Financial stability: Difference between revisions
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In the UK the Bank of England's role in maintaining financial stability includes: | In the UK, the Bank of England's role in maintaining financial stability includes: | ||
*Maintaining confidence in sterling. | *Maintaining confidence in sterling. | ||
*In times of market stress, acting as a lender of last resort and a market maker of last resort. | *In times of market stress, acting as a lender of last resort and a market maker of last resort. | ||
| Line 21: | Line 21: | ||
* [[Fiscal policy]] | * [[Fiscal policy]] | ||
* [[Inflation]] | * [[Inflation]] | ||
* [[Inflation target]] | |||
* [[Infrastructure]] | * [[Infrastructure]] | ||
* [[Keynesianism]] | * [[Keynesianism]] | ||
Revision as of 05:52, 23 January 2022
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
- Financial Stability Oversight Council
- Fiscal policy
- Inflation
- Inflation target
- 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
