, these risks can easily spill over and damage the domestic real economy. openness and interconnectedness mean shocks from abroad quickly reach our shores. this is particularly true for risks from the euro area given the tightness of our trade and financial linkages. equally, these tight linkages mean that others rely on us to maintain high standards of resilience and to share relevant information openly and cooperatively. in short, hosting the leading international financial sector brings immense responsibilities alongside great prosperity. the bank of england ’ s primary responsibility is to protect our domestic real economy, and to ensure that finance serves it rather than the other way around. and second, we must ensure our institutions and markets are sources of strength for the global system. fulfilling these dual responsibilities requires the highest standards of supervision and regulation, and a commitment to the most effective cooperation with other regulators. let me take those in turn. iii. the uk targets a level of resilience beyond global minimum standards as the fpc has repeatedly made clear, the uk financial system will require a post - brexit level of resilience at least as great as that currently planned, which itself generally exceeds that required by international baseline standards. this imperative reflects the scale, complexity and importance of the uk financial system. this does not mean we are pursuing the stability of the graveyard. rather, we are building the necessary resilience for our system as efficiently as possible by simultaneously implementing major structural reforms. such “ efficient resilience ” allows the uk financial system to fulfil both its domestic imperatives and its international responsibilities. see ‘ the promise of fintech – something new under the sun? ’, speech by mark carney, 25 january 2017, available at http : / / www. bankofengland. co. uk / publications / documents / speeches / 2017 / speech956. pdf. all speeches are available online at www. bankofengland. co. uk / speeches efficient resilience is why our capital standards are simultaneously well above basel minimum requirements and substantially below the levels that would be necessary if those banks could not be safely resolved if they got into trouble. efficient resilience is why we are ring - fencing the domestic banking services on which uk households and companies depend. requiring higher prudential requirements for a ring - fenced bank and structurally separating it from wholesale and investment banking activities helps ensure that retail lending can be sustained despite external shocks. at the same time, this approach preserves the free flow

and enhanced dialogue between international regulators. these include supervisory and crisis management colleges and supervisory assessments. the eu has further enshrined a global code for the foreign exchange market, put together with support from central banks, will be launched in may as the first globally consistent code of conduct for these markets. ‘ supervising international banks : the prudential regulation authority ’ s approach to branch supervision ’, ss10 / 14, available at http : / / www. bankofengland. co. uk / pra / documents / publications / ss / 2014 / ss1014. pdf. all speeches are available online at www. bankofengland. co. uk / speeches these practices through legislative requirements in the crr and brrd for supervisors and resolution authorities respectively. the bank is a staunch supporter of these mechanisms. as the home country regulator for four g - sibs and the host for all 30 g - sibs we see them as essential elements of delivering global financial stability. we participate actively in supervisory colleges, sharing the supervisory expertise we have developed from managing the multitude of complex risks that are traded in london. and we expect the same from those whose firms operate and take on large risks here. symmetry is fundamental to an effective global system. third, the most critical element of supervisory cooperation is confidence in how each other will behave when things go wrong. in this regard, operationalising new “ gone concern ” regimes are critical. these set out what happens when a firm fails. in our view, best practice is captured by the fsb ’ s key attributes and involves resolvability assessments and regular crisis management group meetings for systemic firms. the uk was an early adopter. we host crisis management groups for the uk g - sibs, g - siis and systemic ccps and attend all such meetings internationally for firms with significant operations in the uk. and we conduct exercises with other major jurisdictions to test preparedness. v. the road ahead we are at a fork in the road. one path builds on the foundations of a new responsible global financial system that are being put in place. the combination of robust international standards and trust built through transparent implementation and intensive supervisory cooperation can create a system of enhanced equivalence and mutual deference. such an approach would allow capital to move more freely, efficiently and sustainably between jurisdictions. with robust standards consistently applied, wholesale financial services could be brought more fully into bilateral trade agreements, keeping the global financial system open and resilient, and supporting