Lord Brooke of Alverthorpe
Main Page: Lord Brooke of Alverthorpe (Labour - Life peer)Department Debates - View all Lord Brooke of Alverthorpe's debates with the HM Treasury
(3 months, 2 weeks ago)
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Baroness Vere of Norbiton (Con)
No, the Government will not ask the PRA—or indeed anybody else—to do that as a matter of urgency. It is up to those independent regulators to decide the next stage at which CBES may be rerun. However, an important learning experience came out of CBES, which was that many of the capabilities needed to be embedded in the system. It is pointless running a scenario if the underlying information and the risk scenarios and outcomes coming from firms have not been updated to reflect the new scenarios. The independent regulators are very seized of the issue. Obviously, CBES will be run in due course if the Bank of England decides that the results of its previous running have been embedded in the system.
Lord Brooke of Alverthorpe (Lab)
My Lords, the noble Lord, Lord Lilley, said that the Bank of England has to take into account a variety of issues. Can the Minister say what work it is doing on AI? Is it in a better position than we are to see what is happening and the consequences?
Baroness Vere of Norbiton (Con)
The noble Lord raises a very important issue. However, it is slightly beyond the remit of the Question.