[5] That is why the PRA sets out clear expectations for firms wanting to branch into the UK. [6] It is why we build trusted relationships with supervisors in other jurisdictions, supported by a growing number of Memorandums of Understanding. [7] It is why the Bank provides support for the Government’s work pursuing free trade agreements with financial services chapters, and bespoke mutual recognition agreements, that facilitate safe access to overseas markets for UK firms. [8] And it is why we recognise that prudential regulation mustn’t create barriers that stop global talent working in UK firms whilst at the same time failing to advance our primary objective. For that reason we are reforming remuneration rules, starting with a consultation on removing the bonus cap. [9] As well as openness, we are acting to strengthen the UK as a global financial centre by providing a predictable and stable regulatory environment. This makes it easier for all firms – domestic and international – to do business here. We’ve improved the way we communicate. The Bank and PRA now work with six other regulators to produce a regulatory grid setting out our plans in one place. [10] And we are developing a new UK rulebook that will be easier to navigate than the labyrinth of regulations – many of them EU rules – we are replacing. [11] I should reassure you that stable and predictable regulation doesn’t mean static regulation. Innovation is one of the UK’s strengths.
We will tailor rules to UK circumstances when that is appropriate and when we can do so in ways that maintain trust. We are working hard to deliver this plan. That is why I am able to use this occasion to announce the publication of two consultation papers proposing tailored liquidity, disclosure, reporting and remuneration rules for small banks and building societies. These proposals show how we can use our rule making powers in ways that are good for competitiveness and growth. We are also today publishing analysis of the impacts of previously announced proposals. This analysis is about how our proposals will narrow the gap between capital requirements faced by large and small mortgage lenders. This analysis will feed into policy development work to simplify capital requirements for smaller banks and building societies. I’ll conclude by launching a conference we will hold in September to deepen our understanding of the links between prudential regulation, international competitiveness, and growth. At that  Page 3  conference we will share ideas about how we can provide information (including appropriate quantitative metrics) that Parliament can use to judge our performance. How finance supports competitiveness and growth Competitiveness is a complicated economic concept which doesn’t have a uniformly accepted, text-book definition. [1] The impact of finance on economic prosperity is well understood, but there is little research that can help us understand the contribution of prudential regulation to growth through the channel of international competitiveness. [2] So I and my colleagues have been thinking hard about these concepts.