for forcing banks to build up more capital and reserves during the good times, which they can then draw down if things turn bad, so improving the general robustness of the system – so - called “ macro - prudential regulation ”. under instruction from the g20, the financial stability board, together with the basel committee on banking supervision, is therefore developing an appropriate set of cyclically - varying regulatory requirements on financial institutions 5, together with a range of other changes to improve the stability of the global financial system. of course, no regulatory regime will be perfect, and financial institutions have an incentive to try to circumvent requirements that they perceive as onerous. so there may be times when monetary policy will need to work alongside regulatory policy in order to restrain excessive credit and asset price growth, even though the achievement of the inflation target may not immediately appear threatened. but, in my view, that is best facilitated by retaining the clarity of the present remit, rather than muddying the waters by introducing another objective for monetary policy. the onus would then lie with the monetary policy committee to explain that it was permitting a temporary deviation from the inflation target so as to reduce the likelihood of future financial disruption and improve its chances of meeting the inflation target further ahead. the past two and a half years have certainly been tumultuous for both the economy and for policy makers. after such an event, we should certainly examine how the overall policymaking framework should be re - made in order to reduce the chance of a repetition. but we “ the role of macroprudential policy ”, bank of england, november 2009 provides an outline of some of the bank ’ s thinking in this area. should be careful not to throw the baby out with the bathwater. the inflation targeting framework served the real economy well for a decade and a half before the financial crisis. in addressing the shortcomings in the overall policy framework revealed by the crisis, we should be careful not to discard those parts that functioned satisfactorily. thank you.

with clear communications to help firms understand our plans for future changes to policy. to that end, the regulatory initiatives grid now provides firms with a comprehensive overview of initiatives planned by eight financial regulators, including the pra. being more accessible also means making it easier for firms to understand the requirements they must meet. firms today face requirements scattered across primary legislation, statutory instruments, retained eu law, uk technical standards, pra supervisory statements, pra statements of policies, and guidelines, recommendations, and q & as originally drafted by european supervisory agencies. we need to change that. under the reforms implemented by the financial services and markets bill, we intend to create a single, easily useable rulebook written in plain english, although this will be a multi - year project. in the meantime, we don ’ t think firms should have to wait before we provide more accessible rules. that ’ s why have already launched a new policy index. [ 18 ] it is an online resource that divides policies into sectors and topic areas. for each topic area, a dedicated webpage lists relevant policy material and provides quick access links, allowing firms to find applicable policies more easily. conclusion i ’ m going to conclude by reminding you that while these are our ideas about how the pra should make policy, we really want to hear your views. that is why we have published our discussion paper on our approach to policy making. i encourage you to submit responses. if parliament approves the changes that make up the frf, we will consult on proposals for how we make policy. responses to this discussion paper will help us shape those proposals. i would like to thank austen saunders for helping me write this speech. i would also like to thank andrew bailey, charlotte gerken, hannah schraer, gareth truran and sam woods for their helpful comments. any errors are my own. 1. pra discussion paper 4 / 22 ‘ the prudential regulation authority ’ s future approach to policy ’, september 2022 2. ‘ our responses to coronavirus ( covid ) : regulatory measures for pra firms ’ 3. pra dear ceo letter ‘ existing or planned exposure to cryptoassets ’, march 2020 4. pra discussion paper 3 / 22 ‘ operational resilience : critical third parties to the uk financial sector ’, july 2022 5. pra policy statement 6 / 21 ‘ operational resilience : impact tolerances for important business services ’, march 6. pra consultation