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Home > News and Publications > Quarterly Bulletin 2015 Q4

Quarterly Bulletin 2015 Q4

News Release

Contents of the Quarterly Bulletin

Each article is available as a separate pdf file; click on the appropriate title to access the relevant file. Alternatively you may download the complete issue.

Complete issue

Topical articles

Bonus regulation: aligning reward with risk in the banking sector
By Marilena Angeli and Shahzad Gitay from the Bank’s Cross-Sectoral Policy Division.
Remuneration policies in the banking sector incentivised excessive risk-taking, thereby contributing to the financial crisis. Since the crisis, remuneration rules have come into force to better align employees’ incentives with the long-term health of banks and the financial system. This article explains the key components of the Prudential Regulation Authority’s remuneration rules for banks and considers the direction of the global policy agenda.

A short video discusses some of the key topics from this article.


The Prudential Regulation Authority’s secondary competition objective
By Stephen Dickinson, David Humphry, Paolo Siciliani and Michael Straughan of the Bank’s Prudential Policy Directorate and Professor Paul Grout, PRA Senior Advisor on Competition.
The Prudential Regulation Authority’s (PRA’s) secondary competition objective requires the PRA to act, where possible, in a way that facilitates effective competition when making policies to advance its primary objectives of safety and soundness, and policyholder protection. This article explains the rationale for the objective, how the PRA interprets it, and what this means for the PRA’s regulation of banks and insurers.

A short video discusses some of the key topics from this article.



Trends in UK labour supply
By Stuart Berry, Matthew Corder, Chris Duffy, Christopher Hackworth and Bradley Speigner of the Bank’s Monetary Analysis Directorate.
The path of labour supply is a key consideration for the Monetary Policy Committee (MPC). It helps to determine the overall supply capacity of the economy and therefore the amount of output that can be produced without generating excess inflationary pressure. Labour supply appears to have grown robustly since the financial crisis, as a greater number of people have retired later and more part-time workers have sought full-time jobs. Nevertheless, the recovery in the demand for labour has led to a significant erosion of labour market slack in recent years, as unemployment, labour market participation and average hours worked have all moved back towards their equilibrium levels.

The potential impact of higher interest rates and further fiscal consolidation on households: evidence from the 2015 NMG Consulting survey
By Philip Bunn and Lizzie Drapper of the Bank’s Structural Economic Analysis Division, Jeremy Rowe of the Bank’s Monetary Assessment and Strategy Division and Sagar Shah of the Bank’s Macro Financial Risk Division.
The balance sheet positions of mortgagors have improved modestly over the past year. Households appear a little better placed to cope with a rise in interest rates than a year ago and survey responses do not imply that a rise in rates would have an unusually large impact on spending. The survey results suggest that the Government’s plans for fiscal consolidation are likely to continue to weigh on household spending.

The raw survey data are available in Excel format (15.2MB)

Recent economic and financial developments

This article reviews developments in financial markets between the 2015 Q3 Quarterly Bulletin and 27 November 2015 and describes the Bank’s own operations within the Sterling Monetary Framework.


BoE-HKMA-IMF conference on monetary, financial and prudential policy interactions in the post-crisis world
During 16–17 June 2015, the Bank of England (BoE), the Hong Kong Monetary Authority (HKMA) and the International Monetary Fund (IMF) held the first joint conference on monetary, financial and prudential policy interactions in the post-crisis world. The conference provided a forum for leading academics and senior policymakers from across the world to discuss challenges that central banks and other policymakers face in choosing the optimal mix of monetary, macroprudential and microprudential policies.



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