Thomas Jefferson said banking establishments are more dangerous than standing armies. But London has never been an establishment in the sense that Jefferson used the word. London is an open market. There have been foreign banks in London at least since the Medicis in the 1400s and there are currently 477, with assets of more than £1,700bn (&euro2,700bn). This is a clear signal of the vitality of a robust and competitive market with roots in the UK economy and branches in the rest of the world.

We all have a part to play in seeing this happen. I would like to set out the role government should play as 'intelligent sponsor' of the UK financial services sector. The Treasury has an interest as the industry's advocate in government and elsewhere, as the custodian of regulatory legislation and, fundamentally, as an economics ministry - promoting efficiency and sustainable growth. It is this that must define the role we play.