Bank of England
|Bank of England|
The Bank of England is the central bank of the United Kingdom, sometimes referred to as the 'Old Lady' of Threadneedle Street. The Bank was founded in 1694, nationalized on March 1, 1946 and granted independence in 1997.
From a regulatory standpoint, the Bank stands as the primary regulatory body for UK financial regulation.
On June 16, 2010, the U.K. government unveiled a reorganization of the country's bank-regulatory system that includes splitting the FSA into three new agencies, including a bank-regulating subsidiary inside the Bank of England. The Bank would be given more power in supervising the financial sector and preventing systemic risks.
Under the new regulatory structure in the UK, (outlined in the report: A New Approach to Financial Regulation: The Blueprint For Reform the Bank of England will serve as the overarching regulatory agency for financial markets. Three new regulatory offices were created under the Bank of England via the following moves:
- establishing a macro-prudential regulator, the Financial Policy Committee (FPC) within the Bank of England to monitor and respond to systemic risks;
- transferring responsibility for prudential regulation to a focused new regulator, the Prudential Regulation Authority (PRA), established as a subsidiary of the Bank of England; and
- creating a focused new conduct of business regulator, the Financial Conduct Authority (FCA), to ensure that business across financial services and markets is conducted in a way that advances the interests of all users and participants.
On April 1, 2013, the U.K. Financial Services Authority was decommissioned, and its oversight duties transferred to the agencies listed above.
Related Documents: BoE Regulatory Framework (2012); Summary of Changes (Q1 2013)
- U.K. Replaces ’Failed’ FSA With Prudential Regulatory Authority. Bloomberg. Retrieved on April 2, 2013.
- treasury.gov.uk/d/consult_finreg__new_approach_blueprint.pdf A new approach to financial regulation: The Blueprint For Reform. Bank of England. Retrieved on June 17, 2011.