In the past year those promises have become realities with the statutory Financial Policy Committee (FPC) and the Prudential Regulation Authority (PRA) formally joining the Bank. The question now is how we use our powers to fulfil our responsibilities. In response, the Bank of England is today launching a transformative strategic plan to fulfil its broader mission. We have a new leadership team. We are setting out fifteen initiatives to reshape the institution. Behind that plan is a vision for the Bank that I want to set out this evening. It is: A Bank with many and varied responsibilities, but a single timeless mission; An institution that works as One Bank to exploit the synergies and complementarities across our policy functions; A Bank that draws on its long history of intellectual leadership and international engagement to shape an open, resilient global system; And a Bank that builds on the immense successes of the past quarter century in combining clear objectives, good governance and constructive transparency. A single timeless mission Let me begin by asking a simple question: what is the Bank of England for? The Bank’s founding charter of 1694 explains that its original purpose was to “promote the publick Good and Benefit of our People…”. What that meant in practice at the time was  1  “The fight against inflation” was the title of Geoffrey Howe’s 1981 lecture.

Companies that produce weapons in violation of fundamental humanitarian principles and companies that produce tobacco are excluded. Corruption or contributing to severe environmental damage may also lead to exclusion. About 50 companies are excluded. 29 There is often the dilemma of whether we should withdraw entirely from a company or enter into dialogue. If we withdraw, we lose a channel of influence. 24  See Credit Suisse Global Investment Returns Yearbook 2011: https://infocus.credit-suisse.com/app/ _customtags/download_tracker.cfm?dom=infocus.credit-suisse.com&doc=/data/_product_documents/_shop/ 300847/credit_suisse_global_investment_yearbook_2011.pdf&ts=20110326172226  25  Private investors, with shorter investment horizons, should have lower allocations to equities. 26  For more about the Government Pension Fund Global’s investment strategy, see the NBIM website: http://www.nbim.no/en/Investments/  27  Aanund Hylland (2005): “Statens reservefond 1904–25. Et forsøk på å binde politisk handlefrihet? [The government reserve fund 1904-25. An attempt to bind the political room for manoeuvre? ]”, Norges Bank Penger og Kreditt, no. 3, p. 182 (Norwegian only). 28  For more on the fund’s real estate investments, see the NBIM website: http://www.nbim.no/en/Investments/ asset-mix/Real-estate/  29  The Ministry of Finance decides which companies to exclude. For more on exclusion from the Government Pension Fund Global, see website: http://www.regjeringen.no/en/dep/fin/Selected-topics/the-governmentpension-fund/responsible-investments/negative-screening-and-exclusion.html?id=447009  8  BIS central bankers’ speeches  We now own shares in more than 8 000 companies worldwide. As shareholders, we are entitled to vote when important decisions are made about companies in which we have an ownership stake. Should we actively seek to influence developments or should we remain passive observers? Many large funds choose the latter.