itself better positioned, in most states of the world, to weather bad times. launched in 2011, “ the network of networks ” ( tnon ) serves as both a forum for sharing best practice and a support community for the leaders of employee networks. further information can be found online here : http : / / www. tnongroup. com / see mark carney https : / / www. bankofengland. co. uk / speech / 2019 / 50 - note - character - selection - announcement all speeches are available online at www. bankofengland. co. uk / news / speeches it turns out the same thinking can be applied to a company ’ s workforce. instead of equity capital you have human capital, and instead of investing in financial assets you are investing in people. a diverse portfolio makes a company more resilient, and so too does a diverse workforce - delivering better outcomes for individuals, communities and the company. as we look ahead, changes in society mean the workforce of the future will be markedly different from that of today. recent surveys have found that just short of half of 18 - 24 year olds identify as something other than exclusively heterosexual or homosexual3, and a similar proportion of millennials view gender as a spectrum4. these individuals are in and entering the workforce now. if we are to reflect the society we serve and in so doing attract the best talent, we need to make sure they know that they can bring their whole selves to work : that they belong. so the case for a diverse workforce is clear5. what many of us struggle with is how to attract, develop and maintain such a workforce. unfortunately, diversity does not, in our experience, emerge organically at the workplace. it needs to be nurtured from recruitment to development and promotion. and it must be underpinned by an inclusive work environment for it to be sustainable. how we can support lgbt + colleagues the question we have been considering is what might this mean for lgbt + colleagues given the challenges they face - some of which are unique, while others are common to many minority groups. being open with colleagues is an example of a particular concern within the lgbt + community. individuals can find revealing their sexual orientation and gender identity or expression difficult or even distressing in a workplace setting. and it is a process they may need to repeat endlessly given these characteristics are not always visible. according to a report by stonewall6, more than a third of lgbt + colleagues

targeted at those sectors where the risks are most material, then not only is resilience increased but it also encourages substitution towards safer forms of lending and thus has a pre - emptive character. finally, there are tools that directly target borrowing, such as loan - to - income or loan - to - value caps, and restrictions on the share of banks ’ portfolios that can be allocated to high loan - toincome or loan - to - value lending, as recently introduced by the reserve bank of new zealand. by acting directly on the riskiest segments of lending, such tools are more obviously pre - emptive in nature. importantly, while monetary policy is well - suited to dealing with the problems that arise from sluggish wage and price adjustment, a good macroprudential tool will be one that is well targeted at dealing with a particular financial market failure, such as the underestimation of risk. to see, in a highly stylised way, how monetary and macroprudential tools can be combined, as well as the appropriate instrument assignment, consider first chart 8. the left - hand panel is relatively conventional and portrays the market for goods and services. is is an aggregate demand schedule, with demand a decreasing function of both the policy rate, r, and a macroprudential instrument, k. pc is an expectations - augmented phillips curve, in which inflation expectations are assumed to be anchored at the inflation target. 6 for any given set of shocks to aggregate demand and supply, the inflation target can be achieved by the set of pairs of r and k along the downward sloping schedule ps ( for price stability ) in the righthand diagram. an increase in demand resulting from, say, an increase in the propensity to invest, would shift this schedule out to the right. in the literature, credit frictions and macroprudential policies can also affect potential output ; see for instance vasco curdia and michael woodford ( 2010 ), “ credit spreads and monetary policy. ” journal of money, credit and banking 42 ( s1 ), pp3 – 35. for simplicity of exposition, i abstract from such effects here. bis central bankers ’ speeches turn now to the credit market. conventional macroeconomic analyses of the market for loanable funds tend to focus on the flow of funds from saving households to businesses undertaking capital expenditures. but, as chart 9 makes clear, such lending constitutes only a small fraction of the assets held by uk banks