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While the heightened uncertainties following the eurozone crisis could have dampened investment climate, the slowdown in investment could have been partly driven by the high inflation environment itself. Thus, what is desirable is a low real interest rate environment as an outcome of a low inflation environment for promoting investment and growth.

Concurrently, as highlighted in the RBI Annual Report for 2011–12, there is a need to address other constraints to investment, such as domestic policy uncertainties and structural impediments in the infrastructure space. Challenges ahead Let me now turn to some of the challenges for the Indian economy to regain the growth momentum.

The two factors I have just mentioned caused the large difference in economic developments between the two oil crises. The experience seems to clearly suggest policies necessary to cope with the current rise in crude oil prices.

This conference provides a good opportunity for dialogue and sharing of experiences as it brings together a wide spectrum of financial market participants, especially risk and investment management professionals, at a time when there are critical, wide-ranging and historic changes to the financial markets landscape.

I can also understand your feeling of frustration when the capital that was supposed to be a mark of strength and good health morphed into a perceived government bailout, a bailout from problems that most of you never had to begin with. And I absolutely understand your concern about losing key employees due to restrictions covering compensation policies.

There are still a lot of poor people in urban and rural areas; urbanization is inadequate; the per capita GDP ranks behind the 100th in the world. Constrained by such a reality, the solution to many problems is a long-term and systemic project. When making policies, consideration should be given to China’s national situation, development stage and affordability.

The Central Bank is at an early stage of its work to address cyber risk. Our work will continue to evolve. This risk cuts across many Central Bank divisions including Insurance, Banking, Markets, Anti-Money Laundering, Financial Stability and Consumer Protection.

It’s headline inflation that has picked up, and this is significantly affected by volatile elements such as oil and food prices. Underlying inflation, which is an indicator of price stability over the medium term, remains subdued. In Spain the CPI was at 3% for three months, before falling to 2.1% in March. How do you assess these developments?

As a result, foreign exchange rates became able to move in tandem with actual developments in the economy. In terms of fiscal policy, he increased fiscal expenditures, supporting the economy from the demand side. On the monetary policy front, the Bank pursued accommodative measures by cutting its official discount rate and underwriting Japanese government securities directly from the government.

The Takahashi Economic Policy – combining fiscal, monetary, and exchange policies effectively – led to the adjustment of the yen’s excessive appreciation and counteracted declining price levels. As a result, among the major world powers, Japan became the first to succeed in achieving an economic recovery and escape from deflation during that period.

While supply chains increase production efficiency, our experience of the recent earthquake called attention to the problem of concentration risk in inventory management and procurement for the purpose of strengthening resiliency against shocks. The importance of maintaining stability in the financial system Now I would like to call your attention to the second factual observation deemed crucial when considering how to address tail events.

This is the importance of maintaining stability in the financial system. Production started to recover from a plunge caused by the earthquake at a relatively fast pace, which is in a stark contrast to the situation in the period following the Lehman shock.

Loan-guarantee programs could be designed to leverage more resources, attract private investors, and allow countries to access financing through international capital markets for specific programs, like vaccination or much needed green and sustainable projects. Third, the pandemic has deepened the digital divide, within and across jurisdictions, making it clear that technology adoption and financial inclusion have become an imperative for all.

In the MPR, we now provide details on the most important risks to our projections. We spell out how we have seen these risks evolving and what we will watch so that we can judge their continuing evolution.

In my talk today, I intend to focus on the key challenges in the business environment facing the Indian banking industry and five important process changes that would be needed to meet these impending challenges. 3. First, with bringing down of the barriers to entry in the banking industry, are we geared for a more competitive banking industry that is likely to emerge?

Our prudential, supervision and consumer protection roles include the setting of statutory codes of conduct for financial services firms, such as codes on how products should be sold, the information that should be provided and how complaints should be dealt with.

The second thing which I want to mention, something which is more relevant for public sector banks, to some extent for RRBs and possibly for some private sector banks as well, is about the way the priority sector vertical works. Typically in a public sector bank, the responsibility for priority sector is spread across several verticals.

There is a rural credit or an agricultural finance vertical, a separate MSME vertical, the affordable housing segment may be part of retail and the renewable energy & the medium industries, included in the priority sector in the last revision, quite possibly, may be with mid-corporate or large credit or corporate group. There may even be another financial inclusion vertical sitting still separately.

The plans have also been discussed between the various relevant resolution authorities involved with the bank in the crisis management groups. However, this in itself does not make banks resolvable. Resolvability means readiness at both the level of the bank and the authorities, to implement the resolution strategy if necessary.

1 ECB (2019), “Implications of digitalisation in retail payments for the Eurosystem’s catalyst role”, July. 2 ECB (2021), “The Eurosystem’s retail payments strategy”, April. 3 ECB (2020), “Study on the payment attitudes of consumers in the euro area (SPACE)”, December.

We can build on a wealth of experience in this field, looking at best practices BIS central bankers’ speeches 3 from the many central banks in Europe and around the world that combine supervisory and monetary policy functions. Independence and higher standards of accountability The second principle is the need to safeguard the ECB’s independence, implying higher standards of accountability.

Independence is not a new concept to the ECB. Neither is accountability. We are proud of our independence, and in the context of supervision, the ECB needs to be safeguarded from external interests and national bias. With the activation of article 127/6, the provisions of the Treaty are extended to the new supervisory task. These include independence in the preparation of supervisory assessments.

Broadly speaking, stabilisation helps smooth the business cycle, allocation 2 B. Sørensen and O. Yosha (1996), “Channels of interstate risk sharing: United States (1963-1990)”, The Quarterly Journal of Economics, November, pp. 1081–1111. 3 Y. Demyanyk, C. Ostergaard and B. Sørensen (2008), “Risk sharing and portfolio allocation in EMU”, DG Ecfin Economic Papers 334.

It lays out the principles the government should follow in advocating and establishing the framework of corporate governance, including the enforcement mechanism of formulating corporate governance principles, the protection mechanism for the parties involved in corporate governance, and the approach to avoiding rising cost incurred by excess supervision, etc. Hence, the Principles of 2004 was expanded to six chapters.

But in practice I repeatedly encounter situations where the existing gradations are inadequate in my eyes. The proportionality principle is nothing new, then, but it still has not been anchored deeply enough. 4.

The road to greater proportionality: a chronology That’s why we took action and explored ways in which the principle of proportionality could be embedded more deeply within the regulatory and supervisory frameworks. Let me start by running you briefly though the events of the past one-and-a-half years.

While we need to pay close attention to overall labour costs, these observations point to the conclusion that concerns about the overall level of wages in Australia are, to some extent, really concerns about the exchange rate, with the high exchange rate leading to high wages expressed in foreign currency terms. A lower exchange rate would obviously make a difference to these comparisons.

Policy rates were already quite low, the economy had been weak for some time, and inflation had settled into the zone of price stability. Although other types of monetary policy actions likely would be effective at the zero bound, they had not been tried.

The Law prohibits the Bank of Latvia from granting direct credit to the Government for the needs of covering budget deficit. In addition, the Bank of Latvia does not have the right to buy government securities on the primary market.

The Bank of Latvia has developed and is using the full set of the same indirect, market based monetary policy instruments that are used by the European Central Bank. On May 18, 2000, the Bank of Latvia was assigned quality management ISO 9002 certification. Movement of capital Both current and capital account transactions have been fully liberalised in Latvia.

However, I should emphasise that these other 3 BIS Review 80/1999 exchanges remain limited to an exchange of information and do not interfere with the responsibility of individual policy areas. 3.

In the minimum reserve system of the ECB, the reserve ratio will be rather small and reserve requirements will be fully remunerated. The reserve ratio will be set at between 1.5% and 2.5% and will be applied to the deposits, debt securities and money market paper issued by credit institutions, except for residual maturities above two years.

William R White: Making macroprudential concerns operational Speech by William R White, Economic Adviser, Bank for International Settlements, at a Financial Stability Symposium organised by the Netherlands Bank, Amsterdam, 25-26 October 2004.

 Considering that financial Literacy is an important adjunct for promoting financial inclusion, consumer protection and ultimately financial stability, RBI has adopted an integrated approach wherein efforts towards Financial Inclusion and Financial Literacy would go hand in hand.

23 Nonetheless, the housing issue is often politically important, and it could be argued that the political authorities should have some representation in discussing measures taken to deal with it.

This representation can be done as in the British case by having a separate committee to make financial stability decisions, the Financial Policy Committee (FPC), located in the Bank of England, whose membership is different from that of the Monetary Policy Committee and on which also sits a nonvoting member from the U.K. Treasury.

*** Monetary tightening of the ECB is transmitted through the fixed exchange rate *** The key question is then, how do we pursue an anti-inflationary policy in a fixed exchange rate regime? The short answer is, with the right monetary-fiscal policy mix. Let me explain. Page 3 of 7 To support the peg, we broadly follow the policy rate actions of the ECB.

Capital market integration and a credible fixed exchange rate means that we broadly import the euro interest rate level across the yield curve. Since the beginning of the year, the ECB has been tightening to rein in inflation. First by communication and adjusting asset purchase programmes, thereby raising long rates. And since the summer by raising policy rates. We have followed suit.

In my remarks today, I will discuss the causes of the distress in the mortgage sector and then turn to the key question of what can be done in this environment to reduce preventable foreclosures.

It is a pleasure to be here this afternoon to share with you some recent developments and our outlook for the Fijian economy. But before I do so, I understand that this is Asco Motors’ 27th year of operations under its current trading name, and that it has been 53 years since the first Toyota passenger vehicle was shipped to Fiji in 1963.

1 The Central Board of the RBI includes, as Directors, Dr. Ashok S Ganguly, Shri Azim Premji, Dr. D Jayavarthanavelu, Shri Kumar Mangalam Birla, Shri Lakshmi Chand, Shri Y H Malegam, Prof. Man Mohan Sharma, Shri H P Ranina, Prof. U R Rao, Shi Sanjay Labroo, Smt Shashi Rekha Rajagopalan, Shri Suresh Neotia, Shri. Suresh D Tendulkar, and Dr. A Vaidyanathan.

We have also issued the open finance and digital banking frameworks to accelerate digital transformation and financial inclusion. The Open Finance Framework promotes consent-driven data portability, interoperability, and collaborative partnerships among entities that adhere to the same standards of data security and privacy. The Digital Banking Framework provides the regulatory guidelines for setting up and operating a digital bank in the country.

Right now, because of the weakness in economic conditions here and around the world, inflation has been running less than that, 4 BIS Review 45/2009 and our best forecast is that inflation will remain quite low for some time. Thus, the Fed's proactive policy approach is not at all inconsistent with the goal of price stability in the medium term.

Although inflation seems set to be low for a while, the time will come when the economy has begun to strengthen, financial markets are healing, and the demand for goods and services, which is currently very weak, begins to increase again.

The connection operates less through the current value of the funds rate, however, than through the interest-rate actions that the FOMC is expected to take in the future.

Specifically, financial theorists and market practitioners concur that, with risk and term premiums held constant, long-term yields move closely with the expectations that financial-market participants hold about the future evolution of the funds rate and other related short-term rates.

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. BIS Review 41/2007 9

The question is how to bring that financing to the projects that need it, especially in emerging market economies where the need seems to be greatest. Different countries have approached this topic differently (Chong and Poole 2013).

This is down from 0.8% in the previous quarter but slightly higher than expected by ECB staff in September. Looking forward, according to ECB staff forecasts from September, growth is projected to decline further in the fourth quarter of 2022, then come to a standstill, and start recovering in the second quarter of 2023.

2 BIS Review 144/2007 Fourth, a few advanced economies tended to experience some discomfort in the rise of Asia since competitive forces put pressure on wages of some categories of workers, though, as consumers, the general populace benefited from the process. Fifth, there are additions to demand for energy due to rapidly growing Asia and, according to some, thus impacting oil prices.

But regulators also should seek to analyze the implications of technology developments through constructive and timely engagement. We should be attentive to the potential benefits of these new technologies, and prepared to make the necessary regulatory adjustments if their safety and integrity is proven and their potential benefits found to be in the public interest.

Unfortunately, the fixed exchange rate meant that policy-makers BIS Review 44/2007 1 had to focus monetary policy on exchange rate stability, rather than on steps that would have been appropriate to stabilize domestic prices.

What role can international cooperation play in preventing and overcoming crises? These and other difficult questions are dominating the current international debate. However, some fairly sweeping comments can be heard in the debate. People who say that the financial markets are to blame, that globalisation must be stopped or even reversed. Such views are, of course, too simplistic and inconsistent with the realities involved.

This judgement notwithstanding, the continued acceleration of M3 and the ongoing process of building up liquidity will require a thorough analysis of monetary developments in the months to come. Regarding the second pillar, recent information has confirmed our earlier assessment that economic activity in the euro area was weak in the second half of 2001 and will probably remain so in early 2002.

Incidentally, the difficulties that accompanied having only a rudimentary financial system were nowhere better illustrated than in the early Australian colonies, as one of Shann’s other works, An Economic History of Australia, makes clear. The most commonly used means of exchange for many years was rum.

We have to ensure that our banks continue to conform to international capital standards as a member of the G-20 and the BCBS. Let me turn to IFSC-related sector issues. C. Micro ecosystem 15. The other dimension that is critical to GIFT’s comparative competitiveness is, as I mentioned 2/3 BIS central bankers' speeches earlier, the micro ecosystem within the IFSC.

There is concern that these kinds of large swings in the exchange rates, if they continue, might have a negative impact on business sentiment. So far, I have given a broad picture of Japan's economy.

The ECB published a legal opinion last week saying that the deposit insurance scheme should not be conditional on issues whose solution in uncertain, as would seem to be the case with this discussion on sovereign risk. What happens if Germany asks for EDIS to be put on hold until the sovereign risk issue is solved? The two discussions will continue in parallel.

Households that spend a high fraction of their income on rent often may find themselves unable to pursue proven strategies to achieve financial security and invest in their family’s 15 Richard Rothstein, The Color of Law: The Forgotten History of How Our Government Segregated America (New York: W.W. Norton & Company, 2017). 16 See http://www.pewtrusts.org/en/research-and-analysis/reports/2018/04/american-families-face-a-growing-rentburden. -11- future.

They may need to turn to costly short-term sources of credit to cover emergency expenses. Some may experience eviction if there is an unexpected expense or loss of income. To manage the high cost of housing, workers may be compelled to live far from where they work, rent substandard units, or resort to overcrowding.

Stanley Fischer: Israel’s economy Summary of the address by Professor Stanley Fischer, Governor of the Bank of Israel, at the Israel Business Conference, Tel Aviv, 13 December 2010. * * * Israel’s economy is doing well, but there are still many long-term goals that need to be dealt with.

I assure you that you would need to travel far to find better scenery. Whatever you do, spend as much as you can!! That’s my little spiel for tourism, now to the business at hand.

Whatever the specific subject of their writing, I am always surprised to discover that single, unbroken thread that runs through our history, from the Risorgimento to the Republic via the Liberation’. 27 31. Ciampi was known to be fascinated with the Italian Risorgimento.

His passionate interest in this period of history, so far removed from the rampant Chauvinism of the Fascist years, led him to view the European Union not as a threat to national identity and culture but as a means of ensuring their survival and expansion within a global framework because, as he said, ‘no one alone can nurture their invaluable cultural, civic and religious heritage, which is an integral part of our European identity’.

The banking system is profitable, with an annual return on assets of around four percent. Non performing loans were only just over four percent of total loans at the end of 2012; hence the rapid increase in intermediation that I have just mentioned has not been brought about at the expense of loan quality.

The draft FHA Housing Stabilization and Homeownership Retention Act of 2008 includes provisions designed to allow the FHA to offer such products, which could be a useful tool in helping reduce preventable foreclosures. As you move forward in considering whether to enact a bill and, if so, what its precise design should be, it will be important to consider a wide range of issues.

The steep uptrend in asset values of recent years has had important effects on virtually all areas of our economy, but perhaps most significantly on household behavior. It can be seen most clearly in the measured personal saving rate, which has declined from almost 6% in 1992 to effectively zero today.

I can assure you that the Bank is fully committed to the task - because keeping inflation low and stable will help to provide an environment in which the Canadian economy can enjoy solid growth and achieve its full potential. BIS Review 50/2000 4

If these numbers are realistic, the portfolio balance model would suggest that the exchange rate has to appreciate initially by some 30% (and will appear seriously and persistently uncompetitive for trade in goods and services), before depreciating by 3% per year over the following decade.

Currently, a large number of countries have adopted different PCA systems. We would say the differentiated reserve requirement ratio is an experiment to establish positive incentives under the given circumstances in China. In any country, because of the differences in the legal system and regulatory authority, agencies have different competence and tools at hand.

Danmarks Nationalbank generally takes a positive view of the banking union outlined. It is an important step towards strengthening the single market for financial services and hence cross-border competition. Competition forces both banks and firms to be “on their toes” and improve their skills. That is healthy and good for everyone.

It is important that euro area and non-euro area member states can participate in the banking union on equal terms. Otherwise, there is a risk that the single market for financial services becomes fragmented. In addition, Danmarks Nationalbank finds it essential that the banking union includes an insurance element in relation to the systemic institutions in Denmark.

The Bank makes projections for Japan's economic activity and releases them quarterly in the Outlook for Economic Activity and Prices (Outlook Report); in the latest Outlook Report released at end-October, the medians of the Policy Board members' forecasts of the real GDP growth rates for fiscal 2017 and 2018 are 1.9 percent and 1.4 percent, respectively.

These figures are above Japan's potential growth rate, which is estimated to be in the range of 0.5-1.0 percent.

So we need to become less risky, to enjoy more of the benefits of low global rates. Key public-sector drivers of inflation, like the public sector wage bill and administered prices, could also help ease inflation. This is where fiscal and monetary policies need to be in sync.

In general, households in the highest percentiles of the income distribution tend to have greater financial wealth and a larger share of income derived from financial assets. If an expansionary monetary policy has positive wealth effects, it would lead to a widening of the income distribution.

Something has clearly been missing that has prevented these positive preconditions from generating an upswing in business investment. One obvious candidate is uncertainty about future demand or, as it is often referred to, animal spirits. To some extent, this lack of animal spirits is self-fulfilling.

Indeed, the current shape of the yield curve suggests that investors expect short-term rates will eventually be in the neighborhood of 4 to 5 percent.

Following the Brexit referendum, the US elections and the referendum in Italy in 2016, 2017 is being, and will continue to be, shaped by elections in Europe. There will be elections in Norway and the UK, but neither is key to the cohesion of the European Union.

In terms of Brexit, it currently seems that we no longer need to discuss if, but rather how, the UK will leave the Union. Far more interesting will be the elections in those countries which, for many observers, are regarded as core countries of European unification. We saw the outcomes of the elections in the Netherlands in March.

So monetary policy is working. We are approaching our goal, albeit by following new paths. But we must not overlook two things. First, the individual measures cannot be continued indefinitely – at some point, for example, interest rates will hit their absolute lower limit. 3 4 Deutsche Bundesbank (2016), Monthly Report, June 2016.

BIS central bankers’ speeches Second, the measures cannot be continued indefinitely – at some point the effect of the measures will get weaker and the risks will predominate. In my view instead of new and always more extreme measures we need a little patience. We should not forget that returning inflation to just under 2% is a medium-term goal.

In financial markets lexicon, it’s said, bulls made money, bears made money and the pigs got slaughtered. And the smart guys cleverly got away with criminal offences. Fortunately, the MCCB was not part of a bigger corporate group resembling a galaxy loaded with loss making planets of all sizes and orbits.

We are currently undertaking a major upgrade of our notes to protect against counterfeiters. All up, there are 1.6 billion individual banknotes on issue – that's an average of around 65 notes for each of the 25 million people in Australia.

On the other hand, we should not throw out the baby with the bathwater! We should especially refrain from blanket judgements on discredited financial instruments. To mention just one example, securitisation can be essentially a useful financial technique.

Last October, the Fed began to gradually and predictably reduce the size of its balance sheet.9 The Fed is doing so by reinvesting the principal payments it receives on its securities holdings only to the extent that they exceed gradually increasing caps—that is, the Fed is allowing securities to roll off its portfolio each month up to a specific maximum amount.

Since the reversal of capital flows in May 2013, these economies have responded with a tightening of monetary and fiscal policies to mitigate capital outflows. Some of them may face a slowdown in their economic growth rates for the time being, considering that such a policy action may be needed for a while.

By contrast, other emerging economies, largely in East Asia, have been affected hardly at all by the financial turbulence from May 2013. These economies have generally maintained strong fundamentals, with adequate foreign reserves (relative to shortterm foreign loans) as well as surpluses in their current account and fiscal account balances.

Portugal’s debt to GDP ratio is expected to increase from 93 per cent in 2010 to 107 per cent in 2012, while austerity measures envisaged are expected to reduce its fiscal deficit from 9,1 per cent to 4,5 per cent next year – that is, to be cut in half in two years.

* * * Chairman Bachus, Ranking Member Frank, and other members of the Committee, I am pleased to present the Federal Reserve’s semiannual Monetary Policy Report to the Congress. I will begin with a discussion of current economic conditions and the outlook and then turn to monetary policy.

Nevertheless, it has streamlined its operational functions, while investing in more than previously in its economic research and communications activities. The Bank now has 390 employees (at mid-2014) and 580 when the Financial Supervision Authority is included. The Bank of Finland has traditionally invested a significant amount of resources in economic research. This continues today.

Taxpayers should be the last link in the chain, if they are even in the chain to begin with. A Bank Recovery and Resolution Directive, which would cover all these factors and thus represent a great step forward, is currently being discussed at the European level.

This is an area where the financial sector is not serving the community as well as it could, or should. This is very much the sentiment of the G20's Roadmap to make cross-border payments cheaper, faster, more transparent and more accessible.

[ 2] The RBA is contributing to this effort and working with the Reserve Bank of New Zealand and other South Pacific central banks on a possible regional Know Your Customer (KYC) utility. [ 3] We are looking for the Australian payments industry to support these and other initiatives to improve the existing infrastructure for cross-border payments.

To accomplish this goal, Firstly, we need strengthen policy coordination among individual countries in the absence of an organization with global jurisdiction that could manage global liquidity. Secondly, we should seek long-term and stable world economic growth through achievement of a global equilibrium by invigorating global gatherings such as G20 meetings, rather than making local equilibrium efforts to solve problems in individual regions.

Lastly, we need to develop policy instruments and reform the financial system in global terms so that the world’s financial resources can flow into sectors with high productivity including the building-up of social infrastructure in Asian EMEs.

This forum provides an excellent occasion to reflect on the achievements made, the challenges that remain, and the opportunities that lie ahead in actualizing this promise. My focus today will be to highlight the role that innovation and related policies play in establishing financially inclusive ecosystems that do not marginalize people on the basis of income or geographical location.

As is well recognized, Kenya has leveraged mobile phone technology and made remarkable strides in financial inclusion. There are currently 38.3 million mobile phone subscribers in Kenya. This has allowed access to formal financial services to grow from 26 percent in 2006 to over 75 percent currently.

With two quarterly sets of more reassuring price data now behind us, we were able in our recently released August Statement on Monetary Policy to conclude that the CPI increase will peak at 3 per cent per annum in the second half of next year.

5 In 2016, the “wealth gap [was] roughly the same as in 1962, two years before the passage of the Civil Rights Act of 1964.” And the gap in homeownership rates between Black and White households remains significant today, even when controlling for differences in income and education. 6 Recent events have highlighted and exacerbated these challenges.

In that way it recognised that credit quality wasn’t the only source of risk that needed to be backed by capital;  and it allowed flexibility for sophisticated banks to determine some of their capital requirements using model-based inputs rather than fixed weights.

* * * Mr. Gerry Ablaza, Mr. Gil Genio, the officers and staff of Globe Telecom and Innove Communications, fellow bankers, special guests, good evening. As head of the Bangko Sentral ng Pilipinas, the institution that oversees the banking sector, I am truly glad…efforts to develop innovative and efficient delivery systems for banking services continue in many fronts.

Third, encouraging the financial institutions to improve their credit structure to enable the prices to play a larger role in promoting balanced economic aggregates and structural adjustment. Fourth, closely monitoring external economic and financial development to promote balanced international payments. Fifth, appropriately dealing with the market exit of some financial institutions to maintain the stability of the financial system.

BIS Review 33/2005 1 Reporter: Just now you mentioned the role of the prices. We can clearly recall that on October 29, 2004, the central bank announced its decision to raise the interest rate, a step that arrested the world attention. Many people predicted that China would from then on enter into a period of repeatedly but moderately raising the interest rate.

CAMEL is an abbreviation for a system of supervisory indicators used in the US describing the conditions of banks aggregating information about capital, asset quality, management, earnings and asset-liability management.

8 See, for example, I. Angeloni and E. Faia (2009), A Tale of Two Policies: Prudential Regulation and Monetary Policy with Fragile Banks, Kiel Working Papers, No 1569, Kiel Institute for the World Economy, forthcoming Journal of Monetary Economics, or D. Beau, L. Clerc and B. Mojon (2011), Macro-Prudential Policy and the Conduct of Monetary Policy, Banque de France Occasional Paper, No 8.

All companies who collect and process personal data in the EU will need to work out what data they hold on their customers, where they hold it, if they have permission to do so, whether it is stored safely, and how they can extract it in an easily “portable “ form or delete it if requested.

Alan Greenspan: Economic outlook Testimonial by Mr Alan Greenspan, Chairman of the Board of Governors of the US Federal Reserve System, before the Joint Economic Committee, US Congress, Washington DC, 3 November 2005.

The Bank established the Program on its balance sheet and has been purchasing various financial assets, such as government securities, commercial paper (CP), corporate bonds, exchange-traded funds (ETFs), and Japan real estate investment trusts (J-REITs) as well as conducting the fixed-rate funds-supplying operation against pooled collateral. Since its establishment, the total size of the Program has been increased from time to time.

 As prepared for delivery. 2 But the messaging seems clear: we want less administrative involvement of the public sector in the commercial activities of the private sector, balanced with the objective of keeping the outcomes stable. How does the central bank fit into this process?

Fourth, we have heard some good suggestions for ensuring that any modernization of assessment areas should keep in focus the goal of encouraging banks to seek out opportunities in underserved areas, including in this morning’s panel on assessment areas.

Initially, the respective euro area Member States are responsible. The banking union is not a back-door transfer union. Every institution should cover its own former liabilities. If both these options – private sector and national budgets – are exhausted, the existing European Stability Mechanism (ESM) could step in, as it did last summer in Spain.

There is talk of ending the Federal Reserve System’s supervision of large banks. Are you concerned by this? Well before the eruption of the crisis in 2008 the Governing Council of the European Central Bank said that it was important to establish a close link between the central bank and prudential banking supervision.

I think that the events of the past two years have confirmed the accuracy of this position. Generally speaking, I note that there is a fairly widely held belief in Europe and worldwide that it is better to have quite a close association between the BIS Review 164/2009 3 central bank and prudential supervision.

It also gives us the flexibility to accept, if necessary, short-term deviations of inflation from the price stability objective in order to better ensure conditions for mediumterm price stability in the event that growing financial imbalances – or bubbles – are expected to jeopardise the macroeconomic outlook in the future.

Linah K Mohohlo: 2003 Monetary Policy Statement Statement by Mrs Linah K Mohohlo, Governor of the Bank of Botswana, Gaborone, 25 February 2003. * * * Introduction I am privileged and honoured to welcome you to this important event in the calendar of the Bank - the presentation of the Monetary Policy Statement for 2003.

For those of us who have spent more than a few years in the business, it is easy to see the recent progress in the quantitative or scientific aspects of risk management as a result of data base and other technological advances. These increased capabilities have helped push financial theory and have opened doors and minds to new ways of measuring and managing risk.

These advances have also made possible the development of important new markets and products that have become widespread and essential to the risk management practices of both financial and nonfinancial firms. They have also made the practice of risk management far more sophisticated and complex.

Italy’s difficulties are amplified in the South and Islands, harder hit by the double-dip recession than the rest of the country. First and foremost, the business climate in the South needs to improve, especially in relation to guaranteeing legality.

The technological gap to be bridged is even wider: the BANCA D’ITALIA The Governor’s Concluding Remarks Annual Report 2018 11 share of value added ascribable to the digital economy, at close to 2.5 per cent, is more than 3 points below that of the Centre and North.

But as happened in the pre-Christmas months, it can certainly overshoot, so we’d like corporates to hedge more. But not proscribe that, we want to leave it to the banks and the corporates. WSJ: When you lifted foreign investor quotas and non-resident deposit rates last year, it brought in capital and helped the rupee. Was it something you were going to do anyway?

In fact, the ECB had warned publicly – and even in this house – about the unsound fiscal positions and loss of competitiveness of many of these economies. • Second, there was immense time pressure, while the information available was often incomplete and sometimes even misleading.

Moreover, the activities of the financial market players pose important spill-overs and externalities over other players in the industry, other industries, the domestic economy and even spread over other economies. Many examples of contagion, externalities and other market failures may be identified on the recent global financial crisis.

Some aspects that are specific to the financial industry provide a rationale for public intervention in financial markets: Representing and protecting small claimholders. Financial institutions (e.g. banks) finance risky investments (e.g. loans) through retail deposits and other liabilities. Retail depositors, as well as other claimholders, are relatively small (and maybe nonsophisticated) agents.

I have been informed that these mobile banking services dubbed “PESA PAP” have been made possible through the use of the Safaricom M-Pesa Platform. On this note, I salute Safaricom for having partnered with several banks in providing innovations that will not only enhance access to financial services but also the growth of commerce in both the rural and urban markets.

In his Madaraka Speech to the Nation, H.E. the President, Hon. Mwai Kibaki particularly singled out the innovation in Information Technology and the support it has provided to mobile phone money transfer services – as leading innovations in the world. The World Bank’s Doing Business Report on Access to Credit places Kenya at 4th position of 183 countries.

To shape public opinion, education and information are key. We need to communicate in clear, accessible terms the long-term benefits of openness to trade, to new ideas and to managed migration, while addressing the needs and fears of the most vulnerable parts of the population in advanced economies and in the world at large. 6

At the same time property markets have stayed uncharacteristically buoyant and so there’s been a flight to “bricks and mortar”. The proportion of the housing stock owned as rental property has been rising over recent years. Increasing numbers of people prefer to hold wealth in housing assets, as opposed to other 1 investments. Property investment has been rising over the past year.

Fiscal and monetary coordination continues to be strengthened in promoting national economic recovery and maintaining stability, including Bank Indonesia’s participation in the state budget (APBN) 28 funding through the purchase of SBN in the primary market in accordance with Law No. 2 of 2020.

The cost-to-income ratio fell by more than 11 percentage points, to 64 per cent, and the return on capital and reserves rose above the average value for the other significant Italian banks in the first half of this year. The CET1 ratio is up by 3 percentage points from 2018, to 19 per cent.

We will be releasing the national Macroprudential Policy Strategy Framework. This document provides a clear narrative of the policy mindset that we have in place when thinking of systemic risk issues. Also, our work is underway in formalizing a Systemic Risk Crisis Management framework. This organizes the efforts of the financial authorities to assess and act should a systemic disruption to financial markets occur.

We are pursuing this not because we see any imminent vulnerability that rises to the threshold of being “systemic”. Rather, the framework is a pre-emptive initiative, fully cognizant that its best use is when it is not in use but fully prepared nonetheless when the times call for it.

It is positive that, thanks to measures concerning land acquisition, banking loan requirements and interest rate adjustments, the housing market has started to cool down and price increases began to decelerate in many regions last year.

In such a system the great powers, the US, Russia and China, would dominate. The voices of smaller countries would lose their relevance if they act in isolation. And let’s face it, even the biggest European countries fall into this category if left to their own devices.

We have a very simple message for all banks in euro area: to do their job financing the real economy; to do all they can to restructure their balance sheets to be able to finance the economy including taking advantage of the market possibilities to issue new capital, utilizing their retained earnings to reinforce their own funds and have moderate remuneration.

The number of foreclosures initiated on residential properties has soared from about 1 million in 2006, the year that house prices peaked, to 2.8 million last year. Over the first half of this year, we have seen a further 1.2 million foreclosure filings, and an additional 2.4 million homes were somewhere in the foreclosure pipeline at the end of June.

The intention of MSS is essentially to differentiate the liquidity absorption of a more enduring nature by way of sterilisation from the day-to-day normal liquidity management operations. The ceiling on the outstanding obligations of the Government under MSS has been initially indicated but is subject to revision through mutual consultation.

BIS central bankers’ speeches 1 Electronic payment solutions and thus mobile payment solutions is one of many initiatives that the Bank is promoting to increase financial inclusion.

To sum up these trends, global growth was slowing down ahead of the pandemic relative to its performance up to the global financial crisis (GFC). This loss of speed was led by AEs but EMDEs were pulled in by 2010-2011. Only east and south Asia proved resilient and maintained historical growth trends.

Let me however state very briefly that our overall assessment of the 4/5 BIS central bankers' speeches Commission’s proposal is mainly positive at this stage. The proposal appears to contain several elements that are potentially useful for mitigating the issue of procyclicality and unwarranted volatility of requirements.

The Māori population is expected to continue to grow. Māori are young, and they’re growing their families faster than the average for Aotearoa. Currently, Māori represent 17 percent of the population. By 2038, that share is projected to grow to nearly 20 percent (Stats NZ 2017). 9 All of these trends are described in great detail in Berl’s report.

Through its licensing policy, the CBK continuously aims to provide the best possible conditions for access to finance in Kosovo, enabling the operation in our financial market only of institutions that contribute to the stability and development of the financial system and, consequently, the sustainable economic development of the country.

The slight discrepancy between break-even inflation rates and survey expectations does not suggest at the moment, that long-term inflation expectations are not correctly anchored in line with the definition of price stability: We must take into account, in particular, the “inflation risk premium” embedded in the break-even inflation - given the uncertainties prevailing in oil markets - and the tendency of that discrepancy to diminish over the last months.

Climate change Let me now turn to climate change. The ECB’s monetary policy strategy review fully recognised that climate change has profound implications for price stability through its impact on the structure and cyclical dynamics of the economy and the financial system.

mainland financial institutions in Hong Kong shall not enjoy any privileges. They shall be regulated by the relevant supervisory authorities in Hong Kong. BIS Review 12/1997 -4- The Exchange Fund of Hong Kong shall be managed and controlled by the Hong Kong Government.

The financial revenues of the Hong Kong Special Administrative Region shall be used exclusively for its own purposes and the Chinese Government shall not levy taxes in Hong Kong. Moreover, China will not draw on or resort to Hong Kong’s Exchange Fund or other assets in any way and for any reason.

Firstly, looking at the available empirical evidence on the relation between the financial sector and potential growth, most studies do not point to the role of size of the financial sector per se, but rather to the degree of development of the financial sector as the key variable (see in particular Levine, 2005) Secondly, when focusing on the nexus between the size of the financial sector and sustainable growth, over the recent past, there is no clear empirical relationship.

In Denmark, the Council for Pension Projections recently reduced their return assumptions over a ten-year horizon for eight out of ten asset classes. By reducing the stock of defined benefit plans, pension funds have transferred a large share of the risk from the low yield environment to present and future pensioners.

In the Bank's current guideline for market operations, the short-term policy interest rate is set at minus 0.1 percent and the target level for yields on 10-year Japanese government bonds is set at around 0 percent. 12 revisions to regulations on the remuneration system for nursing care in fiscal 2019.

This will continue to involve intrusive supervisory scrutiny, which means we will continue to review, challenge and verify the work undertaken by the lenders and complete our own multi-faceted inspection programme. In parallel, our enforcement investigations will continue.

NBS moves on without turning back! As regards the measures taken by NBS in the field of insurance, I may freely say that we did not “pursue” the supervisory capacity in respect of insurance companies, but rather that such capacity was entrusted to us.

However, once we have been given this responsibility, we intend to perform it conscientiously, equally well as we perform control over the banking sector. NBS will take all legally envisaged measures with a view to ensuring the introduction of financial order in the insurance market and its development, as well as the protection of rights and property of policyholders.

However, the improvement in economic conditions in the United States and Europe has been modest, and international financial markets have recently become increasingly volatile triggered by the fiscal problem in Greece and some European countries.

In particular, an abrupt tightening of monetary policy today would not lower the currently-high inflation rates but would serve to slow down the economy and reduce employment over the next couple of years and thereby reduce medium-term inflation pressure.

There are important trade-offs to be considered. While withdrawing support too early can lead to cliff effects, maintaining it for too long can be fiscally costly and delay structural change. Managing these trade-offs requires access to timely and reliable information on the state of the economy and the effects of policy measures.

Coordination: Coordinating policies will become harder over time because the effects of the pandemic on economies and the policy responses increasingly differ. Maintaining policy coordination, ideally also across borders, could help to avoid negative feedback effects and optimise the impact of fiscal measures.

As Brainard made clear, this is not a universal truth, and recent research highlights two particularly important cases in which doing too little comes with higher costs than doing too much.

BIS central bankers’ speeches 1 Our strong external position continues to be a source of confidence for our creditors and investors. Another source of strength for the Philippine economy is our sound, stable and liquid banking system as public confidence has kept deposits growing to record-high levels.

Given its powerful influence over economic activity and the financial system in the medium to long term, central banks must take necessary measures against the impact of climate change. When conducting monetary policy, central banks need to assess the economic situation and price conditions. This assessment should no doubt take into account climate change and the effects of government policy responses to climate change.

Whether a central bank should be more proactive in introducing measures to support sustainable finance deserves further discussion in the context of the central bank's mandate and the market neutrality of monetary policy measures. These issues relating to monetary policy will not be discussed in detail at this workshop. Nevertheless, they are important topics, and the Bank of Japan will continue to explore them.

Reflecting this emerging consensus, the Federal Reserve during the tenure of Chairman Bernanke has taken a number of actions to promote increased transparency about its actions and policies. In fact, President Evans and I served on a subcommittee led by current Chair Yellen specifically focused on improving communication.

Our efforts to improve communication took on heightened importance as the FOMC responded to the financial crisis and recession. Since December 2008, the federal funds rate target has been near zero. Since the nominal funds rate cannot go below zero, we had to develop alternative policy tools in an effort to provide further accommodation to support the recovery.

As of today, the only facility still in operation that offers credit to multiple institutions, other than the regular discount window, is the Term Asset-Backed Securities Loan Facility (TALF), which has supported the market for asset-backed securities, such as those backed by auto loans, credit card loans, small business loans, and student loans.

The bank has an institutionalized set up for redressal of complaints from customers on regular basis. The Bank has also taken Citizen Charter initiatives and displayed the Charter for frontline Departments with public interface. Specific to this, customer satisfaction surveys are organized at frequent intervals and appropriate responses are formulated for improving service and avoiding recurrence of complaints, to the extent feasible.

We are all familiar with the illegal money schemes or pyramid schemes. The Central Bank continues to work with the law enforcing agencies to stamp up these illegal schemes, which have created financial problems for many of our people. We have taken out advertisements listing the licensed financial institutions and warning the public on the illegal schemes.

BIS Review 93/1997 -4- Productivity growth in manufacturing, as best we can measure it, apparently did pick up some in the third quarter and the broader measures of productivity growth have exhibited a modest quickening this year.

In fact, I believe that an incremental modernisation of our existing retail and wholesale payment systems may well succeed in bringing about many of the benefits promised by the current crop of immature technologies. The challenges of digital innovation Let me start with the challenges first.

It crystalises our commitment to ensuring that the prudential supervision of C&E risks is here to stay. 4/4 BIS central bankers' speeches

To account for the effect of population controls on the level of the labor force, the shortfall is calculated by appending the Congressional Budget Office’s January 2020 projected labor force growth over the years 2020–22 onto the level of the labor force in 2019:Q4 that is adjusted for population controls. 3 -6that participation would move back up fairly quickly as the pandemic faded.

And for workers in their prime working years, it mostly has. Overall participation, however, remains well below pre-pandemic trends. Some of the participation gap reflects workers who are still out of the labor force because they are sick with COVID-19 or continue to suffer lingering symptoms from previous COVID infections (“long COVID”).

Even as real lending rate was significantly high, averaging around 7 per cent per annum, it did not deter private investment as stable inflation reduced inflation risk premia. In any case, the real lending rates were lower than the average real GDP growth of 8.7 per cent during 2003–08 and hence was sustainable.

1 Depositors' concerns about the safety of their funds during the immediate crisis last year have also largely abated. As a result, financial institutions have seen their access to core deposit funding improve. However, the banking system remains fragile.

This shows the capacity of the European to be very diverse, but to have a fundamental unity and their diversity. You won’t be surprised by the new series of notes because we will continue to have the same symbols. At the moment, there is no inflation. Can you say that you accomplished your mission? Or does the ECB fear deflation?

We have a responsibility to deliver price stability for 330 million fellow citizens. This is our primary goal according to the Treaty and this is what the people are calling on us. Our definition of price stability is clear: inflation below, but close to two percent.

This suggests that much of the recent decline in global total inflation can be explained by the recent fall in world energy and food prices (Chart 7). However, longer-term trends are more likely a reflection of movements in global core inflation. The recent decline in global core inflation is more difficult to understand (Chart 8).

There are also medium-term challenges to be faced, most notably perhaps, the implications of population ageing. Although occurring somewhat later in Ireland than elsewhere, the impact is likely to be significant. Some measures have already been taken, such as increasing the retirement age in the public sector and the setting up the National Pension Reserve Fund to meet future public pension liabilities.

The launch of the euro is a political act, and far more than a mere technical development. It has substantial implications for economic and political structures and responsibilities in Europe. 2. The stability of the euro is a major challenge not only to the Eurosystem but likewise to the economic and fiscal policies of member states and to the coordination of those policies.

To sum up, I should like to emphasise once again that, all in all, the euro has got off to a good start, also in the light of the counterinflationary policy setting. But the acid test still lies ahead. The major opportunities afforded by the euro are accompanied by corresponding risks and challenges.

To bridge the skills gap in the country, we need a strong and widely accessible system of higher education which will help build up skills of our workforce. In this regard, the strengthening of existing learning institutions is vital.

As the manner in which energy is produced and consumed evolves, it is not unreasonable to expect that, in the long run, the prices per unit of energy from various sources would tend to converge. At present, long-term futures prices for natural gas are, on a Btu-equivalent basis, notably less expensive than those for crude oil.

The tokens could be issued in a way that transactions could be made with complete anonymity, just as is the case with physical banknotes. Alternatively, they might be issued in a way in which transactions were auditable and traceable by relevant authorities. We would also need to deal with the issue of possible counterfeiting.

Depending upon the design of any system, we might be very reliant on cryptography and would need to be confident in the ability to resist malicious attacks. This brings me to the second issue here: is there a public policy case for moving in this direction?

10 Therefore, having experienced the pandemic, it has become more important to proceed with the reform of Japan's economic structure by encouraging firms to make a shift to promising business areas, as the global economy has been undergoing further acceleration toward digitalization and decarbonization.

Against this background, I expect that the Bank's monetary policy measures to underpin economic activity will help to support firms' efforts to allocate their funds and workers to areas with higher productivity by reallocating their internal resources, such as through business restructuring, and by cooperating or integrating with other firms. This will lead to an increase in corporate profits, and thus to wage increases.

Twin Peak approach to customer protection The twin-peak approach focuses on customer protection. It distinguishes two agencies, one which focusses on Prudential Regulation and the other on Market Conduct/Customer Protection. Though the structure varies, the underlying thesis is to strengthen customer protection and ensure Financial Stability. Right to fair treatment is the most important right of Customers.

TCF principles 8 BIS central bankers’ speeches • Helping customers fully understand the features, benefits, costs and risks associated with the financial products and services they buy/avail • Minimizing the sale of inappropriate financial products/render undesirable financial services by encouraging best practices before, during and after sale of products/rendering services • Transparent and non-discriminatory pricing of products and services .The concept of Treating Customers Fairly needs to underpin the business model.

It helps customers to better understand and manage financial risk and deal with complexities of the market place place and take advantage of increased competition and choice in the financial sector. The RBI, on its part, intends to advance the cause of financial education in the country as part of an overall strategy.

Currently, a process of credit counseling is being encouraged to help all borrowers, particularly those in distress, to overcome current financial problems and gain access to the structured financial system. BIS Review 107/2006 5 However, in the ultimate analysis financial education is only one pillar of an adequate financial policy to improve financial literacy and expand access to financial services.

1 With the encouragement and leadership of the Treasury Department, the national Hope Now Alliance – a broad-based coalition of governmentsponsored enterprises (GSEs), industry trade associations, counseling agencies, and mortgage servicers – is working to find ways to help troubled borrowers, particularly those facing interest rate resets, through loan modification plans.

2 Recent actions by the Federal Open Market Committee to lower the target federal funds rate and resulting decreases in short-term interest rates also should help mitigate the problems associated with interest rate resets.

This is particularly important during times of rapid change, such as at present. And when the economy is operating at capacity, production resources can be reallocated more effectively from sectors where demand is weak to those where demand is relatively strong.

Guo Shuqing: Remarks - Annual Conference of Financial Street Forum 2020 Remarks by Mr Guo Shuqing, Party Secretary and Deputy Governor of the People's Bank of China and CBIRC Chairman, at the Annual Conference of Financial Street Forum 2020, 27 October 2020.

In closing, Commissioner Vestager: as a memento of your visit to the Central Bank, I would like to present to you our recent commemorative coin that marks the centenary of the women’s right to vote in 1918. 1/2 BIS central bankers' speeches I look forward to listening to your speech at the close of this dinner.

On a few occasions there are signs of the expected short-term relationship, with higher growth accompanying higher inflation, but most of the time it doesn't seem to persist. Over the long term, no trade-off seems to hold.

The output expansion we have realized for the past two decades has been built on purposeful structural reforms supported by disciplined macroeconomic policymaking. This paved the way for the economy to increase investments, pursue fiscal consolidation and reduce debt, improve labor dynamics, and enhance competitiveness, all of which contributed to the Philippines becoming one of the fastest growing economies in emerging Asia. 2.

Nevertheless, I have to admit that the latest developments have raised more fundamental questions about the suitability of existing forms of money for meeting the new and emerging needs of economic actors, the role of the public sector and, more recently, the possibility that central banks could issue their own digital currencies.

In truth, it is a team effort of many people, and that has also been true for editing the International Journal of Central Banking (IJCB) and putting together this conference. I have a long list of people to thank who did the lion's share of that work during the year that I have served as managing editor.

In order to ensure a unified and systemic approach, a unified Department of Supervision (DoS) was created bringing all SEs, namely, Scheduled Commercial Banks, NBFCs and UCBs under one umbrella. Unifying the supervisory functions shall reduce the supervisory arbitrage and information asymmetries across SEs and address the complexities arising from their interconnectedness. This will also help in the holistic understanding of systemic risks.

Fourth, keeping in view the recent moderation in expansion of institutional finance for housing, an important question is whether securitization would help in expanding housing finance and also address the problem of procyclicality, thereby stabilizing house prices.

However, often the residual is a measure of the lack of explanatory power of the simple policy rule itself. Now, to the extent that economies are structurally different and are hit by shocks with different timings, • global factors affect these economies with different lags.