Financial Services

(asked on 14th July 2017) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made on the effect on the financial stability of the UK of the Financial Policy Committee's decision of 21 June 2017 to oversee contingency planning to mitigate risk as the UK leaves the EU.


Answered by
Steve Barclay Portrait
Steve Barclay
Secretary of State for Environment, Food and Rural Affairs
This question was answered on 20th July 2017

The assessment of the effect of the decisions made by the Financial Policy Committee (FPC) on the financial stability of the UK is a matter for the FPC. The government established the independent FPC in 2013, giving the FPC a primary objective to identify, monitor and take action to remove or reduce systemic risks with a view to protecting and enhancing the resilience of the UK financial system. The FPC comprises thirteen members including the Governor and a non-voting member from HM Treasury (currently the Second Permanent Secretary).

Following its recent policy meeting on 21 June, the FPC published the Financial Stability Report (FSR) on 27 June. The FSR set out the FPC’s latest assessment of the outlook for financial stability in the UK, as well as the actions that the FPC has deemed necessary to meet its objectives.

The Chancellor of the Exchequer is legally required to meet the Governor to discuss the FSR and other matters relating to UK financial stability as appropriate, as soon as possible after the publication of the FSR. HM Treasury will publish a record of this meeting within 6 weeks of the meeting taking place.

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