The Financial Sector : Redefining a Broader Sense of Purpose

International Monetary Fund. Communications Department

• Publisher: INTERNATIONAL MONETARY FUND
• eBook ISBN:
  9781498301978
• Year: 2019

NONE

Christine Lagarde: The Financial Sector - Redefining a Broader Sense of Purpose

International Monetary Fund

Washington, D.C.

INTERNATIONAL MONETARY FUND

CHRISTINE LAGARDE

The Financial Sector - Redefining a Broader Sense of Purpose

Address at Guildhall London • February 28, 2019

International Monetary Fund Managing Director Christine Lagarde delivered this address at Guildhall as part of the World Traders’ Tacitus Lecture series in London on February 28, 2019.

Copyright © 2019

International Monetary Fund

Washington, D.C. 20090, U.S.A.

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ISBN: 978-149830197-8(paper)

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The Financial Sector - Redefining a Broader Sense of Purpose

CHRISTINE LAGARDE


MANAGING DIRECTOR OF THE INTERNATIONAL MONETARY FUND

I am honored to have been invited to deliver the Tacitus lecture in this magnificent Guildhall. I am also fortunate to be among so many friends, including former colleagues, who know that I have a weakness for good stories.

Let me start with a Hollywood story. As you may know, Disney was recently faced with the challenge of creating a sequel to the original Mary Poppins movie, which has delighted children and adults for more than half a century.

The producers of the new film recreated the magical nanny from P.L. Travers’ books, but they also featured a new cast of characters—including a villain who could give everybody a good scare. That villain—yes, you guessed it—is a slick banker who is cheating his way to fortune. In the end, of course, the villain is defeated with a touch of magic.

So here is the question: why is the banker the villain? After all, a healthy economy requires a healthy financial sector that is at the service of people as they pursue better lives for themselves and their children.

“A healthy economy requires a healthy financial sector that is at the service of people … helping families buy a home or save for retirement; helping businesses raise capital to support growth and employment …”

You might call it the “everyday magic” of finance: helping families buy a home or save for retirement, helping businesses raise capital to support growth and employment, and helping ordinary people manage risks and prepare for a rainy day. That is what most financial professionals do every day, with dedication and a sense of pride.

And yet, despite these good aspects, the caricature of the “bad banker” has resonated with audiences since the dawn of civilization. And its latest version—seen by millions of children around the world—is telling us something about the deeply felt sense of unease about the role of finance in today’s world.

It does not take magic to trace much of this most recent frustration back to the global financial crisis, which has left painful economic and psychological scars on millions of people. We know also that many people are angry about the stea...

Table of contents

• Cover Page
• footnotes