samchain/econo-pairs-v1 huggingface dataset:
4  BIS Review 98/2006

These ranged from continued experimentation of unconventional monetary policies and the need to ‘balance’ that, with preserving financial stability, to the continued reemphasis in fiscal and structural policies in both advanced and emerging economies. But in facing a world of paradoxes, perhaps we too need to take full advantage of the strong foundations and conventions that were built in the past, yet remain sufficiently nimble and unafraid to rethink and reconstruct in facing the uncertain future. Errors will be inevitable, but the more important point is our ability to correct them and to remain committed to achieving the right outcomes. This is true for policies of central banks as well. Bank Negara Malaysia’s Approach to Monetary Policy Within this context, please do allow me to share with you the approach to monetary policy that Bank Negara Malaysia takes. Bank Negara Malaysia’s decision-making processes and governance framework today reflect the combination of the efforts and progress since the establishment of the Monetary Policy Committee (MPC) a decade and a half ago. Not many of you might be aware, but the MPC had its first meeting in 2002. In fact, the upcoming MPC meeting in November would mark our 100th MPC meeting since 2002. Before that, monetary policy formulation was conducted under the absence of an established framework and a standard structure. Over the years however, the MPC has evolved and enhanced its effectiveness as the sole body responsible for the formulation of Malaysia’s monetary policy and policies for the conduct of monetary policy operations.
Not all banks have done all of the work we would like them to do. Some are well under way, and some still need to do much more. Some observers are disappointed that a male candidate – Italy’s Andrea Enria – will take over as head of ECB Banking Supervision from Danièle Nouy next year, rather than Irishwoman Sharon Donnery. How did you feel about the news? I hope that our ratio of women in central banking, as well as in banking supervision, will increase. I’m convinced that diversity in management positions is an intelligent idea to pursue. 2/2  BIS central bankers' speeches

In 2000, although the inflation targets that were envisaged in the program could not be reached, significant progress was made in the fight against inflation, which reached its lowest level ever in the last 14 years. In addition, the fiscal balance improved considerably, and the structural reforms were underway. Interest rates came substantially down in 2000 as a result of the decreased exchange rate risk and the improved foresight of public. Declining interest rates reduced the cost of the Treasury’s domestic borrowing. Rising domestic debt stock was put under control. After the recession in the economy in 1999, falling interest rates boosted the deferred consumer demand, particularly for durable goods. Moreover, increased demand for credit, driven by the banks’ favorable consumer loans, put the economy back on the growth track. Besides the decreasing tendency in interest rates, the stable exchange rates and the private sector’s renewal investments, directed to productivity increase, also contributed to the growth in the economy. As a result, the GNP grew by 6.1 percent in 2000. However, the economic expectations became confused in the second half of 2000. Starting from May 2000, the gap between the optimists and pessimists in the CBRT’s Business Tendency Survey began to decrease and in November, the pessimist expectations started to gain ground. It is observed in this survey that also the expectations for inflation, employment and exports began to deteriorate in the same period.
David Clementi: Maintaining financial stability in a rapidly changing world some threats and opportunities Speech by Mr David Clementi, Deputy Governor of the Bank of England, at the launch of the Oxford Centre for Computational Finance, University of Oxford, 10 October 2001. *  *  *  Introduction It is a great pleasure to be here this evening, and to be part of the launch of the Oxford Centre for Computational Finance. Responding to new types of risk demands an increasingly sophisticated combination of technology and intellectual thought, and I can think of few places as well suited to this exciting and challenging task as Oxford. As an honorary Fellow at Lincoln College, I know that the drive for excellence remains as high as ever, and I have to say that I look back at my time here as an undergraduate with great affection. That was some time ago, of course - back in the 1960s, when a photocopier or calculator was pretty high tech - and if you knew the current prices of equities on the exchange you had a five minute information jump on most of the market. The world today of course is much more complex and the risks correspondingly more difficult to analyse. What I'd like to do tonight is to cover three main topics. First, I want to explain the Bank of England's role in financial stability issues, and discuss some of the threats to that stability which have emerged recently.

Bank capital is inherently somewhat procyclical. In an economic downturn, banks will increase provisions and tighten loan standards. In some  BIS Review 83/2001  3  circumstances, this could reduce the supply of credit, intensifying the decline in activity. But the introduction of a regime in which regulatory capital is linked to ratings could amplify that effect to the extent that those ratings themselves deteriorate rapidly in a downturn. There are various ways round these problems of procyclicality, but they will need to be resolved before the new Accord can be finalised. I have talked a lot about the structure of public regulation. But it is also important to remember the powerful role that effective market discipline can play in maintaining financial stability. Both the new Accord, and a number of other, broader international initiatives, put substantial emphasis on improving the disclosure of information by financial firms. Disclosure of an appropriate kind should help the market distinguish clearly between well-managed and adequately capitalised banks on the one hand, and their less sound counterparts on the other. This should act as a spur to the weaker firms to improve their performance. Disclosure should also help to reduce uncertainties, which may mitigate the tendency of financial markets to lurch into periodic self-fulfilling crises. It is certainly arguable that greater, and earlier, disclosure of the exposures of Long-Term Capital Management, for example, could have avoided the problems seen in world financial markets following its collapse in the autumn of 1998.
But the instruments to handle them, to quantify their value, to measure them, and to judge the risks inherent in them, are. The consequences of these developments, whose impact took off in the 1980’s, have been quite dramatic. Firstly they have enabled greater dispersion of risks. Banks, at the heart of the financial system, used to act as warehouses, with the loan assets they generated staying on the books until maturity and normally - repayment. The balance sheet was the net result of these events. But today banks approach matters in a fundamentally different way: they review their balance sheets intraday. They ask themselves, “What is the opportunity cost of not altering the balance sheet?”. And they are then in a position to act. Assets can be disposed of, packaged, securitised, and sold. In size. And fast. This is what is so new. So risk can be, and is, dispersed across the system globally. Not only from bank to bank, but also between different types of financial institutions, as well as to private individuals, or to corporate entities. This can create the build up of concentrations of risk in new areas, and often with new players, who may or may not be well informed about what they are doing. But this set of processes adds to the opacity of the financial system. It is more difficult to see where risks reside.

Trust companies regulated under the TCA have to comply with the MAS Notice on Prevention of Money Laundering and Countering the Financing of Terrorism (“AML/CFT”). Amongst other obligations, the MAS Notice requires them to identify and verify the identity of trust relevant parties, perform ongoing transactions monitoring and file suspicious transaction reports. MAS’ AML/CFT requirements for licensed trust companies are consistent with FATF standards. Trust companies must collect and make available information to law enforcement authorities when required to do so. 9. The benefits of having a comprehensive, well-structured trust can only be effectively achieved if it is properly administered by the trustee. Similarly, a strong regulatory framework needs to be complemented with an effective supervisory regime. Following the revisions to the MAS Notice on AML/CFT, issued on 2 December 2009, MAS conducted a thematic inspection of licensed trust companies to assess their compliance with the revised Notice on AML/CFT. In June last year, the MAS issued a circular on our inspection findings. I am glad that most trust companies have in place appropriate policies and procedures to combat money laundering. However, MAS highlighted that implementation can strengthen further with a more consistent application of these policies and procedures across the industry. I will also stress that adequate and timely record keeping forms an important part of the entire process. Global standards: transparency of Beneficial Ownership (“BO”) and tax transparency 10. Singapore supports the international effort in combating money laundering, terrorist financing and other abuses of the financial system.
In addition, it is important that economic policy and incentives of public systems promote national saving and that attempts be made to safeguard the current account surplus in the years to come, as this will expedite the resolution of the balance of payments crisis, enhance confidence in Iceland, and reduce the likelihood that Iceland will emerge from the process facing economic imbalances. Because these are irrevocable actions, we have only one chance to settle the estates, not a general lifting of the controls, and therefore it is critical that we do it successfully. But as I have said before, that does not change the fact that the cost of the capital controls rises over time and that it is important for progress and high-quality GDP growth that they be lifted sooner rather than later. It is also important that we learn, from our experience and others’, that unrestricted capital flows are accompanied not only by benefits but also by risks. Appropriate prudential rules and other measures must be in place to address those risks when that step is taken. This speech has centred primarily on two of the Central Bank’s main tasks: monetary policy and financial stability. But the Bank’s functions are actually much broader than this. And many of those functions have grown in scope in the wake of the financial crisis – for instance, the investment and management of larger foreign exchange reserves and a dramatically increased need for legal services.

Luljeta Minxhozi: Covid-19 - the impact on the economy and central bank policies Welcome address by Ms Luljeta Minxhozi, First Deputy Governor of the Bank of Albania, to the Virtual Conference of the Bank of Albania “Covid-19: The Impact on the Economy and Central Bank Policies”, 29 October 2020. * * * Dear Guests, Ladies and Gentlemen, For a few years now, the Bank of Albania and the Institute of Global Affairs (IGA) of the LSE have been co-organizing a series of joint conferences. These annual events are aimed at encouraging an open discussion amongst academics and policymakers, in order to promote new thinking and policy-based approaches to the most pressing challenges we face. The Bank of Albania is proud to associate itself with the Institute of Global Affairs, an institute which is positioned as a leading academic center for exploring research-based strategic approaches to policy challenges. On its behalf, the Bank of Albania strives to adopt the emerging academic consensus, while tailoring it to the idiosyncrasies of the Albanian economy and its financial markets. Being said that, it is a special my pleasure to address this conference, focused on “Covid-19: The Impact on the Economy and Central Bank Policies”. The ongoing pandemic has the undoubted potential to re-shape our way of life for the foreseeable future. As the health emergency is still unfolding, its implications might have far-reaching impacts in our social and economic fabric.
Eva Srejber: Are we ready to deal with a cross-border banking crisis in Europe? Speech by Ms Eva Srejber, First Deputy Governor of the Sveriges Riksbank, at the seminar on Financial Institutions’ Value Management in the Integrated Market in Light of the Lisbon Strategy, Gdansk, 12 May 2006. *  *  *  Introduction Thank you very much for inviting me to Gdansk and this seminar on Financial Institutions’ Value Management in the Integrated Market in Light of the Lisbon Strategy. The financial system plays a crucial role in the economy. It provides households and companies with a number of important tools as well as the infrastructure for channelling savings into funding of productive projects, managing and allocating various kinds of risk, and facilitating efficient transfer of payments. The more efficiently the financial system works, the better the rest of the economy will work. One could say that the financial system is the oil that makes the machinery run more smoothly. The European financial markets have long been very fragmented. As Europe’s economies have become more integrated, however, the drawbacks of this financial market fragmentation have become increasingly evident. A more integrated market for financial services could, for instance, lead to enhanced cross-border competition and better opportunities to make use of economies of scale and synergies. Greater competition in turn should result in a wider range of investment and financing services and more efficient pricing of these services.

Important baseline market practices that should apply to every firm – or CG “hygiene” requirements – are hardened by their inclusion in the SGX Listing Rules. Indeed, twelve basic requirements previously couched as guidelines have been shifted from the Code to the Listing Rules. In other aspects, the Code has been streamlined and elaborated in the Practice Guidance. In considering what should be mandatory in the SGX Listing Rules, Council members had carefully considered their effectiveness in supporting long-term business goals, and how the revised Code compares against international practices. There may be some concerns that some of the principles in the Code are subject to interpretation and gaming. I can understand such sentiments. This is why the MAS has also accepted the Council’s recommendation to set up a standing Corporate Governance Advisory Committee to monitor CG developments on a regular basis, and you can expect more details on this Committee once it is set up. There are other views calling on regulators to adopt quicker or harsher actions in response to CG violations. Some felt that directors should be held more accountable for their fiduciary duties, or breaches in their fiduciary duties. Investigations are usually complex and time-consuming affairs especially if there are crossborder elements involved. At the same time, it is important that our financial sector operates with a clear rule of law, as well as fair and transparent legal processes. This is to assure a trusted regime for everyone. We must allow for thorough investigations as a matter of legal and investigation integrity.
1 International Monetary Fund (IMF), 6 April 2020, World Economic Outlook, April 2020: The Great Lockdown 2 Euromoney, 7 April 2020, Coronavirus crisis offers green and social bonds chance to prove their worth 3 World Bank Press Release No: 2020/180/HNP, 27 April 2020 4 Infrastructure Asia and World Bank Press Releases, 1 June 2020 5 Global Sustainable Investment Alliance, April 2019, 2018 Global Sustainable Investment Review 6 Morningstar, 3 April 2020, Sustainable funds weather the first quarter better than conventional funds;  Morningstar, 28 May 2020, What the pandemic means for sustainable investing 7 BlackRock compilation at 18 May 2020, Sustainable investing: resilience amid uncertainty  4/4  BIS central bankers' speeches

To sum up, it can perhaps be said that the conditions whereby the new economy might also catch on in Sweden are good in certain respects. Two examples are the level of IT use and the macroeconomic environment. At the same time, it must be asked why what appears to constitute a new universal technology has not had a greater impact. This probably has to do with the workings of factor markets. 4. The inflation process to date in Sweden  So there are arguments both for and against the notion that the new economy can gain a hold, or is possibly already on its way, in Sweden as well. Now I should like to move on and look at whether the inflation process in Sweden has changed appreciably. Here I shall be using the simplified concept of how the economy functions that I outlined earlier. It should be noted in this context that in the past decade a great deal has happened in Sweden’s economy. Inflation and the general workings of the economy have presumably been favourably affected by such structural changes as the establishment of a low-inflation regime, tax cuts, adjustments of many transfer systems, market deregulations and Sweden’s membership of the European Community. So any signs that can be discerned in the statistics are probably mainly the fruit of more traditional structural adjustments rather than evidence of the new economy.
Until relatively recently, the emerging economies have been considerably more dynamic, partly offsetting the greater slackness in the more industrialised countries such as the United States. However, doubts over the real ability of these economies to continue posting robust growth rates amid the virtual stagnation of the more advanced countries are ever greater. The increase in oil and commodities prices is the second of the basic factors behind recent developments in activity and inflation at the global level, despite the relative easing since the summer. The effects of these price rises have been fully felt in the more advanced economies, while in the emerging economies the pass-through of higher energy costs is proving slower and is still far from complete. BIS Review 122/2008  1  But it is the third of these factors that will most likely influence developments in the world economy in the coming quarters. I refer here to the severe worsening of the financial crisis in United States and in much of Europe, and to the turmoil on international financial markets. Somewhat more than a year back now, when the US subprime mortgage crisis broke, there was great uncertainty over the scope and duration of the episode then beginning. Today, there is unfortunately no doubt that we are facing a global financial crisis of enormous proportions. Although at first the difficulties appeared to be confined to just a few investment funds and relatively minor US mortgage institutions, the overall number of banks affected has since widened considerably.

The far-reaching changes in the Spanish economy in recent decades have equipped it with the wherewithal to overcome this difficult stage and to subsequently resume a path of sustained growth, allowing convergence to continue. But if these factors are to operate, the authorities and all agents must face up to the current circumstances and make the required efforts, and economic policies must prevent any slippage and enable the factors conducive to the resumption of sustained growth to come into play. Naturally, I shall focus today on the diagnosis of the situation of the Spanish economy and on its economic policy implications. But these would both be incomplete without some, albeit brief, reference to the deterioration of the international setting and to the economic outlook in the euro area which, as you know, will determine monetary policy developments. Last year, the growth of the world economy reached 5%. The forecasts available for this year, however, place the figure below 4%, with scarcely any scope for the start of a recovery in 2009. Moreover, any recovery will be moderate, slow and subject to a degree of uncertainty fuelled, among other developments, by a rise in major inflationary pressures in most economies. In my view, there are three basic factors behind this deterioration of the global economic situation. The first is the adverse behaviour of the US economy, weighted down by the continuing decline in its real estate sector, which is depressing household and investor confidence.
The mandates of central banks are changing, as they are strengthening their macro-prudential powers and embracing more explicitly the objective of financial stability. Some major central banks have for the first time assumed the direct supervision of credit institutions. Thus, this period of changes is going to be a landmark in the history of central banking. The current overhaul of banking regulations globally is also fundamental by nature. The scale of reforms in the regulatory framework for the banking industry, after the collapse of Lehman Brothers and the outbreak of the euro area sovereign debt crisis, could be compared only with the major reforms undertaken in the aftermath of the Great Depression in the 1930s. The sheer magnitude of this changeover, however, does not guarantee the elimination, once and for all, of the regulatory gaps and loopholes for the risk taking activities of banks. Moreover, while the wide-ranging changes in banking regulation certainly improve banks’ capital, liquidity, operations and governance, they are sometimes feared to have a discouraging effect on banks’ lending and other services in the public interest. What caused the recent wave of banking reforms, what issues regulators still need to consider, and how are banks expected to respond on a global or national level?

Such questions will be discussed during the first panel of our conference by our renowned key speaker Professor Martin Hellwig, Director of the Max Planck Institute for Research on Collective Goods and Vice-chair of the ESRB Advisory Scientific Committee, and by his distinguished discussant Professor Marek Belka, President of the National Bank of Poland. Later this morning we will focus on how the redesign of the regulatory framework impacts the central banks. The honourable General Manager of the Bank for International Settlements, Mr. Jaime Caruana, is our key speaker for the second panel. His presentation will be discussed by our highly respected colleague and long-time Governor of the Central Bank of Luxembourg, currently Member of the Executive Board of the ECB, Mr. Yves Mersch. They will talk about the new challenges in the governance and accountability of central banks, the compatibility of traditional and recently assumed goals, as well as about newly emerging reputational, communication or related issues. I also hope that Mr. Mersch will share with us  BIS central bankers’ speeches  1  some fresh observations on the Single Supervisory Mechanism in the euro area, from an insider’s point of view. The discussions today will also be facilitated by our well-known colleagues Professor Boris Vujčić, Governor of the Croatian National Bank, and Mr. Kalin Hristov, Deputy Governor of the BNB.