Regulatory Structure
As part of its financial stability role, the Bank analyses issues to do with the regulation of financial intermediaries (including banks, insurance companies and securities firms). The main focus is on prudential buffers and how these affect the overall stability of the system.
The Financial Stability area maintains a close relationship with the Financial Services Authority and with central banks and other financial authorities overseas. The Deputy Governor responsible for Financial Stability has a seat on the FSA Board, while the Chairman of the FSA is a member of the Bank's Court.
The Bank contributes to the international debate on the design of prudential buffers, in particular via the work of the Basel Committee on Banking Supervision, and its sub-groups. The current focus of this work is on proposals for a new Basel Capital Accord that, once finalised, will replace the 1988 Accord for large, internationally active banks adopted by the G-10 countries and beyond. The Bank has made a major contribution to the calibration of the new risk-based requirements.
There have been a number of Financial Stability Review articles and speeches on these issues.
Developments in regulatory structure affecting financial stability are regularly reported by the Bank in the Financial Stability Report as part of the assessment of the financial stability conjuncture and outlook, and as part of the work being done to mitigate risks.
Through Bank of England Working Papers and other research, the Financial Stability area deepens its understanding of the impact of regulatory structure on the stability of the financial system.
Key Resources
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Capital Requirements and Bank Behaviour: the
Impact of the Basel Accord P. Jackson and W. Perraudin et al (1999) Basel Committee on Banking Supervision Working Papers, No. 1 Download PDF (279k) |
