ACH — automated clearing house
ACR — Annual Competition Report
ACS — annual cyclical scenario
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.
AI — artificial intelligence
ALCo — Assets and Liabilities Advisory Committee
AP — authorised participant
APF — Asset Purchase Facility
ARF — Authorities’ Response Framework
ARRC — Alternative Reference Rate Committee
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
AT1 — additional Tier 1
AVA — additional valuation adjustment
AWE — average weekly earnings
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 that commercial banks offer and charge their customers — see The interest rate (Bank Rate).
Banknote Character Advisory Committee — this committee selects the field from which we want to represent a character on a new banknote. We then ask the public to nominate people from that 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.
BBLS — Bounce Back Loan Scheme
BCR — Basic Capital Requirements
BCR — binding corporate rules
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.
BES — biennial exploratory scenario
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.
BoAML — Bank of America Merrill Lynch
BoJ — Bank of Japan
BRC — Business Risk Committee
BTL — buy-to-let
CAPE — cyclically adjusted price/earning ratio
CBDC — Central Bank Digital Currency
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.
CCAR — Comprehensive Capital Analysis Review
CCBS — Centre for Central Banking Studies — runs an extensive programme of events for central bankers and financial regulators from around the world.
CCFF — Covid Corporate Financing Facility — information for those seeking to participate in the scheme
CCLB — countercyclical leverage buffer
CCP — central counterparty
CCR — Credit Conditions Review — a bi-annual assessment of the latest developments in bank funding and household and corporate credit conditions - last published in April 2018.
CCS — Credit Conditions Survey — a quarterly survey of banks and building societies, which aims to improve our understanding of trends and developments in credit conditions.
CCSAM — CREST Certified Simulated Attack Manager
CCSAS — CREST Certified Simulated Attack Specialist
CCTIM — CREST Certified Threat Intelligence Manager
CDE — critical data elements
CDS — credit default swap
CEIC — CEIC Data Company Ltd
CEO — chief executive officer
CET1 — common equity Tier 1
CFO — chief financial officer
CFRF — Climate Financial Risk Forum
CG — control group
CGC — control group co-ordinator
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 that 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.
CI — capability indicator
CIS — collective insurance schemes
CLO — collateralised loan obligation
CLS — continuous linked settlement
CMBS — commercial mortgage-backed security
CMG — crisis management group
CoCo — contingent convertible capital instrument
COICOP — classification of individual consumption by purpose
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.
ComFrame — Common Framework for the Supervision of Internationally Active Insurance Groups
COREP — Common Reporting
Court of Directors — sets our strategy and budget and takes key decisions on resourcing and appointments — see the Court of Directors page.
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.
CPI inflation — inflation measured by the consumer prices index.
CPIH — an index of consumer prices that includes a measure of owner-occupiers' housing costs.
CRA — credit rating agencies
CRD IV — Capital Requirements Directive IV — EU legislation that sets prudential rules for banks, building societies and investment firms.
CRD V — CRR and CRD collectively
CRE — commercial real estate
CRM — comprehensive risk measure
CSD — Central securities depositories
CSDR — Central Securities Depositories Regulation
CSPP — corporate sector purchase programme
CST — concurrent stress test
CVA — credit valuation adjustment
DAT — Derivatives Assessment Team
DB — defined benefit
DC — defined contribution
DECL Taskforce — the UK Taskforce on Disclosures about Expected Credit Losses
Deputy Governor — we currently have four Deputy Governors each assigned functional responsibility for the following aspects of our work: Monetary Policy, Financial Stability, Markets & Banking and Prudential Regulation.
DGI — domestically generated inflation
DIF — designated investment firm
DLT — distributed ledger technology
DMP — Decision Maker Panel
DMO — Debt Management Office
DP — discussion paper — a paper which sets out our views and analysis on a particular topic.
D-SIB — domestic systemically important bank
DSR — debt-servicing ratio
DTA — deferred tax asset
DTI — debt to income
DTO — Derivatives Trading Obligation
DvP — delivery versus payment
DVA — debit valuation adjustment
DWF — Discount Window Facility
EAD — exposure at default
EBITDA — earnings before interest, taxes, depreciation and amortisation
EC — European Commission
ECAI — external credit assessment institution
ECB — European Central Bank
ECC — Economic Consultative Committee
ECL — expected credit loss
ECTR — Extended Collateral Term Repo
ED — Executive Director
EDTF — Enhanced Disclosure Task Force
EEA — European Economic Area
EEA — Exchange Equalisation Account
EFFR — effective federal funds rate
EFSF — European Financial Stability Facility
ELA — emergency liquidity assistance
EME — emerging market economy
EMIR — European Market Infrastructure Regulation
EOTHO — Eat Out to Help Out
ERI — exchange rate index
ERM — equity release mortgage
ESA — European Supervisory Authorities
ESFS — European System of Financial Supervision
ESRB — European Systemic Risk Board
ET — Executive Team
ETF — exchange-traded fund
EU — European Union
Euribor — euro interbank offered rate
FCA — Financial Conduct Authority — the regulator of the conduct of financial services firms and financial markets in the UK.
FCCM — Financial Collateral Comprehensive Method
FDI — foreign direct investment
FDSF — Firm Data Submission Framework
Federal Reserve — the central bank of the United States (also known as ‘the Fed’).
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.
FINREP — financial reporting
FinTech — financial technology
FISIM — financial intermediation services indirectly measured
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.
fmi CBCM — FMI Cross-Border Crisis Management
FMID — Financial Market Infrastructure Directorate (of the Bank of England)
FOIA — Freedom of Information Act
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.
FPS — Faster Payments Service
FRN — floating-rate note
FSA — Financial Services Authority
FSAC — Financial System Advisory Committee
FSAP — Financial Sector Assessment Program
FSB — Financial Stability Board — an international body that monitors and makes recommendations about the global financial system.
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.
FSSR — Financial Stability Strategy and Risk
FTA — free trade agreement
FVA — funding valuation adjustment
FVO — fair value option
FVOCI — fair value through other comprehensive income
FVTPL — fair value through profit and loss
FX — foreign exchange
FXJSC — The London Foreign Exchange Joint Standing Committee — a forum about the wholesale foreign exchange market.
G7 — group of seven major economies: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
G10 — Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom and the United States
GFC — global financial crisis
GfK — Gesellschaft für Konsumforschung — Germany’s largest market research institute.
GLAC — gone-concern loss-absorbing capacity
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 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-SIB — global systemically important bank
G-SII — global systemically important insurer
GUUG — group on UTI and UPI Governance
HEW — housing equity withdrawal
HLA — higher loss absorbency
HMT — Her Majesty’s Treasury
Hibor — Hong Kong interbank offered rate
HICP — harmonised index of consumer prices
HPI — house price index
HQLA — high-quality liquid asset
IADB — Interactive Database - now known as the The Database.
IAIS — International Association of Insurance Supervisors
IAS — International Accounting Standard
IAS 39 — International Accounting Standards 39
IBES — Institutional Brokers’ Estimate System
IBS — important business service
ICAAP — Internal Capital Adequacy Assessment Process
ICB — Independent Commission on Banking
ICE/BofAML — Intercontinental Exchange/Bank of America Merrill Lynch
ICPFs — insurance companies and pension funds
ICR — interest coverage ratio
ICT — information and communications technology
ID — international directorate
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.
ILS — insurance linked securities
IM — initial margin
IMM — internal model method
IMSG — Implementation Monitoring Standing Group
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 interest rate is usually shown as a percentage of the amount you borrow or save. This is paid as interest over the course of a year. So if you put £100 into a savings account that offers a 1% interest rate, then you’d have £101 a year later. If the interest rate was 2%, you'd get £102, and so on — see The interest rate page.
IPO — initial public offering
IR — Inflation Report — our quarterly report that set out the economic analysis and inflation projections that the Monetary Policy Committee uses to make its interest rate decisions. This was replaced by the MPR.
IRB — internal ratings based
IRC — incremental risk charge
ISA — individual savings account
JSS — Job Support Scheme
KRX — Korea Exchange
LBG — Lloyds Banking Group
LCD — Leveraged Commentary & Data
LCH — London Clearing House
LCR — liquidity coverage ratio
LDI — liability-driven investment
LFS — Labour Force Survey
LGD — loss given default
Libor — London interbank offered rate
Liquidity — how quickly assets (such as cash or cash equivalents) can be bought or sold.
LME — London Metal Exchange
LTI — loan to income
M&A — mergers and acquisitions
MA — monetary analysis
MBS — mortgage-backed security
MCOB — Mortgages and Home Finance: Conduct of Business sourcebook
MDA — maximum distributable amount
MFCI — Monetary and Financial Conditions Index
MFI — monetary financial institution
MI — market intelligence
MIDAS — mixed-data sampling
MiFID — Markets in Financial Instruments Directive
MiFIR — Markets in Financial Instruments Regulation
MIP — mortgage interest payment
MLAR — Mortgage Lenders and Administrators Return — our quarterly statistical release aggregated from data on mortgage lending activities provided by around 340 regulated mortgage lenders and administrators.
MMC — Money Markets Committee
MMF — money market fund
MMR — Mortgage Market Review
MoU — Memorandum of Understanding
Monetary policy — the process by which we set the interest rate - and sometimes carry out other measures — to reach a target rate of inflation.
MPC minutes — minutes of the Monetary Policy Committee meeting — these meetings usually take place eight times a year.
MPC Summary — Monetary Policy Committee Summary — published with the MPC minutes.
MPE — multiple point of entry
MPR — Monetary Policy Report
MREL — minimum requirement for own funds and eligible liabilities
MSROD — Markets Strategy and Risk Operations Division
MtM — mark-to-market
NAV — net asset value
NBFI — non-bank financial institution
NBPSP — non-bank payment services provider
NBSU — New Bank Start-up Unit
NCEME — non-China emerging market economy
NCS — Note Circulation Scheme — the NCS governs the distribution, processing and storage of our banknotes.
NedCo — Non-Executive Directors’ Committee
NGFS — Network for Greening the Financial System
NHS — National Health Service
NII — net interest income
NIIP — net international investment position
NIM — net interest margin
NIPs — non-investment products
NISU — New Insurer Start-up Unit
NLW — National Living Wage
Nominations Committee — one of the Court of Directors sub-committees.
NPA — new payments architecture
NPISH — non-profit institutions serving households
NPL — non-performing loan
NPSO — new payment system operator
NSFR — net stable funding ratio
NtA — Nationalising the Acquis
NTNI — non-traditional, non-insurance
OCI — other comprehensive income
OCIR — operational continuity in resolution
OCP — Occasional Consultation Paper
OEIF — open-ended investment fund
OFC — other financial corporations
OFVI — other fair valued items
OFI — other financial institution
OIS — overnight indexed swap
OMT — outright monetary transaction
ONS — Office for National Statistics — the ONS collects, analyses and disseminates statistics about the UK’s economy, society and population.
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
O-SII — other systemically important institution
P&L — profit and loss
PBR — Pre-Budget Report
PCP — personal contract purchase
PD — probability of default
PFE — potential future exposure
PMI — purchasing managers’ index
PNFC — private non-financial corporation
Polymer — a durable yet thin and flexible plastic film made from polypropylene. Our latest banknotes are made from polymer.
PPF — Pension Protection Fund
PPI — payment protection insurance
PPI — producer price index
PPP — purchasing power parity
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 Banks 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
PSD — product sales data
PSG — policy standing group
PSP — payment service providers
PT — penetration testing
PTSP — penetration testing service provider
PTF — principal trading firm
PVA — prudential valuation adjustment
PwC — PricewaterhouseCoopers
QB — Quarterly Bulletin — our QB explores topics on monetary and financial stability and includes regular commentary on market developments and UK monetary policy operations.
QCCP — qualifying central counterparty
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.
R&D — research and development
RAF — Resolvability Assessment Framework
RAP — resolvability assessment process
RBS — Royal Bank of Scotland
RCF — revolving credit facility
RCV — regulatory carry value
RegTech — regulatory technology
REIT — real estate investment trust
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.
RFI — relevant financial institutions
RMD — risk management division
RNIV — risks not in VaR
RoA — return on assets
RoE — return on equity
ROU — Risk Oversight Committee
Royal Mint — based in Llantrisant, South Wales, the Royal Mint is responsible to make and distribute United Kingdom coins.
RPI — retail price index
RPI inflation — inflation measured by the retail prices index
RTSO — recognised payment system operators
RTGS — Real-Time Gross Settlement — an infrastructure we operate 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
S&P — Standard and Poor’s
SA-CCR — standard approach to counterparty credit risk
SAR — special administration regime
SCC — standard contractual clause
SCO — secondary competition objective
SCP — single collateral pool
SCR — solvency capital requirement
Sealing Committee — one of the Court of Directors sub-committees.
SEC — Securities and Exchange Commission
SEPA — Single Euro Payments Area
SFT — securities financing transaction
SFTR — Securities Financing Transactions Regime
SFX — Structural Foreign Exchange
SI — statutory instrument
SIC — Standard Industrial Classification
SIFI — systemically important financial institution
SIMMTM — Standard IM Model
SIMR — senior insurance managers regime
SIV — structured investment vehicle
SLS — special liquidity scheme
SME — small and medium-sized enterprise
SMF — Sterling Monetary Framework — our operations in the sterling money markets.
SML — survey of mortgage lenders
SMR — Senior Managers Regime
SOC — security operation centre
SOFR — secured overnight financing rate
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
SPE — single point of entry
SPV — special purpose vehicle
SRB — systemic risk buffer
SRPC — Supervision Risk and Policy Committee (Bank governance forum)
SRS — supervisory risk specialists
SS — Supervisory Statement — the PRA will issue supervisory statements when it wishes to set out its expectations of firms without adding these to the Rulebook.
SSB — standard setting body
SSS — securities settlement systems
SST — supervisory stress-testing
STC — simple, transparent and comparable
STDF — stress testing data framework
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.
STSD — stress testing strategy division
SVaR — stressed value-at-risk
SVR — standard variable rate
SVT — standard variable tariff
T2 — tier 2
T-bills — Treasury bills
TFP — total factor productivity
TFS — Term Funding Scheme — provides funding to banks and building societies at rates close to Bank Rate.
TFSME — Term Funding Scheme with additional incentives for SMEs
TI — threat intelligence
TISP — threat intelligence service provider
TLAC — total loss-absorbing capacity
TLC — total labour cost
TLTRO — targeted longer-term refinancing operation
TMTP — transitional measures on technical provisions
TNS — Taylor Nelson Sofres — a market research and market information group.
TPR — temporary permissions regime
TPR — The Pensions Regulator
TR — trade repository
TUC — Trades Union Congress
UCITS — undertakings for collective investment in transferable securities
UKDT — UK deposit takers supervision
ULC — unit labour cost
UPI — unique product identifier
UTI — unique transaction identifier
VA — volatility adjustment
VaR — value-at-risk
VAT — Value Added Tax
VEAP — vulnerable euro-area periphery
VED — vehicle excise duty
WEO — IMF World Economic Outlook
WMBA — Wholesale Market Brokers’ Association
WTO — World Trade Organisation
XBRL — eXtensive Business Reporting Language
XVA — x-value adjustment