In January 2013, the interim FPC published a draft Policy Statement explaining how it would use its proposed new macroprudential powers to set the countercyclical capital buffer (CCB) and sectoral capital requirements (SCRs). The Policy Statement describes these tools, the likely impact of using them on financial stability and growth, and the circumstances in which the FPC might expect to use each tool. It also describes the core indicators the FPC will routinely review to help inform its judgement.
FPC Core Indicators
Indicators will be useful for shaping the views of the FPC and helping it to explain its decisions publicly. No single set of indicators can ever provide a perfect guide to systemic risks or the appropriate policy responses and judgement will play a material role in all FPC decisions. But the Committee will routinely review the set of indicators below, which have proved helpful in identifying emerging risks to financial stability in the past. The FPC will regularly update these indicators, to help explain its decisions and to enhance the predictability of the regime.