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And I would say it is not only Japan, as an industrial power with those new economic powers coming in, it is all of us: it is Japan, plus Europe, plus the US. So, again, I would say, don’t trust for one minute that Japan is under-assessed by the Europeans. And perhaps, don’t trust either that it is under-assessed in the US.

It is not the way we see the situation, I am sure. Is the euro already a key currency like the US dollar? I will let you have the responsibility of the question. I would only say that as far as the ECB is concerned, my predecessor and I have always said that we are not campaigning for the international use of the euro.

For instance, microfinance loans and other credit accommodations not exceeding P3 million are exempted from the submission of financial documents such as Income Tax Returns (ITRs) and other supporting financial statements. Similarly exempted are start-ups during the first three years of their operation or banking relationship.

The objective here is encourage microenterprises to build banking relationships that will help them grow for the long term. Broader government initiatives converge with this way of thinking. For instance, the Go Negosyo Act and Negosyo Centers provide support for MSMEs such as facilitation of business registration and training in finance and marketing.

This debate has taken a broad scope, including for instance: measures to revitalise the market for Asset Backed Securities; additional long-term refinancing operations; enhancing the framework for additional credit claims; and broader or targeted changes in collateral policies. All these limited measures are under study or theoretically available on the shelf.

A profile of the holders of the funds in the shadow bank reveals that they were mostly households, not necessarily low income households. Those who held the funds as part of their portfolio of savings were of course merry and felt wealthy. The ‘wealth effect’ on consumption expenditure, particularly on non-essential items, appears to have been significant.

If there is a skill bias in the transition to digital technology, this could lead to a greater mismatch in labour markets, and therefore a higher NAIRU and lower potential output growth.

On the other hand, digital production and supply chains, and digital communication and connectivity, would tend to lower the NAIRU and raise potential output, because of the productivity increases resulting from faster collection and evaluation of data, and the greater efficiency of digitally underpinned production. The overall effect of digitalisation and new technologies on demand and supply therefore depends on many factors.

11256 or the Gold Law would allow the BSP to increase its purchases of domestic gold to further build up the level of the Philippines’ GIR, which serves as the country’s primary buffer against external economic shocks. The law exempts from excise and income tax the sale to the BSP of gold sourced from small-scale mining activities.

Fourth, the BSP’s implementation of capital market reforms facilitates easier funding access. The BSP is a long-standing advocate of reforms to further deepen the country’s capital market. Capital market development helps finance infrastructure projects and limits concentration risks in the banking system, thereby facilitating investment in long-term government bonds, lowering borrowing costs, and improving monetary policy transmission.

In a period of large-scale changes, the first step to opening the door to dramatic growth is to accept those changes and view such uncertainties as opportunities to be seized. The Bank will continue to support your efforts, so that regional innovation and new business models will inspire and motivate not only the region but Japan’s economy as a whole.

13 Choi, Laibson and Madrian (2005). 14 Even small variations in charges lead to big difference in the final balance assigned to workers on retirement.

The Council's secretariat can answer factual questions from journalists, but all requests for interviews or further elaborations on the Council's decisions have to be declined. It is well-known that macroprudential policy decisions may suffer from inaction bias. Their benefits will materialise only at some future point in time while their costs occur immediately, which results in an incentive for policy-makers to delay activating policy.

However, in an institutional setting as the one in Denmark, there is an extra dimension to this problem. It may certainly be costly for the Government in the long run if it turns down recommendations from the Council and a systemic crisis occurs. But the Council also faces costs if its recommendations are not followed. Furthermore, these costs are felt immediately.

Although the FDIC has authority to provide temporary liquidity to a failed firm, any costs incurred by the FDIC in resolving the firm must be recovered completely from either the assets of the firm or assessments on the financial industry. The failed firm’s investors, and, if necessary, other large financial firms, will bear any costs.

That is “bail-in,” not “bailout.” Another strand of criticism argues that reforms do not go far enough and calls for more activity limits on banking firms, for limiting their size or systemic footprint, or for simply breaking them up. Activity limits Some have urged the resurrection of the 1930s-era Glass-Steagall prohibitions – that is, preventing the affiliation of commercial banks with investment banks.

To bring this about, the burden initially falls on output and employment and, eventually, spreads to most wages and prices. And because domestic wages in particular tend to be "sticky," changes in output and employment need to be quite large.

Thus, adjustment tends to be more difficult and more costly for many individuals, businesses, and the economy, than would be the case under a flexible exchange rate regime. In economies where domestic wages and prices are not perfectly flexible, it's not only central bankers who face constraints under a fixed exchange rate regime.

As shown on slide 7, under such arrangements, the central bank in a host country – in this case, the Bank of Thailand – provides liquidity in its own currency to banks against JGBs as collateral. The BOJ plays the role of a custodian to receive JGB collateral from those banks.

All these arrangements allow eligible banks – both Japanese banks and other banks operating in respective countries – to obtain liquidity in local currencies from central banks to which JGBs are submitted as eligible collateral. Thus, those banks have additional sources of local currencies from local central banks under stressed funding conditions.

Reflecting the emerging concerns about the FX benchmark process, in early 2013 the Financial Stability Board (FSB) tasked a group chaired by Paul Fisher of the Bank of England and me to formulate a set of proposals to improve the benchmark process and reduce the scope for manipulation.

In fact, government appoints 8 of the 15 Board members, but it plays no role in the broader policy or regulatory decisions of the SARB. These decisions are the responsibility of the Governor and the Deputy Governors, who are themselves appointed by government. Private shareholders and Board members they elect have no influence whatsoever on monetary policy, financial stability or banking regulation.

These borrowers are more likely to experience an unmanageable payment shock during the life of the loan, meaning that they may be more likely to default on the loan. Further, nontraditional mortgage loans are becoming more prevalent in the subprime market at the same time risk tolerances in the capital markets have increased.

Banks need to be prepared for the resulting impact on liquidity and pricing if and when risk spreads return to more "normal" levels and competition in the mortgage banking industry intensifies.

For maturities of one and two weeks, the most traded by banks, the interest rates on the collateralized market have been consistently lower than those on the uncollateralized market, between 10 and 30 basis points on average per week; on the same contracts the bid-ask spread for the best quotes in the MIC order book have fallen progressively, from 5 basis points to 1 basis point, testifying to increasing market liquidity.

Growth in recent years has become more broad-based. On the demand side, private consumption remained robust in the first quarter of 2019, as in the previous quarters through the years. This is further supported by rising contribution from investments from 2010 up to present.

Agricultural Development Bank of Trinidad and Tobago (ADB) In the case of the UTC, its asset size $ billion) is about one-tenth the assets of the financial system. This is twice as much as the total assets of all institutions licensed to conduct the business of a financial nature under the FIA. The UTC is the country’s largest mutual funds provider.

Such a broadening of upward wage pressures could be evidence of growing ‘secondround’ effects of energy and food price shocks on inflation, and is no doubt a trend we will be paying close attention to in coming months. Conclusion In my conclusion, I will consider the outlook for inflation, focusing on the main drivers of inflation I have already mentioned.

For example, fixed parity between the US dollar and gold (with $ equivalent to 35 ounces), the adoption of the adjustable peg system, and abolition of restrictions on current account transactions were key elements underpinning the Bretton-Woods architecture. Regarding capital account transactions, member countries of the IMF were allowed to impose some degree of restrictive measures.

Therefore, it is fair to say that more attention was paid to the stable expansion of current account transactions rather than capital account transactions. However, things have dramatically changed since then.

Already in the early 19th century, the economic theorist David Ricardo explained why it wasn’t a good idea to entrust governments with the power to issue paper money. For governments, he argued, would almost certainly abuse this power. For instance, if circumstances compelled them to create money, such as at times of war.

I made the distinction at the start between proprietary and system-wide innovations. Our focus in this review is very much on the second one of those. This is the area that needs the most careful attention from a publicinterest perspective, because it requires a degree of co-operation amongst industry competitors that might not otherwise happen efficiently.

While mergers have occurred, and continue to occur, among banks of all sizes, I would emphasize three aspects of the current bank merger movement. First is the high incidence of “mega mergers,” or mergers among very large banking organizations. Several mergers of the last few years have been either the largest at the time, or among the largest bank mergers in U.S. history.

Examples include the combining of Chase Manhattan and Chemical Bank, Wells Fargo and First Interstate, NationsBank and Barnett, and, most recently, First Union and CoreStates. BIS Review 34/1998 ˝ -6- Second, despite all of the merger activity, a large number of medium to small banks remain in the United States.

Although the effects of these individual factors are insignificant, their combined impact on inflation expectations could be substantial, on the back of greater uncertainty arising from presidential and parliamentary elections. On the other hand, a more noticeable strengthening in the hryvnia exchange rate than is envisaged in the current forecast, is helping curb inflation.

Although the stability-oriented tradition which has grown up over the years is to be continued within EMU, there will be a fundamental change in the way monetary policy will be determined centrally. Here questions arise, such as: how will the centre, i.e.

6 I have identified these episodes by a single important year in the tightening cycle, but in each case, the period of tightening spanned more than one year.

The extent of foreign investment, the nature of such investment, the appropriate form of presence and the profile of actual players in the banking sector are usually prescribed by the supervisors taking into account the multiple challenges faced in a given country context including the extent of financial integration sought to be achieved.

Having capital is explicit recognition by the government that income from the Bank’s business will be volatile, and a buffer is required to absorb that volatility. It also supports the credibility of the central bank as regulator and supervisor of financial institutions. Assessment of the potential financial consequences of the risks facing the Bank determines the appropriate amount of capital the Bank should hold.

The membership was also from all around the world, drawing from the various Foreign Exchange Committees (FXCs) across the globe comprising all the top 15 FX markets by turnover, both advanced and emerging markets. The Global Foreign Exchange Committee (GFXC) that maintains the Code has since expanded to 20 members.

We should continue our efforts to foster mutual understanding. Let me once again show my gratitude for the honour that you have conferred upon me and thank you for your attention. BIS Review 76/2008 3

To put these in perspective, I will review our economic performance in 2006, share our views on how the economy will perform in 2007, and what these imply for the monetary and banking policies of the Bangko Sentral ng Pilipinas. Ladies and gentlemen. In plain language, 2006 was a good year for the economy.

In order to increase the capital buffers that banks need to hold with regard to illiquid structured products and off-balance sheet activities, the capital adequacy provisions within the Basel II framework should be also enhanced in these areas. VI.

Those who have formal sector jobs are constrained by the reproductive roles they play. As a result, majority of women occupy low-level posts that offer them the flexibility they need to manage their households while working in the formal sector. They spend most of their time doing unpaid household work, which undermines their business potentials.

Therefore, this cut also has to include those currencies whose interest rate already lies at the bottom of the current range. The Bundesbank’s decision to cut the repo rate by 30 basis points is our contribution to that coordinated action. The decision is compatible with both the monetary situation and the overall economic conditions.

Technological changes have reduced the cost of capital relative to labour, encouraging businesses to use more physical capital, in particular more computers and computer-based equipment. And there has been an accompanying shift in the demand for labour away from unskilled workers.

4 Debelle G (2011), “The Committed Liquidity Facility”, Speech to the APRA Basel III Implementation Workshop 2011, Sydney, 23 November. 6 BIS central bankers’ speeches The information currently required for RMBS repo-eligibility is largely about the core attributes of the security.

This includes, for example, the information memorandum, high-level data relating to the asset pools backing the securities and a list of mortgage insurers present in the pool. A AAA credit rating is also required.

As described in detail in the Outlook Report, the following four major risks concerning the outlook for economic activity warrant attention: (1) uncertainty related to developments in overseas economies; (2) uncertainty with regard to reconstruction-related domestic demand; (3) uncertainty associated with firms’ and households’ medium- to long-term growth expectations; and (4) issues related to Japan’s fiscal sustainability.

The foundation of the Sino-German Centre of Finance and Economics about two months ago in Peking, a German Chinese scientific research institute, is an obvious demonstration of the further growing cooperation. I am of the opinion that such cooperation is very useful in the restructuring phase of the Chinese economy. And another key milestone in the German Chinese cooperation is approaching.

Public savings must rise which means that public consumption, and especially spending on public administration, which is not usually very productive, must be curtailed. Intra-regional trade To achieve sustained export growth over the long term, African exporters will have to diversify away from the slow growing traditional export markets in advanced economies. Regional trade offers promising prospects for diversification.

Although Africa’s intra-regional exports have expanded more than four-fold since the turn of the century, they still comprise only 9.6 percent of the continent’s total exports, which is much lower than the corresponding share in other developing regions such as Latin America; hence there should be considerable scope for expanding intra-regional trade over the long term.

Japan’s economy has been following the path toward achieving the 2 percent price stability target, as expected, and we can say that the year-onyear rate of change in the CPI (all items less fresh food) has been somewhat higher than 4 BIS central bankers’ speeches market expectations thus far.

In the backdrop of uncertain global demand, the challenge for the country would be to search for new markets and new products for existing markets besides addressing the issues relating to competitiveness of Indian exports. 14. As we have seen in the past, capital flows are usually susceptible to periodic phases of sudden stops and/or reversals which can put downward pressure on Rupee.

Given the high priority that European policymakers attach to climate protection, if purchases of two bond portfolios are deemed to provide a similar degree of monetary accommodation, but one of them has a lower carbon footprint, then the ECB should purchase the portfolio with the lower footprint.

That is, the ECB is free to choose the instrument – in this case, asset purchases – but it needs to calibrate its use in line with the objectives set out in the Treaty. In addition, the Treaty specifies that environmental protection requirements must be incorporated into the definition and implementation of the ECB’s monetary policy – the “integration obligation” (Chart 9).

In order to capitalise on the progress achieved so far, strengthen favourable prospects and enhance investor confidence in the future of the Greek economy, a strict adherence to the implementation of the structural reforms that have been agreed upon under the programme is warranted.

This is expected to have strong positive effects on the liquidity of the financial system, the easing of uncertainty, the improvement of the economic sentiment and expectations, and the reduction of borrowing costs for the Greek State, thereby allowing for sustainable access to international markets in August 2018, after the programme’s completion. 4.

I can see a democratic effectiveness argument for rerouting these questions back to the area of direct Federal Reserve responsibility, and discussion of how to implement inflation targeting might well do that. These discussions might also make it clear that price stability - not all these other matters - is the primary economic outcome for which the Fed is responsible.

As for the disadvantages, the most significant seems to be explaining why the Fed is specifically delineating only one of its three goals. A modern-day macroeconomist would have no trouble in BIS Review 39/2005 3 understanding why the Fed would put a target band on inflation but not on unemployment and not on long-term interest rates.

We would be best served, in my judgment, by leaving issues such as option grant expense to regulatory bodies and the private sector. There is a legitimate question as to whether markets see through the current nonexpensing of options. If they do, moving to an explicit recognition of option expense in reported earnings will be a nonevent.

The format of reports to shareholders will change somewhat, but little more will be involved. Making an estimate of option expense requires no significant additional burden to the company. If, however, markets do not fully see through the failure to expense real factor inputs, market values are distorted and real capital resources are being diverted from their most efficient employment.

Programs can always be expanded in the future should the resources for them become available, but they cannot be easily curtailed if resources later fall short of commitments. BIS Review 17/2005 3 our budget exist because a majority of the Congress and the President considered them of value to our society. Adjustments will thus involve making tradeoffs among valued alternatives.

The choice of Accra for this important event, with Master Card as the lead sponsor, underscores the growing importance of Ghana as one of the emerging digital financial service hubs on the African Continent. 2. Ladies and gentlemen, digital innovation is creating unprecedented opportunities for Africa to grow its economy, create jobs, and transform people’s lives.

Our laws and regulations have historically been crafted for financial services intermediaries, long in the domain. The legal and compliance frameworks may be hard to interpret for fintech firms who may be tech-savvy start-ups with limited compliance know-how or competencies. Access to regulators, and know-how of which authorities to connect with for particular types of queries, is important.

* * * Mr El-Herfi, Acting Dean of the Diplomatic Corps, Ambassadors, High Commissioners, Heads of International organisations, Senior management of the Department of Foreign Affairs, Senior management of the Reserve Bank and honoured guests, all protocol observed 1. Introduction Integrating dinner with discussions of finance is not unfamiliar to central bankers.

I sincerely request and encourage the partner BFIs to put their utmost efforts to meet the business targets proposed by them in their Challenge Fund Agreements and fully utilize this opportunity to achieve the intended results and hence contribute towards the well-being of the poor people.

With this note, let me close my remarks by congratulating the grantees and thanking you all for your gracious presence in this UNNATI-Access to Finance Partnerships Launch Ceremony. 2

Since 2004, the Reserve Bank of Fiji has invested a lot of time and resources in establishing a risk management structure, indentifying critical processes and documenting contingency plans. We clearly understand that a central bank has a unique position within a country and consequences of business continuity failure are unacceptable.

An additional very important benefit of NAFTA has been that it has allowed its member countries to take advantage of recent trends in the globalization process. The fragmentation of production through global value chains is the most recent manifestation of the process of economic integration that the world has been undergoing over the last couple of centuries.

The public and private sectors need to work together to further harmonise standards and reduce the risk of fragmentation through national approaches.

In this vein, both the Eurosystem and the European Commission welcome the launch of the European Payments Initiative (EPI), which aims to create a uni ed payment solution for consumers and merchants across Europe.20 While supporting innovation and consumer choice, the Eurosystem is also adapting its oversight regime to keep pace with nancial and technological innovation.

I feel this needs to be reiterated to banish any doubt in Bank Indonesia’s commitment to continually provide three pillars of stability that form the preconditions and elements of continuity for sustainable economic development. Therefore, in the short term we will continue and complete, post haste, our outstanding homework.

However, in anticipation of the numerous future constraints we face, there are several new policy initiatives that I deem necessary to be taken in the monetary sector as well as banks, the payment system and the real sector. 1.

It is also significant that between the relatively prolonged episodes, there were a series of relatively shorter ones, typically also with lower peak rates of inflation. This BIS central bankers’ speeches 3 pattern has important policy implications, which I will come to in the concluding part of the lecture.

Let us now explore the drivers of the recent pattern of food inflation. When prices of individual commodities increase, it is always because of a gap between demand and supply. In the current scenario, I believe that both demand and supply forces are contributing to the persistence and possibly even the widening of that gap.

The benefits of benign envy cannot be too difficult to identify if Hesiod had already observed them in the seventh century BCE. In the preamble to Works and Days we find this passage: οὐκ ἄρα μοῦνον ἔην Ἐρίδων γένος, ἀλλ᾽ ἐπὶ γαῖαν εἰσὶ δύω: τὴν μέν κεν ἐπαινέσσειε νοήσας, ἣ δ᾽ ἐπιμωμητή: διὰ δ᾽ ἄνδιχα θυμὸν ἔχουσιν.

ἣ μὲν γὰρ πόλεμόν τε κακὸν καὶ δῆριν ὀφέλλει, σχετλίη: οὔτις τήν γε φιλεῖ βροτός, ἀλλ᾽ ὑπ᾽ ἀνάγκης ἀθανάτων βουλῇσιν Ἔριν τιμῶσι βαρεῖαν. τὴν δ᾽ ἑτέρην προτέρην μὲν ἐγείνατο Νὺξ ἐρεβεννή, θῆκε δέ μιν Κρονίδης ὑψίζυγος, αἰθέρι ναίων, γαίης ἐν ῥίζῃσι, καὶ ἀνδράσι πολλὸν ἀμείνω: ἥτε καὶ ἀπάλαμόν περ ὁμῶς ἐπὶ ἔργον ἔγειρεν.

Generally, the interview channel has been used sparingly when sensitive policies have been under development. One of the key steps in our communications strategy will be the introduction of a regular stakeholder survey. The Swedish central bank (Riksbank) has a long history of conducting a two-yearly stakeholder survey and we can benefit from following their practice.

It is envisaged that, at international level, the governance of financial institutions, executive compensation, and the special duties of intermediaries to protect retail investors will be subject to explicit supervision. Further, the formation of supervisory colleges for major international intermediaries will be generalized. Italian banks Eighteen months after the world financial crisis erupted Italy’s banks are in better shape than the largest international banks.

Second, the household sector is running a highly mismatched balance sheet, with assets consisting mainly of property and equities, and liabilities comprised by debt. This balance sheet structure is very effective in generating wealth during good economic times, but households need to recognise that it leaves them exposed to economic or financial shocks that cause asset values to fall and/or interest rates to rise.

This includes not only regulatory and market issues but also elements such as corporate governance, relations with the community, and the economic, historical and cultural context. As a matter of fact, we would like to reiterate our strong support to work together with the US treasury to make the most out of the Cartagena Meeting as part of the private sector dialogue initiative.

Contrary to what happened at the peak of the crisis, when fears had spread about the possibility of a euro break-up, the increase in the risk premium almost exclusively concerned Italy (Figure 3); in the rest of the euro area, investors perceived the risk of redenomination as being very low.

The consequences of a prolonged and large increase in the yields on government bonds can be very serious. An increase reduces the value of household wealth and may lead to a worsening of economic growth prospects. High premiums to cover sovereign risk make it more difficult to control the dynamics of the debtto-GDP ratio.

In this sense, when conducting monetary policy we need to pay due attention not only to price developments but also to the accumulation of financial imbalances such as asset price inflation, leveraging and increasing maturity mismatch. Second, the balance between regulation and supervision is important. Business models of financial institutions differ by country and institution.

Against the backdrop of financial globalization and advances in information and communication technology, individual financial institutions need to flexibly adjust to changing business environments. Given this, enforcing “one-size-fits-all” regulations for various types of financial institutions could increase the likelihood of adverse side-effects. In order to avoid this, we should rely more on supervision than we do today.

Andreas Dombret: The first six months of European banking supervision – an NCA’s perspective Speech by Dr Andreas Dombret, Member of the Executive Board of the Deutsche Bundesbank, at the ILF (Institute for Law and Finance) Conference on the Banking Union, Frankfurt am Main, 4 May 2015. * 1.

* * Introduction Ladies and gentlemen Thank you for inviting me to speak at today’s ILF Conference on the Banking Union. It is a great pleasure to be here. And again, the ILF has shown impeccable timing: it is six months to the day since we erected the first pillar of the European banking union.

Overall, with this projected trajectory, Indonesia is predicted to become a high-income developed country by 2045.

However, it is also quite clear that if you share a single currency, you must make much more of a joint effort and cooperate much more effectively on economic policy. Question: What are Europe’s basic values? Trichet: Europeans are deeply attached to democracy. They are deeply committed to human rights and the market economy. This is fundamental.

Given their huge size and market potential alone, it is quite obvious that economic developments in these two countries would have an impact on the CESEE region. In turn, the CESEE region as a whole – and the euro area as well – may well have an impact on Russia and China, too.

So to be able to see – and understand – European integration in a wider context of global economic developments, expanding the focus of the CEEI 2011 to include two major emerging economies was not only an obvious, but also a highly necessary step.

In order to make this thinking clearer, the Bank clarified in the July policy statement that it would not hesitate to take additional easing measures if there was a greater possibility that the momentum toward achieving the price stability target would be lost, and emphasized in the September statement that it would reexamine economic and price developments at the October MPM, when it releases the Outlook Report.

At the same time, in a situation where downside risks to economic activity and prices have become significant, the aim of these descriptions in the statements was to indicate that the Bank's basic policy stance is further tilted toward monetary accommodation.

Assuming the trend of velocity of money remains stable over time, nominal GDP is a proxy for the transactions demand for money. In practice, recent disruptions in the money market substantially complicate the assessment of excess liquidity in the short to medium term.

In its final report issued in February 2004 on the former Netherlands Antilles, the IMF concluded on page 7 of its report that: (quote) “Overall the legal and institutional framework for financial supervision meets high standards. It is comprehensive, effective, and to a great extent in line with international standards.

Younger than average migrants and cross-border workers act like a doping shot on economic growth and public sector finance. Cross-border commuters alone account for 30% of social contributions and receive 18% of old age and health care. This is equivalent to our 2% of GDP social security surplus, which is used as an argument against adjustment.

Some years ago, a significant part of this surplus was even used for increasing the generosity of pension promises. BIS Review 16/2008 9 In fact these temporary present surpluses are insufficient to face the financing requirements of pension promises over the long run, due to the longevity risk and to the generosity of average pensions.

6 References Bank for International Settlements (2006), 76th Annual Report. Brand, C. et al (2006), The Impact of ECB Monetary Policy Decisions and Communication on the Yield Curve, ECB Working Paper No 657. Bundesbank (2007), Globalisation and Monetary Policy, Monthly Bulletin, October 2007. Ehrmann, M. et al (2005), Stocks, Bonds, Money Markets and Exchange Rates, ECB Working Paper No 452.

Louis Kasekende: Citation for outstanding leadership Citation by Dr Louis Kasekende, Deputy Governor of the Bank of Uganda, at the farewell party for the 2010 retired staff, Kampala, 17 December 2010. * * * Prof. Emmanuel Tumusiime-Mutebile has led the Bank of Uganda for almost 10 years.

Those sorts of trends, in broad terms, are pretty common to advanced economies. Mining’s share of output had changed little since the mid 1980s, but has picked up noticeably over recent years.

This seems likely to continue in the near term at least, so we are seeing a 3 See Macfarlane I, “Talk to World Economic Forum Asia Pacific Summit Melbourne”, 11 September 2000 and The Australian Financial Review, “Whither the new economy?”, 6 March 2000. 4 See Harcourt T, “Should we worry about the IT deficit?” <http://www.austrade.gov.au/Should-we-worry-aboutthe-IT-deficit-/default.aspx>, 16 October 2000.

Let me also take this opportunity to remind the Media about the scheduled Press Briefing, to be held tomorrow morning at 1130 in the Bank, after the first MPC meeting of the year. The Briefing will cover both this Monetary Policy Statement and announcement of the Monetary Policy Committee decision. Honourable Minister, Distinguished Guests; I thank you for your kind attention. 13

The decline in liquidity due to the further repayment of TLTRO funds and the shrinking of the APP portfolio will further strengthen transmission via the banking channel in the coming months. Furthermore, any deterioration in the macroeconomic environment would also reinforce the banking channel by reducing loan demand and increasing credit risks.

The third and last phase involves a discussion with the Board on the key conclusions, which includes a critical assessment of the evidence, a ranking of the risks and, if necessary, a list of suggestions for potential policy actions. A supervisory initiative launched by the Bank of Italy in 2012 provides an example of the workings of this mechanism.

For example, since the late 1990s, the Federal Reserve has supervised many small bank holding companies using an off-site review program. We support this program with a targeted monitoring system that seeks to identify parent company and nonbank issues that may adversely affect affiliated insured depository institutions.

Looking ahead, despite the erosion caused by rising inflation, accumulated wealth seems sufficient to enable households to service their debt, even in an adverse scenario where real income declines and interest rate hikes are much greater than expected.

As long as fiscal policies continue to be cautious, the threat of a widening of the spreads and its negative effects on the real economy, as well as on the public accounts, should remain limited. Therefore, the risks posed by rising key interest rates should prove manageable, even for private finance.

In the first half of 2013, also reflecting spillovers from developments outside the euro area, both the level and the volatility of euro money market interest rates increased, thereby reducing the monetary accommodation introduced by the Governing 15 In addition, the Governing Council reintroduced some of the non-standard measures phased out earlier (e.g.

Fixing a quantitative definition of price stability was a key factor that contributed to the solid anchoring of inflation expectations.

Distinguished Members of the Media, in tying together the various strands out of the presentations to be delivered by my colleagues this morning, some key messages become apparent, clearly suggesting that the current growth model for Botswana will, going forward, be difficult to sustain.

CENTRAL BANK OF KENYA LAUNCH OF THE FINACCESS HOUSEHOLD SURVEY 2019 REPORT Intercontinental Hotel, Nairobi Keynote Speech by Dr Patrick Njoroge Governor of the Central Bank of Kenya 3 April 2019 1416 words Good morning! Today is a good day.

Although attention is warranted on, for example, the impact of the tightening of global financial conditions, the financial system is likely to remain highly robust on the whole, mainly because financial institutions have sufficient capital bases.

* * * The Central Bank of BH does not expect major challenges related to the introduction of the euro in Croatia, said the Governor of the Central Bank of BH He said that the foreign exchange risk in transactions with Croatia will remain insignificant, as long as the Currency Board regime is in force in BH, or until BH introduces the euro.

Incomes determination The evolution of pay in Ireland has been conducted within a partnership framework, encompassing government, employers and unions since 1987, with the first agreement applying from the beginning of 1988. The current agreement - Programme for Prosperity and Fairness - is the fifth such agreement.

The pay terms typically involve a three-year process in which unions accept moderate nominal wage increases in return for income tax reductions. Indeed, these reductions in income taxes have delivered a not insignificant part of the increase in take-home pay. National agreements were undoubtedly an important feature in restoring confidence and competitiveness in the late 1980s and early 1990s.

BIS Review 148/2007 5 Above all, we need to pay close attention to and deeply think about the turbulence underway as well as the remedial measures adopted by the financial regulatory authorities in the mature economies to deal with it. Such a reflection bears great significance for China to develop its financial market, improve financial supervision and regulation and macroeconomic policy-making.

Quarterly net flows from inactivity to the labour force prior to the pandemic ranged from about minus 30,000 to plus 70,000. In the second and third quarters of last year, in contrast, positive net flows of about 130,000 were observed.

While I do see the temptation for governments to ask for higher inflation in order to monetise the dramatic build-up of public debt, let us not forget that it serves to expropriate the income and wealth of the general public to the benefit of those who have lived beyond their means. I can only reject the idea of raising inflation rates permanently.

By doing so, it works to ensure that inflation stays close to its objective. As I said, though, it is not enough to have an objective – the Federal Reserve must also communicate that objective clearly. That communication serves to anchor medium- and longterm inflationary expectations.

Normative considerations Granted that there is not much legal precedent for going ahead with inflation targeting on its own, would there be any value in having the Fed start a conversation with the Congress? Left to its own devices, the Congress probably will not move ahead on the Saxton bill or anything like it.

The MPC reverted from both state- and time-based forward guidance to state-based guidance, realising that “it is difficult to perfectly foresee how the economy evolves and when the recovery gets firmly entrenched given the persistence of the pandemic.” The RBI instituted a secondary market G-sec Acquisition Programme (G-SAP) which provided an upfront commitment to a specific amount of open market purchase of government securities, in order to assuage market concerns on the size of the government borrowing programme for 2021-22 and its impact on interest rates in the bond market.

With regard to capital markets, the euro has seen a strong development in the bond market. The launch of the euro seems to have acted as a catalyst for the development of a bond market in which corporations can issue debt securities of unprecedented size. As a result, the introduction of the euro has created the second largest bond market in the world.

Rather, it will be the challenge that faces central banks in every economic recovery, which is correctly judging the best time to tighten policy. Because monetary policy affects the economy with a lag, we will need to base our decision on our best forecast of how the economy will develop.

There were no particular surprises in the IMF’s recommendations, although they did comment that the Bank is not adequately resourced to support its existing low-intensity approach to banking regulation and supervision. We are reviewing the IMF’s recommendations. 7.

Even the way we estimate and produce our currency requirements at the Security Plant Complex is undergoing review to make it more efficient and responsive to the needs of the economy. Indeed, change is happening around us.

Instability is often thought to originate from a shock, triggered by a piece of information or rumors that may lead to a loss of confidence and panic. For instance, if a given intermediary is in trouble, there could be certain worries, derived from incomplete information, about the financial shape of other intermediaries.

It is with pride that I can say that the South African national payment system has been extremely successful and resilient in the past 20 years. However, the world has changed. We have seen the worst global financial crisis in recent history, and innovation and technology are changing the world at a pace never seen before.

12 BIS Review 100/2001 The earlier the paper flow is stopped, the greater the proportion of costs saved. For instance, cost savings can be greater when one bank in the check collection chain transmits information electronically to the paying bank.

The payee’s bank or an intermediary such as the Fed reads the information on a check and presents that information electronically to the paying bank. This form of truncation can be supported by the use of imaging technology that allows the digital check images to be captured and archived and used for information purposes or, perhaps, used in lieu of the original check.

But the euro area isn’t yet permanently crisis-proof. And that’s why it’s good that President Macron’s proposals, and those of others, have given the debate fresh momentum. The Bundesbank, too, has long been contributing constructive proposals to the debate. Though they may come in different guises, most of the ideas presented recently boil down to expanded joint liability and risk-sharing.

Within the euro area, the elimination of exchange rate risks and the lower transaction costs which followed, together with the far more transparent markets the euro brought with it, have created new opportunities for businesses and forced firms to attain higher levels of efficiency and competitiveness.

Concluding remarks In closing, I thank you again for making it to Denarau this week. I urge you to keep your focus on the goals you have set out to achieve. This meeting provides a great platform to take stock, share experiences, discuss issues concerning the region and challenges encountered, and identify opportunities to pursue to take our goals to another level.

Overall, women’s financial exclusion limits the growth-promoting potential 2 of finance and it may also prove costly in terms of elevated risks to financial stability. Distinguished Guests, in recognition of this developmental impact, financial inclusion is becoming a global priority for policy makers, regulators and development agencies.

Japan’s economy was relatively weak in the second half of 2012 as exports and production decreased mainly reflecting the deceleration in overseas economies, which in turn adversely affected domestic demand such as business fixed investment in the manufacturing sector. Economic conditions, however, have become favorable since the beginning of 2013.

The scope and range of Islamic finance products has also widened considerably over the years and Islamic financial institutions are presently catering to most of the financial services needs of various sectors of the economy. There are dedicated regulatory, legal and academic institutions at the international level working and providing support for maintaining the high pace growth of the Islamic finance industry.

One very obvious consequence of the efforts needed to contain the virus is that many normal activities are restricted or not permitted. This means that, for as long as these restrictions are in place, we don’t have the jobs and incomes that come from these activities.

On top of this, there is a high level of uncertainty about the future, which means that many households and businesses are holding back their spending and investment.

The SME Sector in India needs to be nurtured and I would urge the BCSBI to consider encouraging a Code for the SMEs somewhat on the lines of the U.K. Business Banking Code. BIS Review 66/2006 3 Fine print and undue enrichment In India it is said that people are reluctant to change their doctor, lawyer and banker.

In some cases, the consumer adherence to particular service provider can be attributed to lack of information. Many a times, even with alternate services available, clearly at lower price, including the switching cost, customers tend to stay with the same service provider.

While consumer price inflation may not rise in the short run, it cannot be presumed that asset price inflation will not go up given the excess liquidity. BIS central bankers’ speeches 5 The large scale economic downturn accompanying the financial crisis also led to activation of counter-cyclical fiscal policy of unprecedented magnitude.

In particular, it is necessary to adopt credible measures in order to consolidate fiscal accounts, to assure the sustainability of public debt, to recapitalize troubled financial institutions and to facilitate the deleveraging of households.

Inflation is low, and we are committed to keeping it low. Last month, together with the federal government, we announced that we would extend our target of holding inflation inside a range of 1 to 3 per cent to the end of 2001.

Moreover, government deficits have virtually disappeared, and the ratio of public debt relative to the size of our economy is finally on a downward path -- for the first time in about 25 years. Low inflation and improved fiscal health represent major contributions towards the sounder economic fundamentals I mentioned a moment ago.

And in this respect there are significant differences between current and previous securitisations and between the experiences in the US and those in Europe. BIS central bankers’ speeches 3 Since the start of the 2007–08 financial crisis, the default rates of European ABS were on average between 0.6% and 1.5%.

In the US over the same period, they were on average 9.3% to 18.4%. European SME ABS are even further below these default rates, at about 0.1%. The current rules lump all ABS together and are much too conservative. They effectively question their existence.

Only by acknowledging this can solutions be found from which all countries can benefit. Recent economic developments The economic expansion is increasingly broad based at global level. According to the estimates of the main international institutions, in 2017 world output returned to growth at a rate of more than 3.5 per cent; this year it is expected to rise by almost 4 per cent.

Banks’ reputation and the public confidence towards banks have suffered since the financial crisis. While making banks more resilient, better structured and better supervised, the regulatory reforms also advance the aim of rebuilding the confidence on banks.

In the past too, supply shocks, of which large one-sided deviations of inflation from projections are merely a symptom, drove disinflation episodes.” In the rush to pillory the scapegoat, attention was diverted from the real issues and consequently, from the right fixes. Second, there was an overwhelming preference to wait out the transitory effects of demonetisation.

As Government has already set up a committee for amendment of Companies’ Act, it is probably necessary that the revised Companies’ Act should prescribe simplified disclosures norms and ICAI should come out with simplified account standards for SMEs. 23. Lastly, banks need to effectively implement the RBI guidelines and significant policy initiatives which facilitate ease of credit flow to small entrepreneurs. Conclusion 24.

Even as CRA-related lending became more extensive and more market-based, concerns were expressed about the implementation of the law. Financial institutions complained about compliance costs (Elliehausen, 1998). Both bankers and community groups criticized the CRA examination procedures as emphasizing process over results, arguing that the examination criteria were too subjective and that a more-quantitative system for evaluating institutions' CRA performance should be developed.

1/6 The Federal Reserve Bank of Atlanta also reminded the depository institutions it serves that, as usual, the discount window was and is available to assist them in meeting their liquidity needs. We have been in contact with many depository institutions in the affected areas and are carefully monitoring the situation.

I learned the lesson during this period that one’s response to the inevitable setbacks matters as much as the balance of victories and defeats. There is an unfortunate myth that success is mainly determined by something called “ability.” But research indicates that our best measures of these qualities are unreliable predictors of performance in academics or employment.

Psychologist Angela Lee Duckworth says that what really matters is a quality she calls “grit” – an abiding commitment to work hard toward long-range goals and to persevere through the setbacks that come along the way. One aspect of grit that I think is particularly important is the willingness to take a stand when circumstances demand it.

• How will the participating countries manage to cope without their own monetary and exchange rate policies on a permanent basis? • And conversely: how will a single monetary policy cope with the fact that it is now faced not with just one but with 11 different national economic policies?

• How is a currency of that kind assessed on the international currency and financial markets? Those questions are far from easy to answer. The financial markets are apparently having particular difficulties in recognising the new currency’s potential.

From an operational perspective, the Market Infrastructure Board, which is in charge of the Eurosystem-operated financial infrastructures, continues to scale up its activities to ensure the continued cyber resilience of its systems and platforms. At our meeting in March6, we identified four key areas for further focus: 1) crisis management and incident response; 2) information sharing; 3) awareness and training; and 4) third-party risk.

Economically, we need each other and have strong links. Over the years, we’ve been through good times and bad. We live comfortably together, provided that we respect each other’s space. On the whole, having our fortunes linked with those of the United States works in Canada’s favour. Our businesses can take advantage of the opportunities of a much larger market.

However, in the euro area, the main factor has been the exceptional increase in energy prices that began at the end of the summer in relation to the geopolitical tensions. The worsening of these tensions, culminating in Russia’s attack on Ukraine, is the main reason for the persistence and spread of the inflationary pressures we are witnessing today.

Financial integrity has since come to figure prominently on the Dutch political agenda. As things now stand, integrity supervision is becoming a separate, statutory aim of Dutch banking supervision. In anticipation of this development, an integrity audit has been drawn up under the auspices of the integrity unit.

An important sign of a deflation is the self- 1 I thank L. Dedola, K. Forster, C. Kamps and M. Rostagno for their input in the preparation of these remarks. BIS Review 146/2008 1 perpetuating nature of the process.

The amount outstanding of corporate bonds issued is around the previous year’s level. Meanwhile, according to business surveys, the financial positions of firms in general are improving slightly, although those of small firms remain severe. The year-on-year growth rate of the monetary base continues to be around 20 percent. The year-onyear growth rate of the money stock is around 2 percent.

Specifically, (1) the reduction in the pace of asset purchases by the Federal Reserve, which was postponed once, will be smoothly executed and will not cause turmoil in global financial markets; (2) international commodity markets will remain stable despite retained geopolitical risks in the Middle East; (3) the European sovereign debt problem will not cause turbulence in the financial markets; and (4) the U.S. economy will not experience turmoil stemming, for example, from a longterm government shutdown or default on government debt.

If any of these assumptions collapses, this would affect Japan’s economy to a considerable degree through turmoil in global financial markets. In addition, I personally would like to keep paying close attention to the possibility of declining potential growth rates in major economies, including the U.S. economy, and the associated disinflationary trends in the U.S. and European economies.

One objective – price stability – can be well defined and is fully under the control of monetary policymakers, at least over a period of time. The other – full employment – is set by the structure of the economy, not policymakers, and cannot be precisely pinned down numerically at any point in time and can vary over time. IV.

A recent study in 2016 disclosed that there were more than 400,000 Malware incidents, 44 million Spam incidents, and 280,000 Bot incidents within Ghana’s financial industry. 7. With this background and the complexities associated with the advancement of technology, it is imperative that the Bank of Ghana takes steps to counter these threats to ensure the integrity and operational security of the financial system.

It depends on the extension and ramifications of the collective loss of confidence. In a crisis of the kind which we experienced in October 1987, a pure “stock market shock”, investors become particularly worried about the value of very long-term assets, equity stocks traded in the stock market.

In 1987, as stocks precipitously lost their value in a matter of few hours’ trading, the market dynamics involved investors trying to liquidate their stock positions against money, any type of money: both outside currency and inside money balances or bank deposits. In those conditions, bank liquid liabilities were considered secure enough to preserve investors’ wealth.

The best that monetary policy can then do in support of the economic outlook, is to continue to neutralize the tightening effect that the pandemic would otherwise have on the highly accommodative financial conditions that were already in place pre-Corona. • We have announced that at our December meeting we will recalibrate our monetary instruments.

 If serious macroeconomic imbalances are identified, the affected country must submit a plan to implement the recommendations.  The application of such a plan will be monitored  Possible financial penalties in case of serious macroeconomic imbalances and lack of implementation of the recommendations 4. Crisis management Prudence and prevention are important.

In the last several years, we have witnessed an increase in scrutiny towards ‘shadow banking’ activities on a global scale. It seems that regulators are not willing to take chances and wait for a ‘Minsky moment’ to occur on the back of technological innovation. Looking from the perspective of international financial stability, this is a highly welcome and reassuring development.

Treating FinTech as an opportunity, not as a headache So: an opportunity or a headache? Adapting the regulatory framework to ever-changing financial innovations is not an easy task. Yet instead of treating this as a problem, we should see it as an ideal chance. This is exactly the strategy that we are pursuing at the Bank of Lithuania.

One answer, to which I have already alluded, is that the many years of strong economic performance by Asian economies lulled banks and their supervisors into complacency regarding risk. That is only part of the answer, however. We have learned that certain prerequisites must exist before bank owners and managers will pay attention to risk.

In the past five years, the RMB exchange rate against the US dollar has been beyond 7 three times, in August 2019, in February 2020, and in September 2022, respectively. For the first two rounds, it took five months for the RMB to return to below 7, and for the third round last year, the process took three months.

Also noteworthy is how short-lived the rise in volatility has been (to date). In discussions with market participants, one possible cause of this is that the unwinding of volatility positions has been largely confined to the retail market, which was relatively small in size. There does not seem to have been much adjustment in the volatility exposures of large institutional market participants to date.

Stage III (Year 2009-2014) Assessment of macroeconomic performance and negotiation for the establishment of a common Central Bank (Year 2015). At this stage, countries would be required to consolidate achievements made at the third stage.

Another effect of the most recent wave of innovation is the rise of “superstar” firms that are making the competitive landscape more challenging.14 While issues around market power are hardly new, control of valuable consumer data and of electronic platforms can act as modern impediments to competition.

This pattern of the slowdown - a gradual deceleration of growth, rather than a sharp fall in output - may have meant that the immediate pressure on corporations to adjust their balance sheets and labour force was less intense, delaying the adjustment process. High debt levels in comparison with those in earlier cycles may also have contributed to this relatively prolonged downturn.

Note that the expected short-term interest rates form the basis of long-term interest rates. There may be upward pressure on long-term interest rates in Japan, reflecting, for example, a steady recovery in the U.S. and overseas economies and a rise in long-term interest rates overseas. That can also be interpreted as a rise in expected short-term interest rates.

Therefore, the future path of long-term interest rates will receive both upward and downward pressure. It will depend on policy actions and their effects, as well as changes in external conditions. Here is an important point.

In light of this, we have stepped up our efforts to improve our communication and strengthen our accountability in recent years. The Governing Council has started to publish the accounts of its monetary policy meetings.

The ECB and the European Parliament have increased the intensity and focus of their exchanges.2 All this has provided us with more opportunities to explain our decisions and demonstrate how the ECB is acting in accordance with its mandate, which is a fundamental pillar of its legitimacy. The crisis has offered many lessons beyond monetary policy, too.

Moreover, providing liquidity to financial institutions does not directly address instability or declining credit availability in critical nonbank markets, such as the commercial paper market or the market for asset-backed securities. To address these issues, the Federal Reserve has developed a second set of policy tools which involve the provision of liquidity directly to borrowers and investors in key credit markets.

For example, we have introduced facilities to purchase highly rated commercial paper at a term of three months and to provide backup liquidity for money market mutual funds.

These aspects are poorly developed in our standard econometric macro-models, as well as in the benchmark new-Keynesian model which is so prominent in the academic literature. For the time being, it is difficult to reproduce these statistical relationships and their time-varying nature in state-of-the-art structural models.

The transition from pay-as-yougo schemes to funded pension schemes certainly supports fiscal sustainability – but introduces a new reason for concern: a decline in the financial strength of suppliers. This risk became apparent in 200002 when – due to falling equity prices – pension funds and also some life insurance companies became significantly underfunded.

This poses a serious impediment to regional integration, unlike in Europe, which stands as a forerunner case in regional integration. Even so, it is not farfetched to expect a surge of activity in terms of cross-border transactions, once market practices and the relevant laws and regulations are further harmonized.

All are called on to accept competition, not to impede the reallocation of resources. Policies and conduct together – not just government policies, not just the conduct of firms, banks and workers – can bring the Italian economy’s long-run growth rate back up to 3 per cent. 1 P. Ciocca, Il tempo dell’economia. Strutture, fatti, interpreti, Turin, Bollati Boringhieri, 2004, Chapter 14.

The responses of both the US and the euro area, in terms of inflation and output, to the oil price shock have, until now, been subdued. The US economy has continued to expand at a robust pace.

Imagine how the country will benefit when every learner who goes through the basic education system imbibes correct money values, and grows up to become financially-savvy citizens, innovators, business owners and political leaders. Under this partnership, we have so far co-developed 10 videos and 24 lesson exemplars as classroom learning tools.

I am sure that you're familiar with them, and many of you have participated in the debate surrounding these reforms. First, Employment Insurance (EI) benefits were restructured to strengthen the incentive to work.

With these changes, and with improved economic performance, EI payments as a share of GDP have declined significantly over the past decade, from more than 2 1/2 per cent to just over 1 per cent, as shown in Chart 2. Second, the Canada and Quebec Pension Plans were revamped, to put them on a sustainable footing.

These include engineers, project managers, equipment lessors, lawyers, accountants, recruiters and IT specialists. As a result, employment in a number of these business services has grown strongly over recent years (Graph 11). In terms of the income effect, the higher prices we are receiving for our exports has delivered a tangible increase in national income.

Tiff Macklem: Monetary Policy Report Opening statement by Mr Tiff Macklem, Governor of the Bank of Canada, at the press conference following the release of the Monetary Policy Report, Ottawa, Ontario, 12 July 2023. *** Good morning. I'm pleased to be here with Senior Deputy Governor Carolyn Rogers to discuss today's policy announcement and the Bank of Canada's Monetary Policy Report (MPR).

Accumulation and management of reserves The Bank continued to increase the level of official gross gold and foreign-exchange reserves, from $ billion at the end of August 2007 to $ billion at the end of August 2008. Over the same period, the international liquidity position increased from $ billion to $ billion.

Some Proposals Relating to Gold A proposal was made for setting up a Gold Index Fund by mobilising gold through collection centres in major cities, swapping the gold for US dollars and investing the US dollar funds in corporate debt and high yielding off-shore investments. The average return envisaged was 20 per cent for the depositors.

Thank God, your [the banks'] strong balance sheet, our high FX reserves, and a strong economy allow us to be laser-focused when it comes to [adjusting the] policy rate on 8/9 BIS - Central bankers' speeches inflation. We will do everything in our power so that inflation next year will be below 4 percent.

In fact, I said best-case scenario, that [normalization] will be obvious already by the year-on-year numbers for November and December. By the way, our forecast can be wrong on the early side or the late side. It could happen, that [normalization] actually happens this August or September [2023] or it could also happen in January next year or February next year.

Faced with this list, it is difficult to speak of a consistent, coherent set of rules. (3) The deadlines for the incentives and sanctions system have been extended, for example, for Council recommendations pursuant to Article 104 (7) of the EC Treaty, issuing a warning notice to member states in accordance with Article 104 (9), non-interest bearing deposits and, ultimately, fines (Article 104 (11)).

Standardisation Standardisation is a basis for the efficient and pan-European provision of payment services in an integrated market.