are needed, the exact calibration, and the timing of any implementation. four points stand out so far. first, there is a strong prudential case for some minimum expectations on model risk - weights. given the capital held on modelled mortgages that stems from risk - weights has decreased by more than a third in the last decade, you should not be surprised to hear me say this. second, in addition to the prudential benefits, such floors should in my view benefit competition between larger firms on modelled and smaller firms on nonmodelled approaches, an issue our competition team has been alert to for some time. third, however, it is not yet clear whether both floors are needed, or what exactly the right calibration is, as it is not the intention of the policy to significantly increase capital across all mortgage providers ; the new data we ’ ve received will help us expand our assessment on this point. finally, as we talked about earlier, the economic and operational environment we are in is somewhat unusual, and we will consider whether this has any implications for the implementation timelines of any final policy. conclusion 4 / 5 bis central bankers'speeches a rather ingenious member of my team at the pra came up with the title of “ mutual interests ” for this speech. at first i took an instinctive dislike to this title, clever though it is, because i worried it had a hint of collaboration, cosiness, or regulatory capture – all of which i consider to be pure poison for the regulator. but having thought about it further i have concluded that it is actually a pretty good summary of what i ’ ve been talking about today. with regards to mutuals, parliament has of course always given us specific instructions to consider the impact of our decisions on the sector. 6 but more broadly, as we now move into our future phase of rulemaking outside the eu, there will be even more opportunities for us to engage with all of our stakeholders, including industry and parliament. across strong and simple, the leverage and mrel reviews, and mortgage risk - weights we all have a very strong mutual interest in getting it right. i would like to thank thomas papavranoussis and other colleagues for their help in preparing this speech. 1 dp1 / 21 – a strong and simple prudential framework for non - systemic banks and building societies | bank of england 2 building strong and simple : the first step – speech by victoria saporta |

mark carney : £20 note character selection announcement speech by mr mark carney, governor of the bank of england and chairman of the financial stability board, turner contemporary gallery, margate, 22 april 2016. * * * though i ’ m surrounded by sublime art and architecture, typically for a governor of the bank of england, i want to begin by talking about money. throughout history money has come in many forms – gold and silver coins ; english “ tally sticks ” made of willow ; even stone disks of up to twelve feet in diameter, pocket change on the pacific island of yap. it ’ s true ; a yap stone makes up part of the reserves of the bank of canada. such variety has meant economists have struggled to define money. the nobel prizewinning economist, john hicks, simply wrote “ money is what money does. ” 1 wisdom or sophistry? there ’ s a bit of popeye or forrest gump in that. 2 but what does money do? to some, banknotes are mere “ barren tokens. ” 3 these meagre pieces of paper – soon to be polymer – of no intrinsic value, actually serve vital economic functions. they facilitate trade. they store value. they serve as a unit of account. as the soon - to - be replaced incumbent of our £20 note, adam smith, wrote, they are the “ universal instrument of commerce. ” 4 most fundamentally, money is memory. 5 money supplants the need to keep track of promises to exchange goods and services across time ; it is a simple, universal replacement for detailed record keeping. money is memory in another sense. it bridges time. the money we spend today could have been earned from past accomplishments or could be borrowed from future ones. money is also memory for a country and its people. money, after all, can be a piece of art in everyone ’ s pocket. far from being “ barren ”, our banknotes are a celebration of the uk ’ s heritage, a salute to its culture, a testament to the great achievements of its most notable individuals. in short, money has not just economic value ; it has cultural value. by depicting characters on our banknotes, we celebrate those who have advanced british thought, spurred innovation, shown exceptional leadership, shaped this diverse society and forged our common values. the great statesman sir winston churchill will feature on the next £5 note, unveiled on 2nd june, and issued in september, replacing the prison reformer