andrew g haldane : credit is trust speech by mr andrew g haldane, executive director, financial stability, bank of england, at the association of corporate treasurers, leeds, 14 september 2009. i would like to thank paul fullerton, simon hall and salina ladha for help in the preparation of this speech. * * * it is good to be back in yorkshire. i say back because i grew up around 10 miles north of here. when i left over 20 years ago, leeds looked and felt very different to today. nowhere is the contrast greater than in the financial sector. in 1995, almost 74, 000 people were employed in financial and related business services, accounting for around 20 % of employment in leeds. by 2009 this had risen to over 116, 000, or around 30 % of employment. today, leeds has a legitimate claim to be the uk ’ s second largest financial centre. a short history of banking in yorkshire the foundations for this success were laid much earlier. the history of banking in yorkshire dates back over 250 years. 1 pease and co of hull, established in 1754, are thought to be yorkshire ’ s oldest private bank. in the same decade, banks were founded in leeds and bradford. by the end of the 18th century, yorkshire had a well - established network of over 40 banks in around 16 regional towns and cities. in the first two decades of the 19th century, private banking in yorkshire continued to thrive, spreading to around 30 towns and cities. the financial crisis of 1825 brought an end to this rapid growth. the crisis itself was interesting for its parallels with today. it was sourced in sub - prime lending in ( in this case south ) america. as fears of loan losses rose, runs began on banks throughout england, with more than a dozen institutions failing in yorkshire alone. the crisis brought reform of the banking industry in the form of the joint stock banking act of 1826. this removed the bank of england ’ s monopoly on joint stock banking. this had long been a bone of contention among country banks, not least in yorkshire. the bank of england itself opened its first branch in yorkshire – here in leeds, in fact – the following year in 1827. this was acknowledgement of leeds ’ emerging importance as a financial centre. yet the reception it received was, to say the least, somewhat mixed. local newspapers and businessmen attacked the bank ’ s attempt to spread its “ pestilential branches ” into the regions. 2 bank of england

previous year relative to the number of all employed persons. non - employment refers to the status of being unemployed or inactive in the labor force. figures for norway are based on data for 2018. 2. figures for the united states are percentages of those for which employment status has changed from the previous quarter relative to the number of all employed persons. non - employment refers to non - employment that has lasted for more than one quarter. quarterly average is the average over four quarters. annual estimate is the cumulative total of four quarters. source : causa, o., luu, n., and abendschein, m., " labour market transitions across oecd countries : stylised facts, " oecd economics department working papers, no. 1692, 2021. chart 22 household financial assets japan 2, 200 tril. yen financial assets ( total ) cash and deposits equity investment trusts 2, 000 1, 800 % international comparisons ( as of end - march 2023 ) 2. 1 other 2. 7 2. 9 26. 2 1, 600 insurance, pension, and standardized guarantees 29. 1 28. 6 11. 0 1, 400 1, 200 4. 4 1. 3 1, 000 21. 0 10. 1 fy 90 equity 39. 4 investment trusts 2. 2 debt securities 54. 2 11. 9 4. 9 35. 5 cash and deposits 12. 6 japan united states euro area notes : 1. in the right panel, " other " is the residual after deducting " cash and deposits, " " debt securities, " " investment trusts, " " equity, " and " insurance, pension, and standardized guarantees " from total financial assets. 2. also in the right panel, figures are from " flow of funds : overview of japan, the united states, and the euro area, " released by the bank's research and statistics department on august 25, 2023. source : bank of japan. chart 23 topix and dividend yields 2, 500 pts % topix ( left scale ) dividend yields ( right scale ) 2, 000 1, 500 1, 000 cy 01 notes : 1. the latest data are as of july 31, 2023. 2. dividend yields are calculated by dividing the total dividend per stock that became an ex - dividend stock within the last 12 months by the latest stock prices. source : bloomberg.