samchain/econo-pairs-v2 huggingface dataset:
climate changed – and why climate matters to rbnz. a speech delivered at the climate change and business conference 2022 on 19 september 2022 by adrian orr, reserve bank governor with thanks to billy berek, susan livengood, and other colleagues from the rbnz. ref # x775826 v1. 16 unclassified introduction kia ora koutou, thank you to the organisers for gathering us all for this important and necessary discussion. thank you to bell gully for sponsoring this session on “ disclosure and managing risk ”, and to simon watt for chairing. thank you also to the many notable speakers and dignitaries at this landmark conference for sharing your wisdom and insight. i also acknowledge the climate change minister james shaw and his personal commitment, and leadership on this very important issue. today i will speak briefly to a few points : why climate matters to the reserve bank ; why the reserve bank has regard to climate change risk ; our climate change stategy ; and developments in the management of climate risk here in new zealand and around the world. but before i address those points, i want to place this conference in context. as noted in our report, ’ climate changed 2021 ’, the impacts of climate change are already here, and those impacts are increasing. these impacts do not happen in isolation, and compound other economic shocks such as russia ’ s invasion of ukraine as well as pandemic linked supply chain shortages. the last few months have had no shortage of extreme weather linked to climate change across the globe, with record beating tempatures and droughts. here in new zealand, last year set a new record for weather - related insurance payments, and this year is on track to break the record. climate impacts are here now, and the risks of further impacts are here to stay. but there is still much within our control. how we address those risks and the steps we take to reduce them, are up to us. with appropriate identification, pricing, allocation, and management of risk, we can reduce the impacts of climate change on aotearoa ’ s financial system. disclosure provides a vital impetus for this approach. why climate matters to the reserve bank at the reserve bank, we are the kaitiaki ( guardians ) of the financial system tasked to maintain and enhance financial stability. our ’ financial stability objective is to protect and promote the stability of new zealand ’ s financial system. 1 _ _ _ _ _ _ _ _ _ _ _ _

percent every year for next decade to meet 1. 5°c paris target iea ( 20 04 2017 ) deep energy transformation needed by 2050 to limit rise in global temperature endorsement unclassified
eu, 35 % that they are pessimistic. 4 ortega y gasset, jose ( 1931 ), der aufstand der massen, p. 198. 5 american economic review ( 2015 ), 105 ( 4 ) : pp. 1339 - 1370, climate clubs : overcoming free - riding in international climate policy 6 nature index : 2023 research leaders ; on germany see also : kfw research : wettbewerbsfahigkeit – vom kranken mann europas zum superstar und zuruck : wo steht die deutsche wirtschaft? p. 15. 7 demertzis, m., m. dominguez - jimenez and l. guetta - jeanrenaud ( 2021 ), europe should not neglect its capital markets union, policy contribution 13 / 2021, bruegel, p. 6. 3 / 3 bis - central bankers'speeches

##ia have increased across the board, with “ safe haven ” assets and currencies benefitting at the expense of equities, credit and commodities. in this ‘ risk off ’ environment, correlations across asset classes are up sharply. falls in market liquidity have contributed to strains in some markets. in treasuries and gilts, spreads between 30 - year yields and the equivalent swaps have risen by over 40 basis points since the beginning of 2015. and there has been a widening in the spread between corporate bond yields and cds premia which may reflect a reduction in arbitrage as dealers conserve their balance sheets. banking stocks have been particularly hard hit, down about a quarter on average over the past three months, across the advanced economies, prompting some to question whether anything has really changed ( chart 5 ). this re - pricing likely reflects first and foremost renewed growth worries. banks have always been high beta to the economy. bis central bankers ’ speeches chart 4 rising dislocations across credit and fixed income markets basis points basis points - 10 - 20 - 30 - 40 - 50 - 60 - 70 - 80 - 90 - 5 - 10 - 15 jan. 16 nov. 15 sep. 15 jul. 15 may. 15 mar. 15 jan. 15 - 20 nov. 14 sep. 14 jul. 14 may. 14 jan. 14 mar. 14 30yr swap spread cds - cash basis ig skew ( rhs ) source : barclays live and bank calculations. ig skew refers to the difference between us cdx. ig index and single - name cds ( sncds ), 10 - year swap spread is the spread between 10 - yr usd swap and 10yr us treasury note, and cds - cash basis is the spread between sncds and a basket of equivalent cash bonds. chart 5 bank equities down 25 % since end 2015 uk us euro area japan ( dec 2015 = 100 ) december january february source : thomson reuters datastream and bank calculations. bis central bankers ’ speeches chart 6 uk banks ’ roe down 11pp since 2006 ( a ) per cent pre - tax - 5 post - tax - 10 - 15 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 h1 sources : published accounts and bank calculations. ( a ) uk banks are : barclays, hsbc, lbg, nationwide, rbs and santander uk. table 2 drivers of uk banks ’ lower roe total reduction
short term and • they can contribute to keeping them as savers for the long - term. • they can contribute to asset building among households challenges in devising a financial education program devising financial education initiatives for the un / underbanked has to take into account the existing financial landscape, the social economic realities of this class and the fact that invariably, such groups are beset with low literacy levels. the main difference in the financial planning for the poor families is that they have fewer resources and opportunities. when people are struggling to make ends meet on a day - to - day basis, good money management becomes a daily challenge. while they use many creative ingenuous strategies to manage their money, these often develop through trial and error rather than by design. financial education has a role in'building the capacity of the poor to gain control, become proactive, use information and resources to enhance their economic security and more effectively use financial services '. when better - informed clients become better consumers of financial services, financial institutions benefit. further, as already mentioned, the process of educating may invariably involve addressing deep entrenched behavioural and psychological factors that could be major barriers. for example, in case of many of the microfinance initiatives operating on the'group liability'concept it could be a great challenge to drive home the very basic rationale for such an arrangement, starting from inculcating the habit of small savings to appreciation of the concept of'collective responsibility '. a study regarding mexican experience has highlighted that the social and cultural factors embedded in the financial landscape greatly influence the ability of individuals to use financial services effectively. results indicate that in addition to material resources, the inherent nature of social relations and community links played a crucial role in improving access to and use of financial services. the transformation of financial information, knowledge, experience, attitudes and social relationships into financial education and sophistication constituted a cognitive resource to reducing vulnerability. this leads us to suggest that a culture of finance is an important catalyst for individuals ’ change and development. it is also important to note that financial education may contribute to behavior modification, but many factors lend to influence a person ’ s financial behavior. contrary to common belief, motivation is cultivated internally and rarely can be cultivated - sustainably, at least - by an external factor. the biggest obstacle to financial education is motivating individuals to pursue it. in other words, financial education does not necessarily motivate individuals ; motivation brings individuals to financial education. here

complement, but not replace other pillars such as greater transparency, policies on consumer protection and regulation of financial institutions. i do hope that in our collective interest the issues raised in this conference are operationalised and translated into grass root level initiatives.
unique position in drawing on additional resources from members if and when needed. simply having a recovery plan is not enough : ccps also need to think about the optimal design and number of recovery tools. as stated in the cpmi report i mentioned earlier, recovery tools should be comprehensive, effective, controllable, create appropriate incentives for risk management, and minimise negative impact. the challenge is that no individual tool can equally meet all of these criteria because of trade - offs. for example, uncapped cash calls are comprehensive, but may create disincentives for central clearing. variation margin haircutting can be effective, as it reduces pay - outs rather than requiring additional pay ins, but its systemic effects can be uncertain due to the way losses are allocated. initial margin haircutting may also be considered as comprehensive, but on the other hand, it could increase the potential for contagion risk. the cpmi - iosco report on the recovery of fmis offers a thorough description and analysis of the various pros and cons of different recovery tools, as well as the trade - offs that exist between them. it is probably not possible at this point to identify a single specific recovery plan that is optimal and superior to any other plan. ccps have a range of options to choose from. it will be important not to rule out, a priori, the use of some of these tools. rather, it might be advisable for ccps to have many different tools potentially available. this way, they will be able to choose the appropriate tools in a specific recovery situation. one of the main challenges in drawing up recovery plans will be addressing the potential conflicts of interest between stakeholders. indeed, different loss allocation tools will have different effects on the distribution of losses. for example, rules on variation margin haircutting might be designed in a way that losses are passed on to clients, while cash calls might only have an effect on direct clearing members. similarly, participants might not be willing to contribute to sharing losses which arise as a result of management failures. it is therefore vital to involve those who would bear losses or liquidity shortfalls in the formation of the recovery plan. mechanisms should be foreseen for involving all relevant stakeholders in the ccp ’ s decision - making process : this could mean establishing procedures whereby the ccp board formally consults direct participants, indirect participants and / or linked ccps, as relevant, or having such relevant entities directly represented on the board

higher incomes and accelerate the benefits of reforms, thereby making the euro area more resilient to global shocks. fiscal policies should support the economic recovery, while remaining in compliance with the eu ’ s fiscal rules. full and consistent implementation of the stability and growth pact is crucial for confidence in our fiscal framework. at the same time, all countries should strive for a growthfriendly composition of fiscal policies. we are now at your disposal for questions. bis central bankers ’ speeches
of that positioning is certainly transpiring before us today, right here. with that, it is with great pleasure that i officially launch the citigroup malaysian government securities index and the dow jones - rhb islamic index. thank you.

replicated by the fund manager of each individual country sub fund, as well as in the umbrella pan asian index fund. meanwhile, the islamic sukuk international market's expansion is gaining momentum. wider acceptance by investors and greater awareness of issuers of this alternative structure has seen increased issuances over the past few years. in the sovereign markets ; malaysia, qatar and bahrain have come to the market with sukuks. supranational institutions such as the islamic development bank, world bank and the international finance corporation ( ifc ) have also ventured into issuing sukuks, with the latter two institutions issuing the ringgit - denominated instruments in our domestic bond market. the first usd1 billion - issue size was launched in 2004 by the government of dubai. in 2005, it is estimated that a total of more than usd5 billion of sukuk is in the pipeline globally in a range of currencies. the market is indeed growing. ladies and gentlemen, the introduction of a benchmark index can act as a catalyst for a more rapid pace of development of the financial market and the recognition of a new asset class. the conditions are timely for the crafting of a benchmark index to further spur the growth of the islamic financial and capital market to meet the needs of a larger pool of muslim savers and investors. on the domestic front, the ringgit denominated islamic debt market continues to grow encouragingly. in the private debt securities market, a total of 42 % of securities outstanding as at end 2004 were islamic securities. for the debt markets as a whole, islamic securities comprised 25. 7 % of total outstanding bond issues at the conclusion of 2004. coupled with increased turnover volume, the size and liquidity of the islamic debt markets are improving, possibly paving the way for even greater demand for islamic financial products. the formulation of a benchmark index to reflect the ringgit islamic debt market could well be a strategic opportunity for market players to take up as the next step forward. ladies and gentlemen, the future growth and development of the malaysian capital market, including a dynamic islamic financial market with breadth and depth, has never been brighter. as we witness in the current environment, cross - border flows, joint ventures and partnerships with global players have become the norm. new growth markets, enhanced integration and liberalization of economies and financial markets are the themes that will increasingly dominate our business activities. positioning ourselves for these developments is imperative in these highly competitive markets. part
markets back to its important role of being an efficient judge and jury of misguided macropolicy. since political mechanisms failed to be this kind of an effective mechanism of sanctions – the stability and growth pact is only one example – then it is even more important to strengthen market disciplining forces. again, what we need first are in - depth analysis on the underlying reasons of significantly changing transmission mechanism which effect even countries with sound and stable macroeconomic frameworks. the imf in close cooperation with other relevant financial institutions can play an important role also in this regard. the so called “ issing committee ” – advising the german government on financial stability issues – has pointed to the necessity to build up a global risk map, which would be an important element of an extended global monitoring by the imf and other relevant institutions. professor issing, former member of the executive board of the european central bank is heading this committee and we feel much honored that he has accepted our invitation to present an overview of the recommendations of this committee this evening. but let me first hand over to mr yi gang and his concluding remarks with the perspective of the people ’ s bank of china. bis central bankers ’ speeches

for governments is to provide guidance to companies and financial markets on their policy path with respect to climate - related laws and regulations. if governments and authorities draw attention to the upcoming transition of the economy and act predictably, corporates and markets will have more time to understand and adapt. the sooner they start aligning their portfolios, the quicker misallocations will be corrected and transition risks become less relevant. 6. conclusion ladies and gentlemen just like the co2 levels in the atmosphere, the co2 levels in this room are on the rise. before they reach a critical level, let me summarise. we have identified two categories of risks that climate change and our response to it can pose to the financial sector : physical risks and transition risks. and we have reached a basic understanding of how they work. what we have not sufficiently understood is how material these risks are, and whether financial institutions and markets are suitably taking them into account. i have named a number of steps that i believe will bring us closer to this goal. clearly, we have only begun to work on this. the french poet victor hugo once said : “ you cannot resist an idea whose time has come ". i believe that the transition of the economy and the greening of the financial sector are just such ideas. so let ’ s get started. 5 / 5 bis central bankers'speeches
deal - i thought i might do a ph. d. in philosophy at one point, when i was studying philosophy at oxford university and at the universita© cheikh anta diop de dakar in senegal. but economics turned out to be my purpose and my passion. economics is the fundamental toolkit i use to find answers to the multitude of questions swirling around my head at any given moment. i see economics at work in everyday life and know how foundational it is to every society and community's success. there is a passage from an alice dunbar - nelson poem - because why quote the rest when deltas are the best - that goes : how few of us in all the world's great, ceaseless struggling strife, 2 / 7 bis - central bankers'speeches go to our work with gladsome, buoyant step, and love it for its sake, whate'er it be. delta's dedication to learning and public service gave us an advantage in considering the mission that would occupy our lives. we thought about the change we could make and the influence we could have. we did the advanced calculus that measured the goodness of trouble against the enormity of student debt payments. we knew we wanted work - whether a professional calling or life's work - that, as soror alice said, we loved " for its sake. " while i do not always have a buoyant step, and " gladsome " is probably not the first word i would use to describe myself, i do love my work for its sake, which is a tremendous gift. and i was drawn to delta, because i wanted to be surrounded by people who would use their talents and passions to improve the lives and well - being of all people in the world. why am i bringing this up today? i am sticking to the assignment : deltas embracing the past and shaping the future. we are here to commemorate our founders, our forebears, and the ties that bind us. to celebrate the ways that delta's esteemed history brought each of us through its doors, and how membership helped to shape who we are and who we are yet to become. and delta, along with other divine nine organizations, can be key to shaping the future of economics. diversity is critical to any profession, but particularly to those - like economics - that tend toward the homogenous. or those - like economics - that affect people's daily lives. as policy

this award in the spirit of challenge it represents. i am forever mindful of samuel dubois cook's belief that there is much work ahead of us as we seek to build a world that is more just and offers more opportunity for all. although this may be called a career achievement award, i accept it with the conviction that i am just getting started. 2 / 2 bis - central bankers'speeches
occupational pensions authority : financial stability report ( 2018 ). 15 central statistics office : population and labour force projections ( 2018 ). 7 / 7 bis central bankers'speeches

john hurley : financial stability report 2007 opening statement by mr john hurley, governor of the central bank and financial services authority of ireland, at the presentation of the financial stability report 2007, dublin, 14 november 2007. * * * i am pleased to welcome you all to the publication of our 2007 financial stability report. the objective of the report is to set out our overall assessment of the stability of the domestic financial system. just before i start, i would like to clarify that my comments today are directed towards the financial stability issues regarding the irish economy and do not relate to monetary policy matters. summary of the report the report outlines our assessment of the resilience of the irish financial system to both expected and unexpected shocks. a stable financial system, such as stable financial markets, payments and settlements systems and financial institutions, is one which is able to absorb shocks. in this financial stability report, we consider various risks and potential shocks that, if they were to happen, could have a relatively large impact on the stability of the financial system. our assessment is that financial stability risks have, on balance, increased since the publication of our last financial stability report a year ago. however, our overall conclusion is that the irish financial system ’ s shock absorption capacity remains robust and the system is well placed to cope with emerging issues. among the key points are : • to date, 2007 has provided a more challenging international environment for financial stability with considerable turbulence in international financial markets ; • on the domestic front, there has been an improvement in the main risks identified in last year ’ s financial stability report, particularly in relation to house price increases, private sector credit growth and easing in repayment burdens ; • while recognising the risks, the irish banking system continues to be well placed to withstand adverse economic and sectoral developments in the short to medium term. in this statement, i will explain the rationale behind this assessment in greater detail. i will begin by summarising the current outlook for the economy and the associated macroeconomic risks. i will update you on some welcome improvements relating to the key vulnerabilities in the domestic financial system that were highlighted in last year ’ s report. i will finish with comments on three issues : the current environment in international financial markets ; the positive outlook for the irish banking sector in this changed operating environment ; and some issues that need to be looked at in the light of current turbulence in financial markets. frank browne, head of financial stability, will make a brief presentation