were especially important in the early development of a deep debt market; and their contribution to market-making benefited from a stable macroeconomic environment with controlled inflation, extensive use of the UF (a currency unit indexed to inflation), and the restructuring of Central Bank’s debt into longer maturities. A deeper and more liquid debt market also facilitated the pricing of debt issued by private companies in local markets. Over time, pension funds were allowed to invest abroad. This fostered profitability and diversification of pension funds, prevented distorting prices in the domestic financial sector, and created a two-way street for capital flows managed by domestic agents.

The different developments that are underway should contribute to financial stability and increase the crossborder use of the CLP, as well as the participation of non-residents in the domestic market. Therefore, authorities and market participants should be prepared to be part of a bigger and more internationally integrated FX market. Let me conclude by remarking that this journey for the Chilean financial system, through a deep financial crisis, has led to just new bank regulation but also to valuable lessons learnt for the future. A deeper and properly regulated financial system contributes to financial stability, inclusion and increased welfare. Page 19 of 20  Central Bank of Chile September 2019  Preventing stress episodes is a task that requires constant monitoring and early detection of potential sources of vulnerabilities and risk. The enactment of a new Banking General Act and internationalization of the Chilean peso, among other measures, open up a new phase for modern regulation. Even though significant progress has been made in this regard, there are still challenges ahead that must be faced to further strengthen our financial system. ***  Page 20 of 20
Zeti Akhtar Aziz: Opportunities and collaboration in Islamic finance Address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the MalaysiaUK Islamic Finance Forum, Kuala Lumpur, 8 July 2009. *  *  *  It is my pleasure to be here today to address the Malaysia-United Kingdom Islamic Finance Forum organised in collaboration with the Commonwealth Business Council. Allow me to take this opportunity to welcome The Right Honorouble Lord Mayor and distinguished guests from the United Kingdom today that are joining this dialogue with the Malaysian financial community to discuss the opportunities and areas of collaboration in Islamic finance – an important potential avenue for strengthening financial and economic linkages not only between our economies but with other parts of the world. A global shift is currently taking place in the international environment that is dramatically altering the configuration of the global economy. It is resulting in an increasingly multi-polar world. In this new phase of globalisation, the concentration of economic power will become more dispersed. Strengthening strategic economic and financial linkages across jurisdictions will become a key feature in this environment. It is very much Malaysia's intention to be part of this new future as we consciously build our capacity to enhance our international economic and financial linkages. Building effective partnership between UK and Malaysia The United Kingdom and Malaysia has one of the oldest relationships. This relationship has been dynamic, evolving in the rapidly changing international environment.

It’s not easy being green – but that shouldn’t stop us: how central banks can use their monetary policy portfolio to support orderly transition to net zero Speech given by Andrew Hauser, Executive Director, Markets  At Bloomberg 21 May 2021  This speech launches, and draws heavily on, the Discussion Paper ‘Options for greening the Bank of England’s corporate bond purchase scheme’. That paper was produced by an internal team led by Matt Trott, and I am hugely grateful to him, Sadia Arif, Andrew Bailey, Ryan Barrett, Beth Blowers, Sarah Breeden, Jon Bridges, Rohan Churm, Eleanor Eden, Chris Faint, Bianca Ginelli Nardi, Maggie Illingworth, Zane Jamal, Josh Jones, Rebecca Maher, Nick McLaren, Tom McLaren, Rhys Philips, Dave Ramsden, Francine Robb, Philip Temme, Thomas Viegas and Sebastian Walsh for their input both to the Discussion Paper and this speech  1  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  Introduction I am delighted to be with you here today to launch our Discussion Paper on greening central bank asset portfolios. The Paper sets out our analysis and proposals in detail.
Opening Ceremony of Asian Financial Cooperation Association (AFCA) Keynote Speech by Dr. Veerathai Santiprabhob, Governor of the Bank of Thailand Beijing, July 24, 2017 Vice President Mr. Ma Kai, Vice Premier of China Mr. Guo Shuqing, Chairman of the China Banking Regulatory Commission (CBRC) Mr. Chen Yuan, Vice Chairman of the Chinese People's Political Consultative Conference Mr. Jin Liqun, President of the Asian Infrastructure Investment Bank (AIIB) Mr. Norman Chan, Chief Executive of the Hong Kong Monetary Authority (HKMA) Mr. Tian Guoli, Chairman of AFCA Excellencies, Executives of financial institutions, Ladies and Gentlemen. A very good afternoon to you all, Today’s opening ceremony of the Asian Financial Cooperation Association (AFCA) is a very auspicious occasion, and I am honoured to be a part of this historical event. I would like to congratulate the Chinese government for successfully establishing AFCA – a new forum, which I am certain, will play a significant role in enhancing financial connectivity and cooperation within Asia. I would therefore like to take this opportunity to share with you my thoughts on how we can further enhance financial connectivity to ensure sustained shared benefits – as stated in AFCA’s mission1. Ladies and gentlemen, People have long been connected by trade along the ancient Silk Road dating back more than 2,000 years ago. Today in modern times, many trade and investment agreements between China and other Asian countries have promoted close economic ties in the region.

If we take trends in self-employment, temporary and zero-hours contract workers since 2000, we would expect these to have collectively directly subtracted from wages by around 0.6 per cent, or around 4 basis points from annual wage growth. 18  Again, although these estimates are modest they  probably understate the true effect, given they ignore any behavioural effects of these trends. Wages are not the only way in which these shifts in the nature of work may have affected labour market behaviour. As with unionisation, these shifts may also have widened the dispersion of wage rates within a given sector or occupation, with less collective-bargaining and more localised rates of pay. Vacancies data lend some support to this hypothesis. Charts 9 and 10 plot the distribution of offered wage rates in different occupations, comparing job vacancies containing the terms “self-employment” and “flexible hours” with those that do not. These vacancies data probably capture a particular segment of the self-employed and flexible working population, who differentiate their pay by more than the typical self-employed worker. Indeed, the ‘self-employed’ vacancies here are advertised by firms who invite applicants to become self-employed before hiring them. Nonetheless, these “violin” plots of offered wage distributions play an interesting tune. The distribution of offered wage rates is far wider for vacancies associated with self-employment and flexible hours than those without, within a given occupation. There is far less evidence of a “going-rate” for jobs associated with the self-employed and flexible working. This sounds intuitively plausible.
Such a transaction entails modest risk.32 As I’ve mentioned, a certain amount of dispersion across markets is normal and to be expected, due to liquidity, credit and other types of risk premia. 33 Spreads have also declined considerably in recent months. This could be due to the market adapting to the changes I have described. However, the data indicate that spreads have become more variable, have increased to high values at times, and in the case of repo and foreign exchange swaps have become especially volatile around month-end, and, especially, quarter-end dates. The increase in spreads in the repo and FX swap markets relate to the confluence of two factors:34 constraints to intermediation ensuing from the leverage ratio pressures I mentioned earlier, combined with limited access to dollar money markets by some financial as well as nonfinancial institutions.35 Pressures to reduce balance sheet size at period-end dates affect domestic money market integration, and integration across different global money markets, just as they affect the link between unsecured markets and IOR that I discussed earlier. These pressures are made more acute by inelastic demand for wholesale dollar funding from some firms that hold large dollar loan and securities portfolios but lack access to dollar deposits or to direct funding from money market funds.36  Prognosis On the whole, these shifts in broad money market spreads do not pose a problem for monetary policy formulation or implementation.

Simon M Potter: Money markets at a crossroads - policy implementation at a time of structural change Remarks by Mr Simon M Potter, Executive Vice President of the Markets Group of the Federal Reserve Bank of New York, at the Anderson School of Management, Los Angeles, California, 5 April 2017. * * * Accompanying slides Thank you very much. I’m very pleased to be back at UCLA, where I enjoyed eight years in the 1990s as an assistant professor of economics. I’d like to thank my hosts for their gracious invitation to have, once again, the experience of speaking to a classroom of future leaders in finance, business, economics, and—just perhaps—central banking as well.1 Due to the large size of the Federal Reserve’s balance sheet, we are employing a new and innovative framework to control money market rates. Since late 2015, we have seen several significant developments in money markets that have tested this new framework. These include a profound reshaping of the money market fund industry as a result of new Securities and Exchange Commission (SEC) rules, significant shifts in cash management practices at the Treasury and large foreign reserve managers, and continued pressure on bank balance sheets due to the ongoing implementation of Basel III capital requirements. Also since that time, the Federal Open Market Committee (FOMC) has directed three 25 basis point increases in its target range for the federal funds rate.
Even though the region saw quite notable bond fund outflows since the Fed began to raise rates in March, such outflows have yet to cause any significant disruptions. That being said, there is no room for complacency. For one, as the global economy is heading towards a growth slowdown, if not an outright recession, Asian EMEs may be less able to look for support from external demand to cushion the effect of tighter global financial conditions. Moreover, capital outflow pressures faced by the Asian region may persist, leaving EM Asian currencies and FX reserves to bear the brunt of global tightening. 4. Unfortunately, there are limits as to how much these shock absorbers can shield the domestic economies from tighter global financial conditions. In particular, even though exchange rate flexibility can be a useful shock absorber, research suggests that currency depreciation is not a panacea for cushioning the impact of US rate hikes. As a few papers in today’s Workshop would argue, given the centrality of the US dollar in the international financial and monetary system, a US monetary tightening shock and an appreciation in the broad US dollar index can still induce a widening of EMEs’ sovereign credit spreads. Worse still, for more vulnerable EMEs with significant FX mismatches, allowing their currencies to depreciate is not an appealing option; instead, their central banks may actually have to tighten monetary  policy even when global financial conditions are already tightening, in order to support their currencies and prevent their FX liabilities from spiralling out of control.

Liquidity risk-related losses piled up over losses registered as a result of fair value accounting as risks in the real estate sector started to materialise on a scale unseen since the Great Depression. In the absence of asset liquidity and with many of the main actors in financial markets undergoing painful processes of loss-recognition, consolidation and deleveraging, some of the assumptions of the models regularly used for risk management did not hold anymore. For  2  BIS central bankers’ speeches  instance, this was the case of the assumptions of price continuity and sufficient arbitraging activity that underlie proper market functioning. Furthermore, a variety of assets had to be priced using models that were over-reliant on assumptions and inputs such as credit ratings that had come under strain, thereby increasing the scope for model risk. As a result, uncertainty about the “true” fair value of the assets being held by financial institutions increased significantly. As if the discovery of these “forgotten” risks – the liquidity risk as well as tail market and credit risks – would have not been sufficient evidence of the failures of investment decisionmaking practices at the global level, the default of Lehman opened our eyes even wider and the focus shifted to counterparty risk. This source of risk became increasingly important due to the implementation of hedging and trading strategies based on derivatives contracts, which were very concentrated on a few institutions.
Figure 14 Retail sales and new car sales (1) (2) (index, 2003=100) 250  380  225  330  200  280  175  230  150  180  125  130  100  06  07  08  09  Durable goods Non-durable goods  10  11  80  New cars  Labor market (3) 14  (percentage; millions of persons)  3.0  12  2.8  10  2.6  8  2.4  6  2.2  4  03 04 05 06 07 08 09 10 11  2.0  Unemployment rate Employment  (1) Seasonally-adjusted series. (2) Sold during moving quarter. (3) Uses Universidad de Chile's Employment-Unemployment Survey for Greater Santiago. Seasonally-adjusted series. Sources: National Automobile Association of Chile, Central Bank of Chile, National Chamber of Commerce and Universidad de Chile. BIS central bankers’ speeches  13  Figure 15 Inflation indicators (y-o-y change, percent) 12  12  9  9  6  6  3  3  0  0  -3  -3 06  07  CPI  08  CPIX  09  CPIX1  10  11  CPI w/o foodstuffs and energy  Sources: Central Bank of Chile and National Statistics Institute.

Both the central bank and the central government can default on their payments in two ways: by not repaying the debt, or by inflating away the debt. It does happen that countries fail to repay their debts. If the debt lies with the central bank, it is more likely that it will be inflated away. Based on this reasoning, are there situations where the central bank should step into areas similar to fiscal policy? Yes, there could be such situations. One might be if an acute shortage of liquidity arises, for instance, during a financial crisis. 4 In a speech given in 2013, Larry Summers talked about “secular stagnation”. See Rachel and Summers (2019). See, for instance, Bartsch et al. (2019), Bernanke (2016), Bernanke (2019), Eichenbaum (2019), Reichlin et al. (2019) and Shirai (2019). 5  3 [7]  Central banks are better than government at creating liquidity quickly. 6 Another situation is if the market begins pricing a higher credit risk in government bonds than in central bank money. If one wants the credit risk to be transformed into an inflation risk, it may be desirable for the central bank to step in and support the government's funding, for instance by buying government bonds or through direct transfers to the treasury. A similar situation may arise in a monetary union if there is no fiscal policy at union level. But we are not close to one of these situations in Sweden today. Our public finances are in good shape. National debt is low.
In practice, housing costs for owner occupants based on the acquisition approach will move closely in line with construction and maintenance costs. They would probably be given a somewhat lower weight in an overall index over time than imputed rent in the CPI in Norway today. The chart shows developments in the construction cost index and developments in imputed rent in the CPI, which is based on developments in the rental market. The two indices have risen at about the same rate in recent years, but have diverged since summer 2006. Higher prices for both labour and building materials have pushed up the rise in construction costs. In August 2007, the 12-month rate of increase in construction costs was 7.9 per cent, while the 12-month rate of increase in imputed rent was 1.5 per cent. 6  See Eiglsperger, M. (2006) The treatment of owner-occupied housing in the harmonised index of consumer prices. IFC Bulletin 24, 68-79. 8  BIS Review 102/2007  A change from imputed rent to the acquisition approach may change the path for the CPI over the business cycle. While rents probably react with a lag, movements in the rate of increase in construction costs will be more coincident with cyclical developments. Prices for clothing can also be difficult to calculate. As measured by the CPI, clothing prices in Norway have fallen markedly over the past few years. This may reflect the removal of import quotas, reduced tariff rates, a shift in imports towards Chinese goods and improved efficiency in retail industry.

This in turn means that the board and the senior management are now placed with greater accountability and responsibility in this area. This approach also benefits the industry as they are not hamstrung to introduce new and innovative products and services. The intent is also to improve the time-to-market. However, it comes with a responsibility. Financial institutions are expected to apply the standards judiciously and proportionately. This should take into account risks within their business activities and strategies, and the role and relationships within the broader financial system. Another issue organisations face in the conduct of their businesses arises from principal-agent relationships. Establishing clear behavioural norms with the right combination of controls and incentives, to shape the desired behavior is key. For all the above, the compliance function can play a meaningful role in this process. Compliance in the context of broader responsibilities to society As the theme for this conference suggests, compliance is a responsibility. What I have said so far has focused on perspectives from the point of view of individuals within the industry. However, compliance must also be viewed in relation to the broader financial system and society itself. A key lesson from the global financial crisis in 2008 was that individual behavior, even though well intended and rational from an individual’s point of view, can cause massive damage at the aggregate level. In many ways, the complexity of rules that apply to the financial system is a reflection of its important role in the economy and society.
There are large sums of money arising from savings or other cash balances which must be (re-)invested somewhere. Returns from the safest sovereign assets have been driven to very low yields. And even some risky assets – like bank debt – are getting scarcer as a result of policy actions, directly or indirectly. Where are asset managers putting the money? BIS central bankers’ speeches  3  Chart 4 Financial market volatility(a)(b) Interest rates (RHS) CDS premia (RHS) Equities (LHS) Foreign exchange (LHS)  Per cent  100  Basis points  300 250  80  200 60 150 40 100 20  50  0  0 07  08  09  10  11  12  Sources: Bloomberg, Chicago Mercantile Exchange, NYSE Euronext, JPMorgan Chase & Co. and Bank calculations. (a) Three-month option-implied volatilities. (b) Average of FTSE 100, S&P 500 and Euro Stoxx 50 for equities. Average of three-month short sterling, euro-dollar and Euribor for interest rates. Average of five-year on-therun iTraxx Europe main and CDX North America investment-grade for CDS premia. Average of three month € $ $ Yen per $ and € for foreign exchange. There has been a renewed search for investible assets going on. Not the old, indiscriminate, invest-in-anything-with-a-high-return-and-ask-no-questions “search-for-yield”. It has so far been a much more calculated hunt. Not so much for return on capital but return of capital. Credit and liquidity risks are now being much more thoroughly appraised. In particular, investment firms have been avoiding the least liquid products.

So equity-linked structured notes, for example, have been out of fashion. High yield (non-financial) corporate bonds and Exchange Traded Funds (ETFs) have both been in. But since the risks in some ETFs were highlighted – by the UK’s new Financial Policy Committee amongst others – some of the more complicated ETFs and those with opaque securities lending programmes, have faded somewhat. It is not that investors are avoiding all credit risk – where it can be properly assessed and a diversified portfolio is possible. For example, the end-investor demand for corporate credit ex-financials is generally very strong. The announcement of OMTs by the ECB and the other announcements by the US Fed and the Bank of Japan, appear to have led to a collective sigh of relief in recent weeks. Yields on Spanish and Italian debt have fallen since the announcement – by 100bps or so at 10 years – and equity markets are up. I hope that the ECB action lays the foundation for a successful resolution of the European debt crisis. The view of markets so far is positive in that regard. I would caution, however, that we have been here before. Along with every other market participant I hope that this time will be different. But central banks cannot solve fundamental problems in the real economy, even using unconventional measures – they can only give the time and space for governments and private sector agents to do so.