David Ramsden: Resilience - three lessons from the financial crisis

Speech by Sir David Ramsden, Deputy Governor for Markets and Banking of the Bank of England, to the Inverness Chamber of Commerce, Inverness, 30 May 2019.

Central bank speech  | 
03 June 2019

1 Introduction

It's great to be here in Inverness, and to be speaking here this morning.

My talk today is going to focus on resilience. The first definition of resilience thrown up by Google is "the capacity to recover quickly from difficulties; toughness". It seems apt that I should be focusing on this here in Inverness as Scotland itself is a famously resilient nation. Robert the Bruce was taught resilience by a spider. Scotland's mountains epitomise geological resilience and tests the physical resilience of walkers and climbers. The Scottish economy has been through some tough times, but proved relatively resilient during the financial crisis, with Scottish onshore GDP falling much less than overall UK GDP. Even the existence of the Loch Ness monster has proved resilient to continued scientific investigation.

And resilience is a word that you hear a lot these days. Psychological resilience is lauded as a virtue as life becomes more complex and challenging.