Financial Policy Summary and Record - March 2019

The Financial Policy Committee (FPC) aims to ensure the UK financial system is resilient to, and prepared for, the wide range of risks it could face — so that the system can serve UK households and businesses in bad times as well as good.

The core of the UK financial system, including banks, dealers and insurance companies, is resilient to, and prepared for, the wide range of risks it could face, including a worst case disorderly Brexit.

Brexit checklist

The biggest risks of disruption in a no-deal Brexit to financial services used by UK households and businesses have been dealt with.


Major UK banks and insurers are strong enough to deal even with a worst case disorderly Brexit and could continue to serve households and businesses.

Supporting market functioning

Banks can withstand severe market disruption, and the Bank of England stands ready to lend to them in all major currencies.

Published on 05 March 2019

Brexit checklist

Most risks to UK financial stability that could arise from disruption to cross-border financial services in a no-deal Brexit have been mitigated.

Bank resilience

The core banking system is strong enough to withstand the economic shocks that would accompany a worst case disorderly Brexit.

Market resilience

Financial stability is not the same as market stability. Significant market volatility is to be expected in a disorderly Brexit. However, markets have proved able to function effectively through volatile periods.

Support market functioning

Major UK banks are able to withstand severe market disruption and, as a further prudent precaution, the Bank of England has operations in place to lend in all major currencies.


The underlying vulnerabilities in the domestic and global economies have not, on balance, changed since the November Financial Stability Report (FSR). In light of this assessment the FPC is maintaining the UK countercyclical capital buffer (CCyB) rate at 1% in 2019 Q1.

2019 stress test

These vulnerabilities are reflected in the design of the 2019 annual cyclical scenario (ACS) stress test for UK banks, details of which are set out in the ‘Key Elements’ document which has been published alongside this summary.