Future Forum | Bank of England

Submit your questions and ideas now for Chief Operating Officer Jo Place

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Future Forum
Future Forum | 3 months ago | in Bank to the future

Our Chief Operating Officer Jo Place will be answering your questions on 27 November at 4:00pm.

Submit your own ideas under the Bank to the Future section and post your questions in the comment section below. Jo will answer as many as possible during the session and looks forward to chatting with you all.

edited on Nov 16, 2018 by Future Forum

Ramblingsofabard 3 months ago

IMF has come up with a bold statement that central banks should consider issuing their own cryptocurrencies (https://www.theguardian.com/business/2018/nov...yptocurrencies). The BoE has published a paper on the assessment of CBDC before as well. Consider a future where central banks issue a digital currency and does the back end settlement, financial firms provide the customer interaction, are we expecting places like the BoE to become the next biggest powerhouses to support such an infrastructure?

Shelley (BoE Moderator) 3 months ago

Thank you for your question.

Jo Place 2 months ago

Thanks for your question. The Bank has an active research programme on CBDC. While we’ve got an open mind on the eventual development of a CBDC, we’re not currently planning to issue one. This is because, at this point, it’s not clear that the benefits would outweigh the risks that CBDC might pose to monetary and financial stability. However, we do pay a lot of attention to how money and payments is evolving, and we’re currently focussed on measures that will deliver more immediate improvements to payments, such as the programme to rebuild our Real Time Gross Settlement service, which is at the core of the UK financial system and settles payments equivalent to one third of UK annual GDP every single day.

Ramblingsofabard 2 months ago

Thank you. The work around rebuild of RTGS is very interesting definitely. Will be following it closely

View all replies (3)

Dan Hinge 3 months ago

To what extent does the Bank of England account for climate change and other environmental, social and governance criteria in managing its reserves/other asset portfolios (e.g. corporate bond purchase programme) at present? What about the collateral framework?

Should the BoE be doing more on this front?

Shelley (BoE Moderator) 3 months ago

Thank you for your question.

Jo Place 2 months ago

The Bank takes climate change very seriously. For example, the Bank co-established the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) and supported the Taskforce on Climate-related Financial Disclosures, which issued recommendations under the auspices of the Financial Stability Board, chaired by our Governor.

The Bank seeks to consider all relevant risks when making investments or accepting collateral to achieve its monetary and financial stability mandate. We recognise the value in sharing expertise and best practice – with other central banks and with industry – to increase the rate at which we move to embed more thoroughly climate-related financial risks into our risk assessment and mitigation. It is a transition for industry and also for us – we are all learning. We hope to feedback on some of the discussions we have been having with other central banks in the NGFS report that is due to be published in Q2 next year.

Dan Hinge 2 months ago

Thanks!

View all replies (3)

Robert Taggart 3 months ago

For a whole decade savers have been shafted.

Shelley (BoE Moderator) 3 months ago

Hi Robert, do you have a question for Jo?

Robert Taggart 3 months ago

Yes! Who, if anyone, speaks up for the interests of savers in the BoE?

Shelley (BoE Moderator) 3 months ago

Thank you for your question.

Jo Place 2 months ago

As our core mandate, we must always act in the best interests of the UK. Our teams consider the interests of all UK citizens when putting together decisions on financial stability and monetary policy.

The Bank has twelve regional agencies whose role is to act as the eyes and ears of the Bank, up and down the UK. To inform the Monetary and Financial Policy Committees of economic developments on the ground, Agents hold 9,000 confidential conversations and facilitate circa. 60 policymakers visits across the UK every year. Those conversations are with a wide range of organisations that to reflect the mix of UK households and businesses within the economy and that will include savers, borrowers and those in challenging financial circumstances.

In the case of developments that affect household savers, Agents’ contacts may comment directly on savings or indirectly with respect to pensions.

More generally the Monetary Policy Committee has published ‘The sensitivity of households and companies to changes in interest rates’ in its November 2017 Inflation Report (see page 18 onwards: https://www.bankofengland.co.uk/-/media/boe/f...9FFFFB08F658A6) and more recently on ‘Households balance sheets’ in its August 2018 Inflation Report (see box 4 page 18: https://www.bankofengland.co.uk/-/media/boe/f...F752BF9DF0E19B).
In the case of those in challenging financial circumstances, our Chief Economist Andy Haldane regularly publishes a blog commenting on his regional Townhall visits (the latest one is here: https://www.bankofengland.co.uk/events/2018/o...m-october-2018) and members of the public are invited to get involved in the Bank’s new citizen panels (the link is here: https://www.bankofengland.co.uk/outreach/citizens-panels).

The PRA, as part of the Bank of England, ensures the safety and soundness of the banks and insurance companies. And as you may know if a financial institution fails, the Financial Services Compensation Scheme (independent from the Bank of England) is set-up to protect individual investments.

View all replies (4)

Rob Macquarie 2 months ago

Hello there, I'd like to submit two questions please:

1. The Bank of England has shown great initiative in the field of climate change and financial risk, including through the Network for Greening the Financial System. But it is yet to recognise publicly that these concerns apply to its own policies, including asset purchases and collateral frameworks. Does the Bank have plans to incorporate concerns over climate risk into its monetary policy operations?

2. The IPCC special report on limiting warming to 1.5 degrees was a game changer in terms of the scale of the climate challenge and its wide-ranging impact on all sectors of the economy. In your opinion, will the Bank need to adopt new monetary tools, such as conditional reserve requirements or green asset purchases, to ensure policy remains effective?

Thank you.

Shelley (BoE Moderator) 2 months ago

Thank you for your questions.

Jo Place 2 months ago

Hi Rob, thanks for your questions. Dan Hinge has asked something similar so please see my response to him.

View all replies (2)

Simon Youel 2 months ago

As the Bank of England rightly recognises, the climate crisis is a huge threat to financial stability. Disclosure of climate risk by firms regulated by the Bank will be a crucial first step in decarbonising finance and thus the wider economy, so it should not be delayed or made optional.

If, as Sarah Breeden claimed in her evidence to the Environmental Audit Committee, the Bank believes the market needs time to provide specific information, does the Bank expect to introduce a regime of mandatory disclosure at some point in the future? Is there not a case for publishing that expectation as an incentive for financial companies?

Moreover, should the Bank of England not set an example for firms to follow by disclosing the climate risks on its own balance sheet?

Shelley (BoE Moderator) 2 months ago

Thank you for your question Simon.

Jo Place 2 months ago

Great question. A bit of background information is below for you so you can see how disclosures fit in to the wider debate.

The Bank and the Governor have been vocal supporters of the Task Force on Climate Related Financial Disclosures (TCFD) and see disclosure as an important tool to allow the market to assess firms’ exposure to climate risks, as well as for firms to assess the climate risk associated with the entities they are exposed to. The PRA has recently published a draft supervisory statement on enhancing firms’ approach to managing the financial risks from climate change. It set out the PRA’s expectations for regulated firms to develop and maintain an appropriate approach to disclosure of climate change risks. That includes engaging with wider initiatives on climate-related financial disclosures, such as the TCFD.

The TCFD is an industry-led initiative, by the market for the market, and the next phase must be one of industry-led adoption and experimentation. Good practice will develop over time as firms try different approaches, taking on board feedback from investors and learning from others.

Our view is that it is important that TCFD recommendations should remain voluntary for the time being to allow good practice to emerge.

View all replies (2)

Paul Gibbon 2 months ago

Though it may be difficult to equate or indeed believe from the defining of a comment in an open forum in today's world with digital domains that can have instant global application with related knowledge and use of these via them in either real or virtual domain; the fact remains that logic over time, when and where logical or applicable, can be used to relate origination and application in relation to them, as the above, for even the most simple of equations, or, the most complex of problems, related to them, as above.

Should that be the case, then human behavior, psychology, morals and ethics, should then be prerequisite in determining any policy or protocol for potential future use or application in relation to them, and the above, in relation to the race and it's continuing evolution and problem solving abilities in tackling universally identified problems that can be related to them in future use or application; otherwise, whilst history can be learned from, future proofing can not be, and thus only accounted for, beforehand.

This equation was as popular in ancient Greece as it is in modern philosophy and critical thinking that can be used to determine any solutions that may need instant understanding, and, or, the ability to weather and carry policy or indeed practical applications in relation to them forwards only, in universal real time relative, when change as a constant, still has the same value, meaning that it can be made both relative to, and of relevance to them either in, or as, a parallel or paradox, at the same time.

As a patriotic British European an citizen of the Commonwealth, it is brilliant to know, and indeed see, that the Bank of England as a bedrock institution, has, through it's world class Knowledge Bank initiative and Future Forums, already proven itself in role and in relation to it's role, and the above, to be light years ahead of any other central bank in dealing with wisdom and common sense issues taken in the context of the above in relation to them.

Jo Place 2 months ago

Hi Paul – thank you for your kind comments on our Knowledge Bank and Future Forum. A very philosophical statement – the Bank’s mission is to act in the best interests of the people of the UK. This covers a wide range of areas and we always look to be innovative in tackling some difficult areas we face.

Laura Cleaver 2 months ago

As we are tackling climate change globally, with the Paris agreement being furthered by a planning session in Poland, should we agree how it impacts the economy globally too?

Shelley (BoE Moderator) 2 months ago

Thank you for your question.

Jo Place 2 months ago

Great question Laura. Climate change is a global problem that requires global solutions. Just as governments across the world came together to combat climate change via the Paris Agreement, central banks are also playing their part. The Bank of England, along with 7 other central banks and supervisory authorities, co-founded the Central Bank and Supervisors’ Network for Greening the Financial System (NGFS) in December 2017. It is a voluntary platform for authorities to share best practice and conduct analytical work on climate-related financial risks and green finance. In 12 months, it has expanded to over 20 members and observers, representing countries accounting for over 40% of global output and carbon emissions. 

Our analytical work is split into three work streams: (i) microprudential impacts of climate change, (ii) macroprudential and financial stability impacts of climate change, (iii) the role of central banks in scaling up green finance. You may be interested to read the progress report we published last month: https://www.banque-france.fr/en/communique-de...progress-report. We will be publishing a full report in April 2019.

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Sabrina Rochemont 2 months ago

Dear governor,
10 years ago, M-Pesa started transforming the lives of millions of the unbanked in Africa. This revolution did not reach the shores of the UK.
QR code payments are now disrupting the payments landscape in Asia, delivering P2P transactions to small businesses, challenging payment processors and enabling financial inclusion.
As such disruption threatens the interests of the established payments ecosystem, how will you make sure that the public interest prevails and the UK market remains competitive and open to such innovations?

The Swiss are investigating the resistance towards Apple Pay and Samsung Pay: https://uk.reuters.com/article/us-swiss-compe...t-idUKKCN1NK0MH

Shelley (BoE Moderator) 2 months ago

Thank you for your question!

Jo Place 2 months ago

Thank you for your question on the changing payments landscape. The Bank of England takes a keen interest in topic for a number of reasons. First, through our mission of maintaining monetary and financial stability. We also operate the UK’s Real Time Gross Settlement Service (RTGS). And, the Bank is committed to exploring the impact of innovation on the financial system. We highly value views from market participants. We regularly engage with them and other key stakeholders, such as Pay.UK and the Payments Systems Regulator to ensure our work on payments has wide reaching benefits for the whole payments chain. Our web pages on RTGS Renewal and our Fintech Hub go into more detail about the work we are doing in this area.

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Bridging_the_gap 2 months ago

We hear a lot about green finance, and progress the financial industry needs to make on sustainable financing. But what about the bank's carbon footprint? What is the bank of England doing to go carbon neutral?

Shelley (BoE Moderator) 2 months ago

Thank you for your question.

Jo Place 2 months ago

The Bank of England is committed to reducing the environmental impacts and carbon emissions of its operations, as part of a wider commitment to Corporate Sustainability & Responsibility. Our environmental programme ‘Greener Bank’, is delivered by our in-house environmental team, and supported by over 100 green champions across the Bank.

The Bank discloses it operational carbon footprint annually as part of its public Annual Report. In 2016 we set ourselves the target of reducing our overall carbon emissions from direct operations by 20% by 2020 against a 2015/16 baseline, which we are on track to meet.

Our main areas of focus have been increasing the energy efficiency of our buildings, reducing our use of resources and adopting more environmentally friendly business practices, such as printing less, recycling more and using technology to reduce travel.

We have already started work on what our next carbon reduction target beyond 2020 could look like. We are considering a range of options for the Bank, including carbon neutrality and science based targets.

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OscarWGrut 2 months ago

What is the bank's current thinking around the possibility of a central bank cryptocurrency or token and how seriously has the bank looked at the idea?

In addition, what does the Bank think the financial stability implications of a possible central cryptocurrency?

OscarWGrut 2 months ago

Given that economists like Thomas Piketty and Michael Spence are increasingly talking about the impact of rising inequality on global politics and societies, how much does the Bank think about inequality when measuring stability and sustainability?

Does the bank have a preferred measure of inequality (or even keep track of it)? And what does it think is the best tool to address equality/inequality?

Jo Place 2 months ago

My colleague, Andy Haldane gave a speech earlier this year on Monetary Policy and inequality. The link will be provided below. I hope you find this useful.

Michelle (BoE Moderator) 2 months ago

Thanks for taking part in today's session. The link mentioned by Jo is https://www.bankofengland.co.uk/speech/2018/a...cture-melbourne

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Per Kurowski 2 months ago

Why do regulators believe that what the bankers perceive as risky is more dangerous to our bank systems than what the bankers perceive as safe?

Jo Place 2 months ago

As regulators, we look at the safety and soundness of all the firms we supervise and in doing so we have a range of tools to assess the risks they are taking. It is we as regulators that we assess their risks and not the banks themselves. Please refer to our Approach Documents for more details on how we assess risks.

Per Kurowski 2 months ago

Your risk weighted capital requirements for banks are based on the risks bankers perceive... not the risks that bankers might be perceiving the risks wrongly, or the risks bankers might not manage the perceived risks correctly.
So my question stands.

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Daniel Burns 2 months ago

BoE, completed a proof of concept in partnership with fintech company ripple in 2017. From what has been released by BoE this was a "useful" exercise. It then goes on to state that the PoC allowed the Bank and Ripple to "begin exploring" solutions for the liquidity challenge, in cross border payments. Can you advise of there is actively on going work in this area, with Ripple and if there is any findings? Can you also advise if there is any further documentation on this work released recently or in the future?

Jo Place 2 months ago

Thanks for your question Daniel. The Bank has committed to ensuring that the renewed RTGS has the capability to work with DLT systems as and when there is significant demand for this. We will share a link to our PoC findings. We are also exploring ways in which the RTGS ledger could be synchronised with external ledgers and issued a call for interest on this in August. One potential use case could be to help cross border payments.

Michelle (BoE Moderator) 2 months ago

Hi Daniel, thanks for joining the session today. The PoC findings link is https://www.bankofengland.co.uk/news/2018/jul...ttlement-models

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Jo Place 2 months ago

Afternoon all!
I’m looking forward to answering some of your questions. As the Chief Operating Officer I am responsible for all central functions: HR, Finance, Property, Cyber, IT Security, etc. Given this broad range of responsibilities I can give you a different perspective on things at the Bank.

Dick Rodgers 2 months ago

I'm keen to explore with the Bank of England the ownership of the creation of new money ie in whose ownership it is created. It seems to me that, apart for cash and perhaps QE money, new sterling is created by commercial banks and enters circulation as a debt to them of newly created money lent, much of it, to people buying houses. Whereas I think it would be more healthy to have commercial banks trading in money but not creating it and not being allowed to do so. Is the governor able to comment on this.?I broadly agree with the group Positive Money.

Jo Place 2 months ago

My colleague, Ryland Thomas wrote an article in the Bank of England Quarterly Bulletin in 2014. This sets out how the Bank thinks about this issue. Ben Broadbent is doing a similar session on 6 December at 9.15am, you may want to ask him if you have any particular follow ups. I've asked a colleague to post a link to the article below.

Michelle (BoE Moderator) 2 months ago

Hi Dick, thanks for taking part in the session today. The article can be found here https://www.bankofengland.co.uk/quarterly-bul...-modern-economy

View all replies (2)

Dick Rodgers 2 months ago

I'm not quite sure how this works. Is Governor Jo Place there and is she kindly able to answer my question posted about 5 mins ago?

Jo Place 2 months ago

Sorry I am dealing with all the questions in order and will come to yours shortly.

Dick Rodgers 2 months ago

Thanks.

Dick Rodgers 2 months ago

Yes I see your brief answer to Paul Gibbon some 9 minutes ago. It is nice of you to make yourself available for discussion but it is a hard kind of discussion to engage with. I thought we would be able to talk with you. Could I come to see you or someone senior at the bank to talk this important issue through? I could be sent an appointment by email. Thanks.

Dick Rodgers 2 months ago

Dear Governor, I am waiting for your reply in this "chat" and I don't see replies to other people coming at a rate that I would normally expect in the meaning of the term "chat". I don't at all mean to be rude but I made sure I was available for this event which was billed as a chat. Could I physically come to the Bank for a face to face conversation with you or another senior person about this topic, please? .

Dick Rodgers 2 months ago

Dear Governor Place
Thank you. Yes. I know that article by Ryland Thomas of 4 years ago. I think the topic is an important one which affects people's lives and the shape of the economy and that it deserves to be developed further. I will try to make it to the Ben Broadbent event. I find this a difficult style of communication. It isn't a "chat" in the normal meaning of the term. … but thank you.

Cameron Penny 2 months ago

Dick - if you email me on cameron.penny@bankofengland.co.uk I'll read your question and get you an answer if that's helpful.

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Daniel Burns 2 months ago

My interest is in settlement speed, cost, inclusion and what that may mean for the global economy. Do you have any thoughts on this that you could share?

Tim Delap 2 months ago

I would be very interested to hear your view of the findings and methodology used in the recent paper from the Sheffield Political Economy Research Institute titled "The UK's Finance Curse? Costs and Processes", by Andrew Baker, Gerald Epstein, and Juan Montecino. Thank you.

Shelley (BoE Moderator) 2 months ago

Hi Tim, This Q&A has closed. However, please visit our other Q&A pages to post your question. Thanks!

Amy Buckingham 1 month ago

This idea has been advanced to the current phase

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