Financial stability

Financial stability is the desirable quality of a well-functioning economy in which there is a high level of public confidence in financial institutions, financial markets and financial market infrastructure.

In the UK the Bank of England's role in maintaining financial stability includes:

• Maintaining confidence in sterling.
• In times of market stress, acting as a lender of last resort and a market maker of last resort.
• Regulating and supervising individual banks and other financial institutions to promote their safety and soundness, through the Prudential Regulation Authority.
• Addressing systemic risks, through the Financial Policy Committee.
• Supervising financial market infrastructure.
• Resolving failing financial institutions in an orderly way.
• Collaborating with other UK financial authorities to support UK financial sector business continuity and operational resilience.

See also

• Bank of England
• Bank supervision
• Business continuity plan
• Financial Market Infrastructure
• Financial Policy Committee
• Fiscal policy
• Inflation
• Infrastructure
• Keynesianism
• Lender of last resort
• Market maker of last resort
• Monetary policy
• Monetary Policy Committee
• Monetary stability
• Money
• Prudential Regulation Authority
• Resolution
• Sterling
• Systemic risk