openness and integration – the new finance and new economy in a global context speech given by dave ramsden, deputy governor for markets & banking bund summit, shanghai 27 october 2019 with thanks to cormac sullivan for his assistance in preparing these remarks and to ashley collins, tom mutton, niamh reynolds and tom smith for their helpful comments and suggestions. all speeches are available online at www. bankofengland. co. uk / news / speeches intro it is my great privilege to address you today. i would like to extend my sincere thanks to the china finance 40 forum, huangpu district government and the shanghai finance institute for the opportunity to address this esteemed summit. i am here speaking on behalf of the bank of england, the uk ’ s central bank, where i am the deputy governor with responsibility for our financial markets and banking policy and operations, a key element of which is fintech. china and the uk are both leading global centres of financial innovation. we share economies where commerce is rapidly becoming digital and financial systems are evolving in response. we share populations that are increasingly open to new finance providers and new financial products. we also share a common goal of ensuring regulators manage and regulate appropriately, to ensure the financial system remains sound, both domestically and globally. the uk financial sector is a national asset and a global public good. our strong partnership with our chinese colleagues is at the heart of that. i am delighted to be here with colleagues from leading british investment banks and the london stock exchange : examples of uk financial institutions supporting the needs of global clients and delivering the type of open financial flows the global economy needs. internationally the uk books more international banking business than anywhere else and over 40 % of global foreign exchange and interest rate derivative business. we are also home to the second largest global asset management and fourth largest insurance centre. at the bank of england, we want to support the financial sector to realise the full promise of new technology, so it is deployed safely and for the benefit of our people. we see our role as providing robust but dynamic regulation that is appropriate for emerging innovations. in june, we published a series of commitments setting out how the bank could support the economy and the financial system of the future. 1 we know that all of these action areas will benefit from collaboration with international partners and learning from international best practice. today, i want to use this opportunity to explain what steps the bank of england has taken in its approach to fintech, and share a few

the euro as an international currency. furthermore, with regard to the greek issue, there was genuine consensus within the eurogroup that greece had to respect the rules of the game of economic and monetary union ( emu ). the crux of the debate chiefly concerned the tension between the democratic legitimacy of an elected government and that of its european creditors, which also need to be accountable to their citizens regarding the fate of their loans or in granting a new support package. an agreement was signed in august and it is important for the new greek government to implement it in a forceful way with a view to quickly re - establishing confidence and enabling the greek economy to recover. that said, the greek crisis also highlighted the need to simplify the governance of the euro area. this experience demonstrated, for example, that decision - making by simple majority within a common institution such as the ecb is more efficient and faster than intergovernmental decision - making and that it is necessary to strengthen the convergence of the euro area economies and facilitate the completion of economic and monetary union in the spirit of the “ five presidents ’ report ” published in june this year – editor ’ s note : composed of donald tusk ( european council ), martin schulz ( european parliament ), jean - claude juncker ( european commission ), jeroen dijsselbloem ( eurogroup ) and mario draghi ( ecb ). bis central bankers ’ speeches to what extent can the ecb contribute to strengthening the international status of the euro? while the prospect of seeing the euro play a substantial international role alongside the dollar may have been considered by some as a motivation for its creation, its promotion does not feature anywhere in the treaty. likewise, on monetary issues, the ecb ’ s primary mandate is to maintain price stability. we neither encourage nor discourage the international role for the euro, which continues to be essentially determined by the markets. that said, progress towards a genuine financial union, with better connected capital markets, could indirectly support their depth and liquidity and, in doing so, the international role of the euro. even if this strengthening of the euro were not an aim in itself, it would attest to the continued confidence of the rest of the world in the single currency, but also to the success of the european union in completing emu. bis central bankers ’ speeches