But we would, in my view, have had a much better chance of a more orderly, less damaging correction of an overleveraged banking system.” 5 Available here. 3  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  3  The FSB highlighted that greater transparency would support the credibility of reforms already made, and that it would continue to encourage appropriate levels of disclosures on resolvability from authorities. The Bank led the way on efforts to increase transparency in the publication of its Approach to Resolution in 2014.6 A credible and transparent resolution regime is in firms’ interests, further increasing the resilience of the UK banking system by reducing systemic risk and giving the public and investors confidence that any failure, should it occur, will be orderly. To somewhat quantify this benefit: in December 2019 the Financial Policy Committee (FPC), of which I am a member, reaffirmed its 2015 judgement that effective resolution arrangements reduce the appropriate level of Tier 1 capital requirements by about 5 percentage points for the UK banking system.7  The benefit is quantifiable in market pricing too. The hidden subsidies given to the largest banks have been reduced; estimates of the value of these implicit subsidies to UK bank shareholders fell from c. £ in 2010 to less than c. £ at end-2016. This was also corroborated in the FSB Consultation Report, which noted that the funding cost advantages enjoyed by SIBs are negatively correlated with the degree to which resolution reforms have been implemented.
But as far as other durables are concerned, the pace of new buying has meant that the stock of them, relative to income, has been rising and is now significantly above average. This suggests that the current pace is unlikely to be maintained indefinitely (there are only so many cars and cookers you need). Chart 10. Shipping congestion has intensified in recent months though cost down a bit 80  Dollars (thousands)  Days  75 70  Chart 11. In the UK, recovery of consumer-facing services output suggests demand is rotating back, but some sectors lag behind Per cent change on 2019Q4  20  Average number of days (lhs)  18 Average freight rate (rhs)  16 14  65  12  60  10  55  8 6  50  Retail goods Hotels and restaurants Travel  4 45 40 Nov 18  2 Nov 19  Nov 20  Nov 21  Average number of days: end-to-end (factory to warehouse) shipments between China and the US. Average freight rate: shipments from China/East Asia to North America West Coast. Sources: Freightos.com and Freightos Baltic Index. Jan 20  Jun 20  Nov 20  Apr 21  20 10 0 -10 -20 -30 -40 -50 -60 -70 -80 -90 -100  Sep 21  ‘Retail goods’ series is retail sales in volumes. The other series are output measures. Sources: ONS and Bank calculations.