Two-thirds of staff now feel encouraged to try new ideas, three-quarters indicate that their managers act on their suggestions, and 60% are comfortable speaking up on an important issue. All of these metrics have significantly improved in the past few years. 13  We have comprehensively overhauled our governance, openness and accountability in recent years. With the arrival of Anthony Habgood as Chair, Court has been strengthened and now acts as a unitary board and meets the best practice found in the private sector. Its independent members now have more tangible influence on the Bank, including through formal powers to observe the meetings of the Bank’s policy committees and to commission independent reviews into the Bank’s performance. Its minutes are now published after a lag of six weeks rather than a hundred years. It regularly releases reports on matters of  13  ‘Reflecting diversity, choosing inclusion’ speech given by Mark Carney, 9 February 2017 7  All speeches are available online at www.bankofengland.co.uk/speeches  7  concern ranging from policy, such as economic forecasting, to conduct, such as the Grabiner report into the FX market. 14  We know we have more to do. That’s why the independent non-executive directors are reviewing the Bank’s response to recent events. That’s why our next strategic plan will focus to even greater degree on changing how we work. To maximise the potential of our people, the Bank needs to embrace fully collaborative working in diverse teams that value robust debate.

Although the SMR is only a year old and we are all learning by doing, there are encouraging signs that it is making a difference. 7  See FSB press release at: http://www.fsb.org/2017/02/fsb-assesses-implementation-progress-and-effects-of-reforms/. Additionally see FSB “Stocktake of efforts to strengthen governance frameworks to mitigate misconduct risks”, forthcoming March 2017. 8 The SMR came into effect on 7 March 2016. Insurers are required to meet similar standards under Solvency II and in future, the SMR will apply to them directly, as it will to other participants in FICC markets. 4  All speeches are available online at www.bankofengland.co.uk/speeches  4  For firms, the SMR is clarifying and improving governance, accountability and decision-making processes. Senior Managers are increasingly focusing on building cultures of risk awareness, openness and ethical behaviour. In the words of one chairman “responsibility for culture has moved to the top of my agenda.”  9  For supervisors, the regime is helping identify weaknesses in governance and accountability, and encouraging the necessary changes. This is particularly true in cases where authority has historically been blurred such as in cross-border banking. Adoption is spreading. Some international firms are voluntarily adopting elements of the SMR’s certification requirements to strengthen their global operations. And the FSB is now explicitly reviewing the merits of such “responsibility mapping”. 10  Recent events  The SMR has also been adopted by the Bank of England. 11  We chose to because our mission demands that  we hold ourselves to the highest standards of governance and accountability.