Chart 6: Major UK banks’ regulatory capital, MREL resources and requirements, % RWA (2011-2022) End-state requirement  2014: UK bail-in power introduced T1 + other total capital resources (~T2)  MREL resources  Interim requirement  35% 30% 25% 20% 15% 10% 5% 0%  2011 2012 2013  2016  2020  2022  Sources: FSA regulatory returns, MREL+ returns, Bank calculations  43  All speeches are available online at www.bankofengland.co.uk/speeches  43  Chart 7: G-SIB and D-SIB high-quality liquid assets (liquid asset ratio) Per cent  14 12 10 8 6 4 2 0  2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total GSIBs DSIBs Sources: S&P Capital IQ and Bank calculations Notes: Weighted average based on a sample of 189 banks which are systematically important as of 2016. Yearly is defined as the fiscal year of reporting of the individual banks. Liquid Asset Ratio = (Cash equivalents + government securities)/Total assets  Chart 8: G-SIB and D-SIB loan-to-deposit ratio Per cent  3 2.5 2 1.5 1 0.5 0  2006  2007  2008  2009  2010  2011  Total  2012 GSIBs  2013  2014  2015  2016  DSIBs  Sources: S&P Capital IQ and Bank calculations Notes: Weighted average based on a sample of 189 banks which are systematically important as of 2016. Yearly is defined as the fiscal year of reporting of the individual banks. Loan to Deposit Ratio = Loans granted by a bank/Stable deposits received.
Rethinking Financial Stability Speech given by Andrew G Haldane, Chief Economist, Bank of England Co-authored with David Aikman, Sujit Kapadia and Marc Hinterschweiger(1)  ‘Rethinking Macroeconomic Policy IV’ Conference, Washington, D.C. Peterson Institute for International Economics 12 October 2017  (1)  All Bank of England. The views expressed in this paper are those of the authors, and not necessarily those of the Bank of England or its committees. We are grateful to Andrew Bell, Alex Brazier, Paul Brione, Marcus Buckmann, Oliver Bush, Patrick Calver, Shiv Chowla, Sebastian de-Ramon, Stephen Dickinson, Nic Garbarino, Andrew Gracie, Amit Kothiyal, Antoine Lallour, Katie Low, Damien Lynch, Clare Macallan, Alex Michie, Ali Moussavi, Casey Murphy, Tobi Neumann, Simon Pittaway, Amar Radia, Ani Rajan, Katie Rismanchi, Fiona Shaikh and Tamarah Shakir for comments and contributions. Philip Massoud and Karam Shergill provided excellent research assistance. 1  All speeches are available online at www.bankofengland.co.uk/speeches  Introduction  The theme of this conference is “Rethinking Macroeconomic Policy”. When it comes to financial stability, that theme could hardly be more appropriate. The global financial crisis has been the prompt for a complete rethink of financial stability and policies for achieving it. Over the course of the better part of a decade, a deep and wide-ranging international regulatory reform effort has been underway, as great as any since the Great Depression. On cost grounds alone, a systematic rethink and reform of regulatory standards has been fully justified.