Today, I want to quickly review the highlights of what has been achieved and then turn to four areas that need further work: leverage limits; bail-inable securities; core funding markets; and finally, risk disclosure, governance and culture.
– from –4.5% to –2.8% of GDP – the implied external deficit increased from –0.5% to –8% of GDP. To have avoided this scenario, the public balance would have had to be strongly in surplus – and no one at the time recommended this or thought that it was possible.