Financial stability

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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