loan to were calibrated with a 2013 would have not transparency exercise ) reduce uk mortgage ’ observed in other value ( based on eba flat correlation factor of indexed loan to value european countries for benchmarking exercise 20 % and not 15 % ( i. e. if house price had their national in 2018 ) mortgages in that year stayed constant since 2013 ) source : eba transparency exercise 2016, eba benchmarking exercise 2018 ( article 78 of the crd ), and bank of england ’ s calcula tions. chart 8 : capital held against a recent margin loan exposure shows wide dispersion across firms source : bank of england note : box and whisker plot of margin loan rwa data. whiskers denote 0 % ( the minimum ) and 100 % ( maximum ) value. edges of box d enote 25th percentile ( rwas 11 % of exposure ) and 75th percentile ( rwas 91 % of exposure ). horizontal line denotes 50th percentile ( rwas 26 % of exposure ) all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches / default. aspx chart 9 : leverage ratios in 2018 could be lower if we measured activity such as collateral swaps differently impact of measuring activity differently on aggregate leverage ratio of sample banks 6 % 5 % 5. 34 % 0. 53 % 0. 68 % 0. 11 % 4 % 4. 02 % 3 % 2 % 1 % 0 % current leverage ratio ( reported ) collateral swaps netted repo synthetic pb leverage ratio ( incl. all potential'missing'leverage ) impact using worst case assumptions source : bank of england note : banks in sample include large uk banks and large overseas investment firms all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches / default. aspx

scanning the horizon speech given by sam woods, deputy governor for prudential regulation and chief executive officer, prudential regulation authority at the building societies association, london friday 24 may 2019 i am very grateful to heena samani and the horizon - scanning team for their help in preparing this speech. all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches it ’ s a real pleasure to be invited to join you at what i know is a very important birthday for the building societies association ( bsa ). the bank of england is even more ancient but i think it ’ s very impressive for a trade association to make it to its 150th year. i can think of various ways to celebrate this. perhaps, given recent developments in longevity, we could ask robin to keep serving until his 150th year? or you could write to new - born trade associations such as uk finance and offer them some mentoring, which i ’ m sure stephen jones would be delighted to accept. or i could give you a really valuable gift by cutting my speech in half and releasing you early for some extra caffeine! at any rate, given the significance of the occasion i am not surprised to see such a full room this morning. in fact it reminds me of another meeting i recently took part in at the pra, in a room we call the “ auditorium ” at 20 moorgate. the room was absolutely jam - packed with staff from the pra and the wider bank – standing room only, in fact if one more person had entered it would have been a clear health and safety breach. my colleague vicky saporta was in the chair, and this was a tough job : arguments raged, data was questioned, competing views were offered and challenged. why so much excitement at the pra? after all, boring is good in our line of work. were we perhaps having our own private brexit debate, with vicky in the role of speaker? were we changing our pension scheme, which is in my experience the only topic that gets people hotter under the collar than brexit? or were we picking next year ’ s charity of the year? none of the above. this was a meeting on what we call “ horizon - scanning ”, which we have made a strategic priority for the pra as we come out of the post - crisis reform period. what is this activity? why have we made it a priority? and why does it