samchain/econo-pairs-v1 huggingface dataset:
On average, it was 1.1% in this period, dropping 1.8 percentage points from the previous quarter. The rapid decline of annual inflation rates, which has started in the third quarter of the past year, is driven mainly by the slowdown of price rise in food items during this period, as well as the stability of prices of other consumer goods. Inflation performance has reflected the simultaneous action of supply and demand factors. On the supply side, slowdown of commodity prices in international markets and of inflation in our trade partners, combined with the stable exchange rate, have transmitted lower imported inflation rates to our economy. Likewise, contribution of administered prices has been lower. Inflation expectations have been anchored and production cost pressures contained. On the demand side, pressures remain low, conditioned by the continuation of the negative output gap. Reduction of factual inflation rates, shifting of the inflationary pressures balance to the down side and the increase of aggregate demand below its potential, under the conditions of a controlled fiscal policy, have created the space for further increase of the monetary stimulus to the economy during the first quarter of the year. The Bank of Albania has lowered the key interest rate twice, bringing it down to the historic low of 4.25%. Such a decision, besides being in line with maintaining price stability over the medium term, provides the appropriate conditions for boosting private demand at home.

Encik Abdul Rasheed Ghaffour: ASEAN - advancing its potential, hurdles and the way forward Closing remarks by Mr Encik Abdul Rasheed Ghaffour, Deputy Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Conference, Kuala Lumpur, 4 August 2017. * * * Thank you for having me here today to deliver the closing remarks for the ASEAN@50 Conference. I am also honoured that you have chosen Sasana Kijang to be your meeting point for this Conference. I’m sure that all of you have greatly benefited from the two thought-provoking panel discussions earlier, that drilled down the measures required for ASEAN to achieve its economic promise. ASEAN proudly welcomes its golden jubilee next week. This momentous occasion not only celebrates our achievements thus far, but also marks the gravity of the work ahead of us. We will continue to galvanise all sectors of society – public, private and civil – to ensure ASEAN’s achievements are not just reflected on paper, but more importantly, can be seen, felt and heard. ASEAN stands out as a dynamic region – with diverse strengths that continues to benefit its growing population of 625 million people. In 2015, ASEAN contributed to more than 7 percent of world exports. Our strong trade performance has contributed to increased employment by about 70 million over the past 17 years – enabling better livelihoods of households. Millions have been lifted out of poverty with the significant rise of ASEAN’s GDP per capita, from USD1,054 in 1996 to USD4,000 in 2016.
It was considered that, despite vulnerabilities focused on some sectors and a more complex international environment, the systemic risk analysis shows that banks have sufficient buffers to withstand severe stress scenarios. The insurance sector plays a key role in the financial sector in Chile. Mature insurance industry, with a relatively high size in relation to other economies and active participation in the domestic market. It also plays a key role in the pension system through Life Annuities. However gaps remain. International 4 experience shows a clear trend towards "risk-based supervision" (RBS) in the insurance sector. Reference jurisdictions such as Australia, Canada, and the EU adopted this model long ago. Full adoption of an RBS framework requires an amendment of the insurance legal framework, and a bill introduced in 2011 to Congress establishes such a model, considering among others new risk-based capital requirement, a new solvency assessment system for insurers, a more flexible investment regime among other changes. Both the BCCh and the CEF have noted the relevance of this bill, labeling it as a high priority from a systemic risk point of view, considering insurers' relevance and interconnectedness, their significant participation in financial conglomerates, and the fiscal contingency embedded in life annuities and disability and survival insurance contracts. Despite the progress made by the CMF, and the evolution of the industry in terms of risk management and corporate governance enhancements, moving towards a robust legal framework of Risk Based Supervision in the insurance industry is essential for the preservation of financial stability. Let me conclude.

Sukhdave Singh: Global financial markets and their impact on Malaysia Keynote address by Dr Sukhdave Singh, Deputy Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Financial Markets Price Outlook Conference 2015 “Global Financial Markets and their Impact on Malaysia”, Kuala Lumpur, 16 June 2015. *  *  *  As the Financial Times newspaper likes to put it: “These are financial times.” If anyone had doubts about that, the financial crisis in the advanced economies (AEs) was a reminder of how very much we do live in financial times, how large finance has become, how the tentacles of global finance have encircled the globe. A crisis that started in the mortgage market of a large nation reverberated around the world spread through the globalised financial and economic system. To understand why, imagine a landscape – a flat plain dotted with many ponds and lakes of water. None of them connected to each other. If anything happens in one body of water, it does not affect the others. That is the global financial system before globalisation. However, if we now dig channels between the different bodies of water so that we have a system of interconnected ponds and lakes, the nature of that system has changed. Now, if water rises in one lake, it will also flow through the channels to the other lakes and ponds. That is the global financial system. A system of connected national financial systems and markets, large and small.
They should comply not only in form but in substance as well. For example, in relation to debt collection, it is not enough that they have incorporated the relevant provisions of the Code into the service agreement with their debt collection agents. They should also pro-actively check that their agents are actually following these provisions when collecting debts. •  Secondly, AIs should ensure that all complaints are dealt with fairly and thoroughly. Again it is not enough that there are efficient complaint handling policies and procedures in place. It is more important that such policies and procedures are conscientiously implemented by their staff. Where a complaint is justified, AIs should be prepared to offer the complainant restitution or compensation. •  Thirdly, AIs should ensure adequate levels of transparency in the provision of banking products and services. This is very important given the proliferation of more innovative and sophisticated products in the retail banking market. AIs must let their customers know the true cost of credit and ensure that all advertising and promotional materials do not contain misleading information. Self-regulation would not be a success without the involvement of the industry associations. Over the past six months, the industry associations have taken on a much more active role in developing the Code of Banking Practice. They have set up the Code of Banking Practice Committee, which has so far been effective in enhancing the role of the industry in self-regulation of market conduct.

The Committee has responded effectively and promptly to public concerns about banks' business practices by providing appropriate guidance on interpretation of the Code or even amending relevant provisions of the Code. The question of the industry associations' involvement in resolving customer disputes, whether or not these are related to the Code, is more controversial. Although the HKAB Ordinance does provide the Association with certain powers in relation to conduct regulation, the principal concern is whether such an industry-run scheme would have the necessary credibility, since banks would effectively be policing themselves. The rapid growth in number of complaints is a cause of concern but not a cause for alarm. The current framework of self-regulation by the industry has worked reasonably well in the past and there is no reason why it cannot continue to do so with a bit of help from banks themselves. We should monitor the situation carefully before rushing into other costly options. Meanwhile, the banks must help by tackling the problem at source: through being careful to avoid giving grounds for complaint and through dealing with any complaints that do arise fairly and promptly. All of this does not rule out a role for the HKMA. How best can we participate?
I’m referring in particular to the supervision of the development of decentralised finance, where the usual regulatory frameworks are constrained by the fact that issuers and service providers are not easily identifiable in an environment where protocols are automatically executed without intermediaries, and there is no fixed jurisdiction for the services offered. Lastly, in order to be effective, regulation must be multidimensional and coordinated at national and international level. At the Banque de France, we are very attached to coordination with other national and European regulators, which seems all the more essential given the increasingly cross-cutting nature of the issues. This is also a priority for us, to limit regulatory arbitrage or indeed prevent it altogether. For this reason, we are closely involved in the work of multilateral fora (G7, G20, FSB, CPMI),especially on crypto-assets and the improvement of cross-border payments. Another action we see as a short-term priority is to facilitate and accompany initiatives by regulated players, which can help to foster a diverse and competitive market for efficient solutions, tailored to user needs. Our institutions – such as the Banque de France’s Lab, its Infrastructure, Innovation and Payments Directorate (DIIP), the ACPR’s Fintech-Innovation Unit, with its ACPR-AMF Fintech Forum – are fully mobilised to facilitate these initiatives and help them grow. Among these initiatives, three in particular are worth highlighting. First, those in the field of instant payments, which open a new chapter in the payments industry. Second, the continuing development of open banking, thanks to the European financial sector’s work on APIs.

Indeed, the reduction in the use of banknotes for transaction purposes and the prospect of the development, within the networks of the major global players in digital services, of crypto-assets as a means of payment, whose link with central bank money is complex and fragile, to say the least, if not non-existent for some, are likely to call into question the integrating and anchoring role that central bank money plays in our payment system. These threats are reflected in a rise and a change in the dimension of the risks that any wave of innovation naturally carries, and which the health crisis has helped to amplify. First of all, there are risks of a setback in terms of efficiency. Two risks are likely to change in scope: - The risk of fragmentation of the payment system, both for everyday trading and between financial players due to a lack of secure and efficient structural interconnection, through convertibility at par between crypto-assets and central bank money, between old and new payment solutions. - The risk of concentration, or even the emergence of monopolistic situations for the benefit of global digital giants and their private settlement assets, and therefore of Europe’s increased dependence in terms of payment services vis-à-vis foreign players, with the associated issues of personal data protection and industrial and monetary sovereignty. Then there are risks of a setback in terms of security.
2  BIS central bankers’ speeches  In addition, none of these sectors is unregulated today in Europe (AIFM directive for alternative funds, UCITS directives for funds, Solvency 2 for insurance, EMIR for CCPs) and replicating some rules stemming from banking supervision to these entities would simply be irrelevant. More generally, it is up to the policy makers to act consistently and try to anticipate and mitigate any possible unintended effects of their policy decisions. For instance it might seem contradictory to encourage central clearing of derivatives or trading on organized trading platform as a means to reduce systemic risks on the one hand, while on the other hand levying a Financial Transaction Tax on these operations if they are deemed safer. Policy makers should make sure their actions will not be a factor of market instability which could spread to the market and create another crisis. Conclusion As we can see, policy makers have still a lot of work on their plate as regards the design of an adequate regulatory framework for the “shadow banking sector” and for it to be sufficiently sound to be providing a sustainable “market based financing”. The Capital Market Union’s project launched by the European Commission is aiming at achieving to achieve a sound regulatory framework. To this end, for instance, the European Commission with the help of the European Banking Association (EBA) has recently defined criteria for Simple, Transparent and Standardized (STS) securitization.

This story was much more unique, as it was part of the first banking crisis in Europe since the EU single market was formed in the early 1990s. Taking advantage of this framework and the prevailing international conditions of ample and cheap credit, these banks grew phenomenally, in less than five years, to almost ten times Iceland’s GDP, with most of the expansion being crossborder – or maybe more aptly put, off-border, as the bulk of both financing and investment took place abroad. The result was very big FX-denominated balance sheets with the usual maturity transformation that banks, as we know them, are all about. However, the safety net that we have in national settings to back them up, including LOLR facilities, was not there. It was an accident waiting to happen, and so it did. I will be very brief on how the failure of these cross-border banks was dealt with and the lessons learned from it. It is now more widely known in our circles than it was to begin with and less controversial. For more, I can refer you to various publications and speeches of mine and others. But the main reason is that, as far as Iceland is concerned, the problem is solved for the near future: we are simply not going to do it. We are not going to establish international banks headquartered in a very small country with its own currency without an access to a sufficient regional or international financial safety net.
This phase focuses on making the financial sector even more competitive, more inclusive, with improved regional connectivity and greater sustainability. All of this is to serve the diverse needs from fast changing technology as well as to support rising trade, investment, and financial linkages in the region. This leads to two themes that I want to highlight, namely digitization and regionalization. 4 Figure as of November 2016. Source: PDMO and NESDB  6  First, digitization has geared many countries towards less costly cash transactions, which benefit everyone. The concept of “financial services anywhere, anytime” cannot be achieved without developing the necessary infrastructure that fosters more efficient as well as safer electronic transactions. Successful implementation will lower transaction costs for businesses as well as for the banking sector. The Bank of Thailand and the Ministry of Finance have initiated the National e-Payment Master Plan to support this digitization trend. The plan consists of five parts aiming at (1) promoting a fast payment system, or PromptPay, at very low costs; (2) advocating the widely use of electronic debit cards; (3) developing an efficient e-Tax system; (4) improving the Government e-Payment System to make all government’s payment especially welfare transfers electronic; and lastly, creating greater e-Payment literacy. It is important to note that the benefit of e-Payment extends beyond lowering transaction cost; it can also encourage payment transparency, which limits potential leakages and corruption in the payment process and provide e-commerce opportunities for SMEs.

We can, and have, and I hope will, take account of the exchange rate in our tactical approach to monetary policy. But with the best will in the world, what we cannot sensibly do, is to ignore the strength of domestic demand in order to shelter the exposed sectors. That would put the whole of the economy at risk to accelerating inflation - including those sectors we were seeking to protect. And it would not be of much help to them in anything other than the short term. The monetary policy option is - as I say - not whether or not, it is sooner or later, and ultimately less or more. The elements of hope that I can hold out to you - and central bankers can never give guarantees on this kind of thing - are first, that as we move into the euro process the markets will become increasingly persuaded that the ECB will, in fact, be committed to the stability of the new currency, as I am sure it will: and, secondly, that relative monetary conditions will change as activity picks up on the Continent and domestic demand moderates in this country. Our present exchange rate dilemma, Mr. Chairman, illustrates rather well the conflicting arguments about the euro project itself. The strengthening of sterling and its effect on the exposed sectors of the economy point up very vividly the very real advantages of the exchange rate certainty across the European Union area which only the euro can provide.
- In this regard, we must closely monitor long-term nominal interest rates and act accordingly in order to maintain favourable financing conditions, in accordance with our communication in December. - These long-term interest rates developments must also be analysed alongside developments in the rest of the yield curve. In this respect, in tandem with the aforementioned developments, we have observed a steepening of the risk-free yield curve, which may reflect market expectations of an earlier start to the process of reducing the accommodative stance of our monetary policy. Given that medium-term inflation expectations, as I have already said, remain far below levels consistent with our aim, and high uncertainty persist on the evolution of the economy, these developments underline the importance of avoiding premature increases in nominal interest rates that may jeopardise the convergence of inflation towards our mediumterm aim. - We must also continue to focus on heading off cross-country financial fragmentation, which hinders the smooth transmission of monetary policy and the achievement of our inflation aim. In addition to analysing changes in interest rates on sovereign debt, this means that, among other things, we need to pay special attention to developments in bank lending conditions, given the particular importance of the bank-based channel in the euro area for the financing of households, firms and the self-employed. In this regard, 9  sovereign risk premia have so far remained very subdued.

Zeti Akhtar Aziz: The takaful industry in Malaysia Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the launch of Prudential BSN Takaful Berhad, Kuala Lumpur, 8 August 2006. *  *  *  Ladies and Gentlemen, The takaful industry in Malaysia today is poised for greater dynamism and growth, within the expanded domestic and international frontier of the Islamic financial system. This reflects the culmination of the wide-ranging strategies that have been implemented over more than two decades for the full potential of Islamic finance to be now realised. However, to ensure that the momentum in the development of Islamic finance is sustained in a now more challenging and fast changing international financial environment, it not only requires continued development of the Islamic financial infrastructures, and the range of products and services it offers, but also an increase in the number of players and an enhancement of their capacity and capabilities in terms of size and quality of their participation in the financial system. The launch of Prudential BSN Takaful Berhad today marks a new phase of development in the Malaysian takaful industry. Prudential BSN Takaful Berhad is one of four successful consortia that has been identified to conduct takaful business. With the entry of the four new players into the financial system, the competitive element that is injected into the market structure of the industry can be expected to contribute to accelerate the pace of industry development.
However, considering only the regulatory capital is insufficient, I think. What I really think poses an ongoing challenge is the capital of public trust. The latter one is not an output of regulations or banking supervisory practices. It is an output of all actors’ sacrifices. Enhancement of public confidence would lead to more effective mobilization of all financial resources in the economy, addressing them according to free market principles to the benefit of individuals, businesses, decision-makers and banking industry itself. Ultimately, this would  BIS Review 129/2009  5  be translated into the benefit of the country, giving an additional, real and tangible opportunity to the country’s rapid convergence to the European Union. Thanking you for your attention, I invite you to discuss on these issues. 6  BIS Review 129/2009

Fluctuations in equity markets are less pronounced but are still wider than before the market turbulence began. Expected corporate earnings have not changed substantially since March 2009. It is likely that the recovery in equity markets primarily reflects a reduction in uncertainty and lower risk premiums. Oil prices have doubled since the trough in December 2008, reflecting OPEC production cuts and concerns in non-OPEC countries about supply further ahead. In addition, a number of  BIS Review 115/2009  1  market participants expect that oil demand ahead will increase at a more rapid pace than assumed as global economic activity picks up. Expectations of future economic growth are pushing up oil futures prices. Oil consumption is now rising in China but has been very low in western economies. OPEC spare production capacity is still increasing and oil inventories in advanced economies are high. Oil prices have nonetheless held up. Keeping large inventories is profitable when oil futures prices are high. However, the scales are easily tipped. If expectations of higher demand deteriorate, futures prices will fall and, in turn, prices for immediate delivery. Large oil inventories may then push down prices even further. The krone is floating and fluctuates somewhat. The krone tends to appreciate in good times and depreciate when negative shocks occur in the Norwegian economy. Fiscal policy and the petroleum fund mechanism, however, contribute to maintaining the stability of the krone.