My Lord Mayor, Ladies and Gentlemen:
Five years ago, at this same dinner and just before the crisis began, I quoted a banker who had said to me, “I cannot recall a time when credit was more easily available”. Today, the sentiment is exactly the opposite. Over those five years, the authorities around the industrialised world have thrown everything bar the kitchen sink at the problem – record low interest rates, unprecedented operations to flood financial markets with liquidity, fiscal forbearance which allowed budget deficits to reach record levels, and a raft of reforms to the structure and regulation of banking. Yet the calls for more and bolder action continue. So tonight I want to reflect on the challenges posed by a banking system that has not yet returned to full health and vigour and on the case for further action to stimulate our economy.
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