the smallest firms, representing 35 % of the firms we regulate, that fall outside the scope of solvency ii. we continue to support new firm authorisations, having authorised 26 new insurance firms since 2013. furthermore, we are exploring how we might improve our current authorisations approach to facilitate the entry of new insurers. some have expressed concern that the pra's focus on prudential matters may inhibit competition. i would argue that the opposite is true. prudential regulation is integral to competition. without minimum standards, all speeches are available online at www. bankofengland. co. uk / speeches policyholders would be much more exposed to the risks presented by imprudently run firms. an absence of prudent standards would enable less scrupulous firms to drive out better - managed firms by engaging in unsustainable pricing practices in order to gain a greater market share. this perversion of competition could lead to the failure of insurers to pay out claims and reputational damage to the wider uk insurance market. the collapse of a large insurer would also lead to higher prices for new consumers. this is because the financial services compensation scheme would need to be replenished by the surviving firms, who would in turn pass on these costs to their customers. robust prudential standards underpin the sustainability of the fund and reduce the potential need for taxpayer funds to compensate policyholders following a failure, as we have seen in the past. i am not therefore persuaded of the case for giving a primary competition objective to the pra. this would likely require the pra to pursue competition as an objective in its own right and enable it to use its powers for that purpose alone. it's difficult to say what specific activities this would entail for the pra. potentially, the pra would be given the same competition powers that sit with the fca, allowing the pra to undertake market studies with a view to introducing new rules with the specific aim of promoting competition. given the potential for overlap with the fca and the cma, which both have specific objectives to promote competition, i would be wary of taking this route. our secondary competition objective refers to competition, not competitiveness. this is an important distinction. competitiveness is usually taken to mean a firm ’ s ability to compete on cost or quality grounds. competition includes wider factors, for example : the range of firms competing in the market ; barriers to entry, expansion or exit

that result in sustained low inflation and positive real interest rates, this requires all constituencies to make adjustments. for example, if industrialists want significantly lower rates, they have to support efforts to improve loan recovery so that banks and bond markets feel comfortable with low credit spreads. the central and state governments have to continue on the path of fiscal consolidation so that they borrow less and thus spend less on interest payments. households will have to adjust to lower nominal rates, but must recognize that higher real rates make their savings more productive. they will find it worthwhile to save more to finance the enormous investment needs of the country. adjustment is difficult and painful in the short run. we must not get diverted as we build the institutions necessary to secure a low inflation future, especially because we seem to be making headway. the government has taken the momentous step of both setting a cpi based inflation objective for the rbi as well as a framework for setting up an independent data from household surveys also suggest that household financial savings are moving up. for example, two recent financial inclusion surveys for selected states in india – financial inclusion insights survey conducted by intermedia and the finscope survey implemented by the small industries development bank of india ( sidbi ) – suggest that among individuals “ who have a bank account ”, the fraction who saved through bank deposits increased from 60 % in 2013 to 98 % in 2015. of those who “ save money ”, the fraction saving through a bank increased from 67 % in 2013 to 93 % in 2015. of those who “ save money ”, the fraction “ saving at home ” has declined dramatically from 90 % in 2014 to 6 % in 2015. bis central bankers ’ speeches monetary policy committee. in the days ahead, a new governor, as well as the members of the committee will be picked. i am sure they will internalize the frameworks and institutions that have been set up, and should produce a low inflation future for india. the rewards will be many. our currency has been stable as investors have gained confidence in our monetary policy goals, and this stability will only improve as we meet our inflation goals. foreign capital inflows will be more reliable and increase in the longer maturity buckets, including in rupee investments. this will expand the pool of capital available for our banks and corporations. the government will be able to borrow at low rates, and will be able to extend the maturity of its debt. the poor will not suffer disproportionately due to bouts of sharp