Building upon these initial studies, the Committee has started extending its analysis to establish a comprehensive picture: for the trading book, the initial analysis has been extended to more complex portfolios, with results expected in the next few months. In parallel, the work on the banking book will extend to the other remaining core asset classes, especially retail portfolios, SMEs and so-called “partial use” exposures (ie exposures that  4  BIS central bankers’ speeches  have not been migrated to the internal models). The Committee also foresees extending its work to operational risk, the third core risk type. And once the Committee has done an initial round of assessment, we will need to repeat the exercise periodically to see whether the policy measures that I will discuss shortly are having the desired impact. Further analysis to establish a comprehensive picture will take us into 2015, but this does not, of course, prevent us from taking action in the meantime. It is clear that a problem exists and the Committee is considering a range of supervisory and policy responses – without, I must add, settling on anything definitive just yet. Given the multi-faceted nature of the problem, it is also clear that we will need a multi-faceted response. As there is no silver bullet, we will likely end up with a series of incremental policy and supervisory changes, drawing from the following list:   Most immediately, we will see supervisory action.
But nowadays, London's role depends mainly on making markets and providing financial services in foreign currencies, like the dollar. That means that London continues to thrive only by remaining internationally competitive. And I should add that we in the Bank of England take a close interest in this. Maintaining the stability of the financial system and the effectiveness of the UK's financial services are key objectives for us. The City is a centre of innovation and excellence London is internationally competitive, because it acts as a centre of innovation and excellence, in a whole range of complementary ways. •  London has a vast, critical mass of markets and financial services in commercial and investment banking, securities and derivatives, fund management, insurance and commodities. •  London has a long track record of innovation, and a ready availability of financial skills and professional support services in law, accountancy, tax, property and communications. More than 300,000  •  people work in financial services in London, and nearly a further 600,000 work in the supporting professions and services. •  London is at the forefront of technology, with an effective financial infrastructure. •  London has a reputation as a 'clean' market, and it has a commitment to openness in welcoming foreign firms. There is a genuinely level playing-field for foreign firms, with no overt or covert advantages given to domestic institutions. •  And in London, we have a non-bureaucratic but rigorous approach to regulation.