ContextText of the Loughborough Lecture by Andrew Bailey, Governor of the Bank of England, at the Loughborough Business School, Loughborough University, London, 12 February 2024.
Why it mattersBailey explains how liquidity rules let banks take risks safely.
Problems raised
Banks' balance sheets may limit risk-taking.
Liquidity crises remain possible.
Reforms must work.
Solutions proposed
Let banks take risks backed by strong balance sheets.
