Speeches by Glen.

“I have another question, as we have a few minutes. I want to go back to the structure of banking in the UK and the concentration that we have. We have seen consolidation with Nationwide and Virgin. We see speculation on what NatWest might have on its shopping list, in terms of other mid-tier banks. We have a small numb…”

“Perhaps we will write to the Governor and ask him.”

“You will have to tell us if it does not work out well.”

“Mr Bhatia or Mr Mullen, do either of you have anything to add?”

“Basically, you get to a certain size and there is a cliff edge in terms of the cost, so you basically put a “for sale” tag on yourselves.”

“I have another question, as we have a few minutes. I want to go back to the structure of banking in the UK and the concentration that we have. We have seen consolidation with Nationwide and Virgin. We see speculation on what NatWest might have on its shopping list, in terms of other mid-tier banks. We have a small numb…”

“That is very clear. Would you like to add anything, Mr Bhatia?”

“We heard that yesterday. Mr Davies, would you like to add to that?”

“But you see my point. Either you subscribe to the same model as everyone else—”

“You would not want to market yourself as a less secure place to put your money, would you?”

“Can we turn to financial crime? I am keen to explore your distinct views relative to the bigger banks, if you have any. Obviously, this is a big concern, and we are seeing a massive escalation. We were concerned as a Committee to see that the FCA is rather anxious about seeing just “slower growth” in financial crime—it…”

“But, presumably, they would say that you have to have a sufficient track record of solvent behaviour to show that you have not been at risk in that prior period to allow you to go it alone and do it in that way.”

“Can you explain that to us, and to those watching?”

“And you do not have the data to justify it.”

“Mr Mullen, is there anything you would like to add?”

“It would be helpful if you wrote to us on that, because that is detail that we value.”

“Is that because they do not want to be at a competitive disadvantage to the US or Europe? That is why they are holding back.”

“Let us be clear. In the UK, about 10 years ago, we set up the new banks unit—Harriett probably did it. The regulator looks after the big banks, but there is no regulator that looks proactively, with you, at this middle stage. You have set up and got your licence, but then you are in a bit of an abyss before you get to …”

“Do you agree with that, Mr Davies?”

“So they did not index the thresholds to GDP, which was one of the things you wanted a few years ago in the regulatory changes. Is that what you would like them to do? Is there anything else? Is there not also some ambiguity over the £15 billion to £25 billion window? How clear are they about when it actually hits? If y…”