Clause 216
Banking Bill
1:00 pm
Mark Todd (South Derbyshire, Labour)
The hon. Gentleman has used, I think, the same source as I have—the Treasury Committee report. The most appealing definition that I found among those offered—they are all flawed in various ways—was the one that the hon. Gentleman has not quoted, from the Deutsche Bundesbank:
“A steady state in which the financial system efficiently performs its key economic functions, such as allocating resources and spreading risk as well as settling payments, and is able to do so even in the event of shocks, stress situations, and periods of profound structural change.”
That somehow encompasses some of the basic functional aspects that the hon. Gentleman talked about in relation to the Governor’s comments, and also the management of risk and stress analysis, which is another key element.