Record of Financial Policy Committee Meeting held on 20 September 2011

Our Financial Policy Committee (FPC) meets quarterly and sets policy to meet our financial stability objective.
Published on 03 October 2011

At its meeting on 20 September 2011, the Financial Policy Committee agreed the following policy recommendations: 

1. The Committee recommended that banks should take any opportunity they had to strengthen their levels of capital and liquidity so as to increase their capacity to absorb flexibly any future shocks, without constraining lending to the wider economy. 

2. The Committee advised the FSA to encourage banks, via its supervisory dialogue, to manage their balance sheets in such a way that would not exacerbate market or economic fragility. 

3. The Committee urged HM Treasury to continue its efforts to ensure that developments in European legislation did not provide an impediment to the ability of the Committee to use macroprudential policy instruments in the interests of financial stability in the United Kingdom, as envisaged in the consultation documents proposing the establishment of the Financial Policy Committee. 

PDFFinancial Policy Committee record

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