Glossary

Key terms and abbreviations

A    B    C    D    E    F    G    H    I    J    K    L    M    N    O    P    Q    R    S    T    U    V    W    X    Y    Z

· A ·

ACH - Automated Clearing House

Agents - our national network of twelve agencies, spread across the whole of the UK. The Agents meet with around 700 businesses across the UK to discuss business conditions in their region and publish a regular summary of business conditions

Agents' summary of business conditions - our regular summary of reports compiled by our twelve regional Agents following discussions with at least 700 businesses across the UK every reporting period

ALCo - Assets and Liabilities Advisory Committee

APF Asset Purchase Facility

Asset purchases - when a central bank like the Bank of England creates new money electronically to make large purchases of assets - also known as quantitative easing

ARCo - Audit & Risk Committee - one of the Court of Directors sub-committees

Back to top

· B ·

Bank rate the rate of interest we pay to commercial banks for the reserves they hold in their Bank of England accounts. Bank rate generally influences the interest rate commercial banks offer and charge their customers - see The interest rate (Bank Rate)

Banknote Character Advisory Committee - this committee selects the field that we want to represent a character on a new banknote and we then ask the public to nominate people from that chosen field - also see Choosing banknote characters

Basel III - An internationally agreed set of measures developed by the Basel Committee on Banking Supervision in response to the financial crisis of 2007-09. The measures aim to strengthen the regulation, supervision and risk management of banks. In the UK Basel II is implemented through the Capital Requirements Directive

BCBS - Basel Committee on Banking Supervision

BCC British Chambers of Commerce

BEAPFF Bank of England Asset Purchase Facility Fund Limited - a subsidiary company of the Bank of England, which purchases financial assets such as gilts and corporate bonds to boost economic activity

BIS Bank for International Settlements

BLS - Bank Liabilities Survey - a quarterly survey of banks and building societies, which helps us understand how their lending liabilities and capital drives credit and monetary conditions

BRC - British Retail Consortium

BRC - Business Risk Committee

Back to top

· C ·

CBEST UK Government National Cyber Security Programme - provides direction on how to conduct a safe yet realistic simulated attack on the people, processes and technology that comprise a firm’s cyber security controls - see the CBEST website

CBI Confederation of British Industry

CBPS Corporate Bond Purchase Scheme

CCBS - Centre for Central Banking Studies - runs an extensive programme of events for central bankers and financial regulators from around the world

CCPs - central counterparties

CCyB countercyclical capital buffer

The Chancellor - The Chancellor leads the Treasury which is the government department for economic and financial matters. Their work includes generating income (through tax and borrowing) and controlling government spending.

CHAPS Clearing House Automated Payment System - a payment system we operate which allows payments made between UK accounts to arrive the same day they are made

Chief Cashier - responsible for making sure that our banknotes have the latest anti-counterfeiting technology and make sure there are enough banknotes in circulation. You can find the Chief Cashier's signature on every one of our banknotes - see the Chief Cashiers page

Chief Operating Officer (COO) - the COO has responsibility for the day-to-day operations of the institution, including Human Resources, Finance, Property, IT and Security

CIPS Chartered Institute of Purchasing and Supply

Collateral - an asset that a borrower offers a lender to secure a loan. If a borrower fails to repay a loan, the lender can keep or sell the collateral

CM collateral management

Court of Directors - sets our strategy and budget and takes key decisions on resourcing and appointments - see the Court of Directors page

CCR - Credit Conditions Review - a bi-annual assessment of the latest developments in bank funding and household and corporate credit conditions

CCS - Credit Conditions Survey - a quarterly survey of banks and building societies is aimed at improving our understanding of trends and developments in credit conditions

CP Consultation Paper - a publication which outlines and invites comments on details of a new policy we are looking to implement

CPI consumer prices index - see the inflation page

CRD IV Capital Requirements Directive IV - an EU legislation that sets prudential rules for banks, building societies and investment firms

CRR Capital Requirements Regulation

CTRF Contingent Term Repo Facility

Back to top

· D ·

Deputy Governor - we currently have four Deputy Governors each assigned functional responsibility for the following aspect of the our work: Monetary Policy, Financial Stability, Markets & Banking and Prudential Regulation

DMO Debt Management Office

DP Discussion Paper - a paper which sets out our views and analysis in relation to a particular topic

DMP - Decision Maker Panel

DvP delivery versus payment

DWF Discount Window Facility

Back to top

· E ·

EBA European Banking Authority

ECB - European Central Bank

ECTR - Extended Collateral Term Repo

ED - Executive Director

EEA European Economic Area

EEA - Exchange Equalisation Account

EIOPA European Insurance and Occupational Pensions Authority

ELA - Emergency Liquidity Assistance

ERI - exchange rate index

ESA - European Supervisory Authorities

ESCB European System of Central Banks

ESFS European System of Financial Supervision

ESMA European Securities and Markets Authority

ESRB European Systemic Risk Board

ET - Executive Team

EU European Union

Back to top

· F ·

FCA Financial Conduct Authority - the regulator of the conduct of financial services firms and financial markets in the UK

Federal Reserve - The central bank of the United States (also known as 'the Fed')

FEMR Fair and Effective Markets Review

FICC Fixed Income, Currency and Commodities

Financial sector continuity - the three UK financial authorities - the Bank of England, HM Treasury and the Financial Conduct Authority - work together to make sure the UK financial sector runs smoothly, efficiently and effectively

FLS Funding for Lending Scheme - a scheme launched by the Bank of England and the Treasury in 2012, to encourage bank and building societies to lend more to households and businesses

FMI - Financial market infrastructure - the network processes and systems that allow financial transactions to take place

FMLC - Financial Markets Law Committee

FOIA - Freedom of Information Act

FOS - Financial Ombudsman Service

FPC Financial Policy Committee - our committee that identifies, monitors and takes action to remove or reduce risks in the financial system - to protect and enhance its resilience

FRC - Financial Reporting Council

FSA - Financial Services Authority

FSAC - Financial System Advisory Committee

FSB Financial Stability Board - an international body that monitors and makes recommendations about the global financial system

FSCS - Financial Services Compensation Scheme

FSMA Financial Services and Markets Act 2000 - an Act of the UK Parliament that created the Financial Services Authority (FSA) as a regulator for insurance, investment business and banking, and the Financial Ombudsman Service to resolve disputes as a free alternative to the courts. In 2013 the FSA was replaced by the Prudential Regulation Authority (part of the Bank of England) and the Financial Conduct Authority

FSR - Financial Stability Report - our bi-annual report that sets out our Financial Policy Committee's view on the stability of the UK financial system and what it is doing to remove or reduce any risks to it

FTSE Financial Times Stock Exchange

FX - foreign exchange

FXJSC - The London Foreign Exchange Joint Standing Committee - a forum for discussion concerning the wholesale foreign exchange market

FY financial year

Back to top

· G ·

G7 group of seven major economies: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States

GfK Gesellschaft für Konsumforschung - Germany's largest market research institute

GDP gross domestic product - GDP is a measure of the size and health of a country’s economy over a period of time (usually one quarter or one year). It is also used to compare the size of different economies at a different point in time

Governor - in addition to their duties as Governor, they also chair the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Committee

G-SIFI - Globally Systemically Important Financial Institution

Back to top

· I ·

IADB - Interactive Database - now known as the The Database

ICAAP Internal Capital Adequacy Assessment Process

ICB - Independent Commission on Banking

IEO - Independent Evaluation Office - the IEO assesses our performance. It was established in 2014 to increase public trust in the Bank and improve its openness, learning culture and public accountability

IMF - International Monetary Fund

Inflation Attitudes Survey - a quarterly survey, conducted by TNS on our behalf, that accesses public attitudes to inflation, opinions about us and awareness of our work

Interest rate - the rate you pay for borrowing money and what banks pay to you for saving money - see The interest rate page

IOSCO - International Organization of Securities Commissions

IR - Inflation Report - our quarterly report that sets out the economic analysis and inflation projections that the Monetary Policy Committee uses to make its interest rate decisions

IRB - internal ratings based

ISIN - International Securities Identification Number 

Back to top

· L ·

LCR - liquidity coverage ratio   

Back to top

· M ·

MFI - monetary financial institution

MI - Market Intelligence

MiFID Markets in Financial Instruments Directive

MLAR - Mortgage Lenders and Administrators Return - a quarterly statistical release aggregated from data on mortgage lending activities provided by around 340 regulated mortgage lenders and administrators

MMC Money Markets Committee

MMLC Money Markets Liaison Committee

MoU - Memorandum of Understanding

Monetary policy - the process by which we set the interest rate - and sometimes carries out other measures - in order to reach a target rate of inflation

MPC - Monetary Policy Committee - the MPC make decisions about how we try to reach the inflation target set by HM Treasury - also see the monetary policy page

MPC minutes - Minutes of the Monetary Policy Committee meeting - these meetings usually take place 8 times a year

MPC Summary - Monetary Policy Committee Summary - published with the MPC minutes

MSROD - Markets Strategy and Risk Operations Division

Back to top

· N ·

NIPs - Non-Investment Products

NCS - Note Circulation Scheme - the NCS governs the distribution, processing and storage of our banknotes

NedCo - Non-Executive Directors' Committee

Nominations Committee - one of the Court of Directors sub-committees

Back to top

· O ·

OBR Office for Budget Responsibility

OCP - Occasional Consultation Paper

OFCs - other financial corporations

OIS - Overnight Indexed Swap

ONS - Office for National Statistics - the ONS collect, analyse and disseminate statistics about the UK's economy, society and population

OPEC - Organization of the Petroleum Exporting Countries

Operational resilience - the ability of firms and the financial system as a whole to absorb and adapt to shocks, rather than contribute to them - see the financial sector continuity page

ORC - Operational Risk Committee

OSFs - Operational Standing Facilities

OTC - Over The Counter

Back to top

· P ·

PBR - Pre-Budget Report

PNFCs - private non-financial corporations

Polymer - a durable yet thin and flexible plastic film made from polypropylene. The latest £5 and £10 notes are made from polymer - see the polymer banknotes page

PRA - Prudential Regulation Authority - the PRA is responsible for the prudential regulation and supervision of 1,500 banks, building societies, credit unions, insurers and major investment firms

PRC Prudential Regulation Committee - the PRC has responsibility within the Bank for exercising the Bank’s functions as the Prudential Regulation Authority as set out in the Bank of England Act 1998 and the Financial Services and Markets Act 2000

PS Policy Statement

Back to top

· Q ·

QB - Quarterly Bulletin - explores topics on monetary and financial stability and includes regular commentary on market developments and UK monetary policy operations

QE - quantitative easing - when a central bank like the Bank of England creates new money electronically to make large purchases of assets - also known as asset purchases

Back to top

· R ·

Remuneration Committee - one of the Court of Directors sub-committees

Resolution - the process by which we can step in to make sure that a bank that is failing does so in an orderly way - see the Resolution page

RFB - ring-fenced body - these are the retail banking services that will be separated from the operations of large banks, so that consumers can continue to access them even if the banks other operations are affected by a financial shock

RFR Risk-Free Reference Rates

RMD - Risk Management Division 

ROU - Risk Oversight Committee

Royal Mint - based in Llantrisant, South Wales, the Royal Mint is responsible to make and distribute United Kingdom coins

RTGS - real-time gross settlement - an infrastructure operated by us that holds accounts for banks, building societies and other institutions. The balances in these accounts can be used to move money in real time between these account holders

RTP - Reserve Tranche Position

Back to top

· S ·

S&P - Standard and Poor's

SCP - Single Collateral Pool

Sealing Committee - one of the Court of Directors sub-committees

SLC - Securities Lending Committee

SLRC - Securities Lending and Repo Committee

SLS - Special Liquidity Scheme

SME - small and medium-sized enterprise

SMF - Sterling Monetary Framework - our operations in the sterling money markets

Solvency II - sets out regulatory requirements for insurance firms and groups, covering financial resources, governance and accountability, risk assessment and management, supervision, reporting and public disclosure

SONIA - Sterling Overnight Index Average - a widely used interest rate benchmark and the reference rate for sterling Overnight Indexed Swaps (OIS)

SoP - Statement of Policy

SRB - systemic risk buffer

SREP - Supervisory Review and Evaluation Process

SS - Supervisory Statement - the PRA will issue supervisory statements when it wishes to set out its expectations of firms without implementing these into the Rulebook

Stress testing - banking stress tests examine the potential impact of a hypothetical adverse scenario on the individual institutions that make up the banking system, and the system as a whole

Back to top

· T ·

T-bills - Treasury bills

TFS - Term Funding Scheme - provides funding to banks and building societies at rates close to Bank Rate

TNS -  Taylor Nelson Sofres - a market research and market information group

TSC - Treasury Select Committee

Back to top

· V ·

VAT - value added tax

Back to top

· W ·

WMBA Wholesale Market Brokers' Association

This page was last updated 26 October 2018
Was this page useful?
Add your details...