Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the discussions on non-bank financial intermediation during the UK–US Financial Regulatory Working Group discussions, in June 2025, on UK financial stability planning.

On 3 June, HM Treasury hosted the US Treasury and regulators for the UK-US Financial Regulatory Working Group. The Joint Statement outlines the discussions, including on non-bank financial intermediation, and can be found here.

HM Treasury, the Bank of England and Financial Conduct Authority are working closely to monitor risks in and improve the resilience of the non-bank sector. Domestically, this work has included the Bank of England’s System Wide Exploratory Scenario which has improved our understanding of the behaviour of non-bank financial intermediaries during market stress, and the launch of the Contingent Non-Bank Repo Facility to provide liquidity to eligible non-banks in a stress. This is alongside a programme of policy work, including implementing a resolution regime for central counterparties and developing our UK money market fund reform programme.

UK authorities also take an active role on this internationally, including working with international partners at the Financial Stability Board (FSB) to assess risks and develop policy to enhance the resilience of the non-bank sector.