samchain/econo-pairs-v1 huggingface dataset:
Today’s discussion aims to contribute towards a deeper awareness and understanding of the risks and emerging issues in mortgage financing. We hope that this, in turn will be useful to the boards and senior management of financial institutions in framing your own approaches to managing risks in this area. Tremendous growth prospects exist in the mortgage market in Malaysia. Over the last 5 years, mortgage financing experienced a strong and sustained average annual growth of more than 9%. Such loans now constitute a significant 27% of the total industry loan books. With emerging signs of an early and stronger recovery in the domestic economy, renewed optimism can be expected for more robust growth in the domestic mortgage market. The demand for housing will also receive additional support from continuous efforts by the government to promote home ownership and investments. For example, the new scheme to be launched this year for EPF contributors to fund the purchase of higher value or additional houses is expected to increase consumer purchasing power for homes in the coming years. The growing stream of new entrants in the labour market has also enhanced prospects for an expanded market among first time home buyers. At present, the overall mortgage financing portfolio in Malaysia remains sound, with gross non-performing loan on a declining trend since 2000. However, while mortgage financing has continued to be a profitable business for most banks, competition has intensified considerably, with lending yields falling dramatically over the last decade.

On that note, I look forward to a fruitful and constructive dialogue. Thank you. BIS Review 3/2010  3
Nevertheless, I cannot leave the topic of the financial system without mentioning the massive overhaul of financial market infrastructure that is currently underway and the germination of ideas in the area of payment intermediation, as the Central Bank is integrally involved with both. The renewal of the most important core infrastructure elements used for decades to operate the financial system began recently. The investment as a whole represents the financial system’s largest IT investment ever undertaken. The overhaul will move us away from “home-grown” solutions to standardised international systems. The systems being renewed are the banks’ internal payment systems, the Central Bank’s interbank payment systems, and the Nasdaq securities depository’s securities settlement system. A variety of benefits accompany new financial market infrastructure, but the implementation process can be risky, partly because the new systems must communicate with the old ones during the transition phase. Supervisory bodies monitor this risk. It is analysed at meetings of the Systemic Risk Committee and is identified as a risk factor in statements issued by the Financial Stability Council. Such a risk materialised to an extent last November and the cooperative forum on operational security of financial market infrastructure that I just mentioned was set up afterwards. In that forum and elsewhere, work will be done to minimise the operational risk accompanying the ongoing renewal process.

Jean-Pierre Roth: The euro – a stabilising factor in the international currency system Summary of a speech by Mr Jean-Pierre Roth, Chairman of the Governing Board of the Swiss National Bank and Chairman of the Board of Directors of the Bank for International Settlements, at the Fondation Jean Monnet pour l'Europe, Lausanne, 21 September 2007. The complete speech can be found in French on the Swiss National Bank’s website (www.snb.ch). *  *  *  The euro is undoubtedly a success story. It has contributed to stabilising the international currency system. In Europe, the former monetary disorder has been replaced by a new monetary order. The European payment system has become more transparent and price stability is guaranteed. Switzerland, too, is benefiting from European currency stability. The Swiss franc is taking advantage of a monetary environment that is considerably calmer than previously. The euro and the franc are coexisting very successfully. Nevertheless, it would be wrong to claim that all the effects of European currency integration have already worked their way through to the real economy. In spurring on competition and promoting transparency, the euro is having an integrating effect. However, there are still considerable obstacles standing in the way of this integration process. BIS Review 103/2007  1
Usually, the ambition is to bring the public deficits close to, or below, the 3% Maastricht level. For example, the target in the Czech Republic is not to exceed 4% of GDP in 2006. Nonetheless, it has not yet been fully appreciated that upon EU accession, the Stability and Growth Pact will become relevant to the new member states. Admittedly, the application of sanctions will be postponed until a country becomes a member of the eurozone. But even if a country is not a subject to sanctions, as a member of the EU club it should have in place at least a credible programme towards achieving its objectives. Moreover, if a country targets relatively early eurozone entry, it should first create a sufficient safety margin above the 3% deficit limit to be insured against distress - i.e. it should avoid the mistake that has been made by some of the current eurozone members concerning the S&G Pact. I hope that the uncertainty surrounding the Pact’s future would not be viewed as an excuse for delaying necessary fiscal and structural adjustments. Even if redefined in a more flexible way, it is quite clear that the structural deficits currently observed in many of the CECs will not be tolerable under the Pact, as they will not pass the sustainability and policy mix tests. Therefore, the existence of the S&G Pact makes the case for fiscal consolidation even more appealing than it might look at first sight.

To this point, the recently introduced alternative procedure for the simplification of the auditing of the financial statements of very small businesses should support these efforts and facilitate the timely transmission of the financial statements to the credit institutions. It is of utmost importance that a timely flow of up-to-date customers' financials is maintained by banks at all times. Unquestionably, this will be beneficial for both parties, banks and clients, as any events signalling a deterioration of the client's financial standing will be captured early on. Consequently the most suitable restructuring solution may be sought, which could ensure the continuation of a healthy and economically viable business relationship. Conclusion To sum up, the world's economies have been through a lot in recent years, from the challenge of the pandemic, to the impact of the war in Ukraine. It is up to us to come through these challenges unscathed or even stronger, wiser and better prepared for a brighter future. We have done it before, we can do it again. After all, to quote Gever Tulley (an American writer, speaker, educator, and entrepreneur) - persistence and resilience only come from having been given the chance to work through difficult problems. Thank you for your attention. 4/4  BIS - Central bankers' speeches
Along with the downturn that followed in the wake of the financial crisis, the Irish bank bailout quadrupled Ireland’s sovereign debt. 3 The interest on the debt is borne by all, rich and poor alike, regardless of who had benefited from the pre-crisis economic boom. The banking crisis and the government debt led to a deep economic downturn in Ireland. It is only now that Ireland has returned to its pre-crisis level of prosperity. But the economic and social consequences would probably have been even more serious if the banks had not been kept afloat. The Irish bank bailout illustrates a number of classic questions: Was it right for the government to risk its citizens’ money to rescue the banks? Did the Irish authorities actually have a choice? When things went wrong, was it right to protect creditors as the Irish authorities ultimately did? How has this affected the future risk taking of the banks’ owners and creditors? The answer to the question of whether banks should be rescued is about economics and incentives. But the problems banks create and how these problems are solved are also a matter of morals and ethics – law and justice. Norway has also been faced with these problems. Why are banks bailed out? In 1923, a little more than 90 years ago, there was a banking crisis in Norway. One of the banks in serious difficulty was Andresens og Bergens Kreditbank, or Foreningsbanken, as it  1  IMF Country Report No. 15/20.

In view of the limited size of the domestic capital market compared to other countries, foreign currency purchases seemed the most appropriate course of action for Switzerland. This allowed for the absorption of extreme exchange rate developments, which could have triggered a deflationary dynamic. In absorbing the upward pressure on the Swiss franc, the SNB may have taken on a higher balance sheet risk, however, in doing so, it countered the risk of a deflationary trend. Although the Swiss franc has appreciated sharply since the beginning of the year, the deflation threat has declined as the economic recovery has strengthened. The appreciation of the Swiss franc has impaired the competitive position of Swiss exporters. However, the negative impact on export demand has been reduced by robust economic growth in the economies importing Switzerland’s goods and services. Chart of conditional inflation forecast  I would now like to comment on the new, conditional inflation forecast in more detail. The (dashed) red curve on the chart represents the new, conditional inflation forecast. It shows the future path of inflation, assuming that the three-month Libor remains constant at 0.25% over the entire forecast horizon, and it covers the period from the fourth quarter of 2010 to the third quarter of 2013. For purposes of comparison, the (dash-dotted) green curve shows the inflation forecast published in September, which was also based on the assumption of a three-month Libor of 0.25%. The new conditional forecast shows that inflation remains low for 2011 and 2012.
The inadequate financial buffers held by banking institutions against risk, a growing disconnect between the creation of credit and its use for productive economic activity and a highly interconnected system of financial intermediation ultimately combined to give rise to risks that disrupted credit flows to the economy. Over time, these trends were substantially amplified. The global reform agenda has made important progress in efforts to reduce the fragility of the financial system and to strengthen its resilience. Substantial work has already been advanced and largely completed on the development of global liquidity standards, the adoption of leverage ratios, and the significantly strengthened capital regulations which are important components of the reform effort. Greater focus has also been placed on strong supervision, effective resolution regimes and arrangements for the oversight of systemically important financial institutions. While the effective implementation of these reforms is crucial, the world continues to seek more enduring solutions that will place financial institutions firmly back in the service of society. In some countries, fundamental structural changes are being pursued to reduce the complexity of banking and to protect banking services from such higher risk-taking activities. The challenge however, is how this might be achieved in a sustainable manner without undermining growth and development, and erasing the important efficiencies in financial management.

Their participation brought international best practice and standards to this landmark transaction which we expect will have a developmental impact on the local bond market. It is also our expectation that other intermediaries will look to this initiative to motivate them to seek to do more in this area for the benefit of our economy. So, in conclusion, what we as Bank of Zambia can do is to understand the dynamics of the debt market, how it is evolving, and whether it is sufficiently liquid and transparent. We can also help ensure that banks perform their proper role and enhance the price discovery process by promoting transparency in the conduct of our own monetary policy actions. Finally, and most importantly, we can strive to help create conditions in our economy that will support sustainable, non-inflationary growth and so promote the overall welfare of all citizens. It is this is a role that the Bank of Zambia is committed to playing effectively. Ladies and Gentlemen, with these remarks, I wish to thank all stakeholders in this important initiative. Thank you. 2  BIS Review 35/2007
Moreover, the absence of a social safety net in China creates a strong incentive for Chinese consumers to save rather than spend. Is the Norwegian economy also at a turning point? Household saving has also been low in Norway in recent years and corporate earnings have been offset by high investments. Excluding government financial and oil sector surpluses – which are redeployed abroad – Norway recorded a current account deficit of an estimated NOK 150 billion in 2007, or close to 10 per cent of mainland GDP. The corollary to the deficit on the basic balance is that Norwegian businesses, as well as Norwegian banks, borrow in foreign markets. It is the interaction between high household credit demand and an ample supply of credit that has resulted in low saving and large deficits. The banks now have to put more effort into procuring deposits and a little less into selling loans. Such a change in banks' behaviour may contribute to curbing growth in demand and output in the period ahead. There are now signs of a cooling housing market throughout the country. House price inflation peaked about a year ago when the housing market was marked by euphoria. Several large residential construction projects are now being shelved. Should weaker developments in the US lead to a broad-based pause in global growth, there may be various repercussions for the Norwegian economy: First, a downturn in the world economy may adversely affect activity and profitability in export industries and perhaps even the oil sector.

The Bank of Zambia, as a regulator, is determined to facilitate viable branch expansion, and the introduction of new and innovative financial products, to tap savings and channel these savings to investment. The BoZ will therefore continue to work in close collaboration with the financial sector to cultivate partnership in order to establish the framework necessary for build ing strong institutions that will mitigate risks and build confidence in the sector. BIS Review 69/2009  1  6. As at 30th April 2009, NATSAVE held customer deposits in excess of K135 billion with a loan portfolio of K92 billion and served over 120,000 clients. NATSAVE has also endeavoured to introduce various products such as marketeer and pensioner accounts (specific savings products for people in these categories), as well as loan products such as individual loans, salary loans and money transfer services. The development in Lukulu therefore offers some hope that rural areas, and especially the agricultural sector, may eventually be offered attractive financial products. 7. Notwithstanding this, allow me now to reflect on some of the key challenges in the financial sector that all of us must strive to address: (i)  Increasing access to financial services by the small and micro entrepreneurs who form the backbone of the economy. This sector provides employment for many people who cannot be absorbed into formal employment; increased access to financial services remains a key challenge to this segment.
Despite this advantage, the Bank of Thailand is not complacent and we will continue to prepare our banking sector for future challenges. In this regard, a SWOT analysis of our current financial institutions system reveals that while there was overall improvement in efficiency and soundness, operating costs remained high and financial access gaps remained. Furthermore, there was still inadequate financial infrastructure to support risk management of financial institutions. Meanwhile, future challenges of the next five years would likely come from more intensified competition – not only among banks, but from capital market, both local and overseas. It would also come from more complex and varied needs for financial services, as a result of globalizations and aging population, the shift in resource allocation with greater role of domestic demand vis-à-vis external demand as engine of growth, and finally, capital inflows and external challenges from the global economic crisis. Taken together, these remaining areas of improvement and the need to tackle future challenges have led to the recent launch of the second phase of financial sector reform. This brings me to the second part of my talk: key strategies in the Financial Sector Master Plan Phase 2. When thinking about characteristics that our future financial system is envisioned to have, several keywords come to mind: efficiency, strength and resiliency, diversification, fairness and transparency.

The task of setting a right balance in regulation, going forward, is still a global debate, in which the Bank of Thailand is closely engaged in our role in various working groups of the Basel Committee for Banking Supervision. On the one hand, it is critical that the global financial system reestablishes such trust, and ensures stability, integrity, and fair consumer treatment. On the other hand, the crisis has highlighted the complexity of the financial system, and the globalness of financial contagion. Thus, there is a critical need for the authorities and the financial market to work together to ensure that the emerging global standards and regulations can handle such complexity, and remain risk-focused at the economic and financial system, both in the national and global contexts. It is also important to avoid introducing distortion and risk of regulatory arbitrage between financial markets, products, and strategies, and most importantly, arbitrage between countries. Thus, the strong impetus on supervisory coordination, cross-border risk and coordination, as well as macro-prudential aspects are the new challenges. Turning to the situation in Thailand, thus far, despite some set-back in terms of economic contraction in the past year, both the Thai economy and financial system have shown resiliency and robustness. This helps to stand us in good stead, and provide a strong grounding to forge our strategy to handle coming challenges. Nevertheless, looking ahead into the longer term, Thailand’s economic and growth potential is still not fully and efficiently harnessed. Economic efficiency, international competitiveness, and economic stability are keys to sustainable growth.
This is the area where the issues probably are the more complex, having to deal with different legal and failure regimes, the recognition of foreign resolution authorities and powers and for regulators and supervisors, the need to strike the right balance between the appropriate degree of transparency for stakeholders and creditors and of discretion for supervisors, to prevent runs or self-fulfilling prophecies. This heavy agenda may keep us quite busy for some times, but it is a cornerstone to our overall objective of preserving global financial stability. Encompassing all these endeavors, solving the tension between globalization, on the one hand, and differences between national or area wide regulatory framework, on the other hand are no small challenge. A healthy debate between academics, regulators and all sectors of the financial industry – who are not the least vocal-, is very much needed. I hope that today’s conference has been helpful in advancing this debate. Beyond debates, availability of data and access to these data by the various stakeholders will be key for making progress. Last but not least, concentration, increasing complexity, and the fact that some players are still very much out of the radar screen – such as hedge funds for instance- should keep everyone on their toes, in particular when assessing interconnectedness. I thank you very much for your attention. 2  BIS central bankers’ speeches

In this area, Hong Kong has been one of the first regulatory authorities to issue guidelines that, among other things, require banks to ensure that their internet security platforms are airtight and that risk management systems are properly in place. We have strengthened our supervisory skills and resources to enable us to check that this is being done. This is not going to be an easy process. No-one can predict what directions technical innovation, customer behaviour, or latent practical problems will take. The challenge for regulators like the HKMA is to seek a balance between not allowing these developments to bring unmanageable risk and not stifling the application of useful new technology by holding back innovation. It is a difficult balance to achieve. Too great an interest by the regulator in new initiatives by the bank can often be misunderstood as heavy-handed over-regulation. The answer to the dilemma, clearly, is for regulator and industry to work hand in hand in a constructive way. Our policy in this, as in other areas, is to consult with - and listen to – the industry organisations as well as to the public at large and its representatives. 24. In other areas of its work, the HKMA has itself become something of a pioneer and is currently a clear leader in this time zone. Of particular importance here is our work on financial infrastructure. This is how we look at the matter.