collateral for longer terms. the range of assets we will accept in exchange will be wider, extending to raw loans and, in fact, any asset of which we are capable of assessing the risks. and using our facilities will be cheaper. in some cases the fees are being more than halved. banks can be confident that, when they want to use our facilities, they will be allowed to access them. because we are both the supervisor and the central bank, the strong presumption is now that, if a bank meets the supervisory threshold conditions to operate and has signed up to our framework, it will be able to use our facilities. our discount window will be open every day for those firms requiring a bespoke facility with lagged disclosure. its price will be lower. we will hold monthly repo auctions to provide predictable and regular access to high - quality collateral in exchange for a very broad range of collateral. and in times of actual or prospective stressed conditions we stand ready to provide cheap, plentiful money through more frequent auctions. none of this means financial institutions are excused from the need to manage their balance sheets prudently. but as bill winters observed, more exacting liquidity requirements mean the conditions for using central bank facilities can be less stringent ( and more effective ). this is one example of the synergies that arise from the return of banking supervision to the central bank. with our announcements today, we are building a liquidity framework for the markets of tomorrow. in the markets of today, initial usage of these facilities is likely to be limited. the mpc ’ s stock of asset purchases and the funding for lending scheme currently provide all the liquidity and collateral that the sterling system needs. but as these operations are wound small relative to the global supply of assets capable of meeting this demand. as the cgfs has recently shown, the stock of non - cash collateral eligible for derivatives transactions is some $ 50 trillion, and the supply of aaa – and aa – rated government bonds alone has risen by nearly $ 11 trillion since 2007. see the cgfs report, “ asset encumbrance, financial reform and the demand for collateral assets ” available at http : / / www. bis. org / publ / cgfs49. pdf. bagehot, w. ( 1873 ) “ lombard street ”, particularly pages 205 – 207. see “ liquidity insurance at the bank of england : developments in the sterling monetary framework ”

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. what is clear in those early editions is the decidedly international flavour of a london investor ’ s interests – from tramways in buenos aires to copper mines in portugal. since then, london has been a truly international financial centre. in 1913, at the twilight of the last great wave of globalisation, 71 foreign banks had london offices. a century later, there are nearly four times as many. today, almost twice as much international banking activity is booked here as anywhere else. london is the home of global markets as well as global banks. almost half of all turnover in over - the - counter ( otc ) derivatives takes place here. london ’ s share of global foreign exchange turnover is almost as high and it remains a major hub for trading in gold. uk insurance companies have around 10 % of the global market. 2 extending the net further, the uk is home to the third largest “ shadow banking system ” with assets of $ 9 trillion. 3 the emergence of london as a financial centre in the nineteenth century owed a lot to the uk ’ s position