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Home > Financial Stability > FPC Core Indicators

FPC Core Indicators

For its powers of Direction and the countercyclical capital buffer (CCB), the FPC's policy statements describe the core indicators it routinely reviews.
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, for the CCB, sectoral capital requirements and housing tools, which have proved helpful in identifying emerging risks to financial stability in the past. Since the FPC would, as a guiding principle, move the CCB and the countercyclical leverage buffer together, it would consider the same information in deciding on their use. The FPC will regularly update these indicators, to help explain its decisions and to enhance the predictability of the regime.

Countercyclical Capital Buffer Guide

The countercyclical capital buffer guide is a simple metric identified in Basel III and EU legislation, which provides a guide for the CCB rate based on the gap between the ratio of credit to GDP and its long-term trend. Legislation requires the Committee to consider this guide although there is no simple mechanical link between the guide and the setting of the CCB. As the Committee has stated in its Policy Statement on the CCB, it will use its judgement in setting the CCB, looking beyond the guide at a wider set of core indicators, other relevant metrics, supervisory and market intelligence and information from stress tests.

Key Resources

CCB core indicators
Updated 18 September 2015

SCR core indicators
Updated 18 September 2015

Countercyclical Capital Buffer Guide 
Updated 18 September 2015

Housing tools core indicators
Updated 18 September 2015