samchain/econo-pairs-v2 huggingface dataset:
prior to the crisis and such that they may offset the reduction in net interest income, the recovery in bank profitability will have to be based on the continuing adjustment of expenses, on the search for alternative sources of income and on improved efficiency. 5 / 8 in any event, in the search for profitable business, banks cannot ease off in their vigilance regarding lending standards. in the current setting, very high rates of credit expansion, as is occurring in the household bank lending segment for the purchase of consumer durables, might be indicative of an easing of risk acceptance and selection standards which, as past experience shows time and time again, ultimately translates into notable increases in nonperforming loans. despite the limited weight of this business segment in spanish banks ’ overall credit portfolio, the rise in the volume of non - performing assets in this activity as a result of overly rapid credit growth should strike a note of caution : from being an alternative source of income it should not become a potential source of losses. low interest rate levels have contributed to compressing banks ’ net interest income given that, with zero proving an effective floor for the remuneration of most deposits, once that level is reached banks have not been able to continue reducing their funding costs in a setting in which risk - free returns have come to stand at negative values. in any event, the evidence available indicates that this negative effect on net interest income has been partly offset by a lesser pass - through of market movements to the interest rates on the outstanding balance of lending. it should be borne in mind, moreover, that the reduction in interest rates also has some positive effects on bank profits via various channels. on one hand, the expansionary monetary policy has a favourable impact on economic activity, boosting the demand for credit and for other banking services. on the other, the decline in the return on risk - free assets tends to raise the value of assets by reducing the discount factor implicit in their price, which translates into capital gains for the banks. lastly, the decline in interest rates is conducive to a decline in loan default losses, as it reduces the debt burden and raises borrowers ’ income as a result of the boost to economic activity it entails. overall, the above points suggest that the net final impact of the low interest rate levels on bank profitability has been comparatively low compared with the other above - mentioned factors. i will now move on to the third major challenge the spanish banking industry faces. this is associated with

. last tuesday, the bank left its key policy rate unchanged at 4 1 / 4 per cent. the current level of the policy interest rate is judged, at this time, to be consistent with achieving the inflation target over the medium term. mr. chairman, paul and i will now be happy to answer your questions.
the hike in oil and other commodities prices. once these effects have worked through, inflation should fall again in the coming months, although for this to happen it will be vital no second - round effects should come about, as these would harm the economy ’ s competitiveness. write - downs of the balance sheets of non - financial corporations and households have continued, with a slight decline in the outstanding balance of credit extended to these agents. in the case of non - financial corporations, behaviour has differed across the productive sectors, with modest increases in financing to companies other than those in real estate development and construction. in the case of households, deleveraging will no doubt be slower, insofar as the bulk of household debts are in mortgage loans extended over long terms, whereby repayment will be gradual. adjustment of the imbalances in the economy is vital in order to soundly underpin medium and long - term growth, although in the short run, balance - sheet write - downs in the general government sector, at credit institutions and in households and firms may check any take - off in spending. fortunately, the sluggishness of domestic demand is being offset by the buoyancy of external demand. the thrust of exports has been substantial and should continue to be so, whereby attaining further gains in competitiveness will be vital. this is the key variable for making the adjustment of the imbalances compatible with the firming of a more dynamic recovery. if this combination of adjustment and growth were to successfully take root, the spanish economy could see private - sector deleveraging, the stabilising of public finances and the restructuring of the banking system lead to an increase in confidence, softer financial conditions and, in sum, an improved economic outlook that would boost investment and employment. the role of economic policy remains pivotal for steering the adjustment process. in the case of fiscal policy, the measures adopted last spring marked the starting point. but substantial challenges lie ahead and determination will be required to define and specify the measures that allow public finances to resume a stable path. in the short run, the deficit target for 2011 is ambitious, as it entails a reduction of more than 3 pp of gdp to 6 %. but, at the same time, compliance is crucial in view of the financial markets ’ extreme sensitivity to the course of public finances. a great effort is needed but, as we have so much at stake, it is vital to prevent deviations from these targets from arising and, should they

and plain sailing at work. thank you. bis central bankers ’ speeches
on bursa suq al - sila ’ and on exhibiting the commitment in making this collaboration a successful one. i am indeed grateful to the all mighty be here today to witness this event.

##ability of labour. canada has also taken steps to reduce distortions in the personal income tax system and has implemented a goods and services tax to replace the outdated tax on manufacturers. more recently, we made some major changes to our public pension system. the canada and quebec pension plans were established in 1966 using a " pay - as - you - go " system. but changing demographics put pressure on the plans, as they are doing in europe. by 1996, the federal and provincial governments agreed to changes that would put the canada and quebec pension plans on a firmer footing. this meant some restructuring of benefits and a sharp increase in contributions - moves that were not popular, but they were certainly necessary. the canada and quebec pension plans now generate surpluses that represent almost 1 per cent of gdp. these are set aside in special funds that cannot be touched by governments for general use. indeed, the federal and provincial governments agreed to set up the canada pension plan investment board, an entirely independent body. its sole mandate is to invest the contributions in markets, in order to generate the best possible returns, with due consideration for prudence, over the long term. i should also point out, because the canadian and italian systems are different, that all public sector employees in canada belong to pension plans that are fully funded. i know that you in italy are struggling with pension reform, and i know how difficult the issue is. but such reforms are important, and i wish you well in your efforts. the challenges you are facing serve to highlight the fact that implementing the fourth leg of the oecd policy consensus is not easy. but we must all continue to make progress and not lose sight of the four principles. the payoff that canada is now seeing gives me confidence in the value of the oecd consensus. despite the global economic slowdown, despite the collapse of the share prices of many technology firms, despite the effects of the september 2001 terrorist attacks against the united states, and despite the corporate governance and accounting concerns, canada's economy has remained strong. and most forecasters expect us to lead the g - 7 in economic growth again this year. given all the uncertainty in the global economy, it is more important than ever that national authorities around the world stick to this policy framework. it is only by staying the course that we can establish a steady base for sustained growth over the long term. canada's economic prospects let me now give you the bank of canada's views on the state of
##ing the entire system we need resolution mechanisms. and here again, we have a global dimension. banks that are deemed too big to fail are globally operating enterprises ; resolving them requires a great deal of international cooperation. i think it is obvious that to make the financial system a safer place we have to cooperate in regulation, in supervision, and in the resolution of banks. however, these are not the only challenges we face. last week, the ecb governing council took far - reaching decisions in reaction to the long period of very low interest rates. it lowered the key interest rates for refinancing operations to 0. 15 % and cut the interest rate on the deposit facility to – 0. 10 %. at the same time, it decided to conduct a series of targeted longer - term refinancing operations aimed at improving bank lending to the euro area nonfinancial private sector. bis central bankers ’ speeches while the decision of last thursday was appropriate given the present economic environment, we should now analyse the effects of these decisions before starting the next round of monetary policy easing. and let me make one thing clear : monetary policy has played a very important role in fighting the crisis but it cannot solve the euro area ’ s problems. another challenge we face concerns the united kingdom and germany, in particular. both our countries are confronted with rising property prices and with the overarching question of whether there is a bubble building up. at least in germany, we do not see a bubble at this point in time. price increases are focused on large cities ; for the country as a whole prices rose by a moderate 4. 5 % last year. nevertheless, further monitoring and in - depth analysis are certainly necessary. and in this regard, the bank of england certainly leads the way. although the structures of our property markets differ in many respects, there is still a lot we can learn from each other ’ s experience. thus, i highly value the cooperation between the bank of england and the bundesbank. in any case, international cooperation always starts at the personal level. this is where our representatives in london come into play. their task is to build networks, to share information and ideas, to explain the bundesbank ’ s positions and to facilitate cooperation. for the past three years mr orthacker has filled this position here in london. and judging from the distinguished crowd gathered today, he has done an excellent job. i would like to thank him personally and in the name of the

bundesbank for his service. i would also like to take the opportunity to welcome his successor, ms julia becker. she is an expert from the bundesbank ’ s financial stability department and has considerable experience in market infrastructures and related regulatory issues. some of you have already met her, and i am certain that she will be a worthy successor to mr orthacker. thank you. bis central bankers ’ speeches
at a rate fast enough to ensure that there is work, bread, water and salt for all. it is the responsibility of the sarb to ensure the integrity of banknotes and coin in circulation. the sarb has to ensure that banknotes and coin remain a secure method of payment and a store of wealth. a banknote is but a piece of paper, a coin but a piece of metal. both derive their worth from the trust that the citizens of a country have in the country ’ s currency. the confidence that south africans have in banknotes and coin is based on trust that the banknotes and coin are authentic, and trust in the institution that issues them. whatever the sarb does, it must, without fear or favour, ensure that the buying power of the currency is protected. it must also ensure that public trust in banknotes and coin as well as the institution that issues them is maintained. 1 / 2 bis central bankers'speeches so, when some among us demand that we must open the sluicegates of inflation what they are demanding is that we must erode public trust and confidence in the currency. as the history of money globally show, when inflation walks through the door, public trust in the currency jumps out of the window. then banknotes and coin become nothing but worthless pieces of paper and metal. 1 oliver tambo ’ s dream, justice albie sachs, oliver tambo centenary lecture, university of pretoria. 2 / 2 bis central bankers'speeches

and the moral of this story is this : the miracle of money creation by a bank may stimulate industry and trade – the upward phase of a business cycle in modern language – and give almost everyone a warm feeling of well being. but taken to excess, this miracle may result in a terrible day of reckoning. how to have the wonder without the reckoning? that is the question. mankind has progressed somewhat from the times of the 1720 ’ s with the creation of modern central banks whose functions typically include an element of oversight over the banking system. but the cupidity of certain people is eternal ; and requires eternal vigilance. beware of financial geniuses. this, i would like to suggest to you, provides the best firm reason for the continued existence of the iob. it must equip all those who are going to work in the banking system with the requisite set of j. k. galbraith ( 1975 ) money : whence it came, where it went, penguin books ethics with which to restrain people ’ s greed and cupidity : and protect bright, keen and energetic young men – and women – from the ways of nelly, the mentor, by providing them with the requisite training. that done, we will all proudly be able to assert as we look back on our contributions to a safe and sound banking system, “ finis coronat opus ”. thank you for your attention. ndi gqibile.
and includes a national financial literacy survey ; 2. to develop and implement a financial education curriculum to be offered in all schools at both the primary and secondary levels ; and 3. to develop financial competencies at the household level. i am pleased to say that significant progress is being made in all three areas and i am quite sure that we are on target towards achieving these goals. may i add, ladies and gentlemen, that these goals form part the money pacific 2020 goals which were agreed by pacific island leaders and central bank governors back in november 2009. it is not an easy task, but it has been recognized that by lifting the financial capability of our communities in the region, positive spin offs are created. these often generate a greater bis central bankers ’ speeches demand for financial services and products, create new jobs, and enable people to buy assets, grow their wealth and improve living standards. we sincerely hope that, over time, people will really appreciate the necessity for financial literacy for all, and support these initiatives by government, the reserve bank and other stakeholders, to foster greater economic development and growth in fiji. ladies and gentlemen, with these remarks i have now great pleasure in introducing our financial literacy mascot, “ vuli the vonu ”. vinaka bis central bankers ’ speeches

and staff of bred bank for their support and cooperation. both prior to and since the date of the issuance of the licence, the institution has made tireless efforts in trying to meet all the conditions and here it is today, opening its doors to serve the people of fiji. the board, management and staff are commended for the work done in setting up a fully fledged commercial bank. a bank that will literally start from scratch. official opening ladies and gentlemen, the opening of a new commercial bank in fiji continues the new era in financial sector development in fiji. the people of fiji are the beneficiaries of this development and i understand that they are in for a real french banking experience. i have much pleasure in welcoming bred bank ( fiji ) limited into fiji ’ s financial system and wish the institution all the very best in its operations in fiji. vinaka bis central bankers ’ speeches
iv ) emphasized on monitoring of external commercial borrowings, and ( v ) gradual liberalisation of outflows. cardoso, e. a., and r. dornbusch, ( 1989 ) “ foreign capital flows ” in h. chenery and srinivasan t. n. handbook of development economics, volume 2, 1416 – 1439, amsterdam : elsevier science publishers. prasad, eswar s., raghuram g. rajan and arvind subramanian ( 2007 ). “ foreign capital and economic growth ”, brookings papers on economic activity. bis central bankers ’ speeches the capital account liberalization in india was considered as a process rather than an event. the sequencing of the process was conditional on underlying domestic macroeconomic fundamentals and sustainability of the bop. considerable progress has since been made as reflected in the volume and variety of capital flows without undermining the stability of our external account. india ’ s status with regard to capital account liberalisation could be seen in terms of its policy stance towards capital transactions by residents and non - residents on the one hand and by the underlying instruments of cross border flows on the other. non - residents have been provided considerable extent of convertibility whereas permission to residents to undertake capital account transactions across borders is relatively restrained. moreover, distinction is made not only between residents and non - residents but also between different categories of residents. residents if residents are classified into corporates, financial institutions and individuals, the regime is most liberal in the case of corporates followed by financial intermediaries and individuals. corporates and financial intermediaries are permitted to raise equity resources through american depository receipts ( adrs ) / global depository receipts ( gdrs ) and are allowed to borrow through debt instruments from abroad. external commercial borrowings ( ecbs ) could be raised under both automatic and approval routes subject to quantity as well as price restrictions. under automatic route, eligible borrowers in industry, infrastructure sector and nbfcs ( excluding micro finance companies ) can now borrow upto us $ 750 million in a year. for borrowing above this stipulation prior approval is required. there is an all - in - cost ceiling currently ranging between 350 basis points and 500 basis points over 6 month libor for loans with minimum maturity of 3 years to more than 5 years. banks can borrow up to 50 per cent of their unimpaired tier i capital. apart from inflows, corporates are allowed

one of us has a positive role to play in this process, including, banks, technology partners, customers, civil society, policy makers, regulators, etc. this alone can ensure financial and economic stability across the globe. i wish the deliberations at the summit great success. thank you. bis central bankers ’ speeches
: all of which aim either at moderating procyclical financial behavior or at enhancing the banking sector ’ s resilience to shocks on both the asset and the liability sides. drawing on thailand ’ s recent experience on macroprudential policies, i would like to make three comments. first, it is important, in the context of public communication, to make a clear distinction that macroprudential measures are different from capital controls. technically speaking, macroprudential policies apply to the calibration of regulatory measures from a system - wide perspective to dampen procyclicality arising from the interplay between the business cycle, the financial cycle, and risk - taking behavior of economic agents. given such interpretation, measures to curb or discourage capital inflows should be considered as capital account measures and not macroprudential. for example, thailand ’ s recent measure to reimpose withholding tax on non - resident investment in the bond market is a policy to discourage capital inflows. second, macroprudential measures work by reducing systemic risk across the financial system. to this end, they are useful tools to lean against the wind of excessive credit growth and asset price increases. as we know, monetary policy alone is not adequate to ensure financial stability, and the policy rate can be too blunt a tool to deal with asset price increases because of the adverse effects on the economy. therefore, combining macroprudential measures with monetary policy offers a useful approach to help contain financial vulnerabilities and overcome the trade - off that arises when inflation development is not consistent with asset price increases or rapid credit growth. to illustrate with a thai experience, the bank of thailand has adopted inflation targeting under a flexible exchange rate regime, and has combined this with macroprudential measures in our monetary policy framework since 2000. so far, the approach has worked well. from our experience, when properly designed, macroprudential measures can complement traditional monetary policy while supporting the functioning of the financial system. to date, we have successfully used macroprudential measures on several occasions. for example, in 2003, rising high - end real estate prices together with strong mortgage lending growth led us to impose a ceiling on the loan - to - value ( ltv ) ratio for residential property with transaction price exceeding ten million baht. then, between 2004 and 2005, concern about household debt prompted us to tighten regulation on credit cards and personal loans by limiting credit lines not greater than five

vulnerability of emerging markets economies to boom - bust cycles would be in the global interest. thank you.