financial stability board ( fsb. org ) or financial stability in focus : the fpc ’ s approach to assessing risks in marketbased finance | bank of england ; for an assessment of the implications of qt on market functioning see quantitative tightening : the story so far − speech by dave ramsden | bank of england ; for details on the iawg see collaboration toward increased resilience of the treasury market - federal reserve bank of new york ( newyorkfed. org ) ; and for discussions of the central bank toolkit see preventing and responding to dysfunction in core markets - dallasfed. org and a journey of 1000 bank of england circumstances, there are limits to the extent that banks can rely on private markets to monetise non - reserves hqla in a stress. figure 12 : bank of england facilities and daily volumes in selected sterling markets source : bank of england, mifid ii. repo and unsecured daily volumes are for overnight maturity transactions only. there is however another way for banks to monetise their assets, and that is by using central bank liquidity facilities. huge advances have been made in this area since the gfc. 16 as figure 12 shows, uk banks have built up the capacity to borrow over £½ trillion of reserves from us against a range of prepositioned, mostly less liquid, collateral – and they can borrow a great deal more than this against more liquid collateral, including hqla, if the underlying markets freeze. that collateral can be used across most of the bank ’ s lending facilities, including the weekly index linked term repo facility, the discount window facility, and the contingent term repo facility. we are definitively ‘ open for business. ’ miles begins with a single step : filling gaps in the central bank liquidity toolkit - speech by andrew hauser | bank of england. 16 for a recent summary see report on the bank's official market operations 2022 – 23 | bank of england. bank of england on the face of it, an aggregate borrowing capacity of £½ trillion is enough to meet most of the outflows in figure 7. so shouldn ’ t we be considering a radically different setup in which the stock of reserves is relatively small in normal times, but expands rapidly and at scale when needed, via usage of the bank ’ s facilities? there are three main obstacles to that being a complete answer : - first, while many banks have strong pre - positioning and test usage regularly, some do

the central bank. moreover, the report will also contain signals of likely policy changes in the future along with a general evaluation of the factors influencing inflation and an indepth discussion of general macroeconomic developments. along with the inflation report, summaries of the committee meetings will also be an important tool of communication policy. distinguished guests, as final words, i would like to mention that the inflation targeting regime is not an end in terms of monetary policy, but on the contrary, a component of an uninterrupted “ evolution ” process. so far, we have tried to strengthen the economy with the help of fiscal discipline and ongoing structural reforms. i believe the independence of the central bank and the enhanced transparency and accountability will be the main tools to cope with challenges as they were in the previous period. i want to conclude by repeating my warm welcome to you all. i hope that you enjoy both the conference and your stay in istanbul. thank you very much.