samchain/econo-pairs-v1 huggingface dataset:
The only differences are that just banks can hold reserves and reserves can be turned straight into cash at the central bank, whereas Treasury bills would have to be sold or repo’d out first. Under Ricardian equivalence, quantitative easing of the sort undertaken by the Bank of England and the Federal Reserve should then be irrelevant because private agents internalise the tax implications of the associated changes in the consolidated public sector balance sheet. I think the empirical evidence from the growing number of event studies and the like strongly suggests that this is not the case and that market imperfections give the policy traction by reducing term premia. This, I believe, was particularly true during the worst of the post-crisis recession, though it may have become less so as markets have returned towards normality. That is reinforced by recent market movements in response to heightened anticipation that the Federal Reserve will shortly begin to taper its purchases. A more serious objection is that they are simply the wrong policy to deal with the problem at hand. Low policy rates and quantitative and credit easing all seek to encourage the intertemporal switching of spending from the future to the present. But, according to the critics, that just leads to further debt accumulation and is inimical to the adjustment necessary to unwind the excesses of the pre-crisis period (see Rajan, 2013, for a lucid exposition of this view).

In the spirit of the MoU agreement, a primary step in our cooperation is to establish high level policy dialogue with the Bundesbank on a regular basis, the first of which will be held in 2014. This is timely, considering that not only will Turkey assume the G20 presidency in 2015 and engage in an even closer interaction with the central banks of the G20 member states, but will also help meet the recently increased need for policy dialogues over the implementation and implications of new unconventional monetary policies. In general, the CBRT places great emphasis on bilateral relations with fellow central banks, especially those of the G20 member countries. The year 2012 is a testament to our commitment, as the CBRT opened six new representative offices, which brought the total number to ten. The first-round representative offices include those in Frankfurt, NY City, London and Tokyo. The ones opened later on are in Moscow and Sydney – to strengthen relations with other G20 presidency countries; Beijing and Kuala Lumpur – to strengthen relations with the Asian countries; Paris – to strengthen relations with the OECD, and finally Washington, DC – to strengthen relations with the IMF. In her efforts to enhance regional cooperation, the CBRT laid the foundations of the dialogue among central banks that paved the way for the establishment of the Central Banks Governors’ Club of Central Asia, the Black Sea Region and the Balkan Countries.
Speech  Embargo 30 April 2021, 10.00 am  SNB distributions – not a matter of course even when profits are high 113th Ordinary General Meeting of Shareholders of the Swiss National Bank  Thomas J. Jordan Chairman of the Governing Board Swiss National Bank Zurich, 30 April 2021 © Swiss National Bank (speech given in German)  Page 1/7  Madam President of the Bank Council Dear Shareholders Dear Guests A warm welcome to you all to our Annual General Meeting. The pandemic has brought great suffering for many people. At the same time, coronavirus has posed unexpected challenges for the economy and politics in Switzerland. It has also placed a heavy burden on the finances of many households and companies, and on the public sector as well. Our sympathy goes to all those who have been affected by the disease or have lost people dear to them. From a professional perspective, our efforts are focused on the contribution that the Swiss National Bank can make within its mandate towards reducing the economic impact of the pandemic on our country. In the past months, we have used every means at our disposal to perform our mandate as well as we possibly can, even in adverse circumstances. Our policy is aimed at helping the people in Switzerland to get through these difficult times.

With a view to ensuring that the ratio between the desired level of equity capital and the currency reserves can be increased again somewhat, the SNB recently decided to adjust its rule on allocations to the provisions for the coming years. For the financial years through to 2025, the annual allocation to the provisions will be at least 10% of the preceding year’s provisions, compared with 8% per annum previously. A persistent erosion of the SNB’s equity base would undermine the credibility of our institution over the long term and would fuel doubts regarding our ability to act. 1 Ongoing allocations to the provisions are therefore essential for the SNB. The amount remaining after the allocation to provisions is referred to as the distributable profit. However, since a profit in any given year can be followed by a loss the next, the SNB does not pay out all of the distributable profit at once. Instead we seek to smooth the distributions to ensure that they are less dependent on variable annual results. This smoothing was introduced to facilitate better planning for the Confederation and the cantons. However, maintaining distributions at a steady level is also of pivotal importance for the SNB. The reason for this is an underlying asymmetry: the SNB can distribute profits, but it cannot reclaim any money if it makes a loss. If the SNB were to always distribute its profits in their 1  For more information on the importance of a central bank’s equity, cf. inter alia Jordan, Thomas J.
With regard to operational aspects of monetary policy in pursuit of the general macroeconomic objective of stability in the value of the currency, the advent of this new means of payment would, if it caught on to a significant extent, have some impact on the public’s allocation of money holdings as between physical currency, various forms of deposit and, now, electronic forms. This in turn might affect the monetary statistics and their interpretation. However, any changes would only occur gradually. Besides, nowadays there are scarcely any central banks which rely single-mindedly and exclusively upon measures of money supply to guide their monetary policy decisions. Therefore I do not believe that there is anything much to worry about on this front. Next, it has been suggested that internet banking in its various manifestations could introduce additional and unpredictable volatility into world financial markets by enabling millions of people to switch funds between investments or between currencies at the click of a mouse. In general I am sceptical about such worries. Global financial markets have already been exploiting the IT age with its 3  BIS Review 28/2000  immediacy of information and electronic dealing for some years. Capital is already hugely mobile in both scale and speed. I doubt whether the inclusion of new players at the retail level would have much of an additional impact.

Mr Latter looks at the implications of e-commerce for the banking and monetary system in Hong Kong  Speech by Mr Tony Latter, Deputy Chief Executive of the Hong Kong Monetary Authority, at a conference on China and the New Millennium: WTO, Entrepreneurs and New Technology for Global Trade, held in Nansha, Guangdong Province, People’s Republic of China on 24 March 2000. *  *  *  The internet has quite suddenly multiplied by a remarkable degree the number of potential suppliers and customers with whom we can do business, and the number of avenues through which we can perform financial transactions. This opens up all sorts of opportunities, but it also attracts all sorts of warnings - about needing to know the identity of those with whom we are dealing; about needing somehow to satisfy ourselves, remotely, as to the quality of the products or services on offer; about needing to be sure of the financial standing of counterparties, be it their ability to pay or to provide credit which concerns us; and so on. Speaking as a central banker, I begin to have a specific interest in the development of e-commerce at the point where payment has to be made for the goods or services that are traded via the internet, or where people deposit money into internet accounts. But I also have a broader interest relating to the overall stablity and integrity of the financial system.
Introduction of regulation and supervision was delayed and the Securities and Exchange Commission was created only a few years after the market had existed. The capital market is stagnating as a result of voucher privatization, during which the number of shares congested the market. This subsequently lead to large de-listing of the number of shares from the market (the number of shares traded now is 23 times smaller than in 1995, just after the voucher privatization). The market was also plagued by frauds and non-transparent behavior. The volumes and market capitalization has stagnated, 88,5% of total volume is concentrated into 5 shares. There has never been any IPO, and even the good companies are de-listed from the market after their privatization (such as Ceska Sporitelna, the largest Czech retail bank). Capital markets in some of the other new member states function arguably better than the Czech one, nevertheless their significance is also much less than in more developed countries. The aggregate equity market capitalization in all new member states represents less than 2% of market capitalization in the EU. The Warsaw Stock Exchange is the largest one in the region [40% of total]. 8  BIS Review 53/2003  PSEPSE- Basic Data (Shares) 600 000 560  540  500 000  520 400 000 500  480 300 000 460 200 000  Marcet Cap.

Following table illustrates the importance of the banking sector in three major accession countries [Czech Republic, Hungary and Poland]:  2  BIS Review 53/2003  Structure of Financial Sector 100%  90%  80%  70%  Credit Unions Other Pension funds IC&IF Insurance comp. Banks  60%  50%  40%  30%  20%  10%  0%  CR  HUN  POL  6  It is evident that the financial sector in Central European countries relies heavily on the banking sector, which represents approximately 80% of total assets of the whole financial sector. It could be also seen that despite the dominance of banks in all mentioned countries, the structure of other financial institutions differs significantly. This is the result of varying approaches to building these institutions. For instance, in the Czech Republic, we can see the smaller size of the investment business as a result of the quality of the capital markets, the lax regulation at the beginning of the transformation, and the subsequent and rather frequent occurrence of frauds in the past. The delayed start of pension reform has also contributed to this situation. The largest banking sector in the new member states is the Polish one, followed by the Czech and the Hungarian sectors. These three biggest countries account for more than 3/4 of the total new member states banking assets. The banking sector of all new member states is nevertheless very small in comparison with the EU market.
Faced with this unprecedented shock, the banking sector has so far shown notable resilience. Its favourable performance is underpinned by the improvements since the global financial crisis, in terms of balance sheet quality and solvency. The far-reaching international financial reform and, in Spain’s case in particular, the restructuring of the sector have increased banks’ capacity to absorb the unexpected materialisation of risks. Firstly, the restructuring of the Spanish banking sector entailed a significant decline in the number of banks and in their capacity, measured in terms both of branches and of employment and bank balance sheet size.1 As a result, Spanish banks were more efficient and profitable than the European average, although the level of profitability was low in historical terms, as was also the case with European banks. As regards balance sheet quality, the NPL ratio had fallen by 9 pp since peaking in 2013, to 4.8% in 2020 Q1, though this was still higher than in 2007. Further, in that same period, the weight of forborne exposures relative to assets had fallen by 9 pp. Also, the weight of lending to construction and real estate development, which came to account for 27% of total lending to the non-financial private sector, stood pre-pandemic at around 10%. Finally, mortgage lending standards have been much stricter and, in the case of loans to firms, these have been tied far more to firms’ efficiency.

BIS central bankers’ speeches  1  To apply – or even try to apply – a federal or pan-European approach to such a diversified financial system requires, in my eyes, a key precondition: to have a functioning European federation in the first place. If that is not possible then we should not try to create half-baked pan-European solutions here in the area of banking – an area which is arguably more sensitive in many aspects than that of fiscal policy and fiscal transfers. If we are not careful enough, we risk repeating the difficulties of the single currency project. The euro is a currency without a state. This means nobody knows who should pay what to whom in bad times. It is for good times only. And we now all know very well that this is the biggest shortcoming of the whole project. Some believe that cross-border integration is good per se, without any conditions. I tend to believe – not least because of the current crisis – that cross-border integration of national financial systems is welcome only if EACH of the national systems alone is and can be sufficiently sound and stable. That’s why we at the Czech National Bank are so nervous about this tendency to continue separating the powers of supervisory and regulatory authorities from their responsibilities in the area of financial regulation. These powers are gradually shifting in small steps towards those who have no direct responsibility and no pots of money to pay should things go wrong in the future.
Specifically, I should like to reflect with you on the causes behind the launch of this project and what it has meant to date. I wish to frame it in terms of the safeguarding of the euro,  2/10  but I also aim to cover those elements which, in my view, are lacking when it comes to attaining a truly European and cross-border integrated banking sector. I shall also refer to an even broader objective: namely, achieving a real “Financial Union”. The Banking Union would be part of this, but it would encompass other elements, such as the so-called “Capital Markets Union”. European construction I think it is fair to point out that, since its creation, the EU project has improved the life of millions of European citizens. It has done so not only in economic terms, but also as regards rights and standards of living throughout the Union. Naturally, the success of this common project cannot be judged solely in terms of its economic results; we must also consider its other initial goals. These include increasing the level of political integration and promoting peace, European values and the well-being of European peoples. We should not forget that the European Union was conceived with the aim of ending armed conflict between neighbouring countries, following the horror of two World Wars. The creation in the 1950s of the European Coal and Steel Community was the first step towards an economic and political union of the European countries, with the ultimate goal of ensuring lasting peace.

Mugur Isărescu: Gaps and economic crises in South-East Europe – present and past Opening speech by Mr Mugur Isărescu, Governor of the National Bank of Romania, at the conference "Gaps and Economic Crises in South-East Europe: Present and Past", Bucharest, 28 October 2016. * * * Distinguished guests, Ladies and gentlemen, Allow me to warmly welcome you to the National Bank of Romania. The board of the National Bank of Romania and I are glad to host, for the second time, the Annual Conference of the South-East European Monetary History Network. Five years ago, in March 2011, when NBR hosted this event for the first time, we expressed our interest and support. We firmly believe that a good understanding of history, of how our forerunners addressed issues linked to monetary and economic developments, sets the foundation for finding solutions to present day challenges. This conference brings together central bank representatives from Albania, Austria, Bulgaria, Greece, Serbia and Romania, as well as prominent members of academic and scientific European circles. I welcome you to Romania and hope you will have opportunity to enjoy your brief stay. This year, the meeting is focused on economic cycles and economic crises in South-East Europe, both past and present. This is a generous and challenging research topic. All the more so, there has always been a permanent concern in the past 150 years for the policy makers in the region to reduce the economic gaps between the countries in South-East Europe and the developed ones.
This ought to be no different today. Modern day Shariah scholars, as with all of us here, must likewise continuously up-skill ourselves. After all, as the Islamic finance industry grows and evolves, so will the complexity of Shariah issues. A sound understanding of other domains – such as of accounting, law, economics and technology – is necessary to strengthen and bolster comprehensive and practical ijtihad. This pursuit of various spectrums of knowledge was the basis for the great achievements of Islamic scholars in the past. It is hard to think of a scholar who was the master of only one discipline, be it Ibn Sina, Ibn Rushd or Ibn Khaldun. In fact, their mastery of knowledge crossed multiple subject matters, from theology to philosophy, mathematics and the sciences. With an expanded breadth of capabilities and knowledge, the Shariah fraternity will be in a credible position to influence and shape the future direction of the industry. The recent launch of the Certified Shariah Advisors (CSA) and Certified Shariah Practitioner (CSP) programmes demonstrates our commitment towards shaping and nurturing high quality Shariah talent locally and internationally. The professional certification programmes will raise the bar for the industry by elevating the professionalism of Shariah advisors and upskilling competencies in the community. To support the noble initiative by the Association of Shariah Advisors in Islamic Finance, and to further deepen talent capacity, Bank Negara Malaysia will make the certification a pre-requisite for the appointment and re-appointment of Shariah Committee members.

Muhammad bin Ibrahim: Reflections on Malaysia's advancing Islamic finance industry Welcoming remarks by Mr Muhammad bin Ibrahim, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Shariah Advisory Council (SAC) 20-Year Anniversary Dinner, Kuala Lumpur, 12 December 2017. * * * Welcome to the 20th Anniversary Dinner of the Shariah Advisory Council of Bank Negara Malaysia, or in short the SAC. On behalf of Bank Negara Malaysia and the audience here, we would like to express our utmost gratitude to His Royal Highness Sultan of Perak Darul Ridzuan and Her Royal Highness for gracing tonight’s dinner. This event is a special occasion. Gathered here tonight are a coterie of intellectuals who help shape the development of Islamic finance in Malaysia. The SAC, in its 20-year history, has established itself as the foremost institution in developing and expanding the tenets of Shariah for Islamic finance. I would like to take the opportunity to express our heartfelt thanks to the distinguished members of the SAC – past and present – for their contributions to the advancement of the Islamic Finance industry in Malaysia. As we reflect on the journey of the SAC, I reminisce of the great Shariah scholars from the glory days of Islam. Islamic civilisation during this era flourished upon a strong foundation of knowledge, wisdom and tolerance by its leaders and scholars. While consensus building was a key part of the culture, differing views, conclusions and preferences helped unite, rather than divide.
For instance, while an unexpected and strong monetary tightening was implemented in the face of capital outflows in the May-June 2006 period, an expansionary monetary policy was adopted following capital outflows in the last quarter of 2008 (Chart 4). The contradiction between these two responses can be explained mainly by the significant differences between the said two periods in terms of both economic conjuncture and the sources of the shocks. As both domestic demand and external demand were strong in 2006, the exchange rate movements triggered by capital outflows had the potential to rapidly damage disinflation and inflation expectations. However, in 2008, it is observed that the downward pressure of the global recession and weak domestic demand conditions on the inflation has come to the forefront. 4  BIS Review 3/2009  Chart 4. Policy rates and market interest rates in the 2006-2008 period  26  Policy Rate (Compound)  June 2006 24  Secondary Market Benchmark Interest Rate (Compound)  22 20 18 16 14  November 2008 06.11.2008  18.09.2008  06.08.2008  24.06.2008  09.05.2008  26.03.2008  12.02.2008  28.12.2007  13.11.2007  27.09.2007  14.08.2007  02.07.2007  18.05.2007  05.04.2007  21.02.2007  09.01.2007  22.11.2006  05.10.2006  22.08.2006  10.07.2006  26.05.2006  12.04.2006  28.02.2006  16.01.2006  12  Source: CBT and ISE. In sum, it is seen that the inflation-targeting regime has provided a significant amount of flexibility to take the necessary measures in the face of high-level shocks.

For instance, if the Committee decides the interest rate on one-week maturity repo auctions is to be 16.25 percent, then it will remain as 16.25 percent unless the Committee changes this. b. In the case of liquidity shortage due to unpredicted reasons, thus leading to a decision for an intra-day repo auction, such auctions will be held at the interest rate set by the Committee via the quantity auction method. c.  Each bidder shall make an offer at most for the amount announced for that day and the funding amount to be raised via the auction will be distributed to participants according to the ratios of their bids to the auction amount..  d.  Other guidelines governing the auctions and transactions shall remain unchanged. (iv)  In the case of a temporary liquidity surplus, instead of one-week repo auctions, the Central Bank will hold reverse repo auctions with a one-week maturity subject to the same conditions and with the interest rate announced for the repo auctions. (v)  Fixed rates will be applicable only to repo and reverse repo auctions with a oneweek maturity. Repo and reverse repo auctions or other auctions with maturities longer than one-week that the Central Bank may hold within open market operations will continue to be held under the traditional method and the price/interest will be formed under market conditions.