Conclusion Looking ahead, globalisation will likely work if we widen the horizon that touches positively on all segments of society. Negative spill-overs are likely unavoidable. But it is incumbent upon us to formulate policies and give greater attention to those most adversely impacted by this process. Kofi Annan compared globalisation to gravity. With weightlessness, astronauts experience intense dizziness and lose their sense of orientation. Without gravitational pull, their bones weaken, ligaments deteriorate and muscles atrophy. The same can be said about the force of globalisation – without it, economies weaken, relationships deteriorate and growth atrophies. Globalisation is slowly but surely solidifying our shared future as one global nation of states. It is our collective responsibility to strengthen and sustain the state of this nation for the benefit of future generations. 4/5  BIS central bankers' speeches  Let me end here by thanking the eminent speakers and participants for being here, and I look forward to hearing your views. I hope that you will also take some time during your stay here to enjoy the diversity of our country. Thank you. 5/5  BIS central bankers' speeches
That put excess upward pressure 4 BCBS report on “Early lessons from the Covid-19 pandemic on the Basel reforms”. 5 FSB report on “Lessons learnt from the Covid-19 pandemic from a financial stability perspective: Interim report”. 6 See statements made by the PRA, FPC, European Central Bank (ECB) and BCBS early on during the Covid-19 pandemic. 7 See October 2020 speech by Randal Quarles: “Lessons from Covid-19 stress on the financial system”. 4  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  4  on requirements. And firms’ liquidity positions were initially worsening, including as they fulfilled debt buyback requests whilst supporting an increase in credit facility drawdowns. We were worried that the combined effect of these concerns would mean that banks either did not have enough resources to support the economy through the Covid period and the recovery from it; and/or that, even if banks did have enough resources, they would nevertheless act in a procyclical way by hoarding liquidity and restricting lending for precautionary reasons, amplifying the standard cyclical effects of the shock. This underpins the prudential actions I noted earlier. Recap on buffers As indicated earlier, an important feature here is the presence of various regulatory buffers in the framework that the Basel Committee introduced after the financial crisis. These are intended to absorb the effects of stress and ensure that banks can continue to lend to support households and businesses: it is our expectation that they will be used as necessary to support the economy.