samchain/econo-pairs-v1 huggingface dataset:
These must not be less than 72.5% of the RWA calculated using a standardised approach defined by the regulator. Page 4/8  capital may not fall below a certain percentage of its total assets. 5 By setting a minimum capital requirement, this ratio protects against overly optimistic risk assessments. The new liquidity and capital requirements apply to all banks. They strengthen the ability of an individual bank to withstand major outflows and losses without becoming illiquid or insolvent. 6 A second set of measures is aimed exclusively at large and highly interconnected banks, and addresses the ‘too big to fail’ issue. 7 Banks whose collapse would have a significant impact on the economy and financial system were thus made subject to more stringent requirements than other banks. 8 These systemically important banks must hold an additional capital buffer to bolster their resilience and reduce the likelihood of them getting into difficulty. However, the possibility of major shocks in the financial industry and real economy causing systemically important banks to get into existential difficulties can never be entirely ruled out. Systemically important banks must therefore take financial and organisational precautions to prepare for such an event. 9 Specifically, they must hold sufficient loss-absorbing capital to enable them to carry out a restructuring or wind-down on their own, i.e. without taxpayers’ money.

The recovery of the economy also hinges on the restoration of consumer and business confidence that can contribute to the revival of spending and investment, and the return to normality in financial markets and the banking system. The rebuilding of trust will depend on our ability to appropriately combine the policy actions needed to address the immediate challenges with the necessary reforms for establishing an economic, financial and institutional environment that is conducive to sustainable long-term growth. Thank you very much for your attention. 4  BIS Review 38/2009
Corporate governance reforms the world over have focused on addressing the principal-agent problem chiefly through strengthening the independence of Boards. This is necessary but not sufficient. A good director must not only be independent in form, but must be competent so that he can also be independent in substance. Directors must be able and willing to devote time to their roles and have the relevant experience to question management and form independent views on strategy, risk, and performance. 17. This is particularly relevant in the area of risk management. Boards have an important role to play in determining the company’s risk tolerance and risk policies. They must oversee management in designing, implementing, and monitoring the company’s systems for managing risk. 18. But risk is fundamentally about uncertainty and is therefore inherently subjective. This is why a diverse Board – with both executive and independent directors as well as a variety of backgrounds and expertise – is key. Given the complexity of the environment we operate in, only through robust debate and rigorous consideration of the range of possibilities can Boards make sound decisions on risk and strategy. 19. Putting together diverse Boards with competent directors, and at the same time meeting the tighter requirements for independence, is a real challenge – especially for a small country like Singapore with a limited talent pool. The solution does not lie in lowering our standards for either independence or competence. Companies must take a more proactive approach in identifying and making available training to their directors.

In a brutally competitive environment, this short-termism promotes not only excessive risk-taking but a variety of sharp practices, exploitative sales, and even fraudulent transactions. Little wonder that public trust in corporations has diminished in many jurisdictions. 23. Boards and senior management have a critical role in promoting a culture rooted in strong ethical frameworks. They must make clear that serving the customer’s interest, dealing fairly with suppliers and counterparties, following the laws of the land, and not placing the larger society at risk are essential for maximising long-term shareholder value. 24. Directors and senior managers set the tone for what is acceptable behaviour and what is not. The questions they ask – as well as the questions they do not – send strong signals throughout the corporation. Let us ask ourselves: If a particular division in a company is making huge profits, what does the Board and senior management do? Congratulate them and raise the targets? Or ask probing questions about how much risk is being taken, whether there has been fair dealing, and whether all stakeholders have been served? 25. Restoring ethical conduct is particularly relevant for the financial industry. Following the crisis, the industry has fallen into disrepute, especially in the West. Recent revelations arising from the Libor scandal – and this is not unique to London – suggest that the lessons have not been learnt.
An additional result of dissemination of the DIT strategy is elaboration of standards of communication in conducting the monetary policy (announcements of decision-making authorities, inflation reports and published inflation projections), which facilitate contacts of the central bank with the external environment (the financial market and the general public). It may be speculated that these standards make the interpretation of the decisions made by the central bank easier for foreign investors, which should, under the huge cross-border capital flows, increase the effectiveness of the monetary policy in stabilising inflation. Re 6) As mentioned before, the process of globalisation is a serious challenge for central banks. Following the increase in human workforce relatively to the capital resource, the pay of the workforce has gone down, and so did the costs of manufacturing of many goods and services. Setting fuel prices apart, whose increase is also brought about by globalisation, inflation in many countries remains very low, whereas a strong increase in the global labour supply mitigates the possibility of occurrence of the second-round effects i.e. wage increases in response to a rise in current inflation. On the other hand, the global surplus of savings over investments causes the capital to chase the high yield opportunities, thus increasing asset prices in many countries. An exemplary case may be increases in stock exchange indices, bond prices or real property prices in Anglo-Saxon countries and e.g. in Spain.

The other option, described by Kohn as the “extra action policy”, allows for a deviation of current inflation from a level determined as stable in return for improvement of the perspectives of achieving price stability in the future. However, the extra action policy does not mean piercing the speculative bubbles by central banks, and means rather “taking out” of additional insurance against possible negative shocks, which may happen in the future. In Kohn’s opinion, the extra action policy may be run very rarely and only where the three conditions are met: •  the central bank must be able to identify asset bubbles in a timely manner and high certainty as to the correctness of analysis conclusions;  •  there must be a high probability that a slight tightening of the monetary policy will be able to stand against the speculative activity on a given assets market;  •  the expected improvement of the future economic situation resulting from a smaller speculative bubble must be significant and higher than the costs incurred by the economy in the aftermath of running the extra action policy. To recapitulate this train of thought, Kohn was very sceptical whether the three above-mentioned conditions can be sufficiently met; however, he did not preclude that in the future, the understanding of economic processes will improve as much as to enable running the extra action policy where reasonable.
One is that monetary policy is likely to be particularly effective because it affects all financial markets. Another view, that has been stated most forcefully by Lars Svensson, is that monetary policy is an inefficient and potentially even harmful tool for financial stability, since it is too unfocused and may have counterproductive macroeconomic effects. This is far from a theoretical matter: there is currently a lively debate on whether the current low interest rates in major jurisdictions are leading to “search-for-yield” behavior in certain financial market segments, potentially threatening financial stability, and whether this provides an additional motivation for normalizing monetary policy sooner rather than later. The view that seems to be gaining strength, and to which I subscribe, is to use macroprudential policy to maintain financial stability and allow monetary policy to focus on price stability. However, the definitive answer to this question will depend on the progress in the development of macroprudential policy tools and frameworks. Despite some positive experiences, including in Brazil, macroprudential tools are still insufficiently tested and the theoretical literature is in its infancy. The degree of success in using these tools will help determine whether there is a role for monetary policy in helping to achieve the financial stability goal. A second issue that has been the subject of considerable debate is the nature of monetary policy regimes. Before the crisis, there was a strong consensus on inflation targeting (or IT) as the most adequate monetary policy regime, due to its flexibility and transparency.

This figure, more than any other, underlines the gravity of the shock the UK economy has faced this year. The better news is that the economy began its recovery from this dramatic fall earlier, and has since recovered far-faster, than anyone expected. The speed and scale of the UK’s recovery has surprised to the upside, persistently and significantly, for at least the past four months. Back in May, the Bank expected GDP to be around 18% below its pre-Covid level on average during the third quarter. Consensus forecasts by professional economists were, at the time, weaker still. Four months on, we now expect GDP to be around 3-4% below its pre-Covid level by the end of the third quarter. In other words, the economy has already recovered just under 90% of its earlier losses. Having fallen precipitously by 20% in the second quarter, we expect UK GDP to have risen by a vertiginous 20% in the third quarter – by some margin its largest-ever rise. Put differently, since May UK GDP has been rising, on average, by around 1.5% per week. The pace of recovery has varied, starting slowly in May, picking up pace rapidly during June and July and is then expected to have slowed a little during August and September. Even if our GDP nowcasts for August and September come to pass, there remains an average recession-sized gap between output and its pre-Covid level.
Elimination of the unfavorable conditions in bureaucracy, politics and taxing regulations that are the primary items of the list of the factors affecting competition negatively in Turkey bear great importance in this respect. 2 The key factor for this is ensuring development in the principles 3 of governance both for the public and the private sector. A great improvement is recorded in terms of the principles of governance as of the year 2000 and improvements in almost all of the indicators are observed. It is not a coincidence that the improvement in the principles of good governance and the one in macroeconomic performance to intersect. However, it is clear that there is too much to achieve compared to the European countries. Good governance has a key role in ensuring the macroeconomic stability and rendering this process permanent. Therefore, it is one of the pre-requisites of a sustainable growth process. Structural reforms bear great importance in this regard. The research carried out with respect to the OECD countries 4 reveals that the economic growth rates of the countries engaging in rapid and comprehensive structural reforms increase in vast amounts. Additionally, structural reforms are complementary. Halt of the progress of structural reforms in one field prevents the attainment of favorable outcomes of the reforms made in other fields.

Both the economic literature and the experiences of the countries show that, it is impossible for central banks to keep both the interest rates and foreign exchange rates under control at the same time in the economies where international capital movements are free as in ours. Therefore, the Central Bank does not and will not have an implicit commitment regarding the level of the foreign exchange rate, or a policy towards rendering the Turkish Lira valuable. When we look at the period starting from 2001 in which the floating exchange rate regime was embarked on up to now, we see a number of fluctuations in the foreign exchange rates, the most recent of which was observed in the May-June period. Similar fluctuations may be experienced in the future. The course of conduct of the Central Bank regarding the foreign exchange markets is quite clear. The risk of foreign currency is borne by the market players. The fluctuations that are experienced clearly display that these types of risks may arise any time and that they should be managed effectively. Economic units should ensure the required protection against the risks regarding their balance sheets in the modern sense within the scope of the risk management principles. Remarkable attainments were obtained in the banking sector within this context. The private sector also should need to adopt a similar approach in this respect.
In time, there may emerge greater differentiation between VBI and non-VBI institutions which will be better understood by shareholders, fund providers and financial markets more generally. Furthermore, the more comprehensive and holistic approach of VBI in advancing the good for society could prove to be a key competitive advantage that will influence and shape the future of the financial industry. The drive for positive changes in the Islamic financial services industry however requires a major paradigm shift in many institutions. It takes a long view to recognise returns beyond financial profits where social and environmental gains are also highly valued. It will also take increasing professionalism and high quality talent that will contribute to this transformation of mind and culture. In Malaysia, we can readily leverage on the available Islamic finance talent development ecosystem, which has a comprehensive and diversified range of offerings, spanning tertiary and professional education, research, training and consultancy services which are globallyrecognised. The implementation of VBI has already galvanised many stakeholders including institutions of higher learning such as the International Centre for Education in Islamic Finance (INCEIF) and International Shariah Research Academy (ISRA) to undertake impactful applied research that advances the implementation progress of VBI by the financial industry. Indeed, Islamic finance has greatly benefited through these institutions that have contributed towards enlarging the pool of Islamic finance professionals and deepening expertise through various programmes and initiatives. At the same time, these institutions have also grown in recognition.

I do not wish to prescribe what you should talk about throughout this workshop, but I am hopeful that what I have mentioned above can form some discussion points in the deliberations of this workshop. It is also my desire that as you travel back to your respective countries, you would have learnt something you can implement to improve our respective financial systems. In conclusion, as financial markets become increasingly globalised, supervisory co-operation and harmonisation become increasingly important. Organisations such as MEFMI play an important role in developing capacity in the identified areas of macroeconomic and financial sector management. Ladies and gentlemen, Allow me to commend MEFMI which has been in the fore front of building sustainable capacity in financial supervision in the sub-region. It has shown the cause for fostering best practices, raising awareness and helping us to improve our processes especially in this area of financial stability in the region in general. Finally, I hope that you will find this workshop stimulating and that you will enjoy your stay in Zambia. With these remarks, I declare this workshop officially open. I Thank you. 2  BIS central bankers’ speeches
This fixity in the assets results in a higher level of confidence that asset cash-flows will be available as the liabilities fall due; and hence that firms have largely mitigated credit spread exposures arising from being either forced sellers of assets or reinvestors of cash. It is for this reason that assets with prepayment risk are typically not suitable for inclusion in matching portfolios, unless they include suitable protection from the financial consequences of prepayment. We are mindful that being closely matched today does not mean that all is well for the run off of the liabilities. Even for a fixed book of business, changes in demographic experience may result in divergence from initial expectations. Therefore, it is important to us that firms regularly revisit their matching profile; indeed that is why we have set out tests in Supervisory Statement 7/18 “Solvency II: Matching adjustment”4 to assist with assessing ongoing matching. This is another reason why even a well matched firm may need to turn over part of its portfolio over time, suggesting prudence is necessary when deciding how much MA benefit to claim based on its current matching position. 4  https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/supervisory-statement/2018/ss718.pdf 4  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  4  In our view the MA does not stop firms investing in assets such as construction phase assets structured as debt, or in pools of assets that might not be MA eligible themselves.

Yet the challenge remains to meet the targets set by the Millennium Development Goals (MDGs) aimed at reducing the number of the world’s poor by half by the year 2015. Unfortunately, improvements in some economic indicators may not be sufficient enough to enable the majority of African countries to meet the MDGs targets.2 Specifically, single digit economic growth rates are not sufficient for tackling the widespread poverty in the continent. According to the African Development Bank, only Algeria, Egypt, Libya, Morocco, Tunisia, and Mauritius will attain the specified targets. The majority of the population of Africa is located in rural areas where agriculture and dependence on natural resources remains the predominant means of livelihood [United Nations  1  As of 10/22/2004, Source: Encyclopedia Britannica Book of the Year 2004. 2  United Nations Environment Program (UNEP) Fact Sheet, Global Environment Outlook – 3, Africa, GEO 3, Nairobi, Kenya, 2003. BIS Review 74/2004  1  Development Programme (UNDP), 2003]. Soil, grasslands, freshwater sources, and oceans play a critical role to sustain crop cultivation, grazing land for livestock, and fisheries. The energy sector equally plays an important role in the African economy due to the dependence of all national economies on oil for their production activities. On one hand, significant dependence on oil exports from countries such as Angola, Chad, Equatorial Guinea, Nigeria and Libya is becoming increasingly pronounced.
Zeti Akhtar Aziz: Corporate governance and aspects of the regulatory framework instituted in Malaysia Special address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the 2nd Seminar for Central Banks and Monetary Agencies on AAOIFI’s Accounting Standards, Kuala Lumpur, 29 May 2002. *  *  *  Assalamu`alaikum Warahmatullahi Wabarakatuh and Good Morning Malaysia is indeed honoured to host this annual Seminar organised by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) for Central Banks and Monetary Agencies on AAOIFI’s Accounting Standards for Islamic financial institutions. Since its establishment in 1990, AAOIFI has made a significant contribution in formulating and issuing accounting and auditing standards for Islamic financial institutions. The standards issued by AAOIFI have contributed towards the improved quality of financial statements and reporting methodology of Islamic financial institutions. AAOIFI has also issued standards on the role of Syariah committees as well as the code of ethics that should govern the accountants and auditors of Islamic financial institutions. Undoubtedly, efforts by AAOIFI have accelerated the pace of transparency and corporate governance of Islamic financial institutions globally. Ladies and Gentlemen, A well functioning and efficient banking system is vital for achieving robust economic performance. Within the context of the economy, the banking institutions perform the important function of mobilising funds that are channelled to productive investments thereby generating economic activity.

Of this, about a quarter have piloted or are preparing to pilot their solutions in the sandbox, with some already having graduated to offer their solutions in the broader financial system. The insights gained have led to adaptations of existing regulations as well as the development of new frameworks for firms that exit the Sandbox. They have also informed the Bank’s thinking on regulating innovation, with lessons taken in the development of the digital bank framework which will be issued for consultation very shortly. The idea of the sandbox has since been replicated internally within the Bank as an avenue for staff to prototype new solutions that will improve the way the Bank works. This includes new technological applications in regulation and supervision, surveillance, data analytics, communications and in the delivery of the Bank’s public services. The third imperative has been to ensure alignment in the Bank’s governance and culture with our digital objectives and priorities. At the Bank, we are keenly minded that it’s the people and the risk culture, or “the way we do things around here” that ultimately matters. 2/4  BIS central bankers' speeches  This arguably remains the most difficult part of our journey. Digitalisation is driving disruption, and the digital world is inherently complex – in its logic, design, development and delivery. We have put in place strengthened and more integrated governance arrangements to direct our digital strategy, policy and standards.