bank balance sheet responses to the covid - 19 shock during 2020 changes in components of central bank balance sheets since end - feb 2020 ( as % of 2019 nominal gdp ) sources : bank of england, bureau of economic analysis, european central bank, eurostat, federal reserve board, ons and bank calculations. ( a ) bank of england lending operations shown here : indexed long - term repo, contingent term repo facility, us dollar repo operations, liquidity facility in euros, term funding scheme and term funding scheme with additional incentives for smes. bank of england asset purchases shown here : asset purchase facility and covid corporate financing facility. ( b ) ecb lending operations : lending to euro - area credit institutions related to monetary policy operations denominated in euro. ecb asset purchases : securities held for monetary policy and other purposes. ( c ) federal reserve lending operations : repurchase agreements, loans and net portfolio holdings of talf ii llc. federal reserve asset purchases : securities held outright. section of chart lying below the zero line from mid - 2020 reflects a decline in repo outstanding relative to end - february. despite their success in the unparalleled circumstances of covid, these actions provide only limited guidance as to how central banks might best respond to future instances of market dysfunction driven by the more structural trends i outlined at the start of my remarks : - they were one - way purchase operations of relatively long - duration assets – so they were not preprogrammed to unwind or self - liquidate when core market functioning returned, as it did by the late spring of 2020. central banks were ‘ buyers of last resort ’ more than ‘ market makers of last resort ’. - purchases typically took place at prevailing market prices : ie the bagehot principle was not applied. 22 while not charging an ‘ insurance premium ’ to market participants for an extended period may be understandable in a severe unexpected pandemic, it would be harder to justify providing arguably this was not true at the very height of the dysfunction, when central banks were buying at prices well below pre - stress levels. but this behaviour was not expected by the market ex ante, and prices of government securities in most markets bounced back rapidly following the initial central bank interventions. all speeches are available online at www. bankofengland. co. uk / news / speeches and @ boe _ pressoffice market participants with an expectation of similarly - priced public support if market dysfunction occurred because

and more time being ready for the worst that could happen when things do. and we are burying. the cornerstone of an anti - fragile financial system is literally planning for failure. remember : plan beats no plan. that means resolution plans for banks ; crisis management groups for 30 gsibs ; and having banks building sufficient internal resources to recapitalise themselves if something goes wrong. large uk banks have already built their total loss absorbing capital to 25 % of risk weighted assets. and major uk banks are on track to complete by january next year the separation of their domestic high street businesses into ‘ ring fenced banks ’. * * * * * * * * * * * ambition. purpose. clarity. and humility. not all of these qualities are ever visible in any leader, certainly never at the same time. but if you keep them in mind, they will be seeds that the exercise of leadership will germinate. and their growth will benefit both you as the leader and those you lead. iv. conclusion : leadership in a disruptive age your opportunity is enormous. you will assume the mantle of leadership at a time of unprecedented globalisation of trade, capital and ideas ; and at the dawn of the fourth industrial revolution. the deepening of the symbiotic relationship between global markets and technological progress has already lifted more than a billion people out of poverty, while a series of technological advances have fundamentally enriched our lives. globally, since 1960, real per capita gdp has risen more than two - and - a - half times, average incomes have begun to converge, and life expectancy has increased by nearly two decades. despite such immense progress, many citizens in advanced economies are lamenting a loss of control and losing trust in the system. to them, measures of aggregate progress bear little relation to their own experience. rather than a new golden era, globalisation is associated with low wages, insecure employment, stateless corporations and striking inequalities. the fundamental challenge is that, alongside its great benefits, every technological revolution mercilessly destroys jobs and livelihoods – and therefore identities – well before the new ones emerge. carney, m all speeches are available online at www. bankofengland. co. uk / speeches moreover, recently, we have seen the power of networks to divide as well as to connect. social media can reinforce our tendency towards confirmation bias as we search out the information consistent with our priors and disregard that which is not. how to lead