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Home > Financial Stability

Financial Stability

Financial stability – public trust and confidence in financial institutions, markets, infrastructure, and the system as a whole – is critical to a healthy, well-functioning economy.
The Bank of England plays a vital role in maintaining financial stability in the United Kingdom in a number of ways:
  • reinforcing trust and confidence in money itself;
  • acting as lender and market maker of last resort at times of financial stress;
  • promoting the safety and soundness of individual financial institutions (via the Prudential Regulation Authority);
  • removing or reducing risks to the financial system as a whole, via the Financial Policy Committee;
  • supervising financial market infrastructure;
  • safely resolving failing financial institutions;
  • collaborating with other UK financial authorities to support UK financial sector business continuity and operational resilience.

Financial Policy Committee

The Bank’s Financial Policy Committee (FPC) works to remove or reduce systemic risks. In short, this means working to prevent future financial crises, or reduce their frequency and severity.
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​The regulatory system in the United Kingdom is not designed to ensure that no firm ever fails. The Bank, as resolution authority, ensures that if a firm fails, it does so safely and with minimal effects on the rest of the financial system and the economy. More »

Financial Market Infrastructure Supervision

​Financial market infrastructure plays a key role in the smooth functioning of the economy and the financial system. The Bank supervises key financial market infrastructure, including securities settlement systems, central counterparties, and recognised payment systems. More »

Financial Sector Continuity and Resilience

​The Bank works with other UK financial authorities to ensure the smooth running of the UK financial sector – from managing operational disruptions to ensuring industry resilience against risks such as cyber-attacks. More »