*  *  Introduction  Dear Professor Goodhart, Dear Charlie Bean, Ladies and gentlemen Thank you very much for inviting me to speak here today. It is a great honour to give a public lecture at the LSE and the Financial Markets Group Research Centre, which truly is one of the leading European centres for academic research into financial markets.
In my speech tonight I will outline the status quo in the banking sector and the most pressing challenges. “Shaken but not stirred” might be an accurate description of its present state, which still presents many challenges.