bank of japan ’ s july report of recent economic and financial developments bank of japan, 17 july 2002. * * * the bank ’ s view japan ’ s economy, despite continued weakness in domestic demand, has almost stabilized as a whole with an increasing upward impetus from exports and production, and an improvement in corporate profits and business sentiment. with regard to final demand, business fixed investment continues to decrease and private consumption, despite some resilience, remains weak as a whole. moreover, housing investment remains sluggish and public investment is on a downtrend. meanwhile, net exports ( real exports minus real imports ) are increasing significantly due to the recovery in overseas economies and also to the effects of restocking abroad, mainly in it - related goods. industrial production is picking up clearly in response to the increase in exports and adequate reduction of excess inventory stocks. against this background, corporate profits appear to be turning up and business sentiment is improving. in addition, the rebound in production affects employment conditions, albeit marginally, with an increase in overtime hours worked and in new job offers mainly for part - time workers. however, firms are still maintaining their stance on reducing personnel expenses and as a consequence, household income continues to decrease noticeably. thus, employment and income conditions of households overall remain severe. turning to the economic outlook, the upward trend in exports are expected to continue against the background of the gradual recovery in overseas economies, although the pace is likely to slow as the impetus from overseas restocking weakens. thus, industrial production is expected to follow a gradual uptrend with some fluctuations in its pace. on the other hand, with respect to domestic demand, public investment is projected to follow a declining trend and private demand is likely to remain weak for the immediate future. yet, if the increase in exports and production mentioned above continues, the recovery in corporate profits will become distinct, and this will gradually bring a positive impact on domestic private demand. in fact, leading indicators of business fixed investment show some signs of stabilizing. overall, it can be envisaged that the stabilization of japan ’ s economy will become more secured as the increase in exports and production, through the improvement in corporate profits, will underpin domestic private demand. however, considering that forces restraining the economy, such as excessive employment and debt, are still persistently at work, momentum for a self - sustaining recovery will be subdued for some time. furthermore, uncertainty regarding external conditions, particularly in the it -

andrew bailey : city week 2014 speech by mr andrew bailey, deputy governor of prudential regulation and chief executive officer of the prudential regulation authority at the bank of england, at city week 2014 : the international financial services forum, london, 31 march 2014. * * * it is a great pleasure to be at city week again. i am most grateful that you have timed it to coincide with our first birthday. it is a good time to reflect on a year that has had some moments. i have not tired of emphasising that our approach to regulation is necessarily forward - looking. i have been asked quite a few times over the last year what is my objective for the pra. it is simple to describe but history would suggest less easy to achieve. i have been in the bank of england for quite a while, and this new system is the fourth approach to financial regulation in the uk in my career. from that, i draw at least one conclusion, namely that we have a strong need to achieve a stable institutional structure of financial regulation in the uk. we are not alone in this challenge, but that does not change the objective, it just means we have company. that is my objective for the pra, and for the new system of regulation as a whole, and i have been pleased to see the pra board and our staff working effectively to pursue that objective. there is another lesson that i draw from this history, namely that there must be some difficult impediments to achieving the goal of institutional stability in financial regulation. to start with, achieving consistency and clarity in identifying the objective of regulation has been a problem in the past. the new approach anchors the pra ’ s primary objectives of the safety and soundness of firms and the protection of insurance policyholders in the broader goal of the stability of the financial system. this very clearly ties together micro and macro - prudential regulation, whose objectives are consistent. and, we now have a secondary objective around the competition implications of our actions, which i welcome. just under two weeks ago we announced changes to the bank of england ’ s strategy and structure. in doing so, we adopted a single mission, namely to promote the public good through achieving and maintaining financial and monetary stability. this single mission is much more than just the speak of management, it is a clear change intended to promote the integration of the bank of england ’ s objectives of monetary and financial stability. this integration of objectives into a single mission represents