david clementi : current threats to global financial stability - a european view speech by mr david clementi, deputy governor of the bank of england, to the british - american chamber of commerce, new york, on 22 january 2001. * * * introduction it is a great pleasure to be here in new york. i was last at a british chamber of commerce meeting towards the end of 1998 when i talked about the readiness of london for the arrival of the euro. my message then - that while the uk might be outside emu, the city of london was very much part of the euro area - has been borne out by events. london remains by far the largest financial centre in europe and the most international. nowhere has a larger concentration of foreign banks, or greater daily turnover in foreign exchange and derivatives or trading in foreign shares. and much of the new business in euro is conducted through london. the majority of euro - denominated debt is issued in london ; and more than a third of deals on the london stock exchange take place in euro. us financial organisations, many of them represented here tonight, make a significant contribution to this success. this evening i would like to address two rather different subjects. the first is to reflect on recent developments in the us economy and the potential impact this has for the uk and for the stability of the financial system more generally. i would then like to say a few words about the proposed revisions to the capital requirements for international banks, announced last week by the basel committee ; not just because it is topical but also because these capital requirements are central to the stability of the system and its capacity to withstand shocks ; and as cautious central bankers it is important to take stock from time to time. us & uk economic ties as a very open economy, and one with close trade and investment links with the us, especially in the financial sector, the uk is a keen observer of events here. while much has been made in recent years of globalisation, the links between the us and uk are long - standing and deep - rooted, not least in the financial sector. for many years us financial institutions have been among the biggest players in the city. us firms take the top three positions in london as bookrunners in international bond and equity issues, and as arrangers of syndicated credits. through their dynamism and innovation, us firms also play a major role both in maintaining london's pre - eminence as an international financial centre and as a potent force for strengthening

andrew bailey : post crisis reforms – the lessons of balance sheets speech by mr andrew bailey, deputy governor of prudential regulation and chief executive officer of the prudential regulation authority at the bank of england, at the international financial services forum, dublin, 27 january 2016. * * * thank you for inviting me to speak this morning. we are approaching the ninth anniversary of the beginning of the global financial crisis. and we are still talking about it ; but not just talking, also publishing books, reports, holding conferences and of course releasing films. there is no doubt more than one reason for the continued interest in the crisis, but as public officials charged with putting into place the measures to prevent a repeat and thus produce a more stable financial system, the work is still in progress and thus for us very much a matter of debate. today, i want to put that work into perspective, looking at banks and the wider financial system. i am going to organise my comments around something very basic to the system, the balance sheets of banks. it is a striking fact, that the combined balance sheet of the major uk banks increased by around fourfold between 2000 and 2007. that ’ s a stark fact : yes, there was an accounting change in that period, but still this was a massive change. and other countries often matched that change – the story of ireland is sadly well known. let me stop the story of the past for a moment and draw out one message : when we hear people say things like, “ credit isn ’ t back to pre - crisis growth rates ”, “ there is a gap in the stock of credit to the economy relative to the pre - crisis trend ”, “ the level of national output is this much lower than it would have been had the crisis not intervened ”, “ banks ’ so - called market making in financial assets is much less than it was immediately pre - crisis ”, just pause and consider that all of these statements imply that the pre - crisis years were sustainable. they were not. let ’ s turn to the balance sheet of banks in a little more detail, starting with the liabilities side. in this respect, banks are different from other firms because they provide deposit contracts. a deposit is a very particular form of debt contract. for all of us the essential feature of a deposit contract is simple – we put our money ( our asset ) on deposit at a bank, and we expect all of it back, with whatever rate of return is agreed,