Tag Archives: social licence to operate

The social licence and the Bank of England

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Mansion House speech, City of London, 10 June 2015

Inspiring to hear the Governor of the Bank of England, Mark Carney, use the term “social licence” so much in his Mansion House speech in London tonight when making the case for greater accountability. Excellent. Lets hope his audience were listening.  Here are some quotes:

On Markets:

“Markets are not ends in themselves, but powerful means for prosperity and security for all.  As such they need to retain the consent of society – a social licence – to be allowed to operate, innovate and grow.  Repeated episodes of misconduct have called that social licence into question.”

… “Real markets are resilient, fair and effective.  They maintain their social licence.”

On Financial Reform:

“This reform agenda has increased the effectiveness of FICC [fixed income, commodities and currencies] markets and reinforced their social licence.  It is frustrating for us all that such major progress risks being overshadowed by misconduct problems.”

On the Governance of the Bank of England:

“The Bank’s arcane governance blurred the Bank’s accountability and, by extension, weakened the social licence of markets.”

Mark Carney’s full speech can be found here. For more on the social licence.