Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of weaknesses in the (1) banking, and (2) insurance, sectors.

In its December 2022 Financial Stability Report, the Bank of England’s independent Financial Policy Committee (FPC) set out its assessment that the UK banking system is resilient to the current economic outlook and has capacity to support lending. Major UK banks’ liquidity and capital positions remain strong. HM Treasury participates in FPC discussions through its non-voting membership of the Committee. The insurance sector was also found to be resilient to the scenarios in the Prudential Regulation Authority’s 2022 Insurance Stress Tests.

The Government’s ambition is for the UK to be the world’s most innovative and competitive global financial centre. The Edinburgh Reforms, launched by the Chancellor on 9 December, take forward this ambition.