Financial Stability is a shared objective of the Bank, HM Treasury and the FSA. Currently, the Bank's financial stability role is set out in a Memorandum of Understanding between the Bank, HM Treasury and the FSA. A high-level committee from these organisations - the Council for Financial Stability - meets regularly focusing on managing systemic risk and protecting financial stability.

The Banking Act 2009 increases the responsibilities, powers and role of the Bank. A key part of the Act is the creation of the Special Resolution Regime to provide the tripartite authorities - HM Treasury, Bank of England and Financial Services Authority - with a framework to deal with failing banks.

The Act gives the Bank a statutory financial stability objective and creates a new Financial Stability Committee to advise on and monitor the nature and implementation of the Bank's financial stability strategy. In addition, it formalises the Bank's oversight of payment systems and introduces a new framework for the issuance of Scottish and Northern Ireland banknotes.

Growing cross-border financial activity heightens the importance of UK authorities working effectively with counterparts in other countries. The Bank has regular contact with central banks, regulators, and other authorities outside the UK that have an interest in the maintenance of financial stability. It also participates in the activities of key international bodies involved in global financial stability work, such as the Financial Stability Forum.

Key Resources

	Banking Act 2009 Download PDF (632k)
	Memorandum of Understanding between HM Treasury, the Bank of England and the Financial Services Authority Download PDF (50k)
	The Council for Financial Stability Minutes of Meeting held on 14 January 2010 Download PDF (55k)