Financial Stability Divisions of the Bank
In practice, the work of Financial Stability area has three main elements: assessment of current developments in the domestic and international financial systems to identify risks to UK financial stability; developing tools to reduce risks to the financial system; and helping to devise efficient means of crisis management, both domestically and internationally.
The Financial Stability area consists of four divisions:
- Systemic Risk Assessment Division has overall responsibility
for identifying, quantifying and aggregating potential systemic
risks to the UK financial system, and is also responsible
for the Bank’s six-monthly Financial Stability Report
- Systemic Risk Reduction Division is responsible for assessing
the current and future risks to the stability of the UK's
market infrastructure, in particular payment and settlement
institutions and the arrangements under which they operate.
The Division discharges the Bank's oversight role with respect
to payment systems. It also examines the systemic impact of
bank solvency and liquidity standards.
- International Finance Division is responsible for assessing
how developments in EMEs contribute to potential systemic
risks to the UK financial system as an input FS's overall
risk assessment work. It is also responsible for promoting
reforms to the international financial architecture that would
support the development of a more robust international financial
and monetary system and contribute to long-term financial
stability.
- Financial Crisis Management Division oversees the Bank’s overall contribution to UK financial crisis management processes and policies (within the tripartite framework agreed with HMT and the FSA), co-ordinating crisis related work around the Bank and facilitating internal processes during a crisis.
