– it is called supervision. ibid, p. 137 ibid, p. 148 all speeches are available online at www. bankofengland. co. uk / speeches a number of factors began to change the nature of supervision in the uk. first, the bank ’ s nationalisation in the 1940s moved it onto a different footing as a truly public institution. the relationship between the bank and banking sector was no longer one of equals, though the bank ’ s approach did not alter course overnight. the bank of england act 1946 subsequently granted the bank a range of powers, including the ability to issue directions to firms. a further legislative development – the companies act 1948 – conferred privileged status on some institutions ( recognised banks or discount companies ) which resulted in the bank granting exemptions to these institutions by virtue of their status as a bank. for the first time, we see evidence of some differentiation of treatment between banks and regular companies. meanwhile, the accepting houses committee – a collection of merchant banks with accounts at the bank – had by this point grown in stature as an association that represented banks of good standing with the implicit backing of the central bank. during the 1950s, and in exchange for the extension of this privileged status, the banks accepted a measure of consultation in order to reassure the bank that their name was still good. this often took the form of a monthly meeting with the governor to discuss the firm ’ s balance sheet, and it was in this setting that the bank formed an idea of the level of hidden reserves ( or excess capital in modern parlance ), something that would otherwise go undisclosed in the firm ’ s public accounts. the bank had some guidelines on the metrics it would tolerate - for example, there was an expectation that about one - third of deposits plus one - fifth of acceptances should be matched by liquid assets. and the bank showed willing when it came to enforcing this, though notably only through moral suasion rather than any formal sanction. the governor would sometimes meet the prospective leader of a bank should there be a change in leadership, and he would expect to be notified of any significant transactions, a fact that samuel montagu ( whose business is part of hsbc ’ s private banking arm today ) was sharply reminded of in 1957 when he reportedly neglected to update the governor on a potential m & a deal. overall though, much of this interaction was based on courtesy rather than any expectation that the bank ’ s approval was a pre - requisite or necessary. there

##f will consider these issues as part of its planned review of recommendation 16 on wire transfers, to improve consistency and usability of message data, and enable more effective aml / cft checks. it will also continue efforts to promote consistent implementation of the travel rule for virtual assets. the new fsb industry taskforce on legal, regulatory, and supervisory matters, chaired by carolyn rogers from bank of canada, will help move the conversation forward in these areas. we hope to harness expert input from industry and provide guidance, working with national authorities and the international standard - setting bodies. continued collaboration improving the payments infrastructure will only be possible through successful collaboration. as policymakers and operators, we can improve the policies and core infrastructure to provide solid foundations for private innovation. the private sector needs to build on this to help deliver cheaper, faster, more transparent, and more accessible services to their customers. the new industry taskforces will play an important role. but this needs to be complemented by strong dialogue and actions in individual jurisdictions : exploring improvements to the domestic payment infrastructure, using the globally agreed frameworks. firms will likely need to continue to invest in their payments technology to be ready for upgrades to payment systems : such as the move to iso 20022. the industry taskforce on payment system interoperability and extension are developing a handy checklist to support firms on this journey. and importantly, firms should consider how to make the most of these changes. iso 20022 will make a big difference to cross - border payments : but it also offers a wealth of other opportunities, which the individual firms can benefit from. while the roadmap is a g20 - led initiative, the targets are international, and our goal is to improve payments across all countries and payment corridors. making progress therefore depends on sharing best practice widely and achieving change worldwide. to that end, the world bank and imf, along with the g20 central banks, are developing a technical assistance programme available to countries wishing to enhance their national payments infrastructure or policies. we have achieved a lot already but there is still more to do, and much more to gain. we have built the foundations and a framework to support a holistic set of changes. now we need to act and there is a role for everyone. i look forward to helping to smooth the path ahead in my role as a policymaker and a payment system operator. i hope that many of you will join and play your part in this exciting and transformational journey towards the