] fred berry, from tpr, will speak about this later this morning. pension schemes should also have regard to the government ’ s broader strategy [ 16 ] to ensure that defined benefit schemes ( db ) schemes in the uk are sustainable, well - governed, and that scheme members achieve better outcomes. the government is in the process of encouraging db scheme trustee boards to more actively detect and respond to risks. given the potential risks to financial stability from db pension schemes, this work is essential. how can this framework enhance resilience in non - banks more widely? now i would like briefly to change tack and think about whether our approach to ldi funds ’ resilience might also be relevant when considering the appropriate resilience of other non - banks whose activities can impact uk financial stability. as non - banks play a greater role in the financial system [ 17 ] as well as the real economy [ 18 ] we will continue to ask questions on the resilience of non - banks [ 19 ] so that they absorb rather than amplify shocks. what vulnerabilities have we identified? i ’ ve spent this morning talking about measures to tackle the root cause of the stress last autumn, poorly managed leverage. but ldi funds aren ’ t the only non - bank to use leverage. and leverage is also not the only vulnerability in the non - bank system. forced selling that can follow from leverage can also arise from liquidity mismatches [ 21 ] or from a lack of preparedness for margin calls. identifying vulnerabilities is only half the battle. we also need to understand how market participants will behave when a stress hits. to this end, the bank is very shortly launching its exploratory exercise to enhance understanding of the risks to and from non - banks, their behaviours, and how these behaviours can amplify shocks. as part of this exercise the bank may reach out to some of you attending this conference. shining a light on how market participants may behave collectively in a stress will help both the bank and yourselves better prepare for such events. you ’ ll hear plenty from us once the exercise is launched. in particular, my colleague lee foulger will be giving a speech next week outlining how this exercise will helps us to better understand system - wide resilience. but what should we do about these vulnerabilities? we should seek to contain them and to mitigate their financial stability impact. this is what i ’ ve laid

proof of concept connects firms to a specifically built, offline version of rtgs so that the live rtgs system is protected. all speeches are available online at www. bankofengland. co. uk / speeches references bank of england ( 2018 ), financial policy committee statement from tis meeting, 12 march 2018, available at : https : / / www. bankofengland. co. uk / statement / fpc / 2018 / financial - policy - committee - statement - march - 2018 bank of england ( 2017a ), stress testing the uk banking system : 2017 results, 28 november 2017, available at : https : / / www. bankofengland. co. uk / stress - testing / 2017 / stress - testing - the - uk - banking - system2017 - results bank of england ( 2017b ), a blueprint for a new rtgs service for the united kingdom, 9 may 2017, available at : https : / / www. bankofengland. co. uk / paper / 2017 / a - blueprint - for - a - new - rtgs - service - for - the - uk carney, m ( 2018 ), the future of money, 02 march 2018, available at : https : / / www. bankofengland. co. uk / speech / 2018 / mark - carney - speech - to - the - inaugural - scottish - economicsconference central banking ( 2018 ), initiative of the year, 23 jan 2018, available at : https : / / www. centralbanking. com / awards / 3333176 / initiative - of - the - year - bank - of - englands - fintech - accelerator cunliffe, j ( 2018 ), looking after our money, 26 february 2018, available at https : / / www. bankofengland. co. uk / - / media / boe / files / news / 2018 / february / looking - after - our - money - speech - byjon - cunliffe. pdf george, e ( 1996 ), risk reduction in payment and settlement systems ’ a bank of england quarterly bulletin article, 9 december 1996, available at : https : / / www. bankofengland. co. uk / - / media / boe / files / quarterlybulletin / 1996 / risk - reduction - in - the - payment - and - settlement - systems. pdf hauser, a ( 2017 ) the bank