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"Five simple words describe our approach:
We are open for business," Carney said. Carney made a point of saying it's not up to the Bank of England and regulators to decide how big the financial industry should be
-- just that it is safe. Activity in the financial services sector accounts for one-tenth of British annual GDP and over 1 million jobs. Critics have argued the industry has gotten too big and that he economy needs to be more balanced. Carney noted that markets which were more transparent, such as equity markets and exchange-traded futures and options, performed better. Fixed income and derivatives markets should meet similar standards, he said. "The combination of such reforms and the experience of the crisis will mean that institutions both need more collateral and need to manage it better," he said "Fortunately financial markets know how to innovate."
[Associated
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