The LCR, together with individually set ‘Pillar 2 add-ons’ to address additional risks (including risks from margined derivatives and intraday volatility), set the UK minimum amount of high quality liquid assets (HQLA) that a bank is expected to hold in normal times. This minimum amount of HQLA constitutes what we call the quantitative individual liquidity guidance (ILG). 17. Bank of England Financial Stability Report, June 2018 18. For example, see PRA Supervisory Statement 24/15 'The PRA's approach to supervising liquidity and funding risks',  Page 13 Section 4 – Drawing down liquid asset buffers, June 2015 19. See Speech by Jon Cunliffe ‘Learning from the dash for cash – findings and next steps for margining practices’, February 2022; and Speech by Andrew Hauser ‘Seven Moments in Spring: Covid-19, financial markets and the Bank of England’s balance sheet operations’, June 2020 20. Speech by Andrew Hauser ‘Why central banks need new tools for dealing with market dysfunction’, January 2021 21. See Financial Stability Board (2021)  analysis on Covid-19 support measures. 22. BCBS (2021), ‘Early lessons from the Covid-19 pandemic on the Basel reforms’  , Implementation report. 23. For example, Gerba and Katsoulis (2021) show evidence for the period 2016-2020 that where banks were increasing LCRs, they reduced longer-term reverse repo lending against lower quality collateral. 24. BCBS (2021), ‘Early lessons from the Covid-19 pandemic on the Basel reforms’ 25. BIS (2022), ‘Market dysfunction and central bank tools’  , Implementation report. , Markets Committee Paper. 26.

8 See ‘Fair and Effective Markets Review – Implementation Report’, July 2016, available at www.bankofengland.co.uk/markets/Documents/femr/implementationreport.pdf 7  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  7  It is why alongside the necessary development of ‘hard law’ to enforce minimum standards of conduct and accountability, such as the Senior Managers Regime, the Bank is using its influence to bring together market participants to solve collective action problems, for example, through the FICC Market Standards Board, to set expectations on behalf of broader society about expected behaviours and to encourage adherence to voluntary market standards. Addressing ethical drift – and persuading broader society that it has been addressed and that markets work for the benefit of society – is a huge challenge for financial markets and the financial centres in which they are concentrated. I do not want to go into detail tonight – though I would encourage you to read Minouche’s excellent speech on the subject. I would just want to emphasise one crucial point – industry leadership is and will remain vital if this challenge is to be met. Resilience and regulation  Restoring public support also requires authorities and the financial sector to demonstrate that the risks that are posed by large, very complex and highly interconnected financial markets can be effectively managed. I am not sure whether my namesake in 1914 would have recognised the term ‘financial stability’ let alone ‘macroprudential’ policy. There certainly was no Deputy Governor for financial stability in those days.