I am confident the banking industry will use this moment to identify the best opportunities to restructure and improve its performance and expand its activity, thus reassuming its role as the engine for the country’s economic development. Thanking you for the invitation, I would like to wish you all good health and a prosperous and successful New Year! Happy New Year! 2  BIS central bankers’ speeches
Indeed, the moral for me of recent failures and near-failures is not that resolution is misguided and will not work, but that it will not work if firms are not regulated and supervised in a way that makes them resolvable. This is the story of the last five years. We have focussed on organising firms in such a way that authorities’ resolution powers can be used without significant adverse consequences for the rest of the financial system or the wider economy. This moves us progressively to where we want to be against risk appetite. And though we are not yet where we finally need to be, what has been done has already yielded significant benefits. For 3  example rating agencies have largely removed government support uplifts to bank’ credit ratings. Where UK firms have come under stress, our resolution arrangements have been one factor that has helped secure recovery. Today I want to review where we are on the journey: what has been done and what is left to do. I want to focus in particular on three topics:  1  See FSB ‘Declaration on Strengthening the Financial System – London Summit’ (2009) http://www.fsb.org/wpcontent/uploads/london_summit_declaration_on_str_financial_system.pdf and FSB ‘ Leaders’ Statement the Pittsburgh Summit’ (2009) http://www.fsb.org/wp-content/uploads/g20_leaders_declaration_pittsburgh_2009.pdf 2 See FSB ‘Key Attributes of Effective Resolution Regimes for Financial Institutions’ (2014) http://www.fsb.org/wpcontent/uploads/r_141015.pdf. 3 See S&P Global ‘An Illustrative Rating Path for a Systemic Bank In A Bail-In Resolution’ (2017) http://images.ratingsinfo.standardandpoors.com/Web/StandardPoorsRatings/Illustrative%20Rating%20Path.pdf.