s very likely that they don ’ t understand it themselves, which is quite often the case, or that, actually, it doesn ’ t add up. bis central bankers ’ speeches and that is a good challenge for us at the bank as well as the broader official community when explaining what ’ s happening and how the system works. lack of understanding leads to disengagement, which in turn leads to mistrust. let me conclude by thanking the huge range of people across the country who really did engage, who did spend the time here with us today. the long - term reward of course, is a more resilient financial system that better serves the needs of society. in the short - term, i hope you will join us for a quick drink in the crypt of this fantastic building. for those of you in edinburgh, alex brummer would be happy to stump up. and for those of you at home, i hope you will join us in spirit with a drink at your local pub – put it on the bank of england as a form of quantitative easing. bis central bankers ’ speeches

sessions. perhaps julia black put it best when she described the dangers of groups of professionals talking just amongst themselves. this has been part of the issue with financial reform – a sense that reform was a pre - packaged process built on discussions between regulators, banks, and investors, with sympathetic academics adding in their words of support. part of the reason for our broader discussions today is to ensure we move out of this state of affairs. and of course, once we bring in other perspectives, it changes our own perspective and underscores just how hermetically sealed the industry in its broad sense can be. let me say a couple of words on this. it should be recognized that the industry has made tremendous strides to address a number of issues. an issue touched on earlier in the day was reporting and accounting, and one of the things the industry has done is to come up with something called the enhanced disclosure bis central bankers ’ speeches task force. the taskforce proposed a set of recommendations for banks to develop highquality, transparent disclosures that clearly communicate banks ’ business models and the key risks that arise from them, so that people who supply capital to the banks can follow how they make money, how they think about managing risk, and make judgments on the basis of that. the important point was that this was industry - led, and co - chaired by a london - based bank. there was some input from the authorities, but the industry led the initiative, and it ’ s a model we may use in other areas of finance. i mentioned total loss absorbing capacity earlier – i won ’ t use the acronym! i ’ m aware the full name doesn ’ t necessarily make it any more intelligible, but this is basically another layer of capital, and the ability to absorb losses in the event that a firm fails. it is more cost effective – so the cost is not passed on to borrowers. and the technology behind this was developed by the private sector, with the authorities contributing to ensure it could work effectively and on a global basis. but it was the industry, once again, that came up with the solution. further innovations are needed if the sector is to come to terms with the new business models that andrew bailey and others have mentioned today. for example, innovations in the way banks are organised that are consistent with orderly resolutions. separately, and as noted in a number of panels today, asset managers also need to innovate to adapt to the new realities of market liquidity.