Enable, Empower, Ensure: A New Finance for the New Economy Speech given by Mark Carney, Governor of the Bank of England Speech at the Lord Mayor’s Banquet for Bankers and Merchants of the City of London at the Mansion House, London 20 June 2019  I am grateful to Jennifer Nemeth and James Benford for their assistance in preparing these remarks, and to Julia Kowalski, Tom Mutton, Varun Paul, Simon Scorer, Oliver Thew and the Climate Hub team for their help with background research and analysis. 1  All speeches are available online at www.bankofengland.co.uk/news/speeches  New Economy – New Finance There’s a new economy emerging driven by changes in technology, demographics and the environment. This new economy requires a new finance. A new finance to serve the digital economy. A new finance with products that are more cost effective, better tailored, and more inclusive. A new finance to support the transition to a sustainable economy. A new finance that balances innovation with resilience. With its leadership in fintech and green finance, the UK private sector is creating the new finance, but your efforts will be more effective with the right conditions in which to innovate and the level playing fields on which to compete. New Finance - New Bank That’s why a new finance demands a new Bank of England. Our strategy is to enable innovation and to empower competition, while ensuring monetary and financial stability.
22 The shrinking of the spread around July 2017 is related to concerns in the bill markets about the impending  debt limit. Again, this is an example of a change in the perceived money-like characteristics of a particular asset (in this case, Treasury securities maturing in the so-called “red zone”) changing the asset’s price. 23 The minutes to the November 2016 FOMC meeting report on a Committee discussion about its long-run  operating framework. At that meeting most participants did not indicate support for using the balance sheet as an active tool for financial stability purposes, although a few expressed support for undertaking further study of this possibility. 24 More details on the current operating system can be found in the New York Fed’s annual reports on domestic  open market operations for 2015 and 2016. 25 Since, prior to the crisis, the Federal Reserve did not remunerate reserves, it needed to maintain tight control on  the supply of reserves and other liabilities to achieve its interest rate target. For a discussion of the benefits of separating interest control from the supply of money-like assets, see Todd Keister, Antoine Martin, and James McAndrews, “Divorcing Money from Monetary Policy,” Federal Reserve Bank of New York Economic Policy Review 14, no. 1, September 2008. 26 Primary dealers and market participants were asked to estimate the average level of the Federal Reserve’s  liabilities in 2025 under the assumption of no return to the zero lower bound between now and then.