##le competition and the market appetite for risk. in getting the balance right, market participants can do a lot for themselves. my impression certainly is that there is a growing recognition that high standards of professional competence and integrity are vital to a firm ’ s reputation and commercial success, or even its survival - and that helps to limit recourse to intervention. but it ’ s also true that we have a critically important, longstanding, tradition in this country that, where there is a perceived need for intervention, the relevant authorities consult extensively with the markets which helps to avoid unintended consequences and to ensure a measured and properly targeted approach. it ’ s a tradition which others would do well to adopt. my second explanation for the city ’ s success in financial services is non - discrimination. provided they meet the standards of professional competence and integrity we expect in london, it makes no sense at all - in fact it would be self - inflicted injury - to distinguish between the firms or individuals who work here, on grounds of nationality or ethnic or religious background - or, in the case of individuals, on grounds of gender, which is a point, my lord mayor, which i know that you have made forcefully from the beginning of your term in office. i think we ’ ve made real progress on this front. non - nationals for example, play an important part not just in our commercial life but in the governance of our market institutions. and i very much welcomed the initiative by the foreign bankers ’ association to establish the guild of international bankers, which itself followed the opening up, to non - nationals, of the city freedom. it is economic activity - not nationality - that generates employment and income - and even, chancellor, tax revenue - and that ’ s something, too, which is now better understood than in many other jurisdictions. it is crucial that these approaches continue - as i have no doubt they will - into the future - whatever that might hold. i have also been impressed, my lord mayor, by the increasing commitment among city firms including many firms from overseas - not just to professional, but also to social responsibility. and in this context i have been greatly encouraged by the widespread and very positive response to the heart of the city campaign launched nearly three years ago to encourage and extend city corporate community involvement. i hope that that, too, will continue. so i take the opportunity this evening to express my thanks to all of you represented here who have worked with us at the bank over the years in

the rt hon sir edward george : a broadbrush review of the uk economy speech by the rt hon sir edward george, governor of the bank of england, at the lord mayor ’ s banquet for bankers and merchants of the city of london, mansion house, london, 18 june 2003. * * * my lord mayor, mr chancellor, my lords, aldermen, mr recorder, sheriffs, ladies and gentlemen dear friends and colleagues. how many of you here this evening have ever run the london marathon - perhaps we could have a show of hands? well of course i have … …. never, ever contemplated doing so for a moment. but someone who did complete it once described to me the surge of adrenaline he experienced with just a mile to go, followed shortly afterwards by near - exhaustion, until he finally collapsed over the finishing line! i think i ’ m now beginning to understand what he meant. if i have my arithmetic right - and that ’ s a big “ if ” - i was recently beaten all ends up at maths games by group of primary school children from tower hamlets - but if i ’ m right, after 41 years in the bank, this is my 27th successive attendance at this great annual bankers and merchants dinner and, you ’ ll be relieved to hear, the 10th and last time that i will have the honour of addressing you in my capacity as governor. and i should like to take this opportunity above all to thank all of you - and the various organisations that you represent - for the tremendous support that you have given to me and to the bank over so many years. i must begin, gordon, by thanking you. in fact i ’ ve been immensely fortunate to have first ken clarke and then you, gordon, in charge at the treasury during my time as governor. you shared the conviction that overall macro - economic stability - reflected in consistently low inflation - is a necessary condition for sustainable growth. that ’ s a conviction that is deeply embedded in my soul as a lifelong central banker - if indeed as a central banker i ’ m allowed to admit to having a soul! you inherited from ken an inflation target in the form of a cap and a degree of transparency - and public accountability - that we ’ d never had before. and, in your own, very first - and inspired - decision as chancellor, you advanced that approach radically further. you - rightly - kept the political responsibility for setting the inflation target - opting crucially for a symmetrical point target.