samchain/econo-pairs-v1 huggingface dataset:
Broad diversification of the GPFG’s investments is in line with Markowitz’s theory. The GPFG’s investment strategy contributes to an acceptable risk-return profile for the fund. At the same time, with ownership shares in 9000 companies, the GPFG is also broadly exposed 4/6  BIS central bankers' speeches  to conditions and events with dimensions other than the effect on financial risk, related to how a company deals with a specific incident or more fundamental aspects of its operation. A global listed company that is criticised for its activities will almost without exception include the GPFG as one of its shareholders. Questions will sometimes be asked about why the fund is invested in the company and what action is being taken to follow up the fund’s investment. If questions are often raised about whether the GPFG is being managed in what is considered a responsible manner, support for the investment strategy may be affected. This could in turn increase the risk that we will not achieve our primary objective of enabling current and future generations to benefit from Norway’s petroleum wealth. The number of questions related to individual investments cannot be reduced by diversification. On the contrary, the number will increase with the breadth of the GPFG’s investments. The portfolio contains a large number of companies that could run into difficulties. A possible way of managing this type of risk is to exclude companies from the portfolio.

There is a large degree of uncertainty among market participants about the magnitude and the timing of climate change, and about likely policy responses. This type of uncertainty may be a source of market failure. Climate risk is a complex topic covering a broad field of issues being to a large degree outside the remit of central banks. Climate change is a global challenge. The prime responsibility and the most effective tools to mitigate climate risk lie with governments and with fiscal policy. It is important to use the market mechanism by pricing emissions to reflect the true costs of greenhouse gas emissions. However, the financial system must adapt to climate risk. Central banks and financial supervisory authorities can, within their mandates, promote financial stability by ensuring that financial institutions appropriately includes climate risk in their risk management. Climate risk is not fundamentally different from other risks facing the financial sector. Other types of risks may also be systemic and characterized by historical data having uncertain relevance for future risks. Both financial institutions and authorities must consider how a changing climate will affect financial risks. This must be integrated in the risk assessment and hence in the overall assessment of the capitalization and funding of financial institutions Uncertainty with respect to the magnitude and impact of climate change can lead to simplified assessments of its risks. Authorities, including central banks, may contribute to a knowledgebased debate and reduce uncertainty by strengthening and refining reporting requirements.
The new regulatory framework will make it more costly for banks to expand rapidly. Moreover, the new framework includes macro-prudential measures that can be triggered when necessary. Basel III includes a countercyclical capital buffer that requires banks to set aside more capital against their loans. This will increase their capacity to absorb future losses, which to some extent can also dampen credit growth during an upturn. In today’s situation in Norway, with elevated debt burdens and high and rising house prices, a countercyclical capital buffer would have been a useful instrument. Chart: Inflation The interest rate affects general economic developments, including the housing market and other conditions that have implications for financial stability. Experience indicates that monetary policy alone cannot ensure stable economic developments. The objective of  4  BIS central bankers’ speeches  monetary policy is low and stable inflation, and we only have one instrument – the key policy rate. There are limits to the number of considerations the interest rate can bear. We therefore need more targeted instruments to dampen the build-up of risk in the financial system. The interest rate also has effects on other asset prices, such as the krone exchange rate. A monetary policy that aims at bringing down the value of domestic assets can easily push the value of the krone in the opposite direction. In interest rate setting we can never lose sight of the primary objective of monetary policy, which is low and stable inflation. Thank you for your attention.

1 IMF World Economic Outlook, October 2014 2 IMF World Economic Outlook, October 2016 3 Dealogic data 4 “Learning to Live with Less Liquidity”, Morgan Stanley and Oliver Wyman, 13 March 2016 5 “Infrastructure for a seamless Asia”, Asian Development Bank, 2009 6 "The ASEAN Investment Report 2015 Infrastructure Investment and Connectivity”, the ASEAN Secretariat and  UNCTAD, November 2015 7 World Federation of Exchanges 2015 and 2006 data 8 “EY Global IPO Trends”, Ernst & Young, 2006–2015 and “IPO Watch, Asia”, PricewaterhouseCoopers, 2007–  2014 9 World Federation of Exchanges 2015 and 2006 data 10 Dealogic data 11 “ASEAN, PRC and India”, Asian Development Bank, 2014 12 “United Overseas Bank (UOB) publishes the first global Covered Bond Label Harmonised Transparency 6/7  BIS central bankers' speeches  Template”, Covered Bond Label, 19 January 2013 13 “Grow fast or die slow: why unicorns are staying private”, Mckinsey & Company, May 2016 14 IMF World Economic Outlook, October 2016 15 MAS estimates as at 30 September 2016  7/7  BIS central bankers' speeches
Business can and will flow quickly away from Hong Kong if we somehow fail to upgrade the standards of our financial services. In conclusion, let me say that to become “an international risk management hub” is synonymous to becoming “an international financial centre”. No IFC can exist or compete if it is not also a risk management hub in delivering the various forms of financial intermediation, including the money, banking, capital, asset management and insurance markets. I don’t really think there is such creature as a “pure” risk management hub as opposed to an IFC. In other words, it is hard to contemplate how a place can turn into a risk management hub if money and capital do not flow through it. 15. Finally, let me share with you a couple of takeaways on what I have said today on how Hong Kong can enhance its competitive position and leadership in risk management: Financial institutions must not put their own interests above those of their clients. The (a) professionalism and integrity of the financial institutions and the practitioners are crucial in earning the confidence and trust of their customers. Without such trust, the prospects of Hong Kong as an IFC are doomed. Financial firms should avoid getting carried away in boom times. Motivated by big and growing profits and bonuses, many financial firms are minded to undertake very rapid (b) expansion without building the necessary risk management capability.

François Villeroy de Galhau: Parisian momentum Speech by Mr François Villeroy de Galhau, Governor of the Bank of France, at the Bloomberg "Future of Finance" Paris forum, Paris, 9 May 2023. *** Ladies and Gentlemen, It is a great pleasure for me to give this keynote address at the first Future of Finance – Paris forum organised by Michael Bloomberg and his team. After the first panel, which gave precious insights on how Paris can lead the way in the reshaping of financial markets, it will cover the whole range of most topical issues. This first Bloomberg forum in Paris is more broadly a very timely and welcome initiative, which echoes financial players' growing interest for the French capital. Paris has indeed kept asserting itself as a major financial centre over the last few years, and stands out as unique in the network of European financial centres. I can only invite you to read the excellent Bloomberg article published on 18 April, which perfectly captures this multifaceted trend.1 Its title, Banks betting on Paris say there is life after London, should bring definitive reassurance to other banks, and encourage them to make the same winning bet.
This is because insofar as such effects have been at work, this has happened in a period when inflation expectations shifted downwards, making it difficult to separate the one from the other. The inflation assessment in the latest Inflation Report incorporates a marginal downward revision of the trade-off between growth and inflation compared with the June Report. This could stand for some change in the appraisal of resource utilisation as well as a somewhat lower inflation propensity, though perhaps we have placed more emphasis on the latter. At the end of the two-year period we discuss, the effect on inflation amounts to some tenths of a percentage point. The Riksbank considered the revision was called for in the light of the available information about the labour market situation and price tendencies, for instance. The IMF has made similar downward revisions for the advanced economies and they are mirrored in OECD area forecasts compiled by Consensus. 4. Conclusions for monetary policy  In connection with the publication of the Inflation Report, the Riksbank decided to keep the repo rate unchanged. The reasons were much the same as in August. Economic growth is admittedly higher, which reduces the unutilised capacity and thereby leads to an increase in underlying inflationary pressure. But inflation is still below the target and is judged to rise relatively slowly in the future, so  BIS Review 111/1999  6  that twelve to twenty-four months ahead it will be in line with the target.

To date, however, the levels reached by asset prices in Sweden are hardly a risk for economic development and stability in the way that some observers perceive to be the case in the United States. All in all, the rate and breadth of the economic upswing in Sweden suggest that unutilised resources will be activated for production relatively quickly. Various indicators of resource utilisation suggest that certain capacity shortages may arise at the end of the forecast period. Unemployment falls to 4.6% next year and to 4% the year after, which means that we count on a higher rate of wage increases than before. In the coming years wages are now expected to rise 4–4.5%. With the rapid increase in employment, moreover, registered productivity growth will be lower, particularly as most of the upswing is occurring in the services sector, where productivity is relatively lower. The forecast for this year has therefore been revised downwards and for the coming years the Riksbank counts on labour productivity rising in annual terms by just over 1.5%. (Figure 3). Against this background it has to be said that inflation expectations look good. There has naturally been some increase in the shorter run in the light of stronger economic statistics but the level remains low. Expectations for the medium and longer run are anchored around 2%. (Figure 4). The combination of all these factors led to the conclusion in the Inflation Report that in the forecast period inflationary pressure will be somewhat stronger.
‘Hard law’ and ‘Soft Law’ We cannot expect misconduct to never occur in financial markets – history has taught us that there will always be individuals prepared to do the wrong thing if there is a reward. But we can reduce the frequency and severity of misconduct and we can increase the likelihood that it will be detected and punished. Given how quickly financial markets evolve and the practicalities of regulation, this can best be achieved by a combination of ‘hard law’ (legislation and regulation by the official sector), ‘soft law’ (codes and standards defined collectively by market participants), and culture (norms and practices created by firms’ Boards and management). The authorities obviously have a role to play. Regulators must introduce rules and regulations to enforce minimum standards of conduct, hold individuals to account for their actions, and put in place incentives to promote good conduct. But hard law is not enough. Even in jurisdictions with a preference for ‘hard law’ solutions, issues of interpretation and norms arise. Regulators cannot police every market practice, especially in fast moving markets, nor can they dictate a firm’s culture. However, authorities can use their convening power to bring together market participants to solve collective action problems, set expectations on behalf of broader society about expected behaviours and provide incentives to encourage adherence to voluntary market standards. This is where industry leadership is vital.

François Villeroy de Galhau: New Year wishes to the Paris financial centre New Year wishes to the Paris financial centre by Mr François Villeroy de Galhau, Governor of the Bank of France and Chairman of the Autorité de contrôle prudentiel et de resolution (ACPR), Paris, 4 January 2022. * * * I would like to start by extending, on behalf of the Banque de France and the ACPR, our warmest wishes, to you, our partners in our daily work: elected officials, financial professionals, entrepreneurs, associations and members of the media. May this year be as happy as possible for you and yours, and may your projects be fruitful, despite this Covid ordeal that has lasted too long, and despite all the uncertainties of 2022. My first wish is obviously that we finally overcome this pandemic, and that we escape from the pressure of this emergency and return to the fundamental choices for Europe and our country, in the long term. The 20th anniversary of the euro, which we are currently celebrating, invites us to do so. The euro is without doubt the most concrete success of European integration; it is “Europe in the citizen’s pocket", at the service of the 340 million Europeans who use it across 19 countries. Moreover, the euro enjoys unprecedented popular support: 74% of French citizens and 78% of Europeans are now in favour.
Ravi Menon: Smart regulation and sustainable insurance growth Speech by Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore, at the Insurance Institute of London, London, 12 May 2015. *  *  *  Mr Stephen Riley, President of the Insurance Institute of London Mr John Nelson, Chairman, Lloyd’s of London Ladies and gentlemen, good afternoon. I wish to thank John for inviting me to speak to you today. It is a privilege to address members of this esteemed Institute, and a pleasure to do so in a heritage building of such architectural and historic interest. I have been to this building before. And my first thought as Lloyd’s Building came into view, along with its plumbing, stairways and lift shafts, was transparency. So it is apt that in the same spirit of transparency, I should make a couple of disclosures: •  one, I am not an actuary or an accountant, and  •  two, I am not responsible for Solvency II. But John has kindly assured me that the musings of a central banker and regulator from the Far East counts towards fulfilling your continuing professional development requirements. So for my speech today, I will offer an overview of MAS’ roles as central bank and integrated supervisor, our approach to regulating and developing the financial sector, and prospects for the insurance industry in Asia.

•  Five of the top 10 primary growth markets will be in the Asia-Pacific; this includes China, India, and Indonesia. There are three structural factors driving demand for insurance in Emerging Asia. First, Asia is getting richer. Projections by the IMF show that Emerging Asia will remain the fastest growing region in the world over the next decade. As incomes rise in Asia, governments, corporates, and individuals will increasingly seek insurance to protect their growing economic assets. •  Burgeoning urbanisation, infrastructure development, and cross-border trade will drive demand for commercial and specialty insurance. •  A growing middle class and rising affluence will underpin a steady increase in life and health insurance penetration rates. Second, Asia is getting older. Asia is facing declining fertility rates, increasing life expectancy, and a rapidly ageing population. •  The United Nations projects that, by 2030, Asia’s old age dependency ratio will be 16%, up from today’s 11%. •  Against this demographic backdrop, public retirement and pension systems in Asia remain inadequate. The retirement gap between savings and retirement needs can be as high as 13 years. •  This will spur greater demand for private health insurance, annuity and other retirement security products. Third, Asia is becoming more aware of catastrophic risk. •  Over the last 30 years, Asia has borne the brunt of natural catastrophe losses, accounting for almost half of the world’s estimated economic losses from natural disasters. Yet less than 5% of the losses were insured, compared to 40% in advanced economies.
I would say that the delay in adopting reforms for public social protection systems reinforces the need to achieve healthier positions in the short term, providing for further cuts in the public debt ratio or, alternatively, for making appropriations to the pension reserve fund with greater speed and intensity. Moreover, this need increases in the absence of more ambitious reforms in the labour market to further promote the use of still-idle labour resources, despite the progress in increasing participation and reducing unemployment. I talked earlier of the advisability of having more efficient cost- and price-setting mechanisms to smooth the adjustments the economy has to make in the context of EMU. In this respect, the fact that issues relating to the structure of collective bargaining have been relegated on the agenda of potential labour market reforms is a cause for concern. The wage bargaining arrangements included in the Inter-Confederal Agreements for Collective Bargaining, habitually signed by social agents, restrict the capacity to adjust wage increases to industry- or firm-wide productivity developments, in addition to setting a floor for the increase in nominal wages. The indexation clauses included in a high proportion of agreements have particularly harmful effects when exogenous price-rise shocks occur, as with the current hike in oil prices, since they tend to reinforce the upward inertia of wages.

Its commitment is essential, in order for our co-operation to be part of our daily job and add to the efficiency of both institutions and not to remain solely on paper. The Bank of Albania considers the conclusion of this memorandum as a cornerstone which will overwhelmingly affect the enhancement of real competition conditions, in which the banking and financial activity are currently being conducted. It is worth underlining that fair competition promotes the efficiency in the banking business and refines the composition and the functioning of the banking market. The Bank of Albania will make its utmost efforts to make the co-operation deriving from this agreement as concrete as possible and with direct impact on achieving a real, fair and efficient market competition. BIS Review 82/2007  1  I take this opportunity to express the Bank of Albania commitment to carry out all the responsibilities deriving from the law and from this agreement. In addition, allow me to express my appreciation to the Competition Authority and to Ms. Lati for the support granted in the conclusion of this agreement. Thank you. 2  BIS Review 82/2007
Statistics Norway’s business tendency survey indicates continued favourable prospects for Norwegian manufacturing. Activity is expected to increase in service industries and the construction sector in the near term. Capacity utilisation in the Norwegian economy now appears to be close to a normal level. In manufacturing, capacity utilisation is close to its historical average. According to Norges Bank’s regional network, about 40 per cent of companies will have some or considerable difficulty in increasing production. Even though growth in the Norwegian economy has been high for a long period, substantial pressures have not yet emerged in the labour market. The rise in the number of employed in the first half of the year was fairly modest in relation to output growth. This may be due to lagged effects of the sharp fall in sickness absence through 2004. In many companies, the large increase in available person-hours was probably not fully utilised immediately. A considerable share of output growth may be the result of improved utilisation of company workforces. According to the quarterly national accounts, employment rose by 0.5 per cent from the first half of last year to the same period this year. Measured by the Labour Force Survey (LFS), the number of employed rose by 12, 000 from May to June and by a further 2, 000 from June to July. 1/7  The use of foreign labour has increased in the year that has passed since the enlargement of the EU.

I would therefore like to comment briefly on our assessment for the next three years, based on the analyses in the most recent Inflation Report published in June (Inflation Report 2/05) and updates at the most recent monetary policy meetings. The economic situation The Norwegian economy is in an upturn and is now expanding at a brisk pace. Inflation remains low, but has edged up since last year. The risk of a fall in the level of prices and markedly lower inflation expectations has diminished. At the same time, there appears to be little risk that inflation will rapidly move up to a level that is too high. The interest rate reductions through 2003 and into 2004 have resulted in low real interest rates. For a period, the real interest rate has been considerably lower than normal. The low level of interest rates is supporting the high activity level in the Norwegian economy. The economic upturn is broad-based. At the beginning of the recovery, activity was primarily fuelled by private consumption, traditional exports and petroleum investment. In addition, growth in mainland fixed investment has gradually gained considerable momentum. Monetary policy easing and low inflation have resulted in strong growth in household real disposable income. Private consumption and housing investment have risen sharply. House prices have continued to rise. Debt growth remains high. The economic upturn has continued this year. High petroleum investment, the international upturn and higher commodity prices have boosted output and earnings in the manufacturing sector.