Financial Policy Committee (FPC)
People: Furse leaves BoE FPC; Bank Negara appoints sharia advisors
Furse leaves BoE for new role at HSBC; shariah advisory council appointed for new term at Bank Negara Malaysia; and more
BoE’s new MPC member suggests tweaks to policy approach
Michael Saunders says models that assume pre-crisis level for equilibrium unemployment may be misleading; new FPC member grilled on other commitments in the US
BoE’s Woods sees merit in multiple policy committees
New deputy governor believes MPC and FPC should remain separate; BoE has to make sure each committee is aware of the impact of their actions on other committees, he says
New UK law confirms Bank of England governance reforms
Bank of England and Financial Services Bill receives royal assent, cutting number of MPC meetings to eight a year; National Audit Office role expanded, but not into policy
Political and public support ‘critical’ for macro-prudential policy, says Kohn
Effective communication can help ensure public support for macro-prudential policy, BoE FPC member says; lack of support could encourage political interference
BoE moves to tighten buy-to-let standards as risks rise
Review of buy-to-let lending finds some firms may be relying on weaker underwriting standards than others; FPC warns UK financial stability outlook has worsened since last meeting
FPC members deny charges of 'groupthink'
Clara Furse and Richard Sharp argue debate is robust and give examples of where they have challenged the financial policy committee’s majority views; agree to consider issue further
Cunliffe: UK housing risks back on the rise
BoE deputy governor says household balance sheets are “stretched” and some risks are growing; suggests dominance of debt as housing finance is undesirable, but unlikely to change
BoE’s Furse sees benefits to UK as a global finance hub
External FPC member sees plenty of reasons why policy-makers in the UK should seek to make the economy attractive to global financial firms; says robust institutions are important
Two UK banks fall short in BoE stress tests
RBS and Standard Chartered pass 'hurdle' rates but fall short on other capital requirements in 2015 Bank of England stress test; tests redesigned since 2014
BoE advised to publish record of joint MPC/FPC meetings
Treasury Committee advises Bank of England to publish material from joint meetings of the MPC and FPC
BoE’s Sharp wants FPC powers over buy-to-let market
UK Treasury will consult on the prospect of handing the FPC powers of direction over buy-to-let lending; external FPC member in favour
BoE committee sees benefits of moving CCB in small steps
The Bank of England's Financial Policy Committee leaves the CCB at 0% but notes the system is ‘moving into a normal phase of the credit cycle’ and sees potential advantages in using smaller increments when the time comes
BoE’s FPC says no immediate action required on buy-to-let
Bank of England financial policy committee is ‘alert’ to impact of buy-to-let loans on the housing market and overall financial volatility but finds no ‘immediate’ case for action
UK government launches plan to improve BoE governance
Bank of England Bill proposes changes to committee structure, adjustments to the Court, establishing new roles and axing old ones, and audits to assess value for money
UK’s Treasury Committee raises concerns over FPC accountability
MPs question whether Financial Policy Committee discussions are adequately represented by meeting records; wide-ranging discussion takes in liquidity issues, 'too big to fail' and stress testing
Kohn targets more ‘systematic’ macro-prudential policy
Member of the Bank of England’s FPC says the committee should keep developing a more systematic approach to identifying risks and choosing tools to address them
BoE’s Taylor dismisses calls for ring-fence to be dismantled
FPC member warns of damage that could be done if ‘increasingly shrill’ voices calling for regulation to be rolled back are heeded
BoE’s FPC flags climate change financial stability risks
Financial policy committee divides issue into physical risks and transitional risks, seeing some potential for instability from climate change but calling for further research
BoE calls for investigation into market liquidity risks
Financial policy committee concerned that investors assume liquidity will be available when they need it, despite recent fragility; BIS research highlights paradox in liquidity buffers
BoE’s Brazier sees room for improvement in stress testing
New executive director outlines enhancements including counter-cyclical testing and extending the regime to the non-bank sector
BoE paper identifies issues in measuring ‘too big to fail’
Research assesses different approaches to measuring the scale of the ‘too big to fail’ problem, and finds none is without issues, but different approaches still identify effects
BoE’s Kohn and Taylor foresee FPC divisions
Financial policy committee is likely to rely more heavily on voting in future, Donald Kohn and Martin Taylor tell MPs; Andrew Tyrie attacks accountability and calls for review
Carney: ECB has ‘tools and clarity of mandate' to hit inflation target
BoE governor says there is ‘every reason' to expect the ECB to take the ‘measures necessary' to tackle low inflation as he weighs in on several international issues in parliamentary hearing