Financial Stability Review
Regulatory Structure Articles
2003
2005 2004 2003 2002 2001 2000 1999 1998 1997
Financial
Stability: Maintaining Confidence in a Complex World
(64k)
(Issue 15, December 2003)
In his speech, delivered at the City of London Central Banking Conference in London, the Deputy Governor outlines the Bank’s role in maintaining confidence in the financial system, including surveying risks to financial stability, strengthening the financial infrastructure and managing financial crises
Transparency
and Financial Stability
(200k)
(Issue 15, December 2003)
Improved information about macroeconomic fundamentals, the balance sheets of firms and financial institutions, and the conduct of policy have been central to recent efforts to improve financial stability. Strides have been made in recent years to improve the quantity and quality of data provision under the IMF's Special Data Dissemination Standard (SDDS). Pillar III of the proposed Basel II Accord relies on disclosures by banks to exert market discipline through the price mechanism. Codes and standards on monetary, fiscal and financial policy seek to establish best-practice guidelines to clarify the objectives, role and process of policy. And countries have sought to publicise the extent of their disclosures through Reports on Observance of Standards and Codes (ROSCs) in an attempt to make a virtue of their 'transparency about transparency'.
Assessing
the Strength of UK Banks Through Macroeconomic Stress Tests
(114k)
(Issue 14, June 2003)
This article describes the results of a range of macroeconomic stress tests carried out last year on large domestically based banks as part of the International Monetary Fund's (IMF's) Financial Sector Assessment Programme (FSAP) on the United Kingdom. Overall, the exercise suggests that the stability of the UK banking system is currently unlikely to be threatened by a range of plausible adverse events. But it also emphasises the importance for the authorities, and the banks themselves, of continuing to develop quantitative techniques that can be used to assess the resilience of the financial system to potential shocks.
Market
Discipline and Financial Stability: Some Empirical Evidence
(85k)
(Issue 14, June 2003)
Market discipline may play an important role in maintaining the overall stability of the financial system. A number of recent policy initiatives recognise this. But various distortions may mean that the impact of market discipline is limited in practice. Based on a large cross-country dataset comprising banks from 32 countries, this article investigates empirically the disciplining force of financial markets in determining the amount of bank capital buffers.
Key Resources
|
Memorandum of Understanding between HM Treasury,
the Bank of England and the Financial Services Authority
Download PDF (50k) |
