Paul Tucker: A new regulatory relationship – the Bank, the financial system and the wider economy Speech by Mr Paul Tucker, Deputy Governor for Financial Stability at the Bank of England, at the Institute for Government, London, 28 May 2013. *  *  *  Thank you very much for inviting me here today. For someone who has spent pretty much the whole of my professional life in public service, it comes as something of a relief that the UK has an independent institute dedicated to analysing, monitoring and assessing the workings of government. And, as a central banker during a period in which the role of central banks around the world is once again being reshaped in the wake of the financial crisis, I am very glad to be part of your series on the changing relationship between the State and business. Frankly, it has been impossible not to reflect on precisely that issue as the reforms of the Bank of England have proceeded. I shall confine what I say this evening to brief remarks under three headings: •  The supervision of the safety and soundness of banks, and the place of rules and discretion in that  •  Expectations of what the central bank can and should achieve as a macro policymaker, and how society can monitor that role  •  How the central bank’s relationship with the business community plays out in a wider international, indeed global, setting.
•  There is a growing cluster of Chinese asset managers that are keen to set up in Singapore, attracted by our pan-Asian focus and broad base of international investors. •  They cover a broad spectrum of investments, ranging from traditional asset managers to hedge funds to private equity funds. Conclusion Let me conclude. The biggest story for Asia in the last three decades has been the rise of China. Asia’s biggest story in the next three decades will be the transformation of China. It will not be an easy transition, as China deals with the challenges of debt, deflation, and demographics. There will be dislocations and bouts of volatility along the way, with spillovers into Asia. But if China successfully addresses its vulnerabilities and restructures its economy, it will pave the way for more sustained growth and a more advanced economy. The new China that will emerge will open up new opportunities for Asian economies. The RMB will become more international and Chinese corporates and financial institutions more global. Singapore is well-positioned to partner Chinese companies in their regional journey and deepen China’s connectivity to Asia through trade and investment. The next chapter of ChinaSingapore financial partnership will be exciting and rewarding. I wish you fruitful discussions and a pleasant stay in Singapore. Thank you. BIS central bankers’ speeches  5