s basic thinking has been that ( 1 ) given the extremely accommodative financial conditions, the level of interest rates is to be raised if japan ’ s economy is to follow a path of sustainable growth under price stability, and ( 2 ) the pace of increase in interest rates should be determined in accordance with improvements in the economic and price situation without any predetermined view. so far, weak inflationary pressures have given the bank latitude in conducting monetary policy. the actual interest rate adjustments have therefore been slow based on a thorough assessment of the future path of the economy and prices and its likelihood, as well as both upside and downside risks. the bank ’ s basic thinking in this regard will remain the same in the conduct of future monetary policy. that is, while confirming that the japanese economy remains likely to follow a path of sustainable growth under price stability and assessing relevant upside and downside risk factors, the bank will adjust the level of interest rates gradually in accordance with improvements in the economic and price situation. we believe that, from the long - term perspective, the conduct of monetary policy in such a manner will prevent the risk of larger swings in economic activity and prices from materializing and will help to realize sustainable growth under price stability. conclusion japan ’ s economy is expanding moderately. corporate activity has been increasing due partly to strong exports, as can be seen here in the kansai region, and the positive influence is clearly spreading throughout the wider economy as evident in the declining unemployment rate. in order for japan ’ s economy to continue sustainable growth in the face of various challenges including the declining population, it is crucial for all regions and industries to persist with their efforts to innovate. since, along with the kanto and tokai regions, the kansai region is pulling japan ’ s economy forward, i fully anticipate that your originality and inventiveness will continue to play a leading role. as for the bank, we will continue to support your efforts through our conduct of monetary policy.

andrew bailey : the uk bank resolution regime speech by mr andrew bailey, executive director for banking services and chief cashier of the bank of england, at the institute of chartered accountants in england and wales ( icaew ) financial services faculty breakfast, london, 26 november 2009. i am grateful to peter brierley, victoria cleland, iain de weymarn, geoff davies, tony foster, andrew hauser, orla may and paul tucker for their comments and assistance. * * * the uk bank resolution regime thank you for inviting me to speak this morning. one of the characteristics of bank resolutions, to which i will return later, is that they have to be done quickly to a fixed deadline and involve working through the night. they also require extensive involvement by accountants and lawyers, so, i have had some experience with spending nights and early mornings with accountants. the only, but important difference, is that i don ’ t get to choose when to spend my early mornings on resolutions, whereas you did choose to listen to me early this morning, for which i am very grateful. some history the 2009 banking act, passed in february, created the new bank resolution regime in the uk. in its first nine months it has been used once, at the end of march for the dunfermline building society. there is a long history of involvement by the bank of england in dealing with the problems of banks in the uk in order to underpin the stability of the financial system, much longer than the history of banking supervision. the history of the bank in the nineteenth century features quite a few such interventions. more recently, although none came amid conditions comparable to those which occurred last autumn, the bank was extensively involved in resolving problems in the secondary banking crisis of the 1970s, in johnson matthey bankers in the 1980s, and then in the early 90s with a number of smaller banks. my own first involvement with resolving banks came at that time, with the resolution of national mortgage bank. we now face a much bigger challenge in terms of building a more robust financial system. there are three parts to this task : regulation, structure and resolution. today, i am going to talk about the last of these. in the past, our resolution toolkit was limited. we could use the bank of england ’ s own financial resources, as we did with johnson matthey bankers and national mortgage bank. or, we could determine that it was not necessary to provide financial support on grounds of a threat to