This competition of rulesets may even foster institutional innovation and diversity and may contribute to stability. Rather than clinging to an almost somewhat anachronistic point of reference, we must explore new approaches. And that is why we need constructive proposals from all sides, including the industry. UK Finance has tabled a proposal as well, and I welcome the effort.
While the ability of small businesses to find alternative sources of funds is considerably greater today than in the 1930s, and will likely be even greater in the future than it was in the early 1990s, such arguments do reinforce the importance of the connection between macroeconomic and bank supervisory policy.