5  As Andy Haldane has noted, the methodology used to calculate output statistics related to financial services is likely to overstate their true contribution, especially when compensation for risk is high. See “The contribution of the financial sector: Miracle or Mirage?”, http://www.bankofengland.co.uk/publications/Documents/speeches/2010/speech442.pdf. As banks’ balance sheets have shrunk since the crisis this effect is likely to have lessened. 6  Martin Wheatley spoke yesterday about fairness and the importance of cultural reform, arguing that “the financial world is responding to the cultural change around it”; see http://www.fca.org.uk/news/the-fairness-challenge. 2  BIS central bankers’ speeches  More fundamentally, such engagement would be timely because globalisation itself is under siege. Cross-border capital flows have fallen sharply since the crisis. Multilateral trade liberalisation has stalled, to the detriment of global prosperity. If we are to stem this tide towards financial fragmentation we must make global finance more resilient. That serves both national and global interests. Accordingly, I will concentrate today on three core elements of the Bank of England’s new Financial Stability strategy: creating resilient global banks, building robust markets and conducting central banking for global markets. These initiatives support a fourth leg of our strategy: improving the supply of finance in the UK. You will hear more about supply-side initiatives, aimed for example at rebuilding securitisation and supporting SME lending, in coming months. 2. Strengthening the resilience of international banking  Making international banks safer is fundamental to a renewed globalisation. To this end, new global standards for capital and liquidity have been agreed.

Mark Carney: The UK at the heart of a renewed globalisation Speech by Mr Mark Carney, Governor of the Bank of England and Chairman of the Financial Stability Board, at an event to celebrate the 125th anniversary of the Financial Times, London, 24 October 2013. * 1. *  *  Introduction  When the Financial Times opened for business in 1888 London was the world’s preeminent financial centre. It had the most international banks, the largest capital markets, and the deepest money and gold markets. It backed projects all over the world, and most of world trade was financed by bills drawn on London. Supporting the critical mass of banks, insurers and investors was an army of solicitors, accountants and clerks.1 What London had lacked, at least until the FT’s great rival Financial News was founded in 1884, was a ready provider of financial news. The FT famously set out to report “Without Fear and Without Favour”, and declared itself to be the friend of the honest financier, the respectable broker and the legitimate speculator; and the enemy of the closed stock exchange, the unprincipled promoter and the gambling operator. Perhaps as a consequence, its initial circulation was modest. The preoccupations of 1888 were not very different than today. Editions of the FT 125 years ago contained stories on economic development in China, the health of Spanish government finances, and the state of Irish banks.