Mr. Ed Sibley:

It is a very good question in terms of how banks are considering strategy and the long-term future. As the Deputy indicated, part of the issue that comes out of the culture report is them being able to move away from the kind of circle-the-wagons mindset to thinking about the longer term. We are very focused on ensuring that they are thinking about the longer term and that they are not just thinking about the next six months or the next year. Typically, a strategy will be set for a three to five-year period.

There are some real challenges in doing so in light of the level of change in the system, financial innovation, changing technology, new competition and so on. It is very difficult to look forward three or five years with any degree of confidence, but we are absolutely driving to make sure they are thinking about it, both from a strategy perspective and, most importantly, a financial resources perspective in making sure their funding is much more secure than it was in order that they can sustain their businesses in the long term; that they will have sufficient capital to deal with a plausible downside if they get into difficulty; and, if they do get into difficulty, that they will have their own thoughts on how to recover. We are very active in resolution planning. It runs alongside the work about which we think from the perspective of how the banks are interacting with their customers and whether they are treating them in a sustainable way. Clearly, there is more work to be done in that regard. It is absolutely a focus of our work. They are getting better, although certainly I would not claim that they are completely where they need to be. There are also the other incentives of analyst reports and quarterly earnings which bring a short-term focus to what needs to be a long-term vision.