Financial Stability
Maintaining the stability of the financial system is one of the Bank’s two core purposes and statutory responsibilities.
Our teams work on the detection of financial stability risks by monitoring developments in economies around the work, assessing news in capital markets, analysing trends in banks and other financial institutions, and overseeing payment and settlement systems. Staff in Financial Stability are also involved in the design of initiatives to strengthen the financial system, often working with other authorities in the UK and abroad. Our work is presented to senior management at the Bank and, in the Financial Stability Report, to the general public.
The Financial Stability area has played a vital role in the Bank’s response to the financial crisis. The area has assessed the impact of the fast-moving events of the UK financial system, conducted stress tests on the banking sector, and helped with the substantial range of public sector support measures for banks. Looking ahead, the area will be working to improve financial system safety, a key area of international policy over the next few years.